IGG (799) H2 2025 earnings summary

Executive summary

• 2025 revenue was HK$5.5 billion, down 4% year-over-year, with net profit rising 1% to HK$590 million and net profit margin improving to 11%.

• Core games Lords Mobile, Doomsday: Last Survivors, and Viking Rise contributed significantly, with Lords Mobile generating HK$2.17 billion.

• The APP business contributed HK$1.062 billion in revenue and over HK$100 million in net profit, with 67 million monthly active users.

• Strategic IP collaborations, AI adoption, and operational improvements drove user reactivation, efficiency, and revenue growth.

• A total of HK$890 million was returned to shareholders via dividends and share buybacks, representing 152% of net profit.

Financial highlights

• Consolidated revenue for 2025 was HK$5,497 million; gross profit margin improved to 83% from 80% year-over-year.

• Net profit was HK$586 million, with net profit margin up 1% year-over-year.

• Doomsday: Last Survivors revenue grew 12% to HK$1.14 billion; Viking Rise increased 6% to HK$724 million; Fate War contributed HK$90 million.

• Cash and cash equivalents at year-end totaled HK$2,414 million.

• Earnings per share rose 1% to HK$0.5102.

Outlook and guidance

• Revenue and profit for 2026 are expected to remain broadly stable, with Fate War and Doomsday: Last Survivors targeted for further growth.

• APP business is positioned as a secondary growth driver, focusing on user base expansion and platform development.

• Ongoing investment in AI and new SLG titles (Project AOI, Project GE) in development.

• R&D expenses in 2026 to increase slightly, reflecting full-year impact of 2025 hires.

• App business profit margin expected to improve if no major new launches dilute margins.