Razer swings to $42.4 million first-half profit on hardware growth

The bulk of Razer's revenue for the first half-year comes from the hardware segment, where sales grew 77 per cent.
The bulk of Razer's revenue for the first half-year comes from the hardware segment, where sales grew 77 per cent.PHOTO: RAZER

SINGAPORE (THE BUSINESS TIMES) - Gaming hardware maker Razer posted a US$31.3 million (S$42.4 million) net profit for the half-year ended June, turning around its year-ago loss of US$17.7 million.

This comes on the back of a record revenue of US$752 million, up 68 per cent year on year, said the company on Wednesday (Aug 25). Razer is headquartered in the United States and Singapore.

The bulk of the company's revenue for the first half-year comes from the hardware segment, where sales grew 77 per cent to US$677.3 million.

In the software segment, total user accounts increased 50 per cent year on year to about 150 million, while the number of monthly active users grew by more than 51.4 per cent. Razer attributed this to the rise in gaming, e-sports and live streaming activities.

In the services business, which includes virtual credits service Razer Gold and Razer Fintech, revenue grew 13.8 per cent to US$72.8 million. Razer Gold itself recorded a 13.8 per cent rise in total payment volume.

Shares of Razer were trading at HK$1.90 as at 12.52pm Singapore time, up 1.6 per cent.