Interim report January-March 2015

2015-05-08 07.30 PRESS RELEASE

January-March 2015

• Consolidated revenue for the period is 97 551 (55 873) kSEK, an increase of 75% compared to 2014.
• Operating result for the period is 4 526 (5 156) kSEK.
• Net result for the period is 2 142 (4 029) kSEK.
• Earnings per share for the period before and after dilution is 0.24 (0.46) SEK.
• Cash flow before financing activities during the period is 4 950 (7 187) kSEK.

Important events during the first quarter

• G5 has during the quarter continued to show substantial and profitable growth, and generated record monthly and quarterly revenue.
• Revenue from free-to-play games grew 125% compared to 14Q1, and accounted for 85% of total revenue in 15Q1 (66% in 14Q1).
• The accumulated number of downloads of the group’s games (not counting updates) surpassed 210 million.
• The group continued working on improving free-to-play games in its portfolio and working on new free-to-play games.
• After the extra-ordinary general meeting on December 19, 2014, the Board of G5 decided to offer a total of 157 500 warrants to existing employees, keeping 18 500 warrants for potential new recruitments, etc.

Important events after the end of the period

• Stefan Wikstrand has been appointed new Chief Financial Officer. He starts his position on July 1. Stefan Wikstrand takes over from Odd Bolin, who is leaving G5. After studies at Jönköping International Business School he worked five years within audit at MGI Revideco AB and KPMG. Since 2010 Stefan Wikstrand has worked at TradeDoubler AB as Group Financial & Business Controller. During his time at TradeDoubler, Stefan has worked with all aspects of running the finance function at an international listed company. Stefan Wikstrand is 34 years old.
• G5 Entertainment has signed an agreement with the developer of the game Brave Tribe to acquire all interest, intellectual property, and assets in the game. The purchase price will be funded from the company’s cash flow. G5 Entertainment originally published the game as a 3rd party game, and brought the game to iOS, Android, and Amazon application stores.
• The group’s office in Kharkov continues business as usual. It is the group's policy to keep critical code and materials backed up outside Ukraine, keep intellectual property rights in EU entities, and transfer funds to subsidiaries on as-needed basis.