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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 | 31.8 | 141.6 | 225.5 |
| Relative | 23.7 | 119.9 | 192.3 |
| 52 week high/low | 6.5gr/1.7gr |
CI Games’ Q123 results were robust, given that revenue continues to be driven by its back catalogue as we await the release of its next headline game, Lords of the Fallen (LotF), which has now been confirmed for 13 October 2023. The group continues to generate positive EBITDA, despite a significant increase in marketing costs related to LotF and other operating expenses tied to its strategic pillars. Lead indicators are encouraging for LotF and momentum could continue to build with five to six major marketing beats planned before its launch. The group’s cash runway remains well supported following a PLN15.6m debt increase in the quarter.
| 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 | 37.4 | 17.2 |
| 2022A | 56.7 | 16.1 | 10.1 | 4.00 | 152.5 | 35.2 |
| 2023E | 270.0 | 206.9 | 131.5 | 56.85 | 10.7 | 5.3 |
| 2024E | 270.5 | 195.3 | 121.1 | 52.38 | 11.6 | 5.6 |
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