G5 Entertainment (G5EN) ABGSC Investor Days summary

Market overview and trends

• Mobile gaming market projected to reach $95 billion in 2024, remaining the largest gaming segment.

• Growth surged during COVID-19, followed by a reset and now stabilizing at low single-digit growth.

• Saturation in high-paying markets like the US and Japan; user growth now comes from emerging markets.

• Core audience is women over 35, with high loyalty and strong average monthly spend per paying user.

• Seasonal revenue patterns are normalizing post-pandemic, with stronger winter months expected.

Business model and portfolio strategy

• Transitioned fully to free-to-play games by 2015, focusing on hidden object, match three, and mahjong genres.

• Portfolio approach emphasizes multiple active and licensed games to balance growth and maturity cycles.

• 70% of revenue now comes from owned games, improving gross margins due to reduced revenue sharing.

• G5 Store, a direct-to-consumer platform, offers better unit economics and higher player loyalty.

• G5 Store has shown consistent sequential growth since its 2020 launch.

Game development and release process

• Shifted from releasing multiple games annually to a selective funnel aiming for one to two global launches per year.

• Development funnel processes about 30 game ideas yearly, advancing only those meeting strict KPIs.

• In 2023, one new game was released; in 2024, no releases yet, with seven games currently in the pipeline.

• Ongoing improvements to the funnel aim to increase development velocity and reduce testing costs.

• External factors like the war in Ukraine have impacted the transition timeline.