G5 Entertainment

Research update


G5 Entertainment: Growth more important than profitability

Revenue in the Q2-report amounted to SEK 395 million in comparison to our estimate of SEK 373 million. EBITDA was on the same level as our estimate. In the last months, the G5 stock has dropped more than 35% since its ATH. Is it time to reevaluate the case? In this research update, we give our view on five key questions; 1. Is the success of Hidden City sustainable? 2. Which game will be the next hit? 3. How does the competitive landscape look like? 4. Will G5’s explosive growth continue? and 5. What is G5’s long-term EBIT-margin?

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