12 Jan 2022

CROSBY Research - IGG (799 HK/NEUTRAL): Higher marketing cost to maintain MGB while lower visibility on new titles

On Jan 7, IGG announced profit warning. Total revenue in FY21 is expected to increase by ~10% YoY, while net profit is expected to decline 80-90% YoY. As revenue/ net profit in FY20 was HK$5,478m/ HK$2,102m, IGG may report revenue/ net profit of ~HK$6,026m/ ~HK$210m-420m in FY21. Revenue in 2H21 is expected to decline 8.8% YoY to ~HK$2,788m and a net loss of ~HK$160m-370m is implied in 2H21.