The Group is a renowned global mobile games developer and operator with headquarters in Singapore and regional offices in the United States, Mainland China, Hong Kong, Canada, Japan, Korea, Thailand, the Philippines, Belarus, and the United Arab Emirates.
The Group's profit attributable to shareholders for the 6 months ended 30-06-2019 amounted to USD 70.71 million, a decrease of 28.3% compared with previous corresponding period. Basic earnings per share was USD 0.0562. An interim dividend of HKD 0.13 per share was declared. Turnover amounted to USD 354.7 million, a decrease of 8.7% over the same period last year, gross profit margin down 0.9% to 69.4%. (Announcement Date: 05 Aug 2019)
Business Review - For the six months ended June 30, 2019
In 2019, IGG embraced challenges and strived for innovation, continuously upgrading its existing titles and actively driving the development and launch of several new games. The Group’s revenue was US$354.7 million, down 9% compared to the corresponding period last year, but stayed stable compared to the second half of 2018. The decrease mainly reflected a natural drop in revenue from the two flagship titles - Lords Mobile and Castle Clash. After years of meteoric growth since its launch in March 2016, revenue for Lords Mobile has started to stabilise. Net profit was US$70.7 million, down 28% compared to the corresponding period in 2018 and 22% compared to the second half of 2018. The decrease in net profit stemmed mainly from lower revenue, as well as the Group’s continued investments in game development, operational and promotional activities, with the aim of driving long-term growth.
To further extend its global reach and strengthen its regional foothold in South America and Western Europe, the Group has been working to set up local teams in Italy and Spain in the first half of 2019, following the successful establishment of subsidiaries in Brazil and Turkey. Furthermore, the Group continues to enhance and encourage internal collaborative competition among development teams to improve their performance and efficiency.
Lords Mobile, released in March 2016, is the Group’s first cross-platform, multi-language, global mega-server game. With its compelling features, Lords Mobile still enjoys enduring popularity and generates steady revenue. As of the end of this Period, the game boasted approximately 240 million registered users worldwide and 16 million MAU, with a stable average monthly gross billing of over US$50 million.
In the first half of 2019, the Group organised the “Lords Fest” World Tour, a series of offline player meetings in multiple cities including Tokyo, Berlin, Bangkok, Taipei, Istanbul and Los Angeles, and launched a series of marketing initiatives to drive its game operations, including cross-promotion with internet influencers and bookshops in Japan, cooperation with local mainstream payment operators in Indonesia, and organising themed events with well-known retail platforms and shopping malls in China. In 2019, the game introduced a wide array of new features including “Kingdom Tycoon”, the “Familiars Battle” expansion pack, and “Wonder” level research and heroes. The PC version of Lords Mobile was released on Steam, a leading global game distribution platform, to enhance the overall player experience by strengthening cross-platform integration, and to reach a wider PC-based audience. Amidst intense competition in the global mobile games market and numerous emerging strategy games, Lords Mobile continues to dominate the worldwide ranking as the top-grossing mobile war strategy game for two consecutive years. According to App Annie’s daily grossing ranking as at 30 June 2019, Lords Mobile ranked top five in 54 and top 10 in 81 countries and regions on Google Play, and top five in 15 and top 10 in 26 countries and regions on iOS. Furthermore, Lords Mobile has received many industry accolades, including “Golden Wave Awards - 2018 Top 10 Most Popular Mobile Game” and “2018 China Game Ceremony - Popular Online Game”.
Castle Clash is a fast-paced tower defence game launched in 2013. After more than six years of operation, the game continues to maintain its popularity. Frequent content updates and regular addition of new features successfully sustained the game’s appeal. Commendably, its soundtrack won the “Best Game Music & Best Composer - Silver Medal” at the Global Music Awards in June 2019. Castle Clash steadily contributed US$8 million in average monthly gross billing for the Period. According to App Annie, Castle Clash ranked among the top 20 grossing games in 14 countries and regions on Google Play as at 30 June 2019.
During the Period, the Group released several meticulously crafted new titles of various genres, including simulation and sandbox games. Among them, Brave Conquest, launched in late June 2019, is an innovative simulation mobile game that integrates kingdom building and role-playing. Only one month of launch, the game quickly gained traction, earning several commendations from Apple’s App Store, and was ranked amongst the top 10 most downloaded strategy games in the USA. Craft Legend, another recently released title, is a global mega-server sandbox mobile game. More than just a classic sandbox building game, Craft Legend combines role-playing and multi-player tower defence gameplay, complemented by exceptional 3D graphics to give players a refreshing new experience.
Business Outlook - For the six months ended June 30, 2019
To extend its leadership position, IGG has always focused on quality, innovation and excellence. The Group is committed to constantly optimising and improving its games to achieve top-notch quality and longevity. A diverse line-up of new titles, including a space war strategy game, are currently in final fine-tuning phase and are expected to make their debut in the second half of 2019. Furthermore, the Group continuously invests in its R&D and operation teams, and will continue to recruit talent internationally. To discover and cultivate global talent with the passion and aptitude for the gaming industry, the Group continues running its “Inter-G” talent programme and “G-Star” incubation programme, and is also working to establish a training centre in Italy for game artists.
The Group will continue to seek potential merger and acquisition opportunities that could create synergies, accelerate growth and provide breakthroughs in its business.
Source: IGG Inc (00799) Interim Results Announcement