Interim Report January – March 2021

“The top-line growth momentum we experienced during the past two quarters continued in the first quarter of 2021. Thanks to the success of our own game portfolio, especially the new generation of games, coupled with our effective cost control, G5’s EBIT margin reached yet another record high,” said Vlad Suglobov, CEO of G5 Entertainment. “In USD terms, we achieved 22% year-over-year revenue growth in the first quarter, topping the 14% year-over-year growth we reported in the last quarter of 2020. This is the true growth dynamic of our business, and it is this growth that is driving continued gross margin and EBIT margin expansion due to the inherent leverage of the business. We achieved an all-time-high EBIT margin of 18.3% in the first quarter with record earnings of 59.9 MSEK and EPS of 6.26 SEK. Even though we delivered greater top-line expansion than the year before, we did it while spending 18% less on user acquisition. The significant economy in user acquisition spending underlines the efficiency we have achieved over the past year by strengthening our user acquisition (UA) teams and building our M.A.R.S. user acquisition suite of tools.”

January – March 2021

• Revenue for the period was SEK 326.6 M (312.0), an increase of 5 percent compared to the same period in 2020. In USD terms the growth was 22 percent.
• Gross margin increased to 59 percent (57 percent), as a larger share of revenue is coming from own games.
• EBIT for the period was SEK 59.9 M (38.8).
• Net result for the period was SEK 53.8 M (33.5).
• Earnings per share for the period, before dilution, was SEK 6.26 (3.72).
• Cash flow amounted to SEK 25.1 M (30.1), impacted negatively by repurchase of own shares of SEK -34.1 M (0.0), as G5 bought back about 1% of shares during the quarter.
• For the free-to-play games the average Monthly Active Users (MAU) was 7.0 million, an increase of 11 percent compared to the same period in 2020. Average Monthly Unique Payers (MUP) was 205.6 thousand, a decrease of 4 percent and average Daily Active Users (DAU) was 1.8 million, an increase of 9 percent compared to the same period in 2020. Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 63.5, an increase of 25 percent compared to the same period last year. Combined, these movements are reflecting changes in the portfolio composition compared to one year ago with Match-3 games taking a larger share of revenue coupled with more efficient user acquisition.

For additional information, please contact:

Vlad Suglobov, CEO, investor@g5e.com

Stefan Wikstrand, CFO, +46 76 00 11 115