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G5 Entertainment

G5 Entertainment

G5 Entertainment: Interim report January-December 2011

10:13 / 24 February 2012 G5 Entertainment Press release

  • Consolidated revenue for the period is 45 931 KSEK (14 724 KSEK in Q4, 12 065 KSEK in Q3, 9 594 KSEK in Q2, 9 548 KSEK in Q1), up 101% compared to 22 822 KSEK for the same period of 2010. This is 2% below the previously communicated forecast of 47 MSEK.
  • Operating result for the period is 16 958 KSEK (5 490 KSEK in Q4, 3 706 KSEK in Q3, 3 841 KSEK in Q2, 3 921 KSEK in Q1), up 93% compared to 8 793 KSEK for the same period of 2010. This result is 3% above the previously communicated forecast of 16.5 MSEK. Earnings per share for the period are 1.72 Kr, 9% below the previously communicated forecast of 1.90 Kr. The discrepancy of 2011 EPS compared to the forecast is due to the group's international structure with different tax rates in different jurisdictions, coupled with multiple game projects, studio contracts, and royalty arrangements. Such structure makes it difficult to predict the distribution of profit between jurisdictions and provide accurate EPS guidance. Going forward, the management will be more conservative in its EPS guidance. However, EPS guidance for 2012 remains at 3.2 Kr.
  • During the period, the group had positive cash flow of 12 491 KSEK. Cash reserves on December 31st 2011 amounted to 17 513 KSEK. During the period, the group was actively investing for future growth, with the goal to achieve output of one game per week. Going forward, the management is going to continue maintaining the balance between having sufficient cash reserves, profitability, and actively investing for future growth.
  • Current assets of the group as of December 31st 2011 were 29 191 KSEK. Current liabilities: 6 518 KSEK. Working capital (CA-CL): 22 673 KSEK. Current ratio (CA divided by CL): 4.5. The group does not have any long-term liabilities, and has strong liquidity position.
  • For the period January-March 2012, the management forecasts revenue of 16 MSEK with operating result of 5 MSEK.
  • The management confirms the previously announced goal for the period January-December 2012 of 87 MKr revenue and 30 MKr operating result with EPS of 3.2 Kr. This is a forward-looking statement, and the actual result can be both above and below these numbers, depending on the performance of the group's games and certain risk factors detailed further in this report. The management will update the forecast for the period of January-December 2012 in Q1 report due on 15th May 2012.
  • In October, G5 released Virtual City Playground, its successful freemium/social debut game, on iPhone and Android Market. Virtual City Playground for Android quickly gained traction and climbed top charts worldwide, by 15th November achieving #5 Top Grossing App in Sweden, #4 Top Grossing App in France, #1 Top Grossing Game in Italy, #6 Top Grossing Game in Germany, #9 Top Grossing App in UK, #19 Top Grossing Game in USA, #2 Top Grossing App in Singapore, and top grossing positions in multiple other countries around the world. G5 will continue developing the Playground concept of freemium/social games further and plans to support the game with regular updates and launch more game in this format.
  • Virtual City 2: Paradise Resort, the sequel to G5's best-selling Virtual City simulation game, was released on Mac App Store in October, quickly rising to the Top Grossing charts of the Mac App Store around the world.
  • G5 released 12 games on Amazon Appstore starting 15th November, when Kindle Fire from Amazon went on sale in USA. Since the launch and throughout the holiday period of 2011 and until now, six to eight of G5's games are constantly in the Top 100 Paid Games charts of Amazon Appstore.
  • Virtual City Playground was launched on Mac App Store in December, and immediately went to top grossing charts of the Mac App Store around the world.
  • Fix-it-up: Kate's Adventure, Fix-it-up: World Tour, Kaptain Brawe and Youda Survivor games were released on iOS in November and December.
  • Preliminarily, the date for the Annual General Meeting is set for the 19th of June 2012. The Annual Report 2011 will be available on the group's web-site on 24th May 2012. The Board will propose paying no dividend in 2011.
  • This interim report has not been reviewed by company's auditor.

Important events after the end of the period

  • In January and February, G5 released Magician's Handbook, Letters From Nowhere, Spirit of Wandering and Royal Trouble: Hidden Adventures games for iOS. Royal Trouble: Hidden Adventures HD achieved notable success, becoming Top 10 most downloaded game in 73 countries, and achieving Top 10 grossing game status in 34 counties and Top 100 grossing game status in 87 countries.
  • In February, G5 announced the upcoming release of Virtual City Playground for Kindle Fire through the Amazon Appstore.
  • Also in February, G5 announced the intention to bring its games to Barnes & Noble Nook devices in USA, starting with G5's best sellers Stand O'Food, Mahjongg Artifacts and Supermarket Mania.
  • The total number of downloads of G5 games on iOS and Android (not counting update downloads) surpassed 40 million.More information about the company can be found at: additional information please contact: mailto:out G5 Entertainment AB (publ)G5 Entertainment AB is a developer and publisher of high quality downloadable games for iPhone, iPad, Android, PC, Mac, Kindle Fire and portable game consoles like Sony PSP and Nintendo DSi. G5 develops and publishes games that are family-friendly, easy to learn, and targeted at the widest audience of experienced and novice players. G5 owns a number of popular game franchises like Virtual City, Special Enquiry Detail, Supermarket Mania, Stand O' Food, and Mahjongg Artifacts, and invests in creating new games and bringing established franchises to new gaming platforms.

G5 Entertainment

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