Swedish publisher with Russian roots G5 Entertainment shared a financial report for the third quarter of 2021. The company lost a little in revenue, but at the same time increased its profit. We managed to achieve growth thanks to the success of our own games and recent releases, as well as a reduction in the commission in the Microsoft Store.
SherlockMain figures:
- G5 Entertainment’s quarterly revenue was 327.5 million Swedish kronor or $38 million. In crowns, this is 1% less than the company earned last year, but if you look in dollars, its revenue increased by 1%;
- Gross profit increased by 6% year-on-year and reached SEK 208 million ($24.2 million);
- The company’s EBIT increased to 56.4 million Swedish kronor ($6.5 million). This is 5% more compared to the third quarter of 2020;
- 50% of the publisher’s earnings for the first time fell on new generation games (this is how G5 Entertainment calls the projects that came out in the summer of 2019 and later). One of the most successful games was Sherlock — it provided 10% of the company’s quarterly revenue. Another profitable project turned out to be Jewels of the Wild West;
- 66% of earnings were generated by G5 Entertainment’s own games — a record figure for the company;
- Half of G5 Entertainment’s revenue came from outside the App Store and Google Play. This was facilitated by a reduction in the commission for the Microsoft Store from 30% to 12%, as well as the rapid growth of the company’s own store with versions of games for the PC — G5 Store. The publisher did not specify how much the share of revenue from the G5 Store has grown, but noted that this app store turned out to be “the fastest growing distribution channel”;
- Most of G5 Entertainment’s revenue came from North America — 61%. Europe generated another 22%, Asia – 11%;
- in the third quarter, 6.7 million people played publisher’s games monthly, which is 2% less compared to the same period last year;
- at the same time, the number of daily active users increased by 2% — DAU amounted to 1.8 million people;
- the number of paying users per month (MUP) decreased by 7% to 197.7 thousand people. At the same time, the average gross monthly income per paying user (MAGRPPU) increased by 13% and amounted to $68.1.
