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The strategy is to create games that can earn more than $ 100 million
G5 is working on a number of new games at different stages of its development and the mobile game company plans to release two or three new ones free games in the main kinds of business before the end of the year, all developed and fully owned by G5. He writes the CEO Vlad Suglobov in the interim report.
In the second quarter, sequential growth was 6 percent and compared to the same quarter last year, the increase was 43 percent. At the same time, the cost of user acquisition rose to 24% of revenue, up from 26% a year ago.
Operating margin was 12.7%. This is an improvement from 11.6% a year ago, but a decrease of 13.3% in the first quarter.
"The sharp increase in the number of employees and the increase in development costs in recent quarters put pressure on the profit margin" writes the CEO
During the second quarter, about 65 people were Employees and at the end of the period, a total of 469 employees were employed.According to the G5, a number of new employers have added new or vacant services, while others will turn to external studios to obtain better quality control.
G5 Entertainment aims to launch two to three free games in the major genres of the company before the end of the year.
"As we can see on In our 10-year history, growth momentum may vary from quarter to quarter as games go through their long life cycles, but we do not focus on our short-term results. the basic strategy of building several development teams that can continue to create games that can earn more than $ 100 million in their lifetime, which we have already achieved twice in our game portfolio ", writes Vlad Suglobov.
At the time of writing these lines, the stock was 20.51%
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