Weather the storm and be rewarded

Weak quarter and soft outlook

Softer growth for Daybreak weighing on the share

Soft growth in Daybreak weighing on the share. Adj. for one-off in BBB, EBITA was -3% vs. ABGSCe. We stick to BUY on 2.0x EV/EBITA '26e, but few triggers

Beat on EBITA driven by My Singing Monsters

Long-term growth case looks appealing

We have updated our estimates following the CMD and ahead of the Q3 numbers on 14 November.

US gaming market continued to grow in September

US Gaming sales +13% y-o-y in September. Fifth consecutive month of growth for the industry. Valuation is down across the sector; use the opportunity to buy quality.

One of the better CMDs

Well thought-out plan to reach 28% EBITDA CAGR '23-'26. Related party issues resolved and buybacks announced. Long-term upside potential raised: reiterate BUY.

CMD expectations

Outlook solidified by strong MSM sales

Singing birds saved the day

A stable quarter waiting for the CMD

Q2e: tough comps but solid FCF. We fine-tune '23e-'25e adj. EBITA by -1%, -4%, and -3%. Stick to BUY, TP SEK 38 (40).

Re-emerging as a cash flow machine

New shareholder-friendly management offers opportunity. FCF to increase from SEK 135m in '22 to SEK 351m in '24e. We initiate with BUY, TP of SEK 40 (~40% upside).