G5 Entertainment

"The fourth quarter was weaker than we had hoped for, but it was another financially strong quarter for G5 despite the turbulent times facing the industry. The company continued to generate stable cash flow during the period, while our G5 Store gained additional traction and the new game release got off to a good early start," said Vlad Suglobov, CEO of G5 Entertainment. "Revenue for the quarter slipped 13% to SEK 317 M. In USD terms the performance was -12% compared to a year earlier and -2% sequentially from the previous quarter. Adjusted for the revaluations EBIT was SEK 24.6 M corresponding to an EBIT margin of 7.8%. In USD terms the G5 Store revenue jumped 88% from last year and 6% from the third quarter. Our direct-to-customer revenue made up 13.2% of the total revenue compared to 6.3% one year ago. We are proud of the strong growth from G5 Store as more and more players choose to access our games through our own store. We ended the fourth quarter with almost 60 fewer full-time equivalents than at the end of the third quarter. G5 is starting 2024 after optimizing its staffing and outsourcing costs. The amortization is set to gradually come down over the course of 2024, which, combined with the growth in G5 Store and reduced costs, is a positive factor set to drive the group's profitability this year.

October - December 2023

• Revenue for the period was SEK 316.7 M (363.6), a decrease of 13 percent compared to the same period in 2022 in SEK terms. In USD terms revenue decreased 12 percent year-over-year.
• Gross margin increased to 67.6 percent (67.1 percent), as larger share of revenue is coming from G5's direct-to-consumer platform.
• EBIT for the period was SEK 10.5 M (47.6), a decrease of 78%. EBIT was negatively impacted by revaluations related to the weakening USD recorded in other income and expense amounting to SEK -14.1 M (0.9). In previous quarters during the year the effect was positive. Adjusting for the negative impact from other income and expense the EBIT margin would be 7.8 percent.
• Net result for the period was SEK 8.9 M (45.8).
• Earnings per share for the period, before dilution, was SEK 1.12 (5.56).
• Cash flow amounted to SEK 4.3 M (1.0), affected by share repurchases of own shares of SEK -11.4 M (-19.9).
• Average Monthly Active Users (MAU) was 4.8 million, a decrease of 19 percent compared to the same period in 2022. Average Daily Active Users (DAU) was 1.5 million, a decrease of 13 percent compared to the same period in 2022. Average Monthly Unique Payers (MUP) was 152.4 thousand, a decrease of 13 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 63.2, an increase of 2 percent compared to the same period last year. Audience metrics for 2022 were heavily inflated by increased user acquisition.

Full year 2023

• Revenue for the year was SEK 1,319.9 M (1,400.1), a decrease of 6 percent compared to the same period in 2022 in SEK terms. In USD terms revenue decreased 10 percent year-over-year.
• Gross margin increased to 67.6 percent (66.9 percent), as a larger share of revenue is coming from G5's direct-to-consumer platform.
• EBIT for the period was SEK 111.4 M (79.5), an increase of 40%.
• Earnings per share for the year was 15.84 SEK (8.00), an increase of 98%.
• The Board proposes a dividend of 8.0 SEK /share (8.0) equal to approximately SEK 63.2 M (65.4).