G5 Entertainment - Feedback from ABGSC Investor Days

Fundamental transformation of revenue base continues New games released in Q4’20 shows promise IFDA changes to iOS 14 could affect UA granularity Ongoing revenue transformation bolster margins Today we hosted CEO Vlad Suglobov on the ABGSC Investor Days, where Vlad gave a breakdown of the third quarter results and a thorough overview of G5’s fundamental transformation of its revenue base, where revenues generated from own games has increased from ~30% in ‘18 to ~60% Q3’20. Vlad highlighted that this is an ongoing transformation, which will be furthered by the release of additional internally developed games, which will have a positive effect on margins as well since G5 does not have to pay royalties. In terms of new games, 7 have been released so far in 2020, and another one is due to be released in Q4’20, bringing the total to 8 new games for 2020. Sherlock: Hidden Match-3 Cases, potential top contributor So far two new games has been released in Q4, Sheriff of Mahjong and Sherlock: Hidden Match-3 Cases, and Vlad think that the latter could become a top performer in G5’s Match-3 portfolio.

The game is a mix of the Hidden Object genre, where G5 has a very strong track-record, and the newly entered Match-3 genre, where G5’s games show strong monetization. Vlad also thinks that the game including the popular Sherlock Holmes is a factor contributing to the games success so far, as the detective is a well-known character throughout most of the world. IFDA changes coming early next year to iOS In early 2021 Apple is making changes to the unique identification code assigned to each device, called Identification for Advertisers or rather “IDFA”, used by the advertisers to tell if ads are effective or not.

There has been a lot of speculation in regards to how this might affect mobile game developers, and specifically the return on User Acquisition investments. Vlad does think that this will impact all purchasers of digital advertising, however he thinks tha.