Shares of game company IGG rose to a 13-month high

IGG, a Hong Kong-listed gaming company, rose as much as 12 percent in intraday trading, with its shares rising to their highest level since July 3, 2019. Earlier, the company announced that net profit in the first half of the year rose 88% from a year earlier, and the monthly flow of the main game “Lords Mobile” reached an all-time high of 60 million US dollars in July.

IGG (00799.HK), a mobile game developer and operator, released its 2020 interim report after Hong Kong stocks closed on Aug. 5. According to the data, IGG’s revenue in the first half of 2020 (as of June 30) was 312 million yuan, down 12 percent from a year earlier, while net profit attributable to equity shareholders of the company was $133 million, up 88 percent from a year earlier.

According to the game, IGG’s income is divided into “Lords Mobile”, “Castle Clash” and the other three parts. In the first half of 2020, IGG’s revenue from “Lords Mobile” was US$264 million, down 6.38% from the same period last year, accounting for 84.4% of the total revenue; and the revenue from “Castle Clash” was US$24 million, down 10.71% from the same period last year, accounting for 7.7% of the total revenue.

IGG’s gross margin in the first half of 2020 was $217 million, down 12% from a year earlier, mainly due to a natural decline in “Lords Mobile” and “Castle Clash” revenue; gross profit margin for the period was 69%, the same as in the same period in 2019.

Headquartered in Singapore, IGG is generally considered to be a Chinese video game company because of its founder and predecessor. IGG has been specializing in overseas gaming markets and largely abandoned its home market in 2011 before listing on the Hong Kong Stock Exchange in 2013. Today, IGG is one of the most successful overseas game companies in China, and IGG also plays a part in the success of Chinese mobile games in overseas markets.

IGG has made some achievements in PC games, page games, and mobile games, and mobile games are currently its biggest source of income. “Lords Mobile” is a mobile game launched by IGG in September 2017. It combines RPG and SLG game modes, is one of the more successful mixed-mode games, and eventually becomes the core product of IGG today. Since then, mixed-mode games have attracted attention in the field of mobile games in China, and have become a new trend in mobile games in China.