G5 Entertainment AB ( (GENTF) ) has released its Q1 earnings. Here is a breakdown of the information G5 Entertainment AB presented to its investors.
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G5 Entertainment AB is a developer and publisher of high-quality free-to-play games, primarily operating in the mobile gaming industry with a focus on casual games for a broad audience.
In its latest earnings report for the first quarter of 2025, G5 Entertainment AB reported a revenue of SEK 260.3 million, reflecting a 12% decrease compared to the same period in 2024. Despite the revenue decline, the company managed to increase its gross margin to 69.8%, driven by a higher share of sales through its own G5 Store.
Key financial metrics showed a significant decrease in EBIT, which fell by 73% to SEK 10.7 million, impacted by foreign exchange revaluations. However, the company maintained a strong cash position of SEK 295 million with zero debt. User engagement metrics also showed a decline, with Average Monthly Active Users down by 18% and Average Daily Active Users down by 15%.
Looking ahead, G5 Entertainment AB aims to enhance its marketing efforts and product offerings to reverse the current trends. The company plans to increase its user acquisition spending to support long-term growth and continue leveraging the G5 Store as a significant revenue channel.