For the second quarter of 2015, the sales revenues for Gigamedia were $2.7 million. The contribution made by the mobile games, the social casino games and the cloud computing business accounted for about 45.7%, 28.2% and 26.5% respectively. The mobile gaming market is getting more competitive. Started from the second quarter of 2015, Gigamedia began to scrutinize current performance of the mobile gaming business and try to integrate the resources of the operations in Taiwan and Hong Kong in order to streamline the business and then hopefully improve its margin by the end of this year.
In June 2015,Gigamedia entered into partnership with World Mahjong Ltd. to organize the World Series of Mahjong 2015 and also became their exclusive online mahjong game provider; furthermore, will host the online qualifying tournaments of the World Series of Mahjong 2015 on “ClubOne” platform. “ClubOne”, the Gigamedia’s in-house developed social casino platform, is designed also to enable the land-based operators to consolidate resources for seizing more opportunities that navigate both online and offline markets.
Besides, in the second quarter of 2015, Gigamedia continued to dispose partial marketable securities and repaid the short-term borrowings for lowering its leverage ratio and meanwhile, increasing its cash position.
The Management of Gigamedia considers 2015 a turnaround year for the Company. In addition to current mobile gaming business to be streamlined and newly launched platform, management also pursues an acquisitive growth and expects it to bring in more business value to the Company and also support its future revenue growth.
GigaMedia Limited is a diversified provider of online games and cloud computing services. GigaMedia’s online games business FunTown develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. GigaMedia’s cloud computing business GigaCloud was launched in early April 2013 and is focused on providing small and medium-sized enterprises in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness.
Second-Quarter Financial Results:
- Consolidated revenues were $2.7 million, dropped by 13.7% quarter-on-quarter mainly due to the decrease of the new game releases, but increased by 10.4% quarter-over-quarter due to the growth of the cloud computing business.
- Consolidated operating expenses were $4.0 million in 2Q15, down by 3.3% quarter-on-quarter due to an slight decrease on selling and marketing expenses, but increased by 6.7% from $3.8 million quarter-over-quarter, resulting from an increase of selling and marketing expenses for the new games.
- Consolidated non-operating income was $5.1 million attributable to the capital gain on disposal of marketable securities-current.
- Net income was $1.4 million, up by 151.4% quarter-over-quarter mainly attributable to the gain on sales of marketable securities.
- Cash and marketable securities-current in 2Q15 accounted for $68.3 million, decreased by 9.6% from $75.6 million in 1Q15 resulting from a disposal of marketable securities-current and the repayment of short-term borrowings.
- Investments were $6.7 million in 2Q2015, increased approximately $1.0 million quarter-on-quarter, resulting from an investment in SportsPlus Inc. ( www.sportsplus.me ), a new app for daily fantasy sports and newly launched in the second quarter this year. Investments were decreased from $25.5 million in 2Q2014 to $6.7 million in 2Q2015 mainly due to a disposal of securities investment in April 2015.
The following forward-looking statements reflect GigaMedia’s expectations as of August 5, 2015. In the third quarter of 2015, Gigamedia will continue to attend the gaming events in order to promote the co-developed new games and attract overseas publishers to license them in various countries. Meanwhile, for mobile gaming operation, Gigamedia currently seeks for cooperation with overseas online platforms in order to better the monetization of the games.
With regard to social casino game platform, Gigamedia continues the cooperation talk with overseas operators in order to license “ClubOne” not only in China but also in South East Asia by the end of 2015. As for cloud computing business, v will continue to provide customized and integrated services to the corporate customers.
Source: Gigamedia
