IGG (799) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was HK$2.72 billion, stable year-over-year, with flagship titles and the APP Business as key contributors; significant growth is expected in the second half from new game launches and strong performance in existing titles.

• Net profit was HK$325 million, flat year-over-year but up 29% from the previous half-year; gross profit margin improved to 83% from 79% year-over-year, driven by cost optimization and higher-margin APP Business.

• APP Business revenue grew 30% year-over-year to HK$530 million, with MAU up 79% to 73 million and profit margin rising from 5% to 14%.

• Interim and special dividends totaling HK13.9 cents per share were declared, with total shareholder returns (dividends plus buybacks) at 61% of profit.

• R&D accounts for 60% of over 2,100 employees, with core teams in 10+ countries and strong partnerships with major platforms.

Financial highlights

• Consolidated revenue for 1H25 was HK$2,721 million (vs. HK$2,735 million in 2024), gross profit HK$2,257 million (+5% YoY), and net profit HK$324.7 million (vs. HK$330.9 million in 2024).

• Gross profit margin improved to 83%, up 4 percentage points year-over-year; cost of revenue down 20% YoY.

• Earnings per share (basic) was HK$0.2805, diluted HK$0.2789, both down slightly year-over-year.

• Net cash from operating activities reached HK$360 million; cash and cash equivalents stood at HK$2,502 million as of June 30, 2025.

• Lords Mobile generated HK$1.15 billion, Doomsday HK$524 million, Viking Rise HK$364 million, and APP Business HK$530 million in H1.

Outlook and guidance

• Monthly gross billing is expected to continue growing, with December forecasted to exceed $20 million due to an Attack on Titan IP collaboration.

• Focus remains on enhancing gaming and APP Business, sustaining long-term profitability, and global R&D, with new SLG titles like Fate War and Project AOI expected to drive future growth.

• APP Business projected to benefit from holiday season, with revenue expected to reach HK$18 million monthly by year-end.

• Fate War anticipated to become a major growth engine, targeting higher revenue than Viking Rise in H2.

• Dividend and buyback policy to remain consistent if performance continues to improve.