G5 Entertainment: Working around the platform dominance - SEB
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G5 Entertainment: Working around the platform dominance - SEB

We lower our underlying earnings estimates by mid to high single digits in the coming years after a report that fell short of our expectations; however, our cash flow revisions are lower, leaving our new mid-point fair value at SEK 152 (157) per share. Although we wait for new game releases to break the negative growth trend, it is clear there is substantial headroom for margin improvements as Apple and Google’s grip on its platforms loosen up.

We lower our underlying earnings estimates by mid to high single digits in the coming years after a report that fell short of our expectations; however, our cash flow revisions are lower, leaving our new mid-point fair value at SEK 152 (157) per share. Although we wait for new game releases to break the negative growth trend, it is clear there is substantial headroom for margin improvements as Apple and Google’s grip on its platforms loosen up.
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