Year-end Report 2021

“In 2021 we celebrated the 20th anniversary since the formation of what was to become the G5 Entertainment group of companies. I am very happy to report that during the year the team continued to deliver on the strategy, resulting in record earnings, record earnings per share, and the best earnings margin in the group’s history,” said Vlad Suglobov, CEO of G5 Entertainment. “A few years ago, G5 doubled down on making its own games, a move that had a profound effect on how the group generated its revenue and ultimately its financial performance. Jewels of Rome and the subsequent Jewels family of games launched since 2019 represented 30% of the group’s total revenue in Q4’21. The most recent success coming from our own studios is a game called Sherlock. It was released a year ago and already made up 13% of the group’s Q4 revenue. The fast growth and high profitability of these internally developed titles have powered the change in the revenue mix between those games we own and those that are licensed and also helped expand margins. The trend was obvious in 2021 with G5’s own games responsible for 67% of revenue in Q4 compared to 61% a year earlier, and our New Generation of games (those released since 2019) making up 52% of Q4 ’21 revenue compared to 40% last year – a jump of 23% YoY in USD terms. Most importantly, the success of the Jewels game series and Sherlock prove that our internal game development studios are capable of consistently producing outstanding and highly profitable games.”

October – December 2021

• Revenue for the period was SEK 324.6 M (335.3), a decrease of 3 percent compared to the same period in 2020 in SEK terms. In USD terms revenue declined 6 percent year-over-year.
• Gross margin increased to 65 percent (59 percent), as larger share of revenue is coming from own games, and lower 12% store fees is applied on the Microsoft platform that went from 30% on August 1, 2021.
• EBIT for the period was SEK 56.6 M (52.3), an increase of 8 %.
• Net result for the period was SEK 54.2 M (46.0), an increase of 18 %.
• Earnings per share for the period, before dilution, was SEK 6.42 (5.30), an increase of 21%.
• Cash flow amounted to SEK 19.0 M (30.9), affected by SEK -20.5 M (0.0) from short and long-term financial investments.
• Average Monthly Active Users (MAU) was 6.5 million, a decrease of 12 percent compared to the same period in 2020. Average Daily Active Users (DAU) was 1.8 million, a decrease of 1 percent compared to the same period in 2020. Average Monthly Unique Payers (MUP) was 189.7 thousand, a decrease of 13 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 63.3, an increase of 5 percent compared to the same period last year.
• An error has been discovered in the system for analytics that generates the KPIs disclosed. The error was related to the calculation of MAGRPPU and the group therefore has posted updated numbers for each quarter of the year 2021 on page 7 in the report.

Full year 2021

• Revenue for the year was SEK 1,315.7 M (1,356.0), a decrease of 3 percent compared to 2020 in SEK terms. In USD terms revenue grew 4 percent year-over-year.
• Gross margin increased to 62 percent (58 percent), as larger share of revenue is coming from own games and lower commissions on the Microsoft platform.
• EBIT for the period was SEK 216.1 M (189.5), an increase of 14%.
• Earnings per share for the period, before dilution was SEK 23.3 (19.11), an increase of 22%.
• The Board proposes a dividend of 7.0 SEK / share (6.25) equal to approximately SEK 59.1 M (54.1).

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 10-02-2022 07:33 CET.