International Games System (3293) Q2 2024 earnings summary

Executive summary

• Founded in 1989, IPO in 2006, with paid-in capital of NTD 2,800 million and 1,147 employees, 82% in R&D.

• Major business units are Online Games and Arcade Games, with a global presence and diversified product portfolio.

• Revenue for the first half of 2024 reached NT$8,752.5 million, up 28.7% year-over-year from NT$6,802.7 million.

• Net income for the first half of 2024 was NT$4,312.4 million, a 38.8% increase year-over-year.

• Basic EPS for the first half of 2024 was NT$15.30, compared to NT$11.02 for the same period last year.

Financial highlights

• Total revenue for 2023 was NTD 14,175.8 million, up from NTD 11,948.0 million in 2022; Jan–Aug 2024 revenue reached NTD 11,869.0 million.

• Net income for 2023 was NTD 6,425.9 million, compared to NTD 5,481.6 million in 2022; Jan–Aug 2024 net income was NTD 4,312.4 million.

• Gross margin remained high at 96% for 2022, 2023, and Jan–Aug 2024.

• Operating income for the first half of 2024 was NT$4,781.6 million, up from NT$3,595.9 million year-over-year.

• Cash and cash equivalents at June 30, 2024, were NT$879.0 million, slightly down from NT$942.9 million at year-end 2023.

Outlook and guidance

• Online Games: Focus on stabilizing Taiwan, expanding overseas, especially in Europe and America, and launching new products and platforms.

• Arcade Games: Targeting China and U.S. markets, expecting steady performance with new models like "Kamen RiderGo" and "MONSTER EYE 3".

• Management continues to monitor the impact of new IFRS standards effective in 2025 and 2027, with no significant changes expected to accounting policies.

• The interim earnings distribution for the first half of 2024 will be decided by the board later in the year.