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G5 Entertainment: Tough market ahead - SEB

G5 reported Q4 sales and EBIT in line with consensus and no major surprises. The mobile market was soft in Q4 and organic growth was -7% y/y, but G5 reports strong trading in January. We believe Q4 is a good indicator of what to expect: we lower our assumptions on growth and increase them for costs, resulting in an 18% cut to our 2023 EBIT estimate. We lower our mid-point valuation to SEK 280 (296).

G5 reported Q4 sales and EBIT in line with consensus and no major surprises. The mobile market was soft in Q4 and organic growth was -7% y/y, but G5 reports strong trading in January. We believe Q4 is a good indicator of what to expect: we lower our assumptions on growth and increase them for costs, resulting in an 18% cut to our 2023 EBIT estimate. We lower our mid-point valuation to SEK 280 (296).
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