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#G5 Entertainment: Another week, another increase

newlogo Daily revenues generated by mobile games for iPhone in the USA have on average increased by another 1% compared to our last channel check one week ago (data provided by The gradual increase of the daily revenues generated ever since the beginning of December continues untiringly. Since the beginning of 2014, daily revenues generated by mobile games for iPhone in the USA have now on average increased by more than 37%.

This week is also the first week, when the number 2 ranked top grossing game is raking in more than USD 1m per day. The current number 1 game, Clash of Clans, makes a lofty USD 1.27m a day, followed by Candy Crush Saga with USD 1,004,902 every single day. Number 3, Game of War, makes USD 650,300 and number for, Glu Mobile’s Kim Kardashian: Hollywood, still generates USD 308,258 in revenue every day. And remember, these numbers are only for iPhone in the USA. In comparison, in early 2014, the top grossing games 1-4 made USD 937,552, USD 741,584, USD 479,900 and USD 227,484 respectively. The mobile gaming pie is getting bigger and bigger!

thinkgamingTomorrow (August 15th), it is time for Sweden listed mobile gaming developer and publisher G5 Entertainment to release its Q2 2014 report. Already in early July, the company announced its preliminary Q2 2014 revenue numbers which indicated 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.

Nordic Investor

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