Interim Report January – June 2023

“The stable performance experienced during the first three months of the year continued in the second quarter, following the “new normal” scenario we introduced at the end of 2022. Financially, we delivered another strong quarter. The G5 Store continued to show fast growth, helping boost our gross margin,” said Vlad Suglobov, CEO of G5 Entertainment. “Second quarter revenue slipped 4% in SEK and decreased 10% in USD terms in absence of new game releases. Sherlock, the Jewels family of games and Hidden City performed slightly weaker than in the first three months of the year, consistent with the historically weaker summer season. Still, Sherlock’s Q2 revenue increased 12% in USD year-over-year, while it declined 3% sequentially. The success of the G5 Store continues to gain steam as we have seen strong sequential growth into July. These gains helped drive the Q2 gross margin to 67.4%, compared to 66.2% a year earlier. The G5 Store grew 17% sequentially and jumped 106% from the same period last year in USD terms and accounted for almost 10% of total revenue, up from 4.3% last year. We are in a strong position and our games and direct-to-consumer business continues to gain traction. We expect continued stability in the second half of 2023, with an opportunity for additional positive development thanks to our new game pipeline.”

April – June 2023

• Revenue for the period was SEK 331.2 M (343.5), a decrease of 4 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 67.4 percent (66.2 percent), as larger share of revenue is coming from own games and direct-to-consumer platform.
• EBIT for the period was SEK 38.9 M (1.0), an increase of 3801%. EBIT for 2022 was heavily impacted by increased costs for user acquisition.
• Net result for the period was SEK 40.1 M (-2.6), positively impacted by the finance net of SEK 6.4 M (-1.7).
• Net result for the period was SEK 47.8 M (49.9).
• Earnings per share for the period, before dilution, was SEK 4.96 (-0.31).
• Cash flow amounted to SEK -31.8 M (33.9), negatively impacted by dividend of SEK 64.5 M (59.1) and repurchases of own shares of SEK 13.1 M (0.0).
• Average Monthly Active Users (MAU) was 5.2 million, a decrease of 21 percent compared to the same period in 2022. Average Daily Active Users (DAU) was 1.5 million, a decrease of 13 percent compared to the same period in 2022. Average Monthly Unique Payers (MUP) was 168.0 thousand, a decrease of 9 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 62.0, a decrease 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 10-08-2023 07:00 CET.

For additional information, please contact:
Vlad Suglobov, CEO, investor@g5e.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®, The Secret Society® and Wordplay: Search Word Puzzle™.

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.

More information about G5 Entertainment can be found at: https://corporate.g5e.com