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G5 Entertainment AB (SE:G5EN)
:G5EN
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G5 Entertainment AB
(OTC:G5EN)
74Outperform
G5 Entertainment AB (G5EN) vs. S&P 500 (SPY)
Market Cap
$993.63M
Dividend Yield5.69%
Average Volume (3M)17.79K
Price to Earnings (P/E)8.2
Beta (1Y)0.75
Revenue Growth-14.05%
EPS Growth-3.53%
CountrySE
Employees845
SectorCommunication Services
Sector Strength82
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.53
Shares Outstanding8,383,650
10 Day Avg. Volume17,603
30 Day Avg. Volume17,790
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
G5 Entertainment AB Business Overview & Revenue Model
Company DescriptionG5 Entertainment AB (G5EN) is a leading developer and publisher of high-quality free-to-play mobile games. Based in Stockholm, Sweden, the company specializes in producing engaging puzzle and adventure games tailored for the casual gaming audience. G5 Entertainment has a diverse portfolio of games available on various platforms, including iOS, Android, and Windows, and is known for popular titles such as 'Hidden City,' 'Sherlock: Hidden Match-3 Cases,' and 'Jewels of Rome.' The company is committed to delivering immersive gaming experiences that captivate players worldwide.
How the Company Makes MoneyG5 Entertainment AB primarily generates revenue through its free-to-play business model, where games can be downloaded and played at no initial cost. The company monetizes its games through in-app purchases, where players can buy virtual goods, additional content, or power-ups to enhance their gaming experience. Additionally, G5 Entertainment earns revenue from in-game advertisements, which are displayed to players who opt to watch ads in exchange for in-game rewards. The company's success is bolstered by its ability to create engaging content that encourages long-term player retention and spending. G5 Entertainment also benefits from strategic partnerships with app stores and advertising networks, which help to increase the visibility and distribution of its games.
G5 Entertainment AB Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.13B | 1.32B | 1.40B | 1.32B | 1.36B | Gross Profit |
| 776.10M | 892.37M | 936.42M | 810.45M | 786.32M | EBIT |
| 116.78M | 111.45M | 79.45M | 216.12M | 189.54M | EBITDA |
| 126.32M | 294.70M | 84.05M | 227.45M | 205.65M | Net Income Common Stockholders |
| 118.97M | 127.57M | 66.95M | 198.21M | 167.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 275.54M | 182.33M | 185.49M | 162.16M | 188.41M | Total Assets |
| 666.71M | 610.15M | 657.88M | 625.79M | 593.19M | Total Debt |
| 0.00 | 1.87M | 2.86M | 12.29M | 6.38M | Net Debt |
| -275.54M | -182.33M | -174.61M | -137.67M | -182.03M | Total Liabilities |
| 112.39M | 118.75M | 158.15M | 133.38M | 161.38M | Stockholders Equity |
| 554.32M | 491.40M | 499.73M | 492.41M | 431.81M |
| Cash Flow | Free Cash Flow | |||
| 178.17M | 130.85M | 129.15M | 188.41M | 140.09M | Operating Cash Flow |
| 283.33M | 241.16M | 304.76M | 360.63M | 269.09M | Investing Cash Flow |
| -119.32M | -113.25M | -176.66M | -208.53M | -129.00M | Financing Cash Flow |
| -76.64M | -119.48M | -108.62M | -192.34M | -97.63M |
G5 Entertainment AB Technical Analysis
Negative
99.40
Price Trends
122.92
Negative
122.28
Negative
109.98
Negative
Market Momentum
-3.74
Positive
32.53
Neutral
7.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:G5EN, the sentiment is Negative. The current price of 99.4 is below the 20-day moving average (MA) of 116.32, below the 50-day MA of 122.92, and below the 200-day MA of 109.98, indicating a bearish trend. The MACD of -3.74 indicates Positive momentum. The RSI at 32.53 is Neutral, neither overbought nor oversold. The STOCH value of 7.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:G5EN.
G5 Entertainment AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $21.44B | 36.59 | 19.48% | 1.32% | -17.38% | 8.93% | |
74 Outperform | $993.63M | 8.22 | 16.63% | 5.69% | -14.05% | -3.53% | |
60 Neutral | €204.54M | 28.20 | 2.20% | 12.29% | -13.90% | 8.35% | |
60 Neutral | $13.50B | 7.33 | -2.74% | 3.80% | 2.09% | -39.49% | |
55 Neutral | kr348.93M | ― | -26.50% | ― | -70.66% | -189.52% | |
48 Neutral | $27.32B | ― | -33.67% | ― | -23.34% | -1681.97% | |
47 Neutral | €46.83M | ― | -78.42% | ― | -10.10% | 15.98% |
* Communication Services Sector Average
Performance Comparison
SE:G5EN
G5 Entertainment AB
98.10
-27.35
-21.80%
SE:PDX
Paradox Interactive AB
200.60
36.62
22.33%
SE:STAR.B
Starbreeze AB
0.22
>-0.01
-3.59%
SE:EMBRAC.B
Embracer Group AB
122.06
-56.32
-31.57%
SE:FRAG
Fragbite Group AB
6.00
-40.69
-87.15%
SE:MAGI
MAG Interactive AB
7.54
-0.13
-1.67%
G5 Entertainment AB Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q4-2024)
| % Change Since: -18.12%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed bag of outcomes. While there were significant achievements in the growth of the G5 Store and improvements in gross margin and EPS, these were overshadowed by a year-over-year revenue decline and extraordinary expenses related to an unsuccessful M&A process. The sequential revenue growth and strong cash position are positive indicators, but the overall sentiment reflects a company navigating through challenges while capitalizing on certain growth areas.Q4-2024 Updates
Positive Updates
G5 Store Growth
G5 Store now accounts for 19.1% of total net revenue, up from 13.2% a year ago, with a year-over-year growth of 37% in SEK and 35% in USD terms. Sequentially, it grew by 90% in SEK and 13% in USD from Q3 to Q4.
Improved Gross Margin
Gross margin reached a new record of 69.1% in Q4 compared to 68.1% last year, driven by the growth of G5 Store.
EPS Improvement
EPS for the quarter was SEK 4.29, a significant increase from SEK 1.12 last year.
Strong Cash Position
Cash position at the end of the quarter was SEK 275 million, up from SEK 182 million last year, marking a record high.
Sequential Revenue Growth
Revenue grew sequentially by 4% in SEK and 1% in USD from Q3 to Q4, marking the first sequential growth in over two years.
Twilight Land Scalability
Twilight Land, after several iterations, is showing signs of scalability in the market and may be globally launched this year.
Negative Updates
Revenue Decline
Revenue was almost SEK 280 million, about 12% lower than last year in both SEK and USD terms.
One-Time Legal Expense
An extraordinary one-time legal expense of about SEK 5 million negatively impacted profitability.
Actively Managed Portfolio Decline
The actively managed portfolio of games fell about 9% in USD terms year-over-year.
M&A Process Costs Without Result
Incurred a SEK 5 million legal expense related to an M&A process that did not lead to a deal.
Company Guidance
During the fourth quarter of 2024, the company reported a revenue of SEK280 million, marking a 12% decrease from the previous year, but showed a sequential growth of 4% in SEK and 1% in USD from the third quarter. The Jewels family and Sherlock games contributed 31% and 27% to total net revenue, respectively, with Sherlock achieving sequential growth for the first time in eight quarters. G5 Store revenue surged to 19.1% of total net revenue, up from 13.2% a year ago, with a year-over-year growth of 37% in SEK terms and 35% in USD terms. User acquisition expenses decreased to 17% of revenue, down from 19% last year, while the gross margin reached a record 69.1%, up from 68.1% last year. A one-time legal expense of SEK5 million impacted profitability, yet EPS improved significantly to SEK4.29, up from SEK1.12 the previous year. The company maintained a strong cash position of SEK275 million, up from SEK182 million, with zero debt. Looking ahead, the focus remains on executing strategic developments and potentially launching one or two new games globally in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.