Digital Hollywood Interactive Limited released its 2026 interim results for the six months ended 30 June 2026. The company reported revenue of US$5.03 million, an increase of 9.8% from US$4.59 million in the prior-year period, driven primarily by higher game income.
Gross profit rose 4.2% year on year to US$2.26 million, but the gross margin softened to 44.9% from 47.4% due to faster growth in cost of revenue, which climbed 14.8% to US$2.77 million.
Operating expenses expanded, reflecting intensified marketing efforts and higher administrative spending: • Selling and marketing expenses: US$1.68 million, up 14.4%. • Administrative expenses: US$1.90 million, up 40.5%. • Research and development expenses remained stable at US$0.62 million.
Other items weighed on profitability. A net foreign-exchange loss of US$0.38 million replaced the US$0.43 million gain recorded a year earlier. Finance costs increased to US$0.11 million, mainly due to currency-related losses, while finance income dropped sharply to US$0.25 million from US$0.28 million.
Consequently, loss attributable to owners of the company widened to US$2.52 million, a 258.6% increase from the US$0.70 million loss in the first half of 2025. On a non-IFRS basis (excluding share-based compensation), the loss was also US$2.52 million, up 258.6% year on year.
Cash and cash equivalents fell 12.6% to US$11.91 million at 30 June 2026, reflecting a net operating cash outflow of US$1.35 million. Total assets stood at US$27.41 million, while total liabilities were US$8.07 million, yielding a current ratio of 2.9 (31 December 2025: 3.2). The group reported no bank borrowings; the gearing ratio remained at zero.
Capital expenditure was minimal, with US$0.03 million invested in property, plant, equipment and intangible assets. No material acquisitions, disposals, pledges of assets or contingent liabilities were reported during the period.
Management reiterated its commitment to the “HTML5 + mobile” lightweight product strategy, launching 17 new games in the first half and expanding global payment channels. The company also highlighted progress in AI-driven content generation to support game promotion and user engagement. Looking ahead, efforts will focus on deeper penetration into European markets and further integration of AI-powered content in game ecosystems.
The board declared no interim dividend for the period.