Copyright © Inderes 2011 - present. All rights reserved.
  • Latest
  • Markets
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
  • inderesTV
  • Forum
  • About Us
    • Our Coverage
    • Team
Third party research

G5 Entertainment: Not a clear trend shift in sight yet - ABG

G5 Entertainment

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
Negative trend sustained, but there are a few growth options in H2
We cut adj. EBIT 12-8% on 2025e-2027e
Trading at 5x EV/FCF '25e; half of market cap in net cash


Organic growth improving, but slower than expected

The organic growth improved somewhat q-o-q but at a lower rate than we expected, from -15% to -11% y-o-y (vs. ABGSC -5%). There were some positive aspects of the report, including the biggest title, Sherlock, growing q-o-q (+2%) and continued high growth for G5 Store (+39% y-o-y and +8% q-o-q measured in USD). The conversion of sales through G5 Store gives a higher gross margin. G5 Store now comprises 23% of sales (15%), and we expect it will continue to increase. Interestingly, management said it will open up G5 Store to external developers, which could add another high-margin revenue stream with revenues potentially starting already in 2025. This, combined with a positive trend for Sherlock and the new release of Twilight Land in H2, we think could significantly improve the organic growth trend, although we expect the core portfolio to continue declining near-term.
Find us on social media
  • Inderes Forum
  • Youtube
  • Facebook
  • X (Twitter)
Get in touch
  • info@hcandersencapital.dk
  • Bredgade 23B, 2. sal
    1260 København K
Inderes
  • About us
  • Our team
  • Careers
  • Inderes as an investment
  • Services for listed companies
Our platform
  • FAQ
  • Terms of service
  • Privacy policy
  • Disclaimer
Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.