5th Planet Games (5PG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached DKK 4.2M, up 18% year-over-year, driven by new game launches and global distribution partnerships.

• EBITDA for Q1–Q3 2024 was DKK 3.2M, nearly doubling from DKK 1.7M in the same period last year, reflecting higher revenue and reduced costs.

• Cash reserves stood at DKK 25.0M as of September 30, 2024, down from DKK 49.9M a year earlier, mainly due to investments in new projects.

• The company is expanding into physical product distribution, with new releases for PlayStation and Nintendo Switch expected to boost Q4 and early 2025 revenue.

• Strategic partnerships, notably with Skybound Entertainment, have broadened the IP portfolio and supported growth in both games and entertainment content.

Financial highlights

• Q1–Q3 2024 revenue was DKK 10.0M, a 25% increase over the prior year period.

• Gross profit for Q1–Q3 2024 was DKK 7.7M; costs decreased 24% to DKK 4.5M.

• EBITDA for Q1–Q3 2024 was DKK 3.2M, up from DKK 1.7M in Q1–Q3 2023.

• Profit before tax for Q1–Q3 2024 was a loss of DKK 3.4M, compared to a gain of DKK 22.7M in 2023, which included a one-time derivative gain.

• Cash flow from operations was negative DKK 3.3M for Q1–Q3 2024, versus positive DKK 3.8M in the prior year.

Outlook and guidance

• Updated 2024 guidance projects total net revenue of DKK 14.23M and EBITDA of DKK 2.95M.

• Management expects continued revenue growth from new game releases and physical product distribution in Q4 and into 2025.