"The first quarter continued the trends observed in 2024. The G5 team continued to work hard to push games through our development funnel process, while preserving the strong profitability we've worked hard to build," said Vlad Suglobov, CEO of G5 Entertainment. "Revenue for the quarter declined 7% sequentially to SEK 260.3, in part due to a shorter quarter and declined 12% year-over-year. Still, we maintained strong profitability and positive cash flow as we are working on reversing the trend through improvements in marketing, products, and bringing new games to the market. EBIT for the quarter was SEK 10.7 M. Adjusting for FX, EBIT was SEK 25.2 M, corresponding to a margin of 9.7%, slightly down from the previous year but in line with Q4 2024, thanks to our good cost control and the strength of our business model. The G5 Store continues to be a growing business ever since we launched it in 2020, rising 35% year-over-year in the first quarter, and now making up 21% (13% last year) of our revenue. It remains our third largest distribution channel by revenue and brings a welcome boost to our gross margin, which rose to a record high 69.8%. G5 Store, as a distribution channel, is a valuable source of incremental (or sometimes principal) income for a successful free-to-play casual mobile games. The company is in a strong financial position, with a record cash position at the end of the quarter of SEK 295 M, and zero debt. We are committed to sustainably operating the business and financing our new product development and marketing from revenues, while remaining profitable and cash flow positive."
January - March 2025
- Revenue for the period was SEK 260.3 M (297.4), a decrease of 12 percent compared to the same period in 2024 in SEK terms. In USD terms revenue decreased 15 percent year-over-year.
- Gross margin increased to 69.8 percent (68.1 percent), as a larger share of revenue is coming from G5's direct to consumer channel.
- EBIT for the period was SEK 10.7 M (39.2), a decrease of 73%, corresponding to an EBIT-margin of 4.1% (13.2). EBIT was negatively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK -14.6 M (9.4). Adjusting for the negative impact from other income and expense the EBIT margin would be 9.7 (10.0) percent.
- Net result for the period was SEK 11.9 M (37.5), positively impacted by the finance net of SEK 2.1 M (2.4).
- Earnings per share for the period, before dilution, was SEK 1.53 (4.76).
- Cash flow amounted to SEK 33.0 M (71.4).
- Average Monthly Active Users (MAU) was 4.2 million, a decrease of 18 percent compared to the same period in 2024. Average Daily Active Users (DAU) was 1.3 million, a decrease of 15 percent compared to the same period in 2024. Average Monthly Unique Payers (MUP) was 121.7 thousand, a decrease of 17 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 65.4, an increase of 3 percent compared to the same period last year.
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 07-05-2025 07:00 CET.
For additional information, please contact:
Vlad Suglobov, CEO, investor@g5.com
Stefan Wikstrand, CFO, +46 76 00 11 115
About G5 Entertainment
G5 Entertainment AB (Publ) (G5) develops and publishes high quality free-to-play games for smartphones, tablets and personal computers that are family friendly, easy to learn, and targeted at the widest audience of both experienced and novice players. The company distributes its games through the G5 Store, Apple App store, Google Play, Amazon Appstore and Microsoft Store. The company's portfolio includes popular games like Jewels of Rome®, Sherlock: Hidden Match-3 Cases, Jewels of the Wild West®, Hidden City®, Mahjong Journey® and The Secret Society®.
Through its head entity G5 Entertainment AB (Publ), G5 Entertainment Group is publicly listed on Nasdaq Stockholm's main market mid cap segment under trade symbol G5EN.ST. For six years in a row, G5 Entertainment was ranked in Deloitte's Top 50 Fastest Growing Tech Companies in Sweden and was named as one of Europe's Long-Term Growth Champions according to The Financial Times.
More information about G5 Entertainment can be found at: https://corporate.g5.com
