Another week has passed without any games launch by G5 Entertainment. That leaves one wondering what the company is up to – hopefully they are working on the release of another free-to-play title, maybe even one of their own IPs. These weeks without any games release reveal the nature of G5’s position in the app market. The niche G5 is catering too needs a constant flow of new games in order to keep up the download flow of the whole games portfolio. The lack of new releases has led to a gradual decline of top grossing positions in the global app charts during the second half of Q1 2o13. Importantly, G5’s three free-to-play games continue to deliver good revenue streams. E.g. Secret Society has had constant top 100 grossing positions in the very important US iPad market for several weeks now. As we have argued many times already, G5 needs to step up its game on Google Play, where top grossing rankings are not satisfactory yet. The company is in urgent need of more free-to-play games there (so far it has only Virtual City Playground).
Next week, we will most likely get to know how the decline during the second half of Q1 has affected G5’s business as the company typically reports preliminary numbers a few days after the end of each quarter. Previous comments from the CEO Vlad Suglobov guided for Q1 becoming a new record quarter for G5 with revenue growth in-line with historical growth rates. Judging from the top grossing rankings, the company seems set to deliver a record quarter but it is hard to say at what rate revenues have been growing y-o-y. Ceteris paribus, we believe there is some downside risk to the guidance of “growth in-line with historical growth rates”, which would imply y-o-y growth of around 80%, given the relatively weaker end of the quarter.
Here is this week’s ranking check for G5 Entertainment:
Number of G5 Entertainment games among the top grossing charts for iOS:
(We are screening the app markets of Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Netherlands, Russia, South Korea, Spain, Sweden, UK and USA)
Number of G5 Entertainment games among the top grossing charts for Google Play:
(For Google Play, we are screening the app markets of Germany, Denmark, Sweden, and USA)
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