Forgame Announces 2015 Annual Results
Mobile Gaming Operation Gaining Traction with Corresponding Revenue Increased by 106%
Mobile Gaming Operation Gaining Traction with Corresponding Revenue Increased by 106%
Publish Date:2016-03-23 source:Forgame
(Hong Kong, 23 March 2016) – 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 annual results for the year ended 31 December 2015. The Group continues to gain traction in expanding its mobile gaming operation as the Company almost doubled its mobile games launch from 12 last year to 20 in 2015. Moreover, 75% of its mobile games fall under the casual game category, which is in-line with our goal to be a leader in the casual mobile gaming space. Overall, the Group’s mobile gaming revenue increased by 106% year-over-year.
During the year, the Group recorded total revenue of RMB511.5 million and net loss of RMB129.6 million. The majority of the losses were generated from impairment and investment losses of approximately RMB79.8 million. Also, delays of a few key games also prevented us from delivering stronger operating results. However, the Group had made efforts to effectively improve the cost and operating efficiency by (i) improving the investment return on advertising expenses, (ii) optimising its research and development capability; and (iii) managing administration costs. Specifically, selling and marketing expenses and R&D expenses decreased by approximately 72.8% and 43.1% YoY respectively.
Apart from the implementation of its game development strategy of launching more casual games, the Group also intends to bring its games to the wider global market. Forgame’s overseas R&D and publishing team, who had enjoyed success in bringing local made games to the U.S. and Europe market prior to joining Forgame, has launched their first game developed in-house at Forgame, namely “Liberators”, a World War II-themed game, in the first quarter of the year 2016. The team is planning to introduce more games internationally in 2016 and beyond.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “For the year 2015, the Group has made tremendous effort in expanding Forgame’s mobile games operation with the goal to be the leader in casual mobile games. The games including the “Boonie Bear (熊出没)” series and the sequel of our legacy hit game “Soul Guardian,” “Sword Immortal (剑仙缘),” have achieved satisfactory market results and contributed to the increase of our mobile games revenue in 2015. Meanwhile, the Group has achieved good progress in improving operating efficiency through modifying the cost structure and streamlining the overheads. This enables the Group to optimize our business operation and allow us to be nimble in this competitive market.”
During the year, the Group recorded total revenue of RMB511.5 million and net loss of RMB129.6 million. The majority of the losses were generated from impairment and investment losses of approximately RMB79.8 million. Also, delays of a few key games also prevented us from delivering stronger operating results. However, the Group had made efforts to effectively improve the cost and operating efficiency by (i) improving the investment return on advertising expenses, (ii) optimising its research and development capability; and (iii) managing administration costs. Specifically, selling and marketing expenses and R&D expenses decreased by approximately 72.8% and 43.1% YoY respectively.
Apart from the implementation of its game development strategy of launching more casual games, the Group also intends to bring its games to the wider global market. Forgame’s overseas R&D and publishing team, who had enjoyed success in bringing local made games to the U.S. and Europe market prior to joining Forgame, has launched their first game developed in-house at Forgame, namely “Liberators”, a World War II-themed game, in the first quarter of the year 2016. The team is planning to introduce more games internationally in 2016 and beyond.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “For the year 2015, the Group has made tremendous effort in expanding Forgame’s mobile games operation with the goal to be the leader in casual mobile games. The games including the “Boonie Bear (熊出没)” series and the sequel of our legacy hit game “Soul Guardian,” “Sword Immortal (剑仙缘),” have achieved satisfactory market results and contributed to the increase of our mobile games revenue in 2015. Meanwhile, the Group has achieved good progress in improving operating efficiency through modifying the cost structure and streamlining the overheads. This enables the Group to optimize our business operation and allow us to be nimble in this competitive market.”
Mr. Wang concluded, “Going forward, the Group will continue to work hard and be prudent with our decision making to generate higher shareholders value. We want to thank our shareholders for their continual support.”
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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 company of mobile games and webgames in China. As of 31December 2015, the company had over 30 self-developed webgames and over 30 mobile games in operation. Its game publishing platform 91wan has distributed over 100 self-developed and licensed webgames and attracted over 225 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.