G5 Entertainment reports Q2 revenue decline of 16% year-over-year

G5 Entertainment, a Swedish mobile game developer, disclosed a 16% year-over-year decline in its second quarter revenue, reporting $20.1 million in earnings. The company's portfolio of games struggled, with notable losses across titles such as Hidden City, Sherlock, and Jewels. The net result for the quarter amounted to $0.6 million.

Despite the revenue decline, the company noted a record gross margin of 73.1% due to increased revenues from its G5 Store and direct payment processing. G5 Entertainment also announced workforce reductions, cutting its headcount from approximately 830 employees to around 550 in August, which is expected to result in $11 million in annualized cost savings. The company did not provide financial guidance for future quarters or the full year.