No value in Games at this point

The current state of the Games segment is not sustainable, and it is unclear whether the restructuring could unlock value. Distribution segment supports the valuation, but debt weighs: HOLD.

Write-down and profit warning

SteamWorld Build reviews are positive

Will take time to turn around

Debt up and FCF down in Q3; visibility low. We cut '24e-'25e adj. EBITA 2-3%. We stick to HOLD; TP of SEK 6 (12).

Weak Games and FCF, but stronger Distribution

Cash flow case turned on its head

Weak Q2 and worse outlook for Q3. FCF case impaired, '23e cut to SEK 62m (204m). Down to HOLD: reduced FCF and confidence short-term.

Soft EBITA and weak FCF despite higher sales

Weaker back catalogue to weigh on Q2

Q2e sales +5%, EBITA +81% y-o-y. Weaker Games backlog driving negative revisions. BUY, share trading at 5.4x EV/EBITA on 2023e.

Strong reviews for Planet of Lana

Distribution finally improving, Games stable

Margin improvement in Distribution drives EBITA beat. We raise adj. EBITA by 0%, 1% and 3% on '23e-'25e. BUY: Share trading at 5.3x EV/EBITA on 2023e.

Solid report, sales and EBITA above expectations

Another step in the right direction

Q1 due 16 May, we expect a solid quarter with continued positive momentum. Turnaround progresses, but share is slow to react. BUY, TP of SEK 30 (33).

ABGSC VR seminar - key takeaways