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; global reach includes 1.6bn gamers and 89mn MAU across 200+ countries.

• Net profit was HK$320 million, flat year-over-year but up 29% from the previous half-year; core business net profit (non-IFRS) was HK$340 million.

• Gross profit margin improved to 83% from 79% year-over-year, driven by cost optimization and higher-margin APP Business growth.

• Interim and special dividends totaling HK13.9 cents per share (HK$161 million) were declared, plus HK$35 million in share buybacks, representing 61% of period 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

• Revenue: HK$2,721 million (vs. HK$2,735 million in 2024); gross profit: HK$2,257 million (+5% YoY); gross margin: 83% (+4pp YoY).

• Net profit: HK$324.7 million (vs. HK$330.9 million in 2024); adjusted net income (non-IFRS): HK$331.5 million.

• APP Business revenue grew 30% YoY to HK$530 million, now 20% of total revenue and 22% of profit.

• Lords Mobile contributed HK$1,147 million (42% of revenue), Doomsday: Last Survivors HK$524 million (19%), Viking Rise HK$364 million (13%).

• Cash and cash equivalents: HK$2,502 million as of June 30, 2025; net cash from operating activities: HK$355 million.

Outlook and guidance

• Focus on enhancing gaming and APP Business, sustaining long-term profitability, and global R&D/operations.

• "Fate War" launched in August 2025, showing strong early traction with 1.2 million MAU and HK$20 million gross billing.

• APP Business is expected to remain a key growth driver, with MAU up 79% YoY and revenue up 30% YoY.

• New SLG titles, including Fate War and Project AOI, expected to drive future growth.

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