In This Article:
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Revenue: SEK287 million, 13% lower year-over-year in SEK, 14% lower in USD terms.
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Gross Margin: 67.8%, up from 67.4% last year.
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Earnings Per Share (EPS): SEK3.02, down from SEK4.96 last year.
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G5 Store Revenue: 15.2% of total net revenue, up from 9.4% last year; growth of 42% in SEK and 40% in USD terms year-over-year.
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User Acquisition Spend: 17% of revenue, down from 19% last year.
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Operating Profit (EBIT): SEK21.8 million, down from SEK38.9 million last year.
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EBIT Margin: 7.6%, adjusted to 8.8% after FX impact, compared to 9.5% last year.
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Cash Position: SEK196 million, up from SEK173 million last year.
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Cash Flow Before Financing Activities: SEK6.5 million, down from SEK45.7 million last year.
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Dividend Paid: SEK62.4 million, SEK8 per share.
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Monthly Average Gross Revenue Per Paying User: USD63.7, up from USD62 last year.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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G5 Store's revenue contribution increased significantly, making up 15.2% of total net revenue compared to 9.4% a year ago.
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The G5 Store experienced a 42% growth year-over-year in Swedish kroner and 40% in USD terms.
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Gross margin improved slightly to 67.8% from 67.4% last year, aided by the growth of G5 Store.
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The company maintained a strong cash position with SEK193 million, up from SEK173 million last year, despite paying a substantial annual dividend.
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G5 Entertainment AB (LTS:0QUS) continues to have zero debt and a solid cash flow, indicating strong financial health.
Negative Points
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Revenue in the second quarter was SEK287 million, which was 13% lower than the previous year in Swedish kroner and 14% lower in USD terms.
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Earnings per share decreased to SEK3.02 from SEK4.96 in the same quarter last year.
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Operating profit (EBIT) dropped to SEK21.8 million from SEK38.9 million a year before, resulting in a lower EBIT margin of 7.6%.
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User acquisition spend decreased to 17% of revenue from 19% last year, indicating potential challenges in acquiring new users.
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The company faced a negative impact from FX revaluations, affecting the EBIT margin negatively.
Q & A Highlights
Q: Can you discuss the current trajectory for the big games, Sherlock and Hidden City? A: These games are more stable than others in our portfolio. We allocate substantial resources to evolve and improve them, as they are main drivers of our revenue and profitability. (Vlad Suglobov, CEO)
Q: You mentioned four games in soft launch. Do you still expect at least one global launch this year? A: We aim for a global launch this year, depending on finding a scalable game. We have promising ideas in our pipeline, and while it's challenging, we hope to qualify one for a global launch. (Vlad Suglobov, CEO)