IGG (799) H2 2024 earnings summary

Executive summary

• Achieved consolidated revenue of HK$5.74 billion in 2024, up 9% year-over-year, with net profit surging 697% to HK$580 million, driven by strong performance in strategy games and the APP Business.

• APP Business revenue reached HK$1.1 billion, accounting for 19% of total revenue, with MAU exceeding 62 million and net profit margin rising from 5% to 9%.

• Flagship games Lords Mobile, Doomsday, and Viking Rise remain core, with major upgrades and new versions planned for 2024–2025.

• New games Tycoon Master, Frozen War, and Project PSS launched or scheduled, with early results showing strong retention and revenue potential.

• Continued global expansion with operations in over 200 countries and regions.

Financial highlights

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

• R&D expenses decreased 16% to HK$787 million, with R&D-to-revenue ratio down to 14% due to AI adoption.

• Cash and cash equivalents at year-end: HK$2.25 billion; net cash from operations at HK$1.12 billion.

• Share buybacks and dividends accounted for 38% of annual profit, with HK$47 million spent on buybacks and HK$175 million in dividends.

• Lords Mobile revenue declined 17% year-over-year to HK$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.

• Major upgrades and new versions of flagship games scheduled for 2024–2025, with new launches expected to drive growth.

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

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