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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
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 32.4 | 45.7 | 99.9 |
| Relative | 42.9 | 52.6 | 150.7 |
| 52 week high/low | 3.3gr/1.4gr |
CI Games’ Q322 results reflect the investment in its next major release, The Lords of the Fallen (TLotF) and the hiatus between releases. Margin compression in the period primarily relates to the group’s marketing push for the release of TLotF, which has been confirmed for FY23. Positive newsflow around TLotF gives us confidence in rapid sales growth and significant margin expansion this year. On 8 February, the company held an extraordinary general meeting, where it approved the change from an SA to an SE corporate structure, primarily to allow management to have better control of its EU operations.
| Y/E Dec | Revenue (PLNm) | EBITDA (PLNm) | PBT (PLNm) | EPS (fd) (gr) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 46.0 | 27.8 | 8.5 | 3.48 | 95.7 | 20.2 |
| 2021A | 105.5 | 62.5 | 44.9 | 16.33 | 20.4 | 9.4 |
| 2022E | 59.5 | 16.7 | 9.4 | 3.97 | 83.9 | 31.8 |
| 2023E | 270.0 | 206.9 | 131.5 | 56.85 | 5.9 | 2.9 |
