Edison Investment Research - Game Digital (GMD) Game Digital - Good seasonal trading

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Edison Investment Research

Game Digital - Good seasonal trading

Game Digital (GMD) has posted good sales growth over its first 23 weeks and even better results over the Christmas peak. While sales have been led by hardware, management is confident of covering any mix issue through cost savings, and we retain our forecast. With net cash at 35p, the market is valuing this business at 3.5x FY18e EBITDA, which looks misplaced.

11/01/2018 3 EN

Underlying

Game Digital

Game Digital provides gaming and gaming-related products, including hardware, console physical content, console digital content, non-console digital content, accessories, licensed merchandise and own-label products in the U.K. and Spain. Co. also sells mobile devices and movies, provides gaming experiences in-store on consoles, personal computers and virtual reality devices and operates community-based gaming activities including gaming events and esports, digital hosting services for businesses and customers for multiplayer gaming. Also, Co. operates a software development business focusing on visual recognition and augmented reality technologies. At Jul 31 2017, Co. operated 572 stores.

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GB00BMP36W19 United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Game Digital - Good seasonal trading

Game Digital - Suspension of estimates

Game Digital - Good performance in a challenging market

Game Digital - Resilience over the peak trading period

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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