International Games System (3293) Q4 2024 earnings summary

Executive summary

• Founded in 1989, IPO in 2006, with paid-in capital of NTD 2,800 million and 1,136 employees, 82% in R&D.

• Major business units include licensing games, APP, and arcade games, with a diversified operating model spanning manufacturing, online services, and distribution.

• Revenue for Q1 2024 was NT$5,359 million, up 28% year-over-year from NT$4,177 million in Q1 2023.

• Net income attributable to owners was NT$2,627 million, a 29% increase year-over-year.

• Basic EPS for Q1 2024 was NT$9.32, compared to NT$7.23 in Q1 2023.

Financial highlights

• Total revenue rose to NTD 18,512.8 million in 2024, up from NTD 14,175.8 million in 2023 and NTD 11,948.0 million in 2022.

• Net income increased to NTD 9,057.3 million in 2024, compared to NTD 6,425.9 million in 2023 and NTD 5,481.6 million in 2022.

• EPS after tax was NTD 32.14 in 2024, down from NTD 45.61 in 2023 but up from NTD 38.88 in 2022.

• Gross margin remained high at 98% in Q1 2024, similar to 97% in Q1 2023 and consistent with 96% in 2024.

• Dividend payout ratio was 90% in 2024, with a cash dividend of NTD 29.00 per share.

Outlook and guidance

• Online game licensing revenue expected to perform well, driven by expansion in Southeast Asia, Europe, and the U.S.

• Online game APP revenue projected to remain flat, with ongoing investment in new games and overseas market expansion.

• Arcade game revenue anticipated to grow modestly, focusing on China and the U.S. with new product development.

• Management continues to monitor IFRS changes but expects no material impact on financials.

• Focus remains on product innovation, R&D, and stable dividend policy.