Just came across a very recent interview with G5 Entertainment CEO Vlad Suglobov. The interviewer was apparently concerned by the recent sluggish share price performance.
Here’s the interview:
“1. Do you have any idea who is selling a huge amount of g5 stocks on the market ? Vlad:. No, but it’s not me and not management
2. Is there any reason to be worried? Vlad: No, in context of 1.
3. is the forecast of 1,9 sek in profit per share still reachable this year. Vlad: Yes, we would communicate if it wasn’t the case
4. if you look 1 or 2 years ahead where do G5 stand in terms of turnover and strategy?
Vlad:. As communicated previously, we have an opportunity to become a company with hundreds of millions sek in turnover, and with a good profit margin. Think of G5 as Big Fish of portable platforms. And BFG’s revenue on PC is us$120m. Their clients will migrate to portable platforms in the next 1-3 years and they will be buying our games. ”
I am particularly thrilled about answer number 4. G5 Entertainment’s own guidance for revenues 2011 is currently at SEK 45m, so “hundreds of millions SEK in turnover” sounds pretty good in my ears. The nice thing is that I think it’s clearly realistic. G5 has so far managed to outperform the market for mobile gaming but even if we assume a growth in-line with the market it will easily reach the several- hundred- million- SEK- turnover mark. A recent morgan stanley report estimate for example the number of sold tablets to grow from 16 million units in 2010 to 102 million units by 2013 – that’s more than 6 times and that’s only tablets. Smartphones are showing rapid growth rates as well so my main takeaway from the interview is: the G5 growth story has only started!
Thanks for the interview. Here is the link to it: http://www.aktieexperterna.se/forum/200?page=5#comment-3131
I am long G5 Entertainment and I hope you are too!