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G5 Entertainment: Looks to be more of the same in Q1 - SEB

We think the story of Q1/22 will be similar to that of Q4/21: Hidden City continues to decline, Sherlock: Hidden Object Mystery continues to grow, and the remaining portfolio is flat. Given strong FX tailwinds of about 8% in Q1, we forecast net sales of SEK 343m (down 2.9% y-o-y adjusted for FX) and EBIT of SEK 47m. We lower 2022E/23E/24E EBIT by 12%/5%/5% on higher costs, which sees our DCF mid-point decline to SEK 375 (400) per share.

We think the story of Q1/22 will be similar to that of Q4/21: Hidden City continues to decline, Sherlock: Hidden Object Mystery continues to grow, and the remaining portfolio is flat. Given strong FX tailwinds of about 8% in Q1, we forecast net sales of SEK 343m (down 2.9% y-o-y adjusted for FX) and EBIT of SEK 47m. We lower 2022E/23E/24E EBIT by 12%/5%/5% on higher costs, which sees our DCF mid-point decline to SEK 375 (400) per share.
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