Domestic gaming companies are overvalued, IgG is about to enter instant Messaging

IgG chief operating Officer Xu Yuan said that at present the domestic game development enterprise has more than 5,000, the market competition is too intense since 2013 the hand tour merger tide is cooling, more and more hand travel company is difficult to complete the previous performance forecast.

According to incomplete statistics, since 2013, a-share market has taken place 39 games asset mergers and acquisitions, as of 2014, 14 listed companies 17 mergers and acquisitions have been and table, involving 21 gaming companies. However, with the 2013 mergers and acquisitions of the majority of the company can not achieve a profit commitment, 2014 was the merger of the Hand tour company, color to reduce a lot. According to the data, of the first half of 2014, 15 of the 21 gaming companies that were merged failed to reach half of the year's promised performance.

In the view of the industry, game companies, especially hand-travel companies, due to product characteristics and market competition, it is difficult to predict performance in the long run. "At present, the competition in the domestic game market is too fierce, game development companies have more than 5,000, some joked, Wake up, a new more than 10 game companies," IgG chief operating officer Xu Yuan to the securities daily Reporter said.

Domestic gaming companies are overvalued

IgG just released three quarterly reports, the third quarter revenue of 52.2 million U.S. dollars, the same period than the growth of 132%; net profit of 19 million U.S. dollars, up 265% year-on-year. However, in the industry's view, the performance of IgG can continue to grow rapidly, and its "aloof" is not unrelated. Public data show that IgG is October 18, 2013 on the Hong Kong Gem listed hand tour company, the main income is almost all from overseas, of which North America accounted for 39%, Europe accounted for 26%, Asia accounted for 29% (of which China accounted for only 6%), others accounted for 6%.

Although the domestic gamers know little about IgG, in international gamers, IgG is not a small name. "Our Hand Tour" Castle hegemony ", in Russia, Singapore, Malaysia, Thailand, Hong Kong, China, Taiwan are ranked first, ranked third in the United States, ranked fourth in Germany," Xu Yuan revealed.

However, IgG does not satisfy this status, according to Xu Yuan revealed that the company is also looking for opportunities to acquire overseas game companies, the scope of the main delineation in the United States, South Korea and so on. "Compared to the domestic travel companies, overseas hand tour companies are not very high valuations."

Clearly, the overseas market is still a blue ocean. So why is the domestic hand tour company less than the sea? In fact, the planing of the game itself, language and operations are the two major barriers to the domestic game companies to go to sea, and these two aspects of IgG is not a problem. Of course, such as IgG such a branch of the TMT company still have a lot of, such as Cheetah Mobile, Network Qin, Orchid Pavilion set potential, are actively avoid the domestic excessive competition of the Red Sea market, the main position to overseas. Cheetah Mobile Three quarterly display, as at the end of September 2014, the Cheetah Mobile on the mobile end of the month active users of 340.7 million people, up 183.9% year-on-year. Among them, the number of monthly active users from overseas market accounted for 65%.

Intend to enter Instant messaging

Data show that IgG currently operates more than 40 games, the main revenue from the "castle hegemony", accounted for 63%, and another hand Tour "Lord's War", accounted for 19%. Although the "Castle hegemony" in the revenue accounted for the continued decline in IgG is also continuing to introduce new hand tour, but it is undeniable that any game has a life cycle, and a new game can be hot with a lot of unknowable. Because of this, Shanda network in the game business at the zenith of the year, Chen on the painstaking for the grand pursuit of transformation road.

According to Xu Yuan, IgG is also walking on many legs, has launched an Instant Messaging products link. "At present only in the domestic micro-letter and Mo Mo Live the best, we want to make a combination of the micro-letter, we pay more attention to interest groups, and link controllability than micro-letter will be better, administrators can send a notice, can add people, kicking people and so on."

November 8, the public to the United States Securities and Exchange Commission (SEC) to submit an IPO application, proposed to raise 300 million U.S. dollars, plans to be listed on the Nasdaq. In this scenario, IgG high-profile Promotion link, a great deal with the MO and micro-letter to play the meaning of this, Xu Yuan response said: "As with the hand tour, Link also does not intend to be in the domestic and micro-letter and Mo Competition, link market or overseas."

Data from IgG shows that link was on line in August this year, as at the end of October, the number of registered users has reached 2.65 million, the monthly number of active users about 1 million times, the user is mainly distributed in Malaysia, India, the United States, Iran.