Year-end Report 2024

“The fourth quarter of 2024 marked a pivotal period for G5 Entertainment as we focused on balancing revenue performance with profitability amidst a challenging market environment as well as a mature portfolio of games,” said Vlad Suglobov, CEO of G5 Entertainment. “Revenue for the quarter amounted to SEK 279.3 M, representing a 12% decrease year-over-year in SEK and USD terms. We were pleased to see fourth quarter revenue increase 1%sequentially in USD and over 3% in SEK, our first quarter-to-quarter growth since the second quarter in 2021. Our gross margin increased to 69.1% — a testament to the growing contribution of the G5 Store. The G5 Store now represents 19% (13) of net revenue after growing 35% year-over-year and 13% quarter-to-quarter in USD terms. Our EBIT for the quarter grew significantly, reaching SEK 32.8 M compared to SEK 10.5 M in the same period last year, corresponding to an EBIT margin of 11.8 % (3.3). improvement reflects the resilience of our business model and the operational efficiencies we’ve achieved. During the quarter, we had SEK 4.9 M in extraordinary one-time legal expenses related to an M&A process where we participated on the acquiring side. In the end, the deal did not materialize. Looking ahead, our focus remains on building sustainable growth by delivering exceptional gaming experiences through continued innovation and leveraging the direct-to-consumer opportunities provided by the G5 Store. We made significant strides in game development, new features such as mini-events were introduced in Sherlock and Jewels of Rome, leading to sequential revenue growth in Sherlock for the first time in eight quarters. Twilight Land is showing signs of scalability and it looks like a strong candidate to be launched globally in 2025. We maintained strong financial discipline and achieved solid cash flow generation, ensuring a robust financial foundation as we move into 2025. We are optimistic about the potential in our game development funnel and the ability to launch new hits that will captivate players around the world.”

October – December 2024

• Revenue for the period was SEK 279.3 M (316.7), a decrease of 12 percent compared to the same period in 2023 in SEK terms. In USD terms revenue decreased 12 percent year-over-year.
• Gross margin increased to 69.1 percent (67.6 percent), as a larger share of revenue is coming from G5's direct to consumer channel.
• EBIT for the period was SEK 32.8 M (10.5), an increase of 214%, corresponding to an EBIT-margin of 11.8% (3.3). EBIT was positively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK 5.9 M (14.1). Write-downs impacted the quarter with SEK 2.2 M (0). Adjusting for the negative impact from other income and expense and write-downs the EBIT margin would be 10.4 (7.8) percent.
• Net result for the period was SEK 33.5 M (8.9), positively impacted by the finance net of SEK 2.0 M (-0.2).
• Earnings per share for the period, before dilution, was SEK 4.29 (1.12).
• Cash flow amounted to SEK 19.0 M (4.3).
• Average Monthly Active Users (MAU) was 4.3 million, a decrease of 11 percent compared to the same period in 2023. Average Daily Active Users (DAU) was 1.3 million, a decrease of 12 percent compared to the same period in 2023. Average Monthly Unique Payers (MUP) was 128.2 thousand, a decrease of 16 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 65.7, an increase of 4 percent compared to the same period last year.

 Full year 2024

• Revenue for the year was SEK 1,134.5 M (1,319.9), a decrease of 14 percent compared to 2023 in SEK terms. In USD terms revenue decreased 13 percent.
• Gross margin increased to 68.4 percent (67.6 percent), as larger share of revenue is coming from G5’s direct-to-consumer platform.
• EBIT for the period was SEK 116.8 M (111.5), an increase of 5%.
• Earnings per share for the year was 15.22 SEK (15.84), a decrease of 4%.
• The Board proposes a dividend of 8.0 SEK /share (8.0) equal to approximately SEK 62.4 M (62.4).

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 13-02-2025 07:00 CET.