Daily revenues generated by mobile games for iPhone in the USA have on average increased by 2% compared to our last channel check one week ago (data provided by www.thinkgaming.com). As you can see in the chart below, there has been a gradual increase of the daily revenues generated ever since the beginning of December. Since the beginning of 2014, daily revenues generated by mobile games for iPhone in the USA have on average increased by almost 36%.
In early July, Sweden listed mobile gaming developer and publisher G5 Entertainment, announced its preliminary Q2 2014 revenue numbers which indicate a year-over-year increase of more than 80%. That is an impressive number indeed and mainly related to the rather constant performance of its blockbuster game Secret Society, which ranks around number 35 in the US top grossing iPad games charts. With the increase in the underlying market continuing, changes are high that Secret Society will generated higher sales as the year progresses.
By simply extrapolating the preliminary Q2 numbers, we would end up with 2014 revenues of SEK 160m, which would imply an increase of 60% compared with 2013. However, for the reasons mentioned above, we believe H2 will look even better than H1, i.e. 2014 revenue could very well end up above SEK 160m.
We find it interesting to note that one year ago, G5 Entertainment’s share price was around SEK 50, i.e. almost 60% above today’s levels. Since then, the company has successfully shifted its focus to free-to-play games, a segment which is growing impressively and G5 Entertainment has just reported preliminary sales numbers which are more than 80% above the levels seen one year ago.
We believe that the recent relisting to Nasdaq OMX will lead to increased institutional investments in G5 once the positive operational development has proven to be sustainable.
Follow the latest buzz around G5 Entertainment at www.buzztrader.se. G5 Entertainment is part of the Nordic Investor BuzzTrader portfolio.