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G5 Entertainment: Looking for a trough - SEB

We cut 2023E EPS by 3% due to our assumptions for reduced revenue and a slight rise in UA spend in Q4 given the game release in November. We expect the new game to have a limited impact in Q4 based on SensorTower data. We continue to look for a trough for revenue and earnings, but this may take until late 2024. We lower 2024E revenue due to forex and project a drop of 1% y/y for sales. We cut our mid-point equity value to SEK 214 (216).

We cut 2023E EPS by 3% due to our assumptions for reduced revenue and a slight rise in UA spend in Q4 given the game release in November. We expect the new game to have a limited impact in Q4 based on SensorTower data. We continue to look for a trough for revenue and earnings, but this may take until late 2024. We lower 2024E revenue due to forex and project a drop of 1% y/y for sales. We cut our mid-point equity value to SEK 214 (216).
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