Stillfront Group: Good(game) synergies are starting to show

Research Update

2018-09-25

07:30

The reported figures for Q2 beat our estimates both on sales and profits. When adjusting for non-recurring items, the EBITDA came in 13% above our projections. Operational synergies from the Goodgame Studios acquisition are now starting to show. Goodgame will be the publisher for the global launch of Babil Games highly successful Nida Harb III (Strike of Nations) and support Simutronics in their global launch for their next product, Siege: World War II. Stillfront also recently announced the acquisition of Imperia Online JSC at an appealing price tag according to us. We have made some minor forecast adjustments for the various product segments, and also added Imperia Online to our projections. As a whole, we make no changes to our valuation. We see a significant potential both in relative and absolute terms from the current share price level. With a strong pipeline and the new addition of Imperia Online, the prospects look bright for the Group.

KL

TO

Kristoffer Lindström

Tomas Otterbeck

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