Polish Mobile Gaming: new normal, more challenges (Huuuge Games stays BUY, Ten Square Games downgraded to HOLD)
We maintain our BUY recommendation on Huuuge Games (HUG) (with our 12M price target (PT) cut by 47%, to PLN 26.6), while we downgrade (transfer of coverage) Ten Square Games (TEN) to HOLD (with our 12M PT cut by 82%, to PLN 125) in this report. Given the privacy policy changes, the increased marketing costs, the unfavourable market trends ytd and the highly competitive market, we take a much more cautious approach towards the sector in terms of bookings, profitability expectations and the probability of success for new games. Both HUG and TEN offer weaker earnings growth profiles than their foreign peers (yoy declines this year and mere single-digit 2022-24E adjusted EBITDA CAGRs, on our forecasts), although the former is likely to stay more resilient, in our view. Given the much more attractive valuation levels and the strong net cash position (51% of its current market cap), our preference is for HUG vs. TEN.
Ten Square Games SA is a Poland-based mobile games development company. The Company is focused on 3D simulation hobby games for people who seek outdoor experiences on their mobile devices, like fishing or hunting games. Its games are available on social platforms, a network of partner sites, as well as on Google Play, App Store and Microsoft Store.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.