Mon, May 07, 2018 - Page 15 News List

Weak arcade sales drag IGS’ operating income during Q1

By Chen Cheng-hui  /  Staff reporter

International Games System Co (IGS, 鈊象電子) on Thursday last week reported lower operating income and revenue for last quarter due to weaker arcade game sales, but a net income increase from a year earlier, as non-operating losses decreased over the period.

IGS develops and sells software and hardware for arcade and online/mobile games.

Arcade game sales accounted for 41 percent of last year’s revenue, while online/mobile games sales contributed 59 percent, the company’s filing with the Taiwan Stock Exchange showed.

Net income for the period grew 10.14 percent to NT$174.68 million (US$5.88 million) from NT$158.6 million during the period last year, with earnings per share rising to NT$2.49 from NT$2.27.

Over the period, consolidated revenue decreased 7.77 percent to NT$722.996 million, but non-operating losses shrank to NT$24.09 million from NT$59.3 million during the same quarter last year, the filing showed.

Overall, the New Taipei City-based company said its gross margin improved to 89 percent from 84.77 percent year-on-year, but its operating margin fell to 29.77 percent from 30.24 percent.

This quarter, the peak season for arcade game makers, IGS said it plans to attract potential buyers with more games at the GTI Asia Taipei Expo from Thursday to Saturday at the Taipei World Trade Center, Exhibition Hall 1.

Steady shipments of family entertainment games, such as Armor Hero (鎧甲勇士), could also provide growth momentum to the arcade game segment this quarter, the company said.

For online/mobile games, the company said it would keep focusing on its major products: slot games Mangan Daheng (滿貫大亨) and Golden Ho-Yeah (金猴爺), and Star Mahjong (明星三缺一).

However, weak seasonality could cap the segment’s growth this quarter, it added.

To enhance its competitiveness and reliable revenue sources, the company said it would continue offering games in different genres and focus more on the Chinese, Southeast Asian and US markets.

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