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G5 Entertainment: Gross Margins Higher than Expected - Redeye

G5 reported net sales somewhat lower than our estimates, year-on-year growth was -1%. Gross margins however developed stronger than our estimates, with lower distribution fees than expected. G5 communicated that 50% of net revenue is derived outside Apple and Google which is more than we had expected (estimate around 55-60%), which is a good thing for the potential profitability in the company going forward.

G5 reported net sales somewhat lower than our estimates, year-on-year growth was -1%. Gross margins however developed stronger than our estimates, with lower distribution fees than expected. G5 communicated that 50% of net revenue is derived outside Apple and Google which is more than we had expected (estimate around 55-60%), which is a good thing for the potential profitability in the company going forward.
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