Interim Report January – June 2025

“In the second quarter of 2025, we continued executing on our long-term strategy while navigating a challenging market environment,” said Vlad Suglobov, CEO of G5 Entertainment. Revenue amounted to SEK 231.6 M, representing a 20 percent decline in SEK terms and an 11 percent decrease in USD terms compared to the same quarter last year. The quarter-to-quarter decline was marginal in USD terms at 1.7 percent despite the second quarter being a seasonally weaker quarter. This better dynamic was driven by the improvements in games, especially Sherlock, as well as increased UA spending during the quarter. As a result, in USD terms, sequentially, Sherlock’s revenue grew 2.4% from Q1 to Q2. Year-over-year, Sherlock declined only marginally by about 3% in the quarter, also in USD terms. We are pleased to report an increase in gross margin to 70.0 percent, the highest recorded level yet, driven by the continued growth of our direct-to-consumer channel. The G5 Store grew 38.5 percent year-over-year and 8.4 percent sequentially in USD, now contributing a growing share of our total revenue and supporting both margin expansion and deeper player relationships. During the quarter we have continued preparing the technical framework (SDK) and documentation for 3rd party developers to be able to integrate and distribute their games on G5 Store, with the aim to start distributing some 3rd party games on G5 Store before the end of the year. Looking ahead, we are focused on delivering new titles from our refreshed development pipeline. For the second half of the year we reiterate our expectation to release Twilight Land globally. The team is also working hard to bring more high-quality games to market, guided by the new development funnel that prioritizes scalability and retention from early stages. We remain confident that this disciplined approach will lay the foundation for future growth.”

April – June 2025

• Revenue for the period was SEK 231.6 M (287.9), a decrease of 20 percent compared to the same period in 2024 in SEK terms. In USD terms revenue decreased 11 percent year-over-year. Sequentially revenue decreased 1.7% in USD terms.
• Gross margin increased to 70.0 percent (67.8 percent), as a larger share of revenue is coming from G5’s direct to consumer channel.
• EBIT for the period was SEK 5.6 M (21.8), a decrease of 74%, corresponding to an EBIT-margin of 2.4% (7.6). EBIT was negatively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK -10.0 M (-3.4). Adjusting for the negative impact from other income and expense the EBIT margin would be 6.8 (8.8) percent. EBIT was impacted compared to Q1 as user acquisition has been increased from 15% to 18%, back in the previously communicated range.
• Net result for the period was SEK 6.9 M (23.5), positively impacted by the finance net of SEK 2.2 M (2.6).
• Earnings per share for the period, before dilution, was SEK 0.88 (3.02).
• Cash flow amounted to SEK -38.8 M (-56.3), impacted negatively by dividends paid during the quarter amounting to SEK 62.2 M (62.4).
• G5 Store grew 38.5% y-o-y and 8.4% sequentially in USD terms in the quarter. Efforts ongoing to bring 3rd party games for distribution in G5 Store.
• Average Monthly Active Users (MAU) was 3.8 million, a decrease of 20 percent compared to the same period in 2024. Average Daily Active Users (DAU) was 1.2 million, a decrease of 17 percent compared to the same period in 2024. Average Monthly Unique Payers (MUP) was 113.8 thousand, a decrease of 17 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 68.9, an increase of 8 percent 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 07-08-2025 07:00 CET.

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® and The Secret Society®.

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. Forsix years in a row, G5 Entertainment was ranked in Deloitte’s Top 50 Fastest Growing Tech Companies in Sweden and was named as one of Europe's Long-Term Growth Champions according to The Financial Times. 

More information about G5 Entertainment can be found at: https://corporate.g5.com

For additional information, please contact:
Vlad Suglobov, CEO, investor@g5.com
Stefan Wikstrand, CFO, +46 76 00 11 115

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