"The stable performance experienced during the first three months of the year continued in the second quarter, following the "new normal" scenario we introduced at the end of 2022. Financially, we delivered another strong quarter. The G5 Store continued to show fast growth, helping boost our gross margin," said Vlad Suglobov, CEO of G5 Entertainment. "Second quarter revenue slipped 4% in SEK and decreased 10% in USD terms in absence of new game releases. Sherlock, the Jewels family of games and Hidden City performed slightly weaker than in the first three months of the year, consistent with the historically weaker summer season. Still, Sherlock's Q2 revenue increased 12% in USD year-over-year, while it declined 3% sequentially. The success of the G5 Store continues to gain steam as we have seen strong sequential growth into July. These gains helped drive the Q2 gross margin to 67.4%, compared to 66.2% a year earlier. The G5 Store grew 17% sequentially and jumped 106% from the same period last year in USD terms and accounted for almost 10% of total revenue, up from 4.3% last year. We are in a strong position and our games and direct-to-consumer business continues to gain traction. We expect continued stability in the second half of 2023, with an opportunity for additional positive development thanks to our new game pipeline."
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 10-08-2023 07:00 CET.
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