08/11/2022 | Press release | Distributed by Public on 08/10/2022 23:09
January - June 2022
"The second quarter remained busy as the company and its employees continued to adapt to the war in Ukraine and the difficult global economic environment. We have made great progress in the relocation of employees and the pace of relocation has increased month by month in the second quarter," said Vlad Suglobov, CEO of G5 Entertainment. "As we flagged previously, we boosted our investment in user acquisition (UA) to stimulate faster revenue growth of Sherlock. The company's UA expenses as a percent of revenue rose to 35 percent as we targeted growth in Sherlock's audience. The boost for Sherlock helped lift the game's MAU, MPU, organic downloads and conversions. As a result of this strategy, Sherlock became our top game by revenue on Apple and Google, and the game is now representing 19.5 percent of the net revenue compared to 7.4 percent in the second quarter last year. In total the new generation games grew 24 percent y-o-y, and 5 percent sequentially. In USD terms, the new generation games grew 6 percent y-o-y and were unchanged compared to the first quarter, a strong result given the seasonality and fx development in the quarter. G5 finished the second quarter with a strong cash position after paying out the highest dividend in the company's history. The company remains profitable, cash flow positive and has zero debt. For the rest of the year, UA spend will return to a normal range, and we expect fx pressure to ease. We also expect profitability to rebound to normal levels and the mobile games market to pick up in Q4 and Q1 2023."
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 11-08-2022 07:00 CET.
For additional information, please contact:
Vlad Suglobov, CEO, [email protected]
Stefan Wikstrand, CFO, +46 76 00 11 115