Interim Report January - September 2021: : G5 Entertainment AB

Rhea-AI Summary

G5 Entertainment reported mixed results for Q3 2021, with revenue of SEK 327.6 million, down 1% year-over-year in SEK but up 1% in USD. A 36% rise in new generation games and a 7% increase in own games contributed to performance. EBIT increased by 16% to SEK 160 million for the first nine months. The gross margin improved to 64%, attributed to a higher share of revenue from own games and reduced store fees. However, cash flow was negative at SEK -39.2 million, impacted by share repurchases.

Positive

• Revenue growth of 1% in USD terms.
• EBIT increased by 16% year-over-year to SEK 160 million.
• Gross margin rose to 64%, up from 59%.

Negative

• Revenue decreased by 1% year-over-year in SEK terms.
• Cash flow was negative at SEK -39.2 million.

STOCKHOLM, Nov. 5, 2021 /PRNewswire/ --

July - September 2021

"The third quarter is behind us, and it is reassuring to see players continue to enjoy the games our developers worked so hard on," said Vlad Suglobov, CEO of G5 Entertainment. "Already after September, we are close to topping the full year results from 2020. Revenue during Q3 in USD terms rose 1% year-over-year and slipped 1% in SEK due to FX. Underpinning this performance, in USD terms, is the 36% year-over-year growth in our new generation of games and 7% rise in own games. The new generation of games, those titles released during the last two years (since summer 2019), made up half of the revenue during the past quarter after growing 1% sequentially from the second quarter, while own games accounted for 66% - both new records for G5 and a clear indication of just how compelling these games are. EBIT for the first nine months of 2021 was 160 MSEK, up 16% year-on-year and on track to exceed last year's EBIT when we close the fourth quarter. The company has shifted to a higher gear thanks to the great game titles the G5 development team has produced and excellent work of our marketing team, so we look forward to seeing how we perform in the seasonally strong Q4 and Q1."           

• Revenue for the period was SEK 327.6 M (332.4), a decrease of 1 percent compared to the same period in 2020 in SEK terms. In USD terms revenue grew 1 percent year-over-year.
• Gross margin increased to 64 percent (59 percent), as larger share of revenue is coming from own games together with the lowered store fees on the Microsoft platform that went from 30% to 12% from August 1, 2021.
• EBIT for the period was SEK 56.5 M (53.7).
• Net result for the period was SEK 47.5 M (48.5).
• Earnings per share for the period, before dilution, was SEK 5.82 (5.59).
• Cash flow amounted to SEK -39.2 M (32.1), affected negatively by share repurchases of SEK -88.8 M (-4.6).
• Average Monthly Active Users (MAU) was 6.7 million, a decrease of 2 percent compared to the same period in 2020. Average Daily Active Users (DAU) was 1.8 million, an increase of 2 percent compared to the same period in 2020. Average Monthly Unique Payers (MUP) was 197.7 thousand, a decrease of 7 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 68.1, an increase of 13 percent compared to the same period last year.

For additional information, please contact:
Vlad Suglobov, CEO, investor@g5e.com
Stefan Wikstrand, CFO, +46 76 00 11 115

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 05-11-2021 07:30 CET.

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G5E_Q3_2021_EN

 

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SOURCE G5 Entertainment AB

FAQ

What were G5 Entertainment's revenue figures for Q3 2021?

G5 Entertainment reported revenue of SEK 327.6 million for Q3 2021, a decrease of 1% year-over-year in SEK terms but a growth of 1% in USD terms.

How did G5 Entertainment's EBIT perform in 2021?

The EBIT for G5 Entertainment for the first nine months of 2021 was SEK 160 million, an increase of 16% year-over-year.

What was the gross margin for G5 Entertainment in Q3 2021?

G5 Entertainment's gross margin increased to 64% in Q3 2021, up from 59% in the previous year.

Did G5 Entertainment experience any cash flow issues in Q3 2021?

Yes, G5 Entertainment reported a negative cash flow of SEK -39.2 million in Q3 2021, influenced by share repurchases.

What contributed to G5 Entertainment's revenue growth in Q3 2021?

The growth was driven by a 36% year-over-year increase in new generation games and a 7% rise in own games.