G5 Entertainment: Q2/22: Challenging quarter for G5 – SEB

G5 reported earnings today which were below consensus, driven both by the previously announced increase in UA spend, but also due to the strength of major expense currencies and a lower capitalisation factor. The core game genres experienced headwinds throughout the quarter, and although Sherlock: Hidden Object Mystery grew to become G5’s largest game on iOS/Android, users declined through most of the rest of the portfolio. We could see consensus lower 2022E EBIT by 10%.


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.