G5 Entertainment

“As we conclude the second quarter of 2024, we observe both challenges and opportunities in our financial performance. Despite a decline in revenue compared to the same period last year, our strategic initiatives and robust operational efficiency continue to strengthen the foundation for future growth,” said Vlad Suglobov, CEO of G5 Entertainment. “G5 Store remains a bright spot and continues to grow. Its revenue grew 42 percent year-over-year and 9 percent sequentially from the first quarter and represented 15 percent of the revenue of the group in the quarter, up from 9% one year ago. Looking at the portfolio of games, our Active games declined 13 percent from the previous year while Harvested games declined 27 percent, and Licensed games declined 11 percent in SEK terms. Beginning in June, our focus has been on improving the pace of iterations on new and existing live games to more quickly cycle through new game ideas in search for the ones with the most potential and to faster evolve our existing games towards better operational metrics. As of the end of the second quarter, we had three game ideas in pre-production and early development stages and four games in various stages of soft launch testing. As we move forward, our priorities remain clear: to drive sustainable growth, enhance operational efficiency, and deliver exceptional gaming experiences to our global audience. We are committed to remaining debt free, profitable, and cash flow positive. We are confident that our strategic initiatives will bear fruit in the coming quarters, reinforcing our position in the market.”

April – June 2024

• Revenue for the period was SEK 287.9 M (331.2), a decrease of 13 percent compared to the same period in 2023 in SEK terms. In USD terms revenue decreased 14 percent year-over-year.
• Gross margin increased to 67.8 percent (67.4 percent), as a larger share of revenue is coming from G5's direct to consumer channel.
• EBIT for the period was SEK 21.8 M (38.9), a decrease of 44%, corresponding to an EBIT-margin of 7.6% (11.7). EBIT was negatively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK -3.4 M (7.4). Adjusting for the negative impact from other income and expense the EBIT margin would be 8.8 (9.5) percent.
• Net result for the period was SEK 23.5 M (40.1), positively impacted by the finance net of SEK 2.6 M (6.4).
• Earnings per share for the period, before dilution, was SEK 3.02 (4.96).
• Cash flow amounted to SEK -43.3 M (-31.8), negatively impacted by dividend amounting to SEK 62.4 M (64.5).
• Average Monthly Active Users (MAU) was 4.7 million, a decrease of 9 percent compared to the same period in 2023. Average Daily Active Users (DAU) was 1.4 million, a decrease of 9 percent compared to the same period in 2023. Average Monthly Unique Payers (MUP) was 137.2 thousand, a decrease of 18 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 63.7, an increase of 3 percent compared to the same period last year.