G5 Entertainment: Match 3 a good match for G5

Research Update

2017-07-31

09:53

G5 reported a revenue of SEK 276 million as the company communicated earlier. EBIT was SEK 32 million versus our estimated SEK 23 million. The company is preparing the launch of its first Match 3 game which is an important strategic bet for G5 in a genre of high potential. The game is expected to have a soft launch in Q3 2017 and will likely generate a noticeable revenue boost in Q2-Q3 2018. We have made some changes in our estimates. EBIT-margins is expected to be stronger than in our previous projections due to lower royalty costs in the coming years. Our new fair value range indicates a valuation between SEK 130-500 per share, with a base case of SEK 325 per share (previous 260).

TO

Tomas Otterbeck

Disclosures and disclaimers

Premium Plan required to unlock

Unlock companies to access

more high quality research.