Year-end Report 2022

“The fourth quarter is the starting point for a ‘new normal’ and even though the relocation efforts are ongoing we are beginning to see a representative quarter of the sustainable situation we expect for 2023 with regards to cost structure, level of UA spend, and profitability,” said Vlad Suglobov, CEO of G5 Entertainment. “Year-over-year, fourth quarter revenue grew 12% in SEK and declined 7% in USD, in line with the overall market performance. Sequentially, revenue grew 1% in SEK from the third quarter. G5’s gross margin was a strong 67.1%, slightly lower than the record in the previous quarter. Sherlock was once again the star of our portfolio and drove growth in the New Generation games, growing 61% year-over-year in USD terms. Year-over-year, G5 Store revenue grew more than 80% in USD terms and sequentially it grew almost 30% compared to the third quarter. The January 2023 dynamic of G5 Store has accelerated further, and growth was over 100% year-over-year in USD terms. We are excited to see the continued strong growth dynamics in G5 Store at high revenue levels, and what continued strong growth of G5 Store in 2023 means for our gross margin and profitability. We are entering 2023 with strong growth trends in Sherlock and G5 Store and growing profitability due to lower fees in G5 Store and a higher percentage of revenue generated by our own games. In 2023, we strive to deliver stable performance in line with the ‘new normal’ of this fourth quarter.”

October – December 2022

• Revenue for the period was SEK 363.6 M (324.6), an increase of 12 percent compared to the same period in 2021 in SEK terms. In USD terms revenue decreased 7 percent year-over-year.
• Gross margin increased to 67 percent (65 percent), as larger share of revenue is coming from own games and platforms.
• EBIT for the period was SEK 47.6 M (56.6), a decrease of 16%.
• Net result for the period was SEK 45.8 M (54.2).
• Earnings per share for the period, before dilution, was SEK 5.56 (6.42).
• Cash flow amounted to SEK 1.0 M (19.0).
• Average Monthly Active Users (MAU) was 6.0 million, a decrease of 12 percent compared to the same period in 2021. Average Daily Active Users (DAU) was 1.7 million, a decrease of 5 percent compared to the same period in 2021. Average Monthly Unique Payers (MUP) was 177.2 thousand, a decrease of 7 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 61.7, a decrease of 2 percent compared to the same period last year. During the period a change in the methodology for measuring the KPI’s have been made. More information can be found in the report, the comparison period has been adjusted accordingly.

Full year 2022

• Revenue for the year was SEK 1,400.1 M (1,315.7), an increase of 6 percent compared to 2021 in SEK terms. In USD terms revenue decreased 10 percent year-over-year.
• Gross margin increased to 67 percent (62 percent), as larger share of revenue is coming from own games and platforms, and lower fees that were applied on the Microsoft platform from August 1, 2021.
• EBIT for the period was SEK 79.5 M (216.1), a decrease of 63%.
• Earnings per share for the period, before dilution was SEK 8.00 (23.32).
• The Board proposes a dividend of 8.0 SEK / share (7.0) equal to approximately SEK 65.4 M (59.1).

This disclosure contains information that G5 Entertainment AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 09-02-2023 07:00 CET.