Morning, everyone. Thank you for dialing in or listening to us for this earnings call regarding the fourth quarter 2018 in G5 Entertainment. Let's proceed to page one. In the fourth quarter, we had a revenue of SEK 340.7 million . That's - 5% year-over-year. However, if you look at the big picture, the full year 2018 had record revenue and record earnings. We had SEK 1.5 billion in revenue, almost, and SEK 143 million in earnings. Also, actually, a record positive cash flow, SEK 45 million . The revenue was stable in Q4 compared to Q3. Hidden City, our largest game by revenue, as you know, continues to perform great. It's an amazing game, a hit with a loyal audience, and it has been a great financial success. There's a really long tail of sales in front of us.
The game will continue to generate revenue and profits for years to come. Another thing is that the revenue from our internally developed games actually achieved record levels during 2018, and they continue growing faster than licensed games year-over-year. User acquisition costs were lower compared to previous year and compared to Q4 previous year. It's 28% in Q4 compared to 34% in Q4 2017. The reasoning is that we've built a large enough audience, actually pretty loyal audience of players in Hidden City, and in absence of momentum there, we can basically spend less on user acquisition. The users we have attracted with our investment in user acquisition in previous periods will continue playing this game for a long period of time.
The monetization has improved 5% year-over-year in the fourth quarter, and that partly is a function of less new users attracted into the game, but also the evolution of the games and the improvement of monetization in our games. The revenue breakdown by region remained the same, stable North America, more than a half of revenue, Asia 26%, Europe 17%, rest of the world, 6%. Nothing new there. I can just reiterate that our audience is stable and the breakdown by revenue by region is stable, and Q4 to Q3 is also stable revenue. Let's move on to the next slide and discuss our earnings and EBIT. The EBIT in the fourth quarter was SEK 18.6 million , EBIT margin of 5.5%, and this has been an increase in earnings compared to Q4 2017.
If we look at the full year, there was an expansion of the EBIT margins to the year from 9% in 2017 to 10% in 2018. The gross margin continued improving because the share of revenue from internally developed own games continued to grow. The EBIT margin in Q4 was 4.5% last year, 5.5% this year. We have quite a few games in the development at the moment. If you look at our portfolio, there are about 12 games in what we call active evolution. That means that there is a team working on the game. Eight of them are already released and on the market, and four are in development.
We continue strengthening the development teams during the year to make sure we can evolve the games and improve them, the ones that are released, and also create new games that will generate the growth going forward. That is necessary and that is important for a company like us with the developer DNA and our approach with managing the portfolio and creating new shots at creating new hits. That obviously puts a pressure on the margin. From one point, you have the reduction in new acquisition expenses, and from the other point of view, you have a bit more pressure on the EBIT margin from the increase on the staff and the increased R&D in connection with the development and evolution of games. The board proposes a dividend of SEK 2.5 per share.
I can say we could have afforded more, but the company is on a new platform. The company is much larger, and if you compare G5 to our mobile peers that are publicly listed, I think our reserves are a little bit on the lower side. It's kind of a prudent thing to do to build up reserves at this point. Let's move on to the next slide. Cash and cash flow. Cash flow in the fourth quarter was SEK 40.7 million. For the full year, it was SEK 45 million. What can I say? A strong cash flow in the quarter. The reduction of user acquisition expenses affected this positively, obviously. I can also say that the performance of internally developed and owned games is a great contributor here, too.
The two highlights that we had in the fourth quarter and in the full year 2018 are Mahjong Journey and Homicide Squad. Mahjong Journey is our second-largest game by revenue, developed internally. Homicide Squad, it's going to be one of our games at the top there by revenue, and it has been consistently growing for a year at this point. This improves gross margin and our revenue mix between owned and licensed. What else is there? There was an early payment from Apple in this really nice figure for the cash flow for the fourth quarter, so that affected it positively. The capitalized development costs were higher than one year ago, again, because we have strengthened our development teams, and our focus is really on evolving our portfolio for growth and creating new growth drivers.
That is something vital to our business that we will continue doing. Cash flow from normal business operations, well, from all business operations really, remains stable and healthy. Total cash at the end of the period was almost SEK 139 million. I think it's the highest that we have ever had. That's about it for the results of the fourth quarter and 2018. We are very focused as a company on managing our portfolio of games, something that we have done for many years, and on creating new growth drivers for the company, and that is going to be our goal and our focus in 2019. If you have any questions, please step forward and let us know. I'll try to answer.
If you do have a question for the speakers, please press zero one on your telephone keypad now. As a reminder, that was zero one if you wish to ask a question. There are currently no questions registered on the telephone lines, I'll hand the call back to the speakers. Please go ahead.
All right. I do not see any questions in email either. Thank you very much for joining us today, and this concludes our call.