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G5 Entertainment: New hope on the horizon - SEB

G5 has been struggling for a while due to an ageing portfolio of games, a tough mobile gaming market and the war in Ukraine. The 2024E P/E of 9x looks attractive, the market appears to be turning and new game releases are on the agenda before year-end. G5 has a strong balance sheet with c. SEK 200m in net cash and a history of delivering organic growth with high returns on capital. We lower our fair mid-point equity value to SEK 228 (231).

G5 has been struggling for a while due to an ageing portfolio of games, a tough mobile gaming market and the war in Ukraine. The 2024E P/E of 9x looks attractive, the market appears to be turning and new game releases are on the agenda before year-end. G5 has a strong balance sheet with c. SEK 200m in net cash and a history of delivering organic growth with high returns on capital. We lower our fair mid-point equity value to SEK 228 (231).
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