G5 Entertainment Group: Interim Report January ? June 2020

G5 Entertainment Group (STO:G5EN):

April ? June 2020

"I stand back and look at the success G5 had during the second quarter and I'm thrilled to see how our new generation of games contributed to our rapidly growing revenue and higher margins. The lockdowns due to the virus impacted the quarter, but they only accelerated the inevitable" said Vlad Suglobov, CEO of G5 Entertainment. "Revenue from our portfolio of own games surged more than 90 percent in the second quarter and 43 percent sequentially from the first quarter. The portion of revenue coming from our own games continued to increase going into July. This growth, combined with the more efficient marketing, helped boost our EBIT margin during the period."

• Revenue for the period was SEK 376.3 M (297.3), an increase of 27 percent compared to 2019.
• Gross margin increased to 57 percent (55) primarily due to an increasing share of revenue from own games.
• EBIT for the period was SEK 44.8 M (18.7), an increase of 139 percent compared to the same period in 2019. EBIT was negatively impacted with SEK -9.3 M (0.6) primarily due to the revaluation of operational assets and liabilities in connection with the weakening of USD. Adjusted for the revaluation EBIT was SEK 54.1 M (18.0).
• Net result for the period was SEK 39.3 M (16.9).
• Earnings per share for the period, before dilution, was SEK 4.43 (1.88).
• Cash flow amounted to SEK -50.6 M (-15.4) impacted negatively by tax payments in Malta SEK -52.1 M (-29.2), dividends SEK -21.9 (-22.5) and repurchase of shares SEK -49.5 M (0.0). Cashflow was impacted positively by the short-term loan SEK 41.8 M (0.0)
• For the free-to-play games the average Monthly Active Users (MAU) was 7.1 million, an increase of 13 per cent compared to the same period in 2019. Average Monthly Unique Payers (MUP) was 227.6 thousand, an increase of 3 per cent and average Daily Active Users (DAU) was 1.8 million, an increase of 7 per cent compared to the same period in 2019. Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 57.4, an increase of 23 percent compared to the same period last year.

This information is information that G5 Entertainment AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on August 13, 2020.

About G5 Entertainment

G5 Entertainment AB (publ) (G5) develops and publishes high quality free-to-play games for both smartphones and tablets that are family-friendly, easy to learn, and targeted at the widest audience of both experienced and novice players. The group distributes their games through the Apple, Google, Amazon, and Windows application stores. The company's portfolio includes popular games like Jewels of Rome®, Hidden City®, Mahjong Journey®, Homicide Squad®, The Secret Society®, Wordplay: Exercise your braintm and Jewels of the Wild West®.

Through its head entity G5 Entertainment AB (Publ), G5 Entertainment Group is publicly listed on Nasdaq Stockholm's main market mid cap segment under trade symbol G5EN.ST. G5 Entertainment has been ranked in Deloitte's Top 500 Fastest Growing Tech Companies in Europe, the Middle East and Africa for 6 years in a row.

More information about G5 Entertainment can be found at http://www.g5e.com/corporate