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G5 Entertainment: Game flow lacking - SEB

G5 reported weaker than expected EBIT pressured by FX revaluations on balance sheet items, however, adjusting for those, adj. EBIT was 16% below consensus. G5’s case is a matter of returning to a steady flow of new games, which has been lacking for the last two years. As it is today, G5 cannot rely on the old/semi-new portfolio of games to hold up. We have adjusted our estimates and derive a new fair value range of SEK 165-238 (175-261).

G5 reported weaker than expected EBIT pressured by FX revaluations on balance sheet items, however, adjusting for those, adj. EBIT was 16% below consensus. G5’s case is a matter of returning to a steady flow of new games, which has been lacking for the last two years. As it is today, G5 cannot rely on the old/semi-new portfolio of games to hold up. We have adjusted our estimates and derive a new fair value range of SEK 165-238 (175-261).
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