IGG (799) H1 2024 earnings summary

Executive summary

• Achieved record-high revenue of HK$2.74 billion for 1H24, up 9% year-over-year, with net profit of HK$331 million, reversing a loss from last year.

• APP Business and new games now contribute 44% of total revenue, up from 23% in 1H23, with APP Business revenue up 116% year-over-year.

• Lords Mobile remains the largest contributor, with stable monthly gross billing of HK$28–30 million and MAU of 9.5 million.

• Net profit margin improved to 12%, with core business net profit exceeding HK$350 million.

• Focused on global expansion, product diversification, and leveraging AI for efficiency.

Financial highlights

• Consolidated revenue for 1H24: HK$2,735 million, up 9% year-over-year; gross profit: HK$2,155 million, up 19% year-over-year; gross margin improved to 79%.

• Net profit margin at 12%, with net profit of HK$331 million, compared to a loss of HK$360 million last year.

• APP Business revenue grew to HK$409 million, now 15% of total revenue.

• Cash and cash equivalents: HK$1,940 million; net cash inflow from operations: HK$600 million.

• Total assets: HK$4,100 million.

Outlook and guidance

• Expect continued growth in Viking Rise, Doomsday, and APP Business in H2 2024 and 2025.

• Three new SLG games to be released: two in November 2024, one in Q2 2025, targeting global audiences.

• APP Business NP margin expected to exceed 20% as scale increases.

• Marketing and CapEx to rise in H2, especially for new game launches and headquarters completion.

• Continued focus on R&D efficiency and product diversification using AI technology.