G%: Q4, sales in-line with but slighlty weak gross margin – SEB

G5 reported in-line with consensus overall, but with a slightly weaker gross margin of 67.1%(vs SEBe 67.9%) driven by higher than expected royalties due to own games coming in at 71%(vs SEBe 74%) of total revenues. User acquisition costs in the quarter were SEK 68m(vs SEBe 77m), which is in the lower half of their guidance of 17-22% of revenues. EBIT margin of 13.1% was in-line with consensus.


SEB Research

This research has been commissioned by the company. Only for professional investors resident in EEA member states. Reports may not be distributed to the US or other jurisdictions where to do so would be unlawful. Please see the disclaimer tab for any details of investment banking services recently provided by SEB that could be considered relevant to the subject matter of this research.