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G5 Entertainment AB: 1 director

A director at G5 Entertainment AB sold 25,000 shares at 145.846SEK and the significance rating of the trade was 51/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cl...

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - A solid report, but write-off mudded the waters

Sales & adj. EBIT above our expectations We cut adj. EBIT but raise FCF on 2023e and 2024e Buybacks to continue – 2% of shares repurchased in Q3

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Solid report, but EBIT hurt by one-off

Sales in line, adj. EBIT +18% vs. consensus One-time impairment of 73m hurt net profit Buybacks to continue

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Sequential improvements in growth and profit

Sherlock going strong with HC seeing seq. improvement Elevated RUB weighing on EBIT in 2022e and 2023e Share trading at 5.9x EV/EBIT 2023e, incl. high RUB

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Report on the weak side, and outlook cut

Sales in line, but profitability and outlook worse ‘22e, ‘23e & ‘24e adj. EBIT cut by 7%, 7%, & 8% New fair value range: SEK 230-390 per share (260-440)

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Pulling the breaks on Sherlock

EBIT SEK 1m vs ABGSCe 15m and cons 16m Estimates on ‘22e-‘24e likely to come down 5-10% UAC will be back to normal range from August

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Big investments in Q2 to yield in H2

Q2 report due on 11 August We cut ‘22e-‘24e EBIT by 17%, 5%, and 4% 14% FCF yield with positive growth outlook in ’23e-‘24e

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Initiates new buybacks

Authorised to repurchase 5% of shares… … while the share trades at 13% FCF yield on 2023e Investments in Sherlock looks promising

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

Sector Fast Comment - US Gaming sales -19% in May

Content spending -19%, hardware -11%, y-o-y Evil Dead from Embracer 4th best-selling game in May Lack of game releases hurt total sales in May

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - A new king (detective) on the throne

EBIT +7% vs. ABGSCe; guides for increased UAC in Q2 We raise ‘23e-‘24e EBIT on higher growth for Sherlock Trading at 5x EV/EBIT and a 12% FCF yield on 2023e

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Guides for higher UAC

Adj. EBIT +7% vs ABGSC, +11% vs cons UA/sales to increase to 35% in Q2… …lowering profit short term, but is accretive to growth

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Under pressure, but we see signs of strength

ABGSCe Q1: adj. EBIT +6% y-o-y and flat sales We cut ‘22e-‘24e EBIT by 6%-9% 5x 2022e EV/EBIT – a five-year low

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Feedback from call with CFO

Stands by communication from last week… … that immediate revenues are not affected Tempted to do buybacks but are waiting for now

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Weak Q4, but set to grow EPS rapidly in ‘22e

Disappointing sales, with -6% organic growth in Q4… …but we still think it will grow EBIT by 30% in 2022 7.5x ‘22e EV/EBIT and 14% ’21-‘24e EPS CAGR

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - A report on the softer side

-6% organic growth vs. ABGSCe 0% Expect 2-4% negative revisions to cons. ‘22e EBIT New generation grew 26% vs. +34% last quarter

Oscar Rönnkvist ... (+2)
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Small negative revisions ahead of Q4

Q4 report due on 10 February We expect sales of SEK 333m and EBIT of SEK 67m 7.6x ‘22e EV/EBIT on our new estimates

 PRESS RELEASE

G5 Entertainment Joins Uplandme Inc’s Investor Group

STOCKHOLM--(BUSINESS WIRE)-- “G5 is highly cash generative, and we are interested in investing in promising new segments of the ever-evolving gaming market. Within our area of expertise, G5 is constantly investing in the development of our own portfolio of games, our publishing platform, and our marketing tools and efforts. In areas of expertise adjacent to G5’s, we are looking for companies with a strategic fit that we can potentially acquire. Outside of G5’s current areas of expertise, we are open to acquiring a minority stake to expand the company’s knowledge and network and help promising ...

Erik Moberg ... (+3)
  • Erik Moberg
  • Oscar Rönnkvist
  • Simon Jönsson

G5 Entertainment - Miss on both sales and EBIT margin

Q2 EBIT of SEK 56m, -18% vs. ABGSCe, -12% vs cons We cut ‘21e-‘23e EBIT by 4-3% Now trades at 9.8x f12m EV/EBIT

 PRESS RELEASE

G5 Entertainment Group: Interim Report January – September 2021

STOCKHOLM--(BUSINESS WIRE)-- G5 Entertainment Group (STO:G5EN): July – September 2021 “The third quarter is behind us, and it is reassuring to see players continue to enjoy the games our developers worked so hard on,” said Vlad Suglobov, CEO of G5 Entertainment. “Already after September, we are close to topping the full year results from 2020. Revenue during Q3 in USD terms rose 1% year-over-year and slipped 1% in SEK due to FX. Underpinning this performance, in USD terms, is the 36% year-over-year growth in our new generation of games and 7% rise in own games. The new generation of games, t...

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