G5 Entertainment AB · OMXSTO:G5EN
G5 Entertainment AB — Investor Presentation (November 2024)
17 slides from G5 Entertainment AB's investor presentation, November 2024
Slide 1: G5 Entertainment Investor presentation
G5 Entertainment Investor presentation NASDAQ OMX: G5EN.ST
Slide 2: G5 Entertainment in brief
G5 Entertainment in brief • Game Developer and publisher Strong history in sales Casual free-to-play (F2P) games and downloads for tablets, smartphones and PCs Secret Society: USD 100 M sales • Puzzle and adventure game genres, 27 M downloads such as Hidden Object, Match-3 and Mahjong Hidden City: U
Slide 3: G5 Entertainment in brief (2)
G5 Entertainment in brief (2) Stable Revenue (MSEK) Gross Margin (%) performance 450 70% in 2023 400 65% 350 • 1.3 billion SEK revenue 300 60% • 111 million SEK EBIT 250 • G5 Store boosted gross 55% 200 margin and contributed to 150 50% stable performance • 15.84 SEK EPS 100 45% 50 +98%, compared to
Slide 4: G5 Store
G5 Store G5 Store - % of Net Revenue (MSEK) • G5 Store G5 Store is G5’s direct-to-consumer (DTC) channel. The Store 18% was launched in 2020 on the Windows platform but is now 27% Y/Y 17.1% available for Windows, Mac and Android. The G5 Store allows 16% users to browse and download games directly fr
Slide 5: Mobile Gaming Industry
Mobile Gaming Industry Mobile gaming is the best-performing segment of the overall gaming market. 5
Slide 6: Global Mobile Gaming: A Growth Market
Global Mobile Gaming: A Growth Market Global Mobile Games Market Revenues, Bn USD • Mobile gaming is the best-performing segment of the overall gaming 120 2016-2022 2020-2025F market, with global revenues expected to reach $101 Bn USD by 2026 12% CAGR 2% CAGR G5 15% CAGR • 48% of 2024 global game re
Slide 7: G5 Development: 2014-2023
G5 Development: 2014-2023 2014 2015 2016 2017 2018 Accumulated downloads Hidden City exits Two hidden object Expansion & Investment: Starts trading on of group games in H1: 210 soft launch phase games gross Development teams and NASDAQ million >$100M lifetime new portfolio of games Stockholm: G5EN 2
Slide 8: G5's Portfolio & Development funnel
G5’s Portfolio & Development funnel “G5 has a range of games in the genres that are all liked by the company’s target audience.” 8
Slide 9: Target Audience and Game Genre
Target Audience and Game Genre Hidden Object Match-3 A Unique Market: Women Age 35+ Growing demographic Underserved market Very loyal audience Strong paying audience $ Mahjong / Solitaire New Genres G5 Friends Network 9
Slide 10: New Games Development Funnel
New Games Development Funnel Early Harvest Mode Game Idea development / Scaling Peak revenue Maturing Long-tail revenue Soft Launch _ revenue Very limited revenue _ user acquisition from soft launch in select markets In this stage the Game is released in After global release, UA and Growth: As reven
Slide 11: Development funnel stages
Development funnel stages 1. PRE-PRODUCTION 3 GAMES 2. PRODUCTION OF SOFT LAUNCH VERSION 3. SOFT LAUNCH – ENGAGMENT TESTING 4. SOFT LAUNCH – 4 GAMES MONETIZATION TESTING 5. SOFT LAUNCH – SCALABILITY TESTING 6. PREPARATION FOR GLOBAL LAUNCH GLOBAL LAUNCH
Slide 12: Our Portfolio Approach
Our Portfolio Approach Own/licensed revenue (MSEK) | Own games share (%) 400 75% • Strengthened development teams giving the company full control over game development and 350 quality combined with tougher approach to 70% underperforming games 300 • Revenue from Own games have consistently grown and
Slide 13: Financials
Financials “We are confident that our strategic initiatives will bear fruit in the coming quarters, reinforcing our position in the market.” 13
Slide 14: Q3 2024 Results
Q3 2024 Results • Revenue was SEK 270 M, -17% Y/Y in SEK | -14% Y/Y in USD G5 Store - % of G5’s Net Revenue (USD) • Active games*: -14% Y/Y in USD • MAGRPPU strong at 64.9 USD 18% 27% Y/Y • G5 Store 17.1% of total net revenue (12.1) 16% • Low single digits processing fees compared to the 12-30% thir
Slide 15: Financial Summary: Q3 2024
Financial Summary: Q3 2024 Operating Profit (EBIT) SEK 22.9 M (22.3) Strong performance EBIT margin 8.5% Strong balance sheet • Own games >70% of net revenue (71) • EBIT was negatively impacted by revaluations • Capitalization impact on cash flow SEK -25.5 M (-27.5) • Active own games: 63% (63) of n
Slide 16: Outlook for 2024/25
Outlook for 2024/25 • We continue to focus on the development of new games, and active portfolio • During the quarter we made 14 iterations on different new games, and we are progressing with our goal of launching a game globally • We are optimistic that our operational efficiency and strategic adju
Slide 17: Contact
Contact Stockholm headquarters G5 Entertainment AB Nybrogatan 6, 5th floor 114 34 Stockholm Sweden Email: [email protected] www.corporate.g5.com
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