G5 entertainment VD-intervju 2 2013

2013-05-15 11:53, Edited at: 2013-06-26 11:38

Då var det dags för årets andra VD-intervju. Rapporten idag som var enligt förväntningarna verkar ha lugnat marknaden. Efter en tids nedgång rekylerar aktien upp idag. Även den här gången har jag och Marben på BS slagit våra kloka huvuden ihop och fått svar på en hel del frågor.

NEW PLATFORMS AND BUSINESS MODELS
1. You released your first game for Windows 8 last week. Could you tell us more about your release plans for this platform for 2013

As always when G5 starts to support a new platform you can expect we will be releasing games for this platform. We will of course start with our core portfolio but we will launch F2P games as well.

2.There are some interesting business models in Asia (by DeNA and GREE). Could G5 Entertainment consider adapting its business model to mimic the success of these companies?

We always look at other successful companies and try to learn from their success. As we release more F2P games, of course DeNA and GREE model becomes more and more interesting.

3. G5 have started to sell merchandise can you tell us what your plans are here and how this has developed?

This is only an experiment. We do not have any specific plans for it, just measuring the level of interest of our users at this point.

FREE-TO-PLAY GAMES

4. There are high expectations on your coming F2P-games. Could you guide us in terms of number of F2P games, time frame, and content etc. on what to expect, e.g. nine games in development, first release in the second quarter, more hidden objects F2P-games, a new physics puzzler etc.

No we would not do that. I would just re-iterate that our focus is high quality casual games and F2P games. You can expect we will pay a lot of attention to F2P, therefore. And we plan on releasing more F2P games in 2013 and 2014. More detailed information we would keep to ourselves until games are released. It's a very competitive environment, it would not be wise to give such information away too soon.

5. So far the only F2P-game released for Android is Virtual City Playground. Is there any reason for this, and when could we expect to see others, e.g. Secret Society and Doomsday Preppers?

We strive to release our games on all platforms we support, so you can expect that happening. Follow our news.

6. Are there any general trends in the F2P-market that you can see and would like to comment on?

Things we like about F2P is the ability to make substantially more money per player per game at conversion rates close to casual games, much longer period of engagement with the game, ability to attract users through paid advertising. And the success of casual game genres in F2P space is very encouraging. This is where we see synergies with our knowledge of casual games and our existing audience.

MONETIZATION

7. As you mention in the report, Secret Society has done very well on iOS after the quarter when receiving its “social” update. How well does Secret Society monetize compared to Virtual City Playground?

I am not giving away any specific numbers, unfortunately. But it makes more revenue per day for some time now.

8. Virtual City Playground has fallen recently in the top grossing charts. When do you plan to release additional social features to the game?

We plan to revive at least some interest in the game with the upcoming update.

9. Approximately how much revenue does a top grossing 50 position in the US generate – could you provide us with a range, e.g. -5 000 dollars/day, 5 000-10 000 dollars/day, 10 000+ dollars/day?

I don't have exact numbers and I wouldn't want to speculate about it.

10. What are your plans regarding expanding your user acquisition programs, which you have previously described as only being experimental on the U.S. market?

They are no longer experimental and they are not only in the US. We keep marketing costs reasonable in relation to the revenue the game generates.

THE COMPANY

11.You hired a new CFO as a preparation for the coming listing process on Nasdaq OMX. What other plans do you have when it comes to strengthening management and the Board as part of the listing procedure?

Hiring CFO located in Stockholm with previous Nasdaq experience concludes our efforts to strengthen the management team in anticipation of our application to list on Nasdaq. Regarding the board, we have plans to strengthen it, too, please follow the news.

12.Could you expand more on how you plan to use the money (30 MSEK) raised in the quarter? Are you looking at potential acquisitions in addition to organic growth and expanding publishing relationships?

As we have already communicated, the proceeds will primarily be used to further strengthen our portfolio, with focus on high quality casual games and of course F2P games. There are no specific acquisitions we are looking at, although I would not rule out theoretical possibility of acquisitions in the future if it benefits the shareholders' long-term interests.

13.How do you see the development in the gambling market affecting G5 Entertainment? Do you have any games in development that is targeting this growing market?

We are following the development of this market with interest. There is nothing more we can share at this moment about this.