Record Gross Margin and …

Release Date: August 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• G5 Entertainment AB (FRA:U3I) reported a minimal sequential revenue decline of only 1.7% in USD terms during a typically slower Q2.

• The G5 store continues to show strong growth, now accounting for 23% of net revenue, up from 15% a year ago.

• Gross margin reached a record high of 70%, driven by the growth of the G5 store and lower payment processing fees.

• The company remains debt-free with a strong cash position of SEK 247 million, up from SEK 196 million last year.

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• User acquisition spending increased to 18% of revenue, within the targeted range, supporting growth in game performance, particularly for Sherlock.

• Year-over-year revenue in USD terms declined by 11%, although this was an improvement from the previous quarter.

• The operating profit decreased significantly to SEK 5.6 million from SEK 21.8 million last year, impacted by foreign exchange revaluations.

• The company faced a negative impact of SEK 10 million due to the weakening USD and strengthening SEK, affecting earnings.

• The EBIT margin was reduced to 2.4% from last year’s figures, primarily due to currency fluctuations.

• Despite improvements, the game Sherlock has shown a flattish development over the past year, with uncertain prospects for immediate growth.

Q: Can you elaborate on the improvements in scalability of games and the upside from your existing portfolio? A: The team has improved user acquisition channel performance by aligning game performance with these channels. This has allowed for expanded spending and better targeting of users, particularly benefiting the game Sherlock. (Respondent: Unidentified_3, CEO)

Q: Do you expect Sherlock to return to growth following recent changes? A: We are hopeful that Sherlock will return to growth, but the next few months will be crucial in determining this. (Respondent: Unidentified_3, CEO)

Q: What are the main challenges ahead of the potential launch of Twilight Land? A: The focus is on ensuring scalability and achieving the best metrics for a successful marketing launch. This involves iterations and metrics measurements to ensure the game meets performance targets. (Respondent: Unidentified_3, CEO)

Q: What is the potential impact of introducing third-party games on the G5 store? A: The growth in the G5 store is expected to be gradual. We will start with one or two games and assess their performance. The growth is stable and reliable, and we aim to expand the store’s offerings gradually. (Respondent: Unidentified_3, CEO)