Following legacy write-downs, G5 sees FY13 sales up 24% to $15.6 million

And January sales are a record $2 million

Following legacy write-downs, G5 sees FY13 sales up 24% to $15.6 million

Swedish publisher G5 Entertainment (STO: G5EN) has announced its FY13 financials, the 12 month period ending 31 December 2013.

Consolidated revenue was $15.6 million (SEK 100 million), up 24 percent year-on-year.

The company made an operating loss of $1.8 million (SEK 11.8 million).

This was due to a $2.4 million write-down of development costs and royalty payments on cancelled games as well as expenses of $600,000 due to G5's plan to re-list its shares on the Stockholm NASDAQ OMX.

A new way to pay

The big decision for G5's business during 2013 was its decision to move from free casual mobile games which require a single payment to unlock all content ("unlockable games", as it describes them) to the dominant free-to-play with micro-transactions business model.

This resulted in the write-down costs as work-in-process titles were cancelled.

The good news, however, was after a weak Q3, the 2013's final three month quarter saw the company generate consolidated revenue of $4.6 million (SEK 28.7 million), up 39 percent.

In addition, revenues from F2P games were up 300 percent year-on-year, and this model accounted for 64 percent of total sales during the period.

And this success is continuing into 2014, with January revenue claimed to be a record - more than $2 million.

G5 Entertainment ended the quarter with cash and equivalents worth $4.3 million.

[source: G5 IR]

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A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.