IGG (799) H2 2024 earnings summary

Executive summary

• Achieved consolidated revenue of HKD 5.74 billion in 2024, up 9% year-over-year, with net profit surging to HKD 583 million, a 697% increase from last year; core business net profit rose 3,626% to HKD 650 million.

• APP business revenue grew threefold to HKD 1.9 billion, with MAU exceeding 62 million and net profit margin rising from 5% to 9%.

• Three flagship games—Lords Mobile, Doomsday, and Viking Rise—remain core, with major upgrades planned in 2024 and new versions scheduled for 2025.

• Launched new games Tycoon Master and Frozen War, with PSS scheduled for the second half of 2024; early results show strong retention and revenue potential.

• Monthly gross billing averaged HKD 500 million, with Lords Mobile contributing HKD 230 million, Doomsday HKD 90 million, Viking Rise HKD 62 million, and APP Business HKD 91 million.

Financial highlights

• Gross profit reached HKD 4.61 billion, up 18% year-over-year, with gross margin improving to 80% from 74%.

• R&D expenses decreased 16% to HKD 787 million due to AI adoption.

• Cash and equivalents at HKD 2.25 billion; net cash from operations at HKD 1.12 billion.

• Share buyback cost HKD 47 million (8% of annual profit); total 38% of profit returned to shareholders via dividends and buybacks.

• Lords Mobile revenue declined 17% year-over-year to HKD 2.59 billion, while Doomsday and Viking Rise grew 50% and 66% respectively.

Outlook and guidance

• Revenue expected to grow 5–10% in 2025 even under conservative assumptions; upside if new games succeed.

• APP business targets net profit margin increase to 12–15% in 2025, with steady revenue growth.

• R&D and sales expenses to remain stable, with dynamic marketing investment based on game performance.

• Dividend policy remains at 30% of profit; no special dividend planned due to investment in new games.

• Continued focus on AI integration to enhance efficiency and global competitiveness.