Nov 08, 2023 | Regulatory

Interim Report January – September 2023

“During the third quarter, G5’s financial performance continued to generate significant cash flow from our stable portfolio of games while we prepared for the global launch of a new game before the end of the year. Financially, we delivered another strong quarter as the G5 Store continued to grow, helping boost our gross margin,” said Vlad Suglobov, CEO of G5 Entertainment. “Considering a tough market climate, third quarter revenue slipped 9% in SEK and decreased 11% in USD terms in absence of new game releases. EBIT increased to SEK 22.3 M (-22.8) as we maintained our commitment to keeping UA spending in the range of 17-22%. The G5 Store grew 20% sequentially and jumped 126% from the same period last year in USD terms. These gains helped drive the Q3 gross margin to 68.1%, compared to 67.6% a year earlier. The G5 Store revenue accounted for more than 12% of net revenue in USD, up from 4.9% last year. We believe the G5 Store can continue growing for a long time. We ended the quarter with a strong cash position of SEK 184 M, higher than last year, after buying back 91,472 shares for SEK 15.7 M. We expect continued stability in the fourth quarter of 2023, with an opportunity for positive seasonal development as the company enters the historically stronger winter season. G5 is in a strong position, and our development team is working hard on new games for release in 2024.”

July – September 2023

  • Revenue for the period was SEK 326.6 M (359.9), a decrease of 9 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 68.1 percent (67.6 percent), as larger share of revenue is coming from G5’s direct-to-consumer platform.
  • EBIT for the period was SEK 22.3 M (-22.8). EBIT was impacted negatively by a write-down of advances amounting to SEK 10.7 M, adjusted for the write-down the EBIT margin was 10.1%. EBIT for 2022 was impacted by write-downs related to the changes in the development funnel.
  • Net result for the period was SEK 30.8 M (-26.1), positively impacted by the finance net of SEK 8.9 M (-2.1).
  • Earnings per share for the period, before dilution, was SEK 3.83 (-3.11).
  • Cash flow amounted to SEK 9.7 M (-50.9), affected by share repurchases of own shares of SEK 15.7 M (-28.2).
  • Average Monthly Active Users (MAU) was 4.9 million, a decrease of 27 percent compared to the same period in 2022. Average Daily Active Users (DAU) was 1.5 million, a decrease of 17 percent compared to the same period in 2022. Average Monthly Unique Payers (MUP) was 154.4 thousand, a decrease of 15 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 63.2, an increase of 3 percent compared to the same period last year. Audience metrics for 2022 were heavily inflated by increased user acquisition.

This disclosure contains information that G5 Entertainment AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 08-11-2023 07:00 CET.

For additional information, please contact:

Vlad Suglobov, CEO, 

Stefan Wikstrand, CFO, +46 76 00 11 115