GLOBAL PRESENCE
Established in 2006, IGG is a renowned developer and publisher of mobile games with a strong global presence and an international customer base of 1.4 billion users with over 33 million MAU. Leveraging its success in client and browser PC online games, the Group changed its strategy to target the mobile games market in 2013. After years of effort, the Group’s mobile games are now available in 23 different languages worldwide, and IGG has been listed among the “Top 52 Publishers” globally by data.ai for eight consecutive years. Embracing our corporate spirit of “Innovators at Work, Gamers at Heart”, the Group is dedicated to creating high-quality and enjoyable games that will stand the test of time.
IGG is headquartered in Singapore with local offices in the United States, China, Canada, Japan, South Korea, Thailand, the Philippines, Indonesia, Brazil, Türkiye, Italy and Spain, and users from more than 200 countries and regions worldwide. Over the years, IGG has aggressively pursued a strategy of globalisation in R&D and operations, establishing long-term relationships with over 100 business partners, including global platforms, advertising channels, and vendors such as Apple, Google, and Meta. The Group’s international presence and partnerships have enhanced its competitive advantage in the industry.
BUSINESS REVIEW
In 2021, the continuous spread of the COVID-19 pandemic across the globe and the introduction of new regulatory measures for games in China intensified competition in the games industry. IGG continues to maintain its competitive edge by leveraging its years of experience in global operations. The Group successfully released several new games in different genres, achieving a new milestone in portfolio diversification.
In the first half of 2022, the Group’s revenue declined 23% year-on-year and decreased 12% half-on-half to nearly HK$2.5 billion amid the challenges caused by intensifying competition, the Russia-Ukraine War and persistently high inflation globally. “Lords Mobile”, IGG’s flagship title launched seven years ago, continued to generate stable revenue, contributing over HK$2.0 billion in the first half of 2022. During the Period, revenue generated from markets in Asia, North America and Europe accounted for 37%, 33% and 24%, respectively, of the Group’s total revenue.
The Group continued to optimise resource allocation and control costs amid the operating challenges. IGG’s core game business turned from a net loss of over HK$80 million in the first quarter of 2022 to a net profit of more than HK$20 million in the second quarter of 2022. Due to the valuation fluctuation and performance losses of the investee companies, the Group’s investments recorded a loss of HK$114 million. As a result, the Group recorded a net loss of HK$172 million in the first half of 2022, narrower by 17% compared to the net loss of HK$207 million in the second half of 2021.
“Lords Mobile”
“Lords Mobile”, released in March 2016, is the Group’s first cross-platform, multi-language, real-time game designed for global gamers. The game has been well-received by gamers since its launch and continues to generate stable revenue for the Group. During the Period, the Group continued to release regular updates and collaborated with Universal Pictures to introduce characters from their smash hit, Kung Fu Panda 3, into the game. IGG will continue to release new game content and different promotional initiatives to extend the game’s longevity. As of 30 June 2022, the game has over 540 million registered users worldwide and nearly 11 million MAU.
“Time Princess”
“Time Princess”, released in the second half of 2020, is the first female-oriented game developed by the Group. On top of the frequent release of new interactive stories since its debut, “Time Princess” is collaborating with the Louvre Museum during the Period, the first time the Louvre has ever partnered with a mobile game. “Time Princess” took players on a magical tour of the Louvre through an interactive story “The Louvre Journey” with a unique outfit.
“Mythic Heroes”
“Mythic Heroes", released in September 2021, is an idle role-playing game. With unique multi-cultural mythological themes and high-quality graphics, the game has been well-received by gamers since its debut. Recently, “Mythic Heroes” topped the game rankings on both Apple’s App Store and Google’s Play Store at its official release in South Korea. The game succeeded in gaining a growth driver in Asia.
“Castle Clash”
“Castle Clash” is a fast-paced tower defence game launched in 2013. The game remains popular after nine years. Frequent content updates and regular addition of new features have successfully sustained the game’s appeal.
New Titles
“Yeager: Hunter Legend", an eagerly awaited action game, was released in July 2022. The game offers players an immersive and realistic monster hunting experience on a vast world map with intuitive battle controls and high-quality graphics. Another strategy game, “Doomsday: Last Survivors", is a unique game with a combination of tower defence and strategy, and is showing growth potential in European, North American and South East Asian markets.
Furthermore, a diverse line-up of new titles, including strategy games, an idle game, and more massively multiplayer online role-playing games are scheduled for launch in the second half of the year.
Investments
The main objectives of the Group’s investments are to strengthen its overall R&D capability and enrich its product portfolio. Through strategic agreements with companies in the games industry, including licensed publishing and outsourced game development, the Group strives to diversify its game portfolio. At the same time, the Group tracks strategic directions in the Internet industry by investing in private equity funds with outstanding performance and portfolios focused on mobile Internet business. During the Period, due to the valuation fluctuation and performance losses of the investee companies, the Group’s investment business recorded a loss of HK$114 million.
PROSPECTS
Following years of investment in research and development, the Group is starting a new chapter of growth in the second half of 2022. The Group expects a net loss in the second half of 2022 due to increased marketing budgets for new games in order to drive revenue to new heights.
Looking forward, IGG will continue to release innovative and diversified games to drive long-term growth. Embracing the corporate spirit of “Innovators at Work, Gamers at Heart”, the Group will continue to strengthen its global R&D and operation teams, to relentlessly pursue its strategy of quality, innovation and excellence in creating innovative yet timeless games.
