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Global Gaming: In better shape - SEB

Q1 proved that the company had managed to significantly reduce costs and we expect a return to profitability as of Q3 with Q2 as another “work in progress” quarter. Enlabs acquiring 30% of the shares in the company adds a dimension to the equity story where a takeout could be the end game. In any case the company has gained a long-term strategic partner/owner. We have made positive revisions to estimates; our updated mid-point DCF value is SEK 7.7.

Q1 proved that the company had managed to significantly reduce costs and we expect a return to profitability as of Q3 with Q2 as another “work in progress” quarter. Enlabs acquiring 30% of the shares in the company adds a dimension to the equity story where a takeout could be the end game. In any case the company has gained a long-term strategic partner/owner. We have made positive revisions to estimates; our updated mid-point DCF value is SEK 7.7.
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