Sweden's G5 Entertainment Q2 revenue falls; cuts jobs

G5 Entertainment AB (publ)

12/08/2026 06:18

Overview
Sweden mobile game maker's Q2 revenue fell 16% yr/yr amid weak portfolio performance
Gross margin reached a record 73.1%, lifted by G5 Store and direct payment processing
Company cut workforce to about 550 in Aug vs 830 at start of Q2, targeting $11 mln annualized cost savings

Outlook
Company did not provide specific financial guidance for upcoming quarters or the full year

Result Drivers
COST REDUCTIONS - Co completed workforce cuts during and after the qtr, reducing headcount from about 830 to 550 and targeting $11 mln in annualized cost savings
PORTFOLIO WEAKNESS - Revenue fell as key games Hidden City, Sherlock, and Jewels saw double-digit declines; Jewels moved to 'Harvest Mode' after failed turnaround efforts
DIRECT CHANNEL GROWTH - Gross margin rose to 73.1% as a larger share of revenue came from G5 Store and direct payment processing

Company press release: ID:nMFNb8Hgrc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$20.1 mln
 
Q2 Net result
 
$0.6 mln
 
Q2 Gross Margin
 
73.10%
 

Analyst Coverage
Wall Street's median 12-month price target for G5 Entertainment AB (publ) is SEK130.00, about 89% above its August 11 closing price of SEK68.80
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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Aug 11 - South Korea's DoubleDown Q2 revenue beats estimates, helped by WHOW Games contribution

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)