G5 Entertainment (G5EN) Q1 2025 earnings summary

Executive summary

• Revenue declined 12% year-over-year to SEK 260.3M, with a 13% drop in USD terms, reflecting ongoing market challenges and a shorter quarter.

• Gross margin reached a record 69.8%, driven by a growing share of direct-to-consumer sales via the G5 Store, now 21% of revenue.

• EBIT fell 73% to SEK 10.7M, impacted by SEK -14.6M in FX revaluations and a SEK 1.3M one-time legal expense from a failed acquisition.

• Net profit was SEK 11.9M, with EPS before dilution at SEK 1.53, down from SEK 4.76 year-over-year, mainly due to currency effects.

• Cash position reached a record SEK 295M, with zero debt and continued positive cash flow.

Financial highlights

• Revenue: SEK 260.3M (down 12% year-over-year); in USD, down 13%.

• Gross profit: SEK 181.6M (down 10% year-over-year); gross margin 69.8% (up from 68.1%).

• EBIT: SEK 10.7M (down 73% year-over-year); EBIT margin 4.1% (down from 13.2%).

• Cash flow before financing: SEK 33.2M (down from SEK 71M last year); cash and cash equivalents SEK 295M.

• Monthly average gross revenue per paying user reached a record $65.4, up 3% year-over-year.

Outlook and guidance

• Focus remains on cost control, operational efficiency, and strengthening the business model.

• Plans to return user acquisition spend to the 17%-22% range of revenue in coming quarters.

• Expecting global launch of new game, Twilight Land, later this year.

• Continued expansion of G5 Store and web shop expected to boost top line and margins.

• Focus on expanding third-party distribution via G5 Store.