G5 Entertainment

"The challenges we face with a mature portfolio continue as we balance our top-line and profitability. At the same time, we continue to develop the potential in our new games pipeline and are optimistic about our future prospects," said Vlad Suglobov, CEO of G5 Entertainment. "Revenue for the quarter was SEK 270 M and our gross margin rose to an all-time high of 68.8 percent from 68.1, thanks to an increasing amount of revenue coming from our direct-to-consumer channel, the G5 Store. Revenue through this channel grew 27 percent in USD terms over the past year and made-up 17 percent of our sales. EBIT was solid SEK 23 M, giving us an EBIT margin of 8.5 percent. At the end of the third quarter, G5 had a record high cash position of SEK 246 M, ensuring a solid foundation for future growth. During the year, we plan to work on about 30 game ideas, ultimately soft-launching 5-6 games. Out of these we expect to see at least one showing enough scalability to make it into Global Release stage. Looking ahead, we see substantial increase in revenue month-to-month from September to October for the first time since 2020, which is a welcome development that sets a positive tone to the beginning of the fourth quarter."

July - September 2024

• Revenue for the period was SEK 269.9 M (326.6), a decrease of 17 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 68.8 percent (68.1 percent), as a larger share of revenue is coming from G5's direct to consumer channel.
• EBIT for the period was SEK 22.9 M (22.3), an increase of 3%, corresponding to an EBIT margin of 8.5% (6.8). EBIT was negatively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK -0.4 M (3.9). Adjusting for the negative impact from other income and expense the EBIT margin would be 8.6 (5.6) percent.
• Net result for the period was SEK 24.5 M (30.8), positively impacted by the finance net of SEK 2.2 M (8.9).
• Earnings per share for the period, before dilution, was SEK 3.14 (3.83).
• Cash flow amounted to SEK 53.3 M (9.7).
• Average Monthly Active Users (MAU) was 4.5 million, a decrease of 8 percent compared to the same period in 2023. Average Daily Active Users (DAU) was 1.3 million, a decrease of 9 percent compared to the same period in 2023. Average Monthly Unique Payers (MUP) was 129.5 thousand, a decrease of 16 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 64.9, an increase of 3 percent compared to the same period last year.