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G5 Entertainment: Another day, another dollar - SEB

G5’s Q3 report was okay given what we had come to expect. Revenues were in line and gross margin increased 60bp y/y, but adj. EBIT was 3% below consensus (adjusting for the write-down), margin 10%. Organic growth of -10% (SEBe -13%) was a small relief given what we see in the gaming metrics. This also implies the old portfolio of games is performing relatively well, although below the market still. We lower our mid-point to SEK 216 (228).

G5’s Q3 report was okay given what we had come to expect. Revenues were in line and gross margin increased 60bp y/y, but adj. EBIT was 3% below consensus (adjusting for the write-down), margin 10%. Organic growth of -10% (SEBe -13%) was a small relief given what we see in the gaming metrics. This also implies the old portfolio of games is performing relatively well, although below the market still. We lower our mid-point to SEK 216 (228).
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