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G5 Entertainment: Earnings burdened by large write-off - SEB

G5 Entertainment took a large write-off of SEK 72m in Q3 which weighed heavily on earnings. The write-off was due to a change in the way G5 will capitalise new games going forward. G5 will not capitalise development costs until a game is released globally which, according to the CEO, should impact earnings for the coming two years due to a decrease in capitalisation while amortisation on capitalised development costs remains high.

G5 Entertainment took a large write-off of SEK 72m in Q3 which weighed heavily on earnings. The write-off was due to a change in the way G5 will capitalise new games going forward. G5 will not capitalise development costs until a game is released globally which, according to the CEO, should impact earnings for the coming two years due to a decrease in capitalisation while amortisation on capitalised development costs remains high.
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