\n<\/p>\n
\n Invest for growth to achieve long-term growth ambitions <\/p>\n
HONG KONG SAR – Media OutReach<\/a> – 25 August 2021 – Razer\u2122 (“Razer”
\u00a0<\/p>\n “Razer had a phenomenal first half of
\u00a0<\/p>\n “Looking ahead, the robust momentum in our business, strong
\u00a0<\/p>\n Key highlights for 1H 2021 earnings<\/u><\/b><\/p>\n COMPANY<\/u><\/p>\n \u00a0<\/span><\/p>\n CORE SEGMENTS<\/u><\/b> HARDWARE: <\/b><\/i><\/p>\n \u00a0<\/i><\/p>\n SOFTWARE: <\/b><\/i><\/p>\n \u00a0<\/span><\/p>\n SERVICES: <\/b><\/i><\/p>\n RAZER GOLD<\/b><\/u><\/p>\n RAZER FINTECH<\/b><\/u><\/p>\n \u00a0<\/b><\/p>\n ESG<\/b><\/u><\/p>\n INVEST FOR GROWTH<\/u><\/b><\/p>\n \u00a0<\/span><\/p>\n FY2021 OUTLOOK <\/b><\/u><\/p>\n Razer is closely
\u00a0<\/p>\n Its outlook for the full
\u00a0<\/b><\/p>\n For more details, please refer to the 1H 2021 results announcement for
\nor the “Company”, together with its subsidiaries, the
\n“Group”, Hong Kong Stock Code: 1337), the leading global lifestyle brand for
\ngamers, announces unaudited financial results for the six months ended 30 June
\n2021 (“1H 2021”). <\/p>\n
\nthe year. In addition to the ongoing
\ngrowth in the broader industry that benefitted our core business segments,
\nRazer’s stellar results were driven by our strong brand position and intensely
\nloyal user base, our proven capabilities in rolling out innovative,
\ncategory-defining products and services, and effective operational execution,” said Min-Liang Tan,
\nCo-Founder and CEO of Razer.<\/b> <\/p>\n
\nfundamentals and the exciting opportunities we see in the market, give us the confidence
\nthat it is the right timing to further scale our business. We intend to
\nreinvest part of our full year profits into high potential areas such as Razer
\nGold and Razer Fintech, as well as step up investments in new growth
\nopportunities in the Razer ecosystem. We believe these strategic investments will allow us
\nto build a greater platform for Razer to achieve
\nlong-term growth ambitions and deliver outstanding value to shareholders.”<\/p>\n\n
\ngrowth<\/b>
\ndriven by robust demand, market share leadership for the Hardware business, and
\nongoing growth in the Services segment.<\/li>\n
\nwith 22.0% for the same period in 2020, primarily due to improving margins in
\nthe Hardware segment.<\/li>\n
\n1,759.4% year-on-year growth from US$3.2 million for the same period in 2020.<\/li>\n
\nUS$17.7 million for the same period in 2020, driven by exceptional revenue
\ngrowth, continued gross margin expansion, and productivity improvement.<\/li>\n<\/ul>\n\n
\ngaming peripherals across the U.S., Europe, and Asia-Pacific[1]<\/li>\n
\npremium gaming laptop segment in the U.S. while growing market share in new
\nmarkets outside of the U.S.[2] .<\/li>\n
\ngain market share such as broadcast and gaming chairs.<\/li>\n<\/ul>\n\n
\nmillion with monthly active users surging by over 51.4%.<\/li>\n
\nofferings, boosted by increases in gaming, esports, and livestreaming
\nactivities. <\/li>\n
\nstickiness to the Razer ecosystem:
o\u00a0\u00a0 During 1H 2021, Razer
\nCortex PC Squad Rewards Seasons 6 and 7 continued to drive high engagement with
\nover 200,000 gamers joining the competition each season. Players logged in a
\ntotal of over 3.5 million hours of PC game time each season.
o\u00a0\u00a0 Razer ChromaTM<\/sup>
\nRGB continued to reinforce its partner-of-choice position, working with leading
\nhardware partners through its connected devices programme. As of June 30, 2021, over 180 games and
\napplications are natively integrated with Razer ChromaTM<\/sup>
\nRGB Software Development Kit (SDK).<\/li>\n<\/ul>\n\n
\nyear-on-year to US$72.8 million for 1H 2021. <\/li>\n
\nin 1H 2021. <\/li>\n<\/ul>\n\n
\nincrease in total payment volume (“TPV”), driven primarily by the increase in
\nthe number of transactions conducted through the Razer Gold platform.<\/li>\n
\n2021, Razer Gold recorded approximately 30 million registered users, representing
\n25.3% growth year-on-year.\u00a0 <\/li>\n
\nplaces such as Southeast Asia and Latin America covering users from more than
\n130 countries and more than 5.6 million channel touchpoints.<\/li>\n
\nwith over 42,000 digital entertainment titles supported and added popular new
\ngames.<\/li>\n
\nfor the next level of growth, such as:
o\u00a0\u00a0 Further increasing Razer
\nGold’s penetration in high growth regions such as Latin America, with its
\ngaming market expected to reach US$3.6 billion in 2023.
o\u00a0\u00a0 Bolstering localization strategy in both content
\nand channel to cater to the specific tastes and needs of the regions Razer
\noperates in.<\/li>\n<\/ul>\n\n
\nServices (“RMS”), the Group’s B2B payment processing business which powers over merchants 60,000 merchants across Southeast Asia. <\/li>\n
\nfollowing areas:
o\u00a0 \u00a0TPV:<\/b> Recorded 79.5% year-on-year growth to US$3.2 billion in 1H 2021, driven mainly by e-commerce marketplace purchases, food deliveries and e-wallet top-ups.
o\u00a0 \u00a0Merchant adoption:<\/b> Recorded 88.6% year-on-year growth to over 60,000 merchants, coming from the retail, food and beverage industries, and professional\/commercial services.
o\u00a0 \u00a0Key licences and network expansion:<\/b> Strengthened core infrastructure, expanded business footprint, and secured additional licenses across the Southeast Asia region.<\/li>\n<\/ul>\n\n
\ncommitment to the environment with a 10-year roadmap as part of its
\n#GoGreenWithRazer initiative, supported by four main initiatives\u2013 green organization, green products, green
\ncommunity and green investments.<\/li>\n
\nshort-, mid- and long-term plans to bring Razer closer towards building a
\ngreener future:
o\u00a0 \u00a0By the end of 2021:<\/b>
Green Organization: Say no to single-use plastics
Green Products: Greener packaging
o\u00a0 \u00a0By the end of 2025:<\/b>
Green Organization: 100% powered by renewable energy
Green Products: 100% products are recyclable with Razer
o\u00a0 \u00a0By the end of 2030:<\/b>
Green Organization: 100% carbon neutral
Green Products: Made of 100% recycled and recyclable materials<\/li>\n
\nsupport the global green movement, the Group partnered with Conservation
\nInternational in October 2020 and introduced Sneki Snek campaign, led by
\nRazer’s fan-favourite sustainability mascot. As of August 25 2021, the Group
\nhas saved over 500,000 trees.\u00a0 <\/li>\n<\/ul>\n\n
\nover the last few years, and the Group expects the growth to continue as
\nexciting new market opportunities emerge.<\/li>\n
\nsignificant growth trajectory as they become more entrenched in people’s lives.<\/li>\n
o\u00a0 \u00a0Hardware:<\/b> additional investments will be allocated for research and development of both existing gaming Peripherals and new Hardware categories.
o\u00a0 \u00a0Software:<\/b> to develop new services to increase user acquisition, engagement, and retention, explore new monetization initiatives and deepen big data analytics capabilities to drive user acquisition and nurture user activity.
o\u00a0 \u00a0Services:
Razer Gold:<\/b> expand into new regions internationally and deepen penetration in high growth regions such as Latin America, Middle East and Southeast Asia, as well as enhance core infrastructure and recruit talent to improve user experience, acquire new users and drive usage\/ spending per user.
Razer Fintech:<\/b> additional investments will be allocated for continued geographical expansion across SEA, scale TPV aggressively with expanded merchant base, enhance service capabilities for existing customers and M&A\/ investments.<\/li>\n<\/ul>\n
\nmonitoring the market environment in light of the continued COVID-19 situation,
\nand intends to carry on the momentum
\nand strength of its operations and are on track to deliver strong revenue
\ngrowth and operational enhancements, while amping up the investments for growth
\nfor full year 2021.\u00a0 <\/p>\n
\nyear will be:<\/p>\n\n
\nGrowth:
<\/b>o\u00a0 \u00a0New Hardware product introductions
o\u00a0 \u00a0Growth of Software user base
o\u00a0 \u00a0Continue scaling Services business\u00a0<\/li>\n
\nEnhancements:
<\/b>o\u00a0 \u00a0Track record of cost discipline
o\u00a0 \u00a0Improvement of Hardware margins
o\u00a0 \u00a0Expansion of higher-margin Hardware and Services as part of the revenue mix<\/li>\n
\nFor Growth:
<\/b>o\u00a0 \u00a0Reinvesting profits in high potential areas such as Razer Gold and Razer Fintech
o\u00a0 \u00a0Such investments will involve additional spending in operating expenses as we scale our Services business
o\u00a0 \u00a0Step-up investments in new growth opportunities in the Razer ecosystem<\/li>\n<\/ul>\n
\nthe results of the Group which are published in accordance with the Rules
\nGoverning the Listing of Securities on The Stock Exchange of Hong Kong Limited.
\nDetails of Razer’s ESG initiatives can be found on the website: <\/i>http:\/\/www.razer.com\/go-green<\/i><\/a>.<\/i><\/p>\n
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