IGG (799) H2 2025 earnings summary

Executive summary

• 2025 revenue reached HKD 5.5 billion, down 4% year-over-year, while net profit rose 1% to HKD 590 million and net profit margin improved to 11%.

• Core games Lords Mobile, Doomsday, and Viking Rise contributed HKD 2.17B, HKD 1.14B, and HKD 720M in revenue, respectively, with Fate War showing strong growth.

• Maintained a diversified portfolio with classic, mid-generation, and new game titles, and a growing APP business contributing HKD 1.062B in revenue.

• Over 2,300 employees globally, with operations in 10+ countries and products available in 23 languages, reaching 1.6 billion users.

• Fate War, a new title, showed strong growth with December gross billing exceeding HKD 30 million and 4.7M registered users.

Financial highlights

• Gross margin improved by 3 percentage points to 83% year-over-year.

• Net profit margin increased to 11% from 10% year-over-year.

• R&D expenses rose 7% to HKD 844 million due to new projects.

• Cash and cash equivalents stood at HKD 2.41 billion; net cash inflow from operations was HKD 700 million.

• Earnings per share rose 1% to HKD 0.5102.

Outlook and guidance

• 2026 revenue and profit expected to remain broadly stable, excluding Fate War's impact.

• Fate War is entering a harvest period, expected to generate increasing revenue.

• Doomsday targeted to exceed $20 million in monthly gross billings in 2026.

• Continued focus on innovation, AI integration, and expanding the APP business user base.

• New SLG titles, Project AOI and Project GE, are in development.