As indicated by our most recent ranking check, G5 Entertainment has managed to record a new record quarter. This morning the company announced preliminary Q1 2014 revenues of SEK 40m, which corresponds to achieving 45% revenue growth compared to the same period of 2013. Management reiterates that it expects a profitable and cash flow positive first quarter.
G5 Entertainment – 12m trailing revenues:
Regarding its development office in Kharkov, Ukraine, G5 states that business continues as usual and has not been affected by recent events. As communicated in Q4 2013 report, G5 holds intellectual property rights and backs up critical code and materials outside of Ukraine, and only transfers funds to subsidiaries in Ukraine and elsewhere on an as-needed basis.
The group’s interim report for the period January-March 2014 is going to be released on 15th May 2014.
We find it very impressive that revenues apparently continued to be well above SEK 10m in March. Historically, the strong start of the year has been followed by a period of declining revenues. The increased focus on F2P games seems to secure a more steady sales development.
Today’s number should serve as both a relief and a reminder to investors as to how scalable and promising the mobile gaming market is.