G5 Entertainment announced this morning that the sequel of its blockbuster hit “Supermarket Mania” will be released for iPhone and iPad on May 12th. Unlike before, G5 is changing their approach and will offer Supermarket Mania 2 as free download. The players will then be able to unlock the full content from within the free game using paid in-app purchase. I think it is too early to say what effects this change of approach will have on revenues but I am willing to trust management on this one. I am sure they have made a thorough assessment of which concept has the best chances of maximum profitability.
The first version of Supermarket Mania was (and actually still is) a huge success for G5 Entertainment. Published in early 2009, game sales peak in March-May 2009 before settling on a stable off-peak level. In early 2011, Supermarket Mania for iPhone still generates the same level of monthly sales as in 2009 after the peak!
So good news today for all G5 shareholders and more game releases are scheduled for the near future. The stock is right now trading at SEK 21, implying a PER 0f 11x on company’s EPS guidance for 2011.