Q4 2025 G5 Entertainment AB (publ) Earnings Call Transcript
Key Points
- G5 Store has become the second largest distribution channel, contributing significantly to the company's improved profitability and gross margin expansion.
- Monthly average gross revenue per paying user reached a new record of USD71.7, indicating strong monetization.
- The company remains debt-free with a strong cash position of SEK216 million, providing a solid financial foundation.
- G5 Entertainment AB (GENTF) has successfully stabilized revenue for its main games, Sherlock and Hidden City, with Hidden City showing an 8.3% sequential growth.
- The introduction of third-party games to the G5 Store has shown promising results, with potential for incremental revenue growth for mobile developers.
- Revenue declined 9% year-over-year in USD terms and 21% in Swedish krona, primarily due to the underperformance of the Jewels family of games.
- Operating loss for the quarter was SEK6 million, a significant drop from a profit of SEK32.8 million last year, impacted by foreign exchange revaluations and increased user acquisition costs.
- The Jewels family of games experienced a 19% year-over-year decline in USD terms, contributing to the overall revenue decline.
- The company had to discontinue the game Twilight Land after scalability tests, reallocating resources to other strategic initiatives.
- The EBIT margin was negative at minus 2.7%, compared to a positive 11.8% last year, reflecting challenges in maintaining profitability.
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Morning, everyone. (Event Instructions) And then we'll answer them when we get to that point on the agenda. But I think attendee list seems to be not moving anymore. So then I will hand over to Vlad for the remarks for the fourth quarter.
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Thank you, Stefan. Welcome, everyone, to our report. I'll start by giving you a brief overview of the quarter. Stefan, can we move on to the next slide, please? So revenue declined 9% year-over-year in USD terms.
But because of the exchange rate changes, it went down 21% when expressed in Swedish krona and was SEK221 million for the period. Sequentially, it was down 2% from Q3 to Q4 in USD terms. And looking at the three main pillars of our revenue generation, our three main games, we have achieved stabilization of two of these. Hidden City had a
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