Interim Report January –March 2022

“Despite the war and thanks to our great team, the business saw little negative effect during Q1. Reported EBIT was 53.6 MSEK corresponding to an EBIT-margin of 16.1%. Adjusting for extraordinary one-time expense in connection with the war, the EBIT margin would have been 20.5%,” said Vlad Suglobov, CEO of G5 Entertainment. “The growth and higher profitability of internally developed games is driving a change in the revenue mix between those games we own and those that are licensed, and is also helping expand margins. The trend continued in Q1 with G5’s own games responsible for 70.5% of revenue compared to 63.5% a year earlier, and our New Generation of games (those released since 2019) making up 55.9% of Q1’22 revenue compared to 43.3% last year – a jump of 19% YoY in USD terms. All in all, under the circumstances, the G5 team, especially in Ukraine, delivered an amazing result this quarter and they deserve our praise. With a team like this I am certain that we can make it through the difficult times together and emerge even stronger while delivering on the company’s strategy.”

January – March 2022

• Revenue for the period was SEK 333.1 M (326.6), an increase of 2 percent compared to the same period in 2021 in SEK terms. In USD terms revenue declined 8 percent year-over-year.
• Gross margin increased to 67 percent (59 percent), as larger share of revenue is coming from own games and lower store fees, primarily from Microsoft.
• Expenses were impacted by extraordinary expenses related to the war in Ukraine amounting to SEK 15 M (0). For additional details on how the extraordinary expenses have impacted the period see additional information in the interim report.
• EBIT for the period was SEK 53.6 M (59.9). Adjusted for extraordinary expenses the EBIT was SEK 67.9 M (59.9) an increase of 15% and corresponding to an EBIT margin of 20.5% (18.3).
• Net result for the period was SEK 49.9 M (53.8).
• Earnings per share for the period, before dilution, was SEK 5.91 (6.26). Adjusted for extraordinary expenses the earnings per share was SEK 7.48 (6.26).
• Cash flow amounted to SEK 36.5 M (62.2).
• Average Monthly Active Users (MAU) was 6.2 million, a decrease of 11 percent compared to the same period in 2021. Average Daily Active Users (DAU) was 1.8 million, unchanged compared to the same period in 2021. Average Monthly Unique Payers (MUP) was 188.6 thousand, a decrease of 8 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 62.1, a decrease of 2 percent.

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 05-05-2022 07:30 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