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Founded in 2002, CI Games is a Warsaw-based developer and publisher of AA+/AAA multi-platform video games for a global audience. It specialises in first person shooter and action-driven titles and owns IP including the Sniper: Ghost Warrior (SGW) and Lords of the Fallen (LotF) franchises.
Valuations in the games sector have come under significant pressure in 2022, with investors punishing anything less than a perfect performance with heavy markdowns from the sector’s 30x P/Es of 2021. In this context, CI Games’ low valuation means the shares have avoided the sector’s multiple compression in 2022, with the potential for material upside in 2023.
Associate Analyst
David Broderick
CFO
Marek Lech Tymiński
CEO
Forecast net cash (PLNm)
79.4
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 13.4 | 101.6 | 185.1 |
| Relative | 12.1 | 92.2 | 167.0 |
| 52 week high/low | 6.5gr/1.7gr |
CI Games’ FY22 results reflect investment in its seven-pillar strategy, which aims to diversify its intellectual property (IP) to drive long-term revenue and profit growth. Its results were slightly below our forecasts but benefited from a robust performance from its back catalogue, with no new releases in the year. The group remains profitable, despite the absence of new releases and investment required for its pipeline of new releases, particularly in its 2023 headline game, TLotF, where its lead indicators are encouraging. Its PLN20m new credit facility and recent distribution agreements should support its FY23 cash runway.
| Y/E Dec | Revenue (PLNm) | EBITDA (PLNm) | PBT (PLNm) | EPS (fd) (gr) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 105.5 | 62.5 | 44.9 | 16.33 | 31.6 | 14.5 |
| 2022A | 56.7 | 16.1 | 10.1 | 4.00 | 129.0 | 29.8 |
| 2023E | 270.0 | 206.9 | 131.5 | 56.85 | 9.1 | 4.5 |
| 2024E | 270.5 | 195.3 | 121.1 | 52.38 | 9.9 | 4.8 |
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