In This Article:
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Total Revenue: $2.74 billion, up by 9%.
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Profit: HKD330 million.
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Gross Billing in July: HKD550 million, highest in recent years.
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Viking Rise Billing: Exceeded $80 million, doubled from earlier this year.
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APP Business Billing: Increased to $120 million, tripled from earlier this year.
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Lords Mobile Monthly Gross Billing: USD30 million.
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Consolidated Revenue for First Half: HKD2.735 billion, YoY increase of 9%.
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Gross Profit: HKD2.155 billion, up by 19% YoY.
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Gross Profit Margin: 79%, up by 7 percentage points.
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R&D Expense: HKD395 million, reduced by 21%.
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Net Profit Margin: 12%.
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Cash and Cash Equivalents: HKD1.91 billion.
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Net Cash Inflow: HKD600 million.
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Total Assets: HKD4.1 billion.
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Dividend: HKD0.085 per share, 30% of interim profit.
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Share Buyback: HKD33 million, 10% of interim profit.
Release Date: August 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IGG Inc (IGGGF) achieved a total revenue of $2.74 billion, marking a 9% increase.
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The company has diversified its business with three products exceeding USD10 million in billings, contributing to a historical peak in total revenue.
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Viking Rise and APP business have shown significant growth, with Viking Rise's billing doubling and APP business tripling.
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The company has resumed profitability with a profit of HKD330 million and plans to allocate 30% of the profit for dividends and 10% for share buybacks.
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Lords Mobile, despite being over eight years old, remains stable with a gross billing of over USD28 million, showing resilience and continued user engagement.
Negative Points
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The gaming industry faces increased competition, particularly in the SLG segment, which could impact market share and growth.
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Marketing expenses remain high, affecting profit margins, with significant spending planned for promotions in December.
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The company's APP business, although growing, is still relatively small and vulnerable to competition from larger players.
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Despite growth, the market value of IGG Inc (IGGGF) is not as high as expected, prompting management to consider shareholding increases.
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Capital expenditure is expected to rise by 30% to 35% in the second half of the year due to the completion of the headquarters building, which could impact cash flow.
Q & A Highlights
Q: Can you provide insights on user acquisition and competition for Doomsday and Viking Rise, especially in overseas markets? A: Yuan Xu, Chief Operating Officer: For Doomsday, we expect to maintain a gross billing of USD12 million per month in the second half of the year, with increased promotion in December. The theme is popular, giving us an edge in user acquisition. Despite increasing competition in the SLG game market, our structural and thematic advantages give us confidence. For Viking Rise, we aim for USD10 million in gross billing, with plans to boost it to USD50 million per month through promotions.