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G5 Entertainment

G5 Entertainment

G5 Entertainment develops and publishes free-to-play games for smartphones and tablets. The games are family-friendly, easy to learn and target a wide audience of experienced and inexperienced players. Distribution is achieved digitally through the various app stores of Apple, Google, Amazon and Windows. In addition to its proprietary games, the company is also a publisher of games licensed by other developers, in which case a royalty is paid to the developer based on the game’s sales performance.

Sustainability information

Despite the business model's stickiness, the company faces the risk that users may stop playing certain games. Risks hence arise if the main driver games, which generate most of G5's revenues, start to lose their momentum. The scenario hence requires other games to drive revenue or else a higher amount of UA costs will be necessary. Also, having its distribution through different app stores, G5 is dependent on both the relationship with the distributers as well as their standard terms and conditions.

SEKm 2024 2025e 2026e
Sales 1135 1010 993
Sales growth (%) -14 -10,9 -1,7
EBITDA 253 191 211
EBITDA margin (%) 22,3 18,9 21,2
EBIT adj. 107 96 101
EBIT adj. margin (%) 9,5 9,5 10,2
Pretax profit 126 88 110
EPS 15,25 10,19 12,73
EPS growth (%) -5,1 -33,2 24,8
EPS adj. 15,25 10,19 12,73
DPS 8 8 8,33
EV/EBITDA (x) 1,9 2,3 1,9
EV/EBIT adj. (x) 4,4 4,6 3,9
P/E (x) 6,6 9,8 7,9
P/E adj. (x) 6,6 9,8 7,9
EV/sales (x) 0,41 0,44 0,4
FCF yield (%) 22,8 12 13,9
Le. adj. FCF yld. (%) 22,6 11,9 13,8
Dividend yield (%) 8 8 8,3
Net IB debt/EBITDA (x) -1,2 -1,8 -1,8
Le. adj. ND/EBITDA (x) -1,4 -1,8 -1,9
SEKm 2024 2025e 2026e
Sales 1135 1010 993
COGS -358 -299 -290
Gross profit 776 711 703
Other operating items -524 -520 -493
EBITDA 253 191 211
Depreciation and amortisation -136 -111 -109
of which leasing depreciation -12 -12 -12
EBITA 117 80 101
EO Items 9 -16 0
Impairment and PPA amortisation 0 0 0
EBIT 117 80 101
Net financial items 9 8 9
Pretax profit 126 88 110
Tax -7 -8 -11
Net profit 119 80 99
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 119 80 99
EPS 15,25 10,19 12,73
EPS adj. 15,25 10,19 12,73
Total extraordinary items after tax 9 -14 0
Leasing payments -12 -12 -12
Tax rate (%) 5,6 9,5 10
Gross margin (%) 68,4 70,4 70,8
EBITDA margin (%) 22,3 18,9 21,2
EBITA margin (%) 10,3 7,9 10,2
EBIT margin (%) 10,3 7,9 10,2
Pre-tax margin (%) 11,1 8,7 11,1
Net margin (%) 10,5 7,9 10
Growth Rates y-o-y N/A N/A N/A
Sales growth (%) -14 -10,9 -1,7
EBITDA growth (%) -5,8 -24,4 10,2
EBITA growth (%) 4,8 -31,7 27
EBIT growth (%) 4,8 -31,7 27
Net profit growth (%) -6,8 -33,2 24,8
EPS growth (%) -5,1 -33,2 24,8
Profitability N/A N/A N/A
ROE (%) 22,8 13,9 16,2
ROE adj. (%) 21,1 16,4 16,2
ROCE (%) 24 15,3 18
ROCE adj. (%) 22,2 18 18
ROIC (%) 42,4 29,3 36,6
ROIC adj. (%) 39 35,1 36,6
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 243 207 211
EBITDA adj. margin (%) 21,4 20,5 21,2
EBITDA lease adj. 231 195 199
EBITDA lease adj. margin (%) 20,4 19,3 20
EBITA adj. 107 96 101
EBITA adj. margin (%) 9,5 9,5 10,2
EBIT adj. 107 96 101
EBIT adj. margin (%) 9,5 9,5 10,2
Pretax profit Adj. 117 104 110
Net profit Adj. 110 94 99
Net profit to shareholders adj. 110 94 99
Net adj. margin (%) 9,7 9,3 10
SEKm 2024 2025e 2026e
EBITDA 253 191 211
Goodwill 0 0 0
Net financial items 9 8 9
Other intangible assets 213 207 205
Paid tax -7 -8 -11
Tangible fixed assets 9 8 7
Non-cash items 10 16 0
Right-of-use asset 0 0 0
Cash flow before change in WC 265 207 209
Total other fixed assets 38 37 37
Change in working capital 19 -13 -1
Fixed assets 260 253 250
Operating cash flow 283 194 208
Inventories 0 0 0
Capex tangible fixed assets -1 -4 -4
Receivables 22 22 22
Capex intangible fixed assets -104 -96 -95
Other current assets 109 109 109
Acquisitions and Disposals 0 0 0
Cash and liquid assets 276 306 348
Free cash flow 178 94 109
Total assets 667 690 730
Dividend paid -62 -62 -65
Shareholders equity 554 592 632
Share issues and buybacks -13 0 0
Minority N/A N/A N/A
Leasing liability amortisation -1 -1 -1
Total equity 554 592 632
Other non-cash items -3 1 0
Long-term debt 0 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 2 2 2
Total other long-term liabilities 1 0 0
Short-term debt N/A N/A N/A
Accounts payable 44 31 31
Other current liabilities 65 65 65
Total liabilities and equity 667 690 730
Net IB debt -311 -341 -384
Net IB debt excl. pension debt -311 -341 -384
Net IB debt excl. leasing -313 -343 -386
Capital employed 556 594 634
Capital invested 243 251 248
Working capital 22 35 36
EV breakdown N/A N/A N/A
Market cap. diluted (m) 781 781 781
Net IB debt adj. -311 -341 -384
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 470 440 397
Total assets turnover (%) 177,7 148,9 139,9
Working capital/sales (%) 2,9 2,8 3,6
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) -56,2 -57,7 -60,7
Net debt / market cap (%) -39,8 -43,7 -49,2
Equity ratio (%) 83,1 85,8 86,6
Net IB debt adj. / equity (%) -56,2 -57,7 -60,7
Current ratio 3,73 4,55 5,02
EBITDA/net interest 27,5 23,6 23,4
Net IB debt/EBITDA (x) -1,2 -1,8 -1,8
Net IB debt/EBITDA lease adj. (x) -1,4 -1,8 -1,9
Interest coverage N/A N/A N/A
SEKm 2024 2025e 2026e
Shares outstanding adj. 8 8 8
Diluted shares adj. 8 8 8
EPS 15,25 10,19 12,73
Dividend per share 8 8 8,33
EPS adj. 15,25 10,19 12,73
BVPS 71,08 75,91 81,08
BVPS adj. 43,76 49,35 54,75
Net IB debt/share -39,92 -43,79 -49,25
Share price 100,2 100,2 100,2
Market cap. (m) 781 781 781
Valuation N/A N/A N/A
P/E (x) 6,6 9,8 7,9
EV/sales (x) 0,41 0,44 0,4
EV/EBITDA (x) 1,9 2,3 1,9
EV/EBITA (x) 4 5,5 3,9
EV/EBIT (x) 4 5,5 3,9
Dividend yield (%) 8 8 8,3
FCF yield (%) 22,8 12 13,9
Le. adj. FCF yld. (%) 22,6 11,9 13,8
P/BVPS (x) 1,41 1,32 1,24
P/BVPS adj. (x) 2,29 2,03 1,83
P/E adj. (x) 6,6 9,8 7,9
EV/EBITDA adj. (x) 1,9 2,1 1,9
EV/EBITA adj. (x) 4,4 4,6 3,9
EV/EBIT adj. (x) 4,4 4,6 3,9
EV/CE (x) 0,8 0,7 0,6
Investment ratios N/A N/A N/A
Capex/sales (%) 9,3 9,9 10
Capex/depreciation 0,8 1 1
Capex tangibles / tangible fixed assets 14,8 49,1 55,9
Capex intangibles / definite intangibles 48,7 46,3 46,4
Depreciation on intang / def. intang 58 48 47
Depreciation on tangibles / tangibles 0 0 0

Equity research

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Media

G5 Entertainment - Company presentation with CFO & Deputy CEO Stefan Wikstrand
G5 Entertainment - Company presentation with CFO & Deputy CEO Stefan Wikstrand

Main shareholders - G5 Entertainment

Main shareholders Share capital % Voting shares % Verified
Avanza Pension 7.9 % 8.1 % 28 Apr 2025
Wide Development Cyprus LTD 7.8 % 7.9 % 28 Apr 2025
Purple Wolf Ltd 5.0 % 5.1 % 28 Apr 2025
Tommy Svensk 4.9 % 5.0 % 28 Apr 2025
Argenta Asset Management SA 4.1 % 4.2 % 31 Jan 2025
G5 Entertainment AB (Publ) 5.5 % 3.7 % 28 Apr 2025
Nordnet Pensionsförsäkring 3.0 % 3.1 % 28 Apr 2025
Proxima Ltd 2.8 % 2.8 % 30 May 2024
Daniel Eriksson 1.8 % 1.9 % 28 Apr 2025
Handelsbanken Liv Försäkring AB 1.4 % 1.5 % 28 Apr 2025
Source: Holdings by Modular Finance AB