G5 Entertainment AB ( (GENTF) ) has released its Q2 earnings. Here is a breakdown of the information G5 Entertainment AB presented to its investors.
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G5 Entertainment AB is a Swedish company that develops and publishes high-quality free-to-play games for various platforms, including its own G5 Store, and is listed on Nasdaq Stockholm.
In its latest earnings report for the second quarter of 2025, G5 Entertainment AB reported a revenue of SEK 231.6 million, marking a 20% decrease in SEK terms compared to the same period in 2024. Despite the revenue decline, the company achieved a record gross margin of 70% due to the growth of its direct-to-consumer channel, particularly through the G5 Store.
The company’s EBIT for the quarter was SEK 5.6 million, significantly impacted by foreign exchange revaluations. However, excluding these effects, the EBIT margin would have been 6.8%. The net result stood at SEK 6.9 million, with earnings per share at SEK 0.88. The company also noted a decrease in average monthly active users by 20% year-over-year, while the G5 Store saw a 38.5% growth in USD terms.
Looking forward, G5 Entertainment is focused on releasing new titles from its development pipeline and expanding its G5 Store to include third-party games. The company aims to enhance the scalability of its core games to stabilize top-line revenue and increase user acquisition spending.
Overall, G5 Entertainment is navigating a challenging market environment with strategic initiatives aimed at long-term growth and profitability.