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Interim Report January –March 2023

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“G5 has seen stable performance of established trends across the board during the first quarter of 2023, in line with the sustainable “new normal” scenario we talked about at the end of last year,” said Vlad Suglobov, CEO of G5 Entertainment. “Our New Generation games, led by Sherlock, combined with the fast growth from our G5 Store, continued to spur our performance. First quarter revenue increased 4% in SEK and slipped 7% in USD, which is in line with the overall market performance. G5’s gross margin was 67.4%, compared with 66.7% a year earlier. This Gross Margin improvement happened partly due to the G5 Store direct-to-consumer revenue now making up 8% of net revenue, up from only 3.6% a year earlier. G5 Store revenue growth accelerated again to over 130% year-over-year (120% in Q4’22). Q1 cash flow before changes in operating capital was strong 40.3 MSEK, up 4% year-over-year and we ended the quarter with better cash position than last year. Despite the change of how we book new games expenses which happened in Q3’22, earnings per share 5.85 SEK were almost unchanged compared to last year. We are in a strong position and our games and direct-to-consumer business continue to gain traction, which we expect will deliver stability in our results for the rest of 2023, with an opportunity for additional positive development thanks to our new game pipeline.”

January – March 2023

  • Revenue for the period was SEK 345.4 M (333.1), an increase of 4 percent compared to the same period in 2022 in SEK terms. In USD terms revenue decreased 7 percent year-over-year.
  • Gross margin increased to 67.4 percent (66.7 percent), as larger share of revenue is coming from own games and platforms.
  • EBIT for the period was SEK 39.8 M (53.6), a decrease of 26%. With the change in publishing strategy communicated in the third quarter 2022 a lower part of the research and development expenses are capitalised, which is the main driver of the difference between the years.  
  • Net result for the period was SEK 47.8 M (49.9), positively impacted by the finance net of SEK 10.1 M (0.0).
  • Earnings per share for the period, before dilution, was SEK 5.85 (5.91).
  • Cash flow amounted to SEK 26.3 M (36.5), negatively impacted by repurchases of SEK 13.9 M (0.0).
  • Average Monthly Active Users (MAU) was 5.7 million, a decrease of 11 percent compared to the same period in 2022. Average Daily Active Users (DAU) was 1.7 million, a decrease of 8 percent compared to the same period in 2022. Average Monthly Unique Payers (MUP) was 177.6 thousand, a decrease of 6 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 61.8, was unchanged 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 04-05-2023 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

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