On the back of 42% Q1 FY14 growth, G5 steps up with OMX Stockholm listing

F2P sales up 254% year-on-year

On the back of 42% Q1 FY14 growth, G5 steps up with OMX Stockholm listing

Swedish mobile casual publisher G5 Entertainment has started trading on main NASDAQ OMX market in Stockholm under the ticker G5EN.

It was previously listed on a junior exchange in Stockholm.

"We are excited to be on NASDAQ OMX Stockholm," said CEO Vlad Suglobov.

"A listing on NASDAQ OMX Stockholm will increase opportunities for institutional investors to invest in G5 Entertainment and create better liquidity in the share.

"It is also a further seal of approval for the company in terms of its operations and information disclosures."

Big turnaround

The company recently announced its figures for its Q1 FY14, the three months ending 31 March 2014.

Consolidated revenue was up 42 percent year-on-year to $6 million.

CEO Vlad Suglobov ringing the bell

Net income was $622,000, down 50 percent.

However, compared to negative cash flow of $485,000 12 months ago, G5 recorded positive cashflow of $1.1 million during the quarter.

New thinking

The driver for this activity was the company's decision to switch all ongoing development to free-to-play games.

It's still generating cash from its legacy pay-to-unlock casual titles, but it announced a $2.4 million writedown in February 2014 in terms of writing off revenue and the cost of cancelling some in-development titles.

During Q1 FY14, G5's revenue from F2P games was up 254 percent year-on-year, accounting for 66 percent of quarterly revenue.

"The management is satisfied with the results of the quarter and considers the transition to a business driven by free-to-play games accomplished," Suglobov noted.

[source: G5]

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