Forgame Announces 2015 Interim Results
Mobile Gameing Revenue Increased by 324%, Business Transformation Strategy is Well-proven
Mobile Gameing Revenue Increased by 324%, Business Transformation Strategy is Well-proven
Publish Date:2015-08-26 source:Forgame
(Hong Kong, 26 August 2015) – Forgame Holdings Limited ("Forgame" or the "Group") (stock code: 484), a leading developer and publisher of mobile games and webgames in China, today announced its interim results for the six months ended 30 June 2015 ("1H 2015"). During 1H 2015, the Group has achieved substantial results in executing the transformation plan to become a mobile gaming company. The mobile gaming revenue has increased significantly by 324% year-on-year. This has marked an important milestone for Forgame, signifying its determination and execution in business transformation.
Forgame recorded a total revenue of RMB309.5 million in the 1H 2015. Revenue from mobile games increased by 324% to RMB189.2 million, accounting for 61% of the total revenue compared to 13% in the 1H 2014. The Group's reported net loss has narrowed to RMB 14.9 million from RMB21.8 million in the 1H 2014. The narrowed net loss reflected the Group's effort in driving operating efficiency by (i) improving the investment return of its advertising expenses, (ii) optimizing its research and development capability, and (iii) controlling the administration cost.
The mobile game business is progressing very well. In the 1H 2015, the Group has recorded strong revenue growth from mobile games driven by significant increase in revenue from its strategy of making IP-based mobile games as well as games with sequel potentials, such as "Boonie Bears: Forest Defense" (熊出没之森林保卫战), "Boonie Bears: Homeland Defense" (熊出没之保卫家园), "Boonie Bears: A Mystical Winter" (熊出没之雪岭熊风) and "Sword Immortal" (剑仙缘). In terms of mobile gaming pipeline, the Group has published 13 mobile games in 1H 2015, of which 11 of them were produced in-house. Forgame remains confident that, by the end of year 2015, it should meet and potentially exceed the target of delivering 20 games to at least the beta testing stage.
The Group has also shaped up the development in casual gaming platform. The gaming app store "Meitu Game Box" (美图游戏盒) exclusively developed and operated by Forgame cooperating with Xiamen Meitu Technology Co. Ltd. has already featured over 200 mobile games. The Group's first styling and fashion mobile game "Beauty Box"(美美小店) is planned to debut on "Meitu Game Box" as well. "Meitu Game Box" is not only catered to bringing quality casual games to a growing market of female players, but also allows the Group to create a unique causal game platform, thus speeding up its pace to become a leader in the casual gaming industry.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, "For the 1H 2015, we have observed encouraging results in our business transformations. It demonstrates our efforts to turn around the businesses financially. We have been more focused on growing mobile franchise and optimizing the cost structure. We are also actively seeking for M&A opportunities with the goal to create an international gaming ecosystem. Forgame is envisioned to become a leader in the casual gaming market by having strategic investments in all key areas of the gaming ecosystem and thus lay a strong foundation to a greater success."
Mr. Wang continued, "Stepping into the 2H 2015, we will further lay down the key pieces to carry out our strategy in further developing our mobile gaming R&D and platform business. We will continue to produce quality games that utilize renowned IPs we have already invested in, such as 'Doreamon', 'Ghost Blows Out the Light', etc. Meanwhile, we will strive to have a closer cooperation relationship with key platforms such as Meitu, Tencent, and Baidu to create our unique advantage and value in platform business. I firmly believe that the management of the Group will continue to work tirelessly to finish our transformation plan and ultimately create value for shareholders."
Forgame recorded a total revenue of RMB309.5 million in the 1H 2015. Revenue from mobile games increased by 324% to RMB189.2 million, accounting for 61% of the total revenue compared to 13% in the 1H 2014. The Group's reported net loss has narrowed to RMB 14.9 million from RMB21.8 million in the 1H 2014. The narrowed net loss reflected the Group's effort in driving operating efficiency by (i) improving the investment return of its advertising expenses, (ii) optimizing its research and development capability, and (iii) controlling the administration cost.
The mobile game business is progressing very well. In the 1H 2015, the Group has recorded strong revenue growth from mobile games driven by significant increase in revenue from its strategy of making IP-based mobile games as well as games with sequel potentials, such as "Boonie Bears: Forest Defense" (熊出没之森林保卫战), "Boonie Bears: Homeland Defense" (熊出没之保卫家园), "Boonie Bears: A Mystical Winter" (熊出没之雪岭熊风) and "Sword Immortal" (剑仙缘). In terms of mobile gaming pipeline, the Group has published 13 mobile games in 1H 2015, of which 11 of them were produced in-house. Forgame remains confident that, by the end of year 2015, it should meet and potentially exceed the target of delivering 20 games to at least the beta testing stage.
The Group has also shaped up the development in casual gaming platform. The gaming app store "Meitu Game Box" (美图游戏盒) exclusively developed and operated by Forgame cooperating with Xiamen Meitu Technology Co. Ltd. has already featured over 200 mobile games. The Group's first styling and fashion mobile game "Beauty Box"(美美小店) is planned to debut on "Meitu Game Box" as well. "Meitu Game Box" is not only catered to bringing quality casual games to a growing market of female players, but also allows the Group to create a unique causal game platform, thus speeding up its pace to become a leader in the casual gaming industry.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, "For the 1H 2015, we have observed encouraging results in our business transformations. It demonstrates our efforts to turn around the businesses financially. We have been more focused on growing mobile franchise and optimizing the cost structure. We are also actively seeking for M&A opportunities with the goal to create an international gaming ecosystem. Forgame is envisioned to become a leader in the casual gaming market by having strategic investments in all key areas of the gaming ecosystem and thus lay a strong foundation to a greater success."
Mr. Wang continued, "Stepping into the 2H 2015, we will further lay down the key pieces to carry out our strategy in further developing our mobile gaming R&D and platform business. We will continue to produce quality games that utilize renowned IPs we have already invested in, such as 'Doreamon', 'Ghost Blows Out the Light', etc. Meanwhile, we will strive to have a closer cooperation relationship with key platforms such as Meitu, Tencent, and Baidu to create our unique advantage and value in platform business. I firmly believe that the management of the Group will continue to work tirelessly to finish our transformation plan and ultimately create value for shareholders."
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading developer and publisher of webgames in China with a fast-growing mobile games business. As of 30 June 2015, the company had 39 self-developed webgames and 25 mobile games in operation. Its game publishing platform 91wan has distributed over 90 self-developed and licensed webgames and attracted over 224 million registered players.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading developer and publisher of webgames in China with a fast-growing mobile games business. As of 30 June 2015, the company had 39 self-developed webgames and 25 mobile games in operation. Its game publishing platform 91wan has distributed over 90 self-developed and licensed webgames and attracted over 224 million registered players.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.