CI Games — Back on track following headline launch

CI Games is a Pan-European video game developer and publisher, best known for its AAA franchises Sniper Ghost Warrior and LotF. In October, the company launched the latest iteration of LotF, which we expect to drive scalable growth. With c US$69m invested into production and marketing, LotF is the company’s largest title to date and one of the first games globally to be developed using UE5, enabling next-generation graphics and realistic physics simulation (physics). Since launch, the company has sold 1.2m units to end-November 2023 and LotF was one of the best performing games in the US and Europe in October. On launch, UE5 compatibility issues with legacy hardware drove negative sentiment. Management quickly responded with a patch fix and is working continuously on UE5 optimisation with NVIDIA/Advanced Micro Devices (AMD), lifting sentiment globally. This provided strong momentum into the Black Friday and Christmas sales. LotF represents the first pillar in the group’s strategic roadmap to increase new premium intellectual property (IP) and release frequency. Other pillars include: Project Survive (2025), Project Scorpio utilising a games-as-a-service model (2026), plans to expand into new media and a Sniper Ghost Warrior release. The strategy aligns with supportive market tailwinds, as multiplying monetisation channels and growing technology capabilities expand the sector’s potential.

Despite moderating from previous expectations, our revenue forecast still shows strong 328% y-o-y growth to PLN242m in FY23, driven by LotF’s launch following a hiatus between new releases. For FY24, we forecast revenue of PLN140m, down 42% versus FY23 reflecting no planned releases in the year. We indicate a gross margin decline of 10pp to 55% in FY23 versus our prior forecast due to expanded LotF marketing and price protection, rebounding to 57% in FY24 as we expect a higher proportion of digital sales than FY23 given the typical decline in physical sales post launch. Extended debtor days on boxed sales revenue drive our FY23 net debt position of PLN23.8m, alongside our assumed PLN93m capitalised development costs. We forecast PLN26m free cash flow for FY24, reflecting the cash received from FY23 sales. This should enable management to pay down the rest of its debt and supports our forecast swing to a PLN1.2m net cash position by FY24 year-end.

Sustaining LotF’s momentum, generating cash and paying down debt are key milestones for CI Games’ near-term re-rating. Over the long term, executing the product roadmap to enable more frequent releases and diversify from its key franchises offer greater upside potential. Relative to peers, CI trades at average discounts of 48% and 76% on EV/sales and EV/EBITDA multiples across FY23 and FY24, signalling room for improvement if the product pipeline can deliver scalable growth through high-quality, recurring title launches. Realising the strategic vision provides a clear path towards stable expansion and stronger cash generation being priced into the shares over time.

Execution risks remain given that CI Games is still in the early stages of its strategic roadmap. The investment case now requires strategic pillars be delivered on time, on budget and to a high AAA quality. Creating hit titles is crucial for a re-rating during potentially sustained recession periods, as shown in our market section. With a relatively narrow title portfolio, any single failure would likely have a material financial impact. However, CI Games has a clear strategy to broaden its portfolio, which, as it grows, will reduce exposure to individual titles. Though portfolio concentration remains a near-term sensitivity, expansion plans help mitigate longer-term risk.

CI Games was founded in 2002 in Warsaw and listed on the Warsaw Stock Exchange. Over the years the company has become a global player, with over 190 employees spread across offices in Poland (headquarters), the UK, the United States, Spain and Romania, with its games selling worldwide. Since 2018, the company has focused on developing premium, multi-platform AAA games, representing the pinnacle of quality, scale and budget, with greater revenue and margin potential compared to other tiers. CI Games’ subsidiary publishing label, United Label, publishes non-mainstream indie titles, adding diversification benefits to the group’s strategy.

Sniper Ghost Warrior (first-person shooter) and LotF (a soulslike action-driven role-playing game (RPG)), have been CI Games’ flagship franchises, collectively selling over 25m copies. On 24 October 2022, management outlined its strategy to increase the frequency of new game releases and expand its IP portfolio, providing greater revenue visibility and reducing reliance on key titles.

CI Games recently delivered the first pillar of its strategy: LotF, a sequel building on one of the company’s core franchises originally released in 2014. The game was released on 13 October, generating 1m unit sales in the first eight days, despite technical issues that were quickly resolved. Of those sales, 55% were of the higher-priced deluxe version and 54% were from consoles. As one of the first games globally using Epic’s next-generation UE5, LotF features cutting-edge graphics, art and physics.

As a first mover, CI Games is better placed than its peers to develop future titles using UE5, learning from the pain points it experienced following LotF’s launch. At its Q323 results, management updated its strategy to ensure that all other pillars are developed to a similar standard as LotF, which could reduce execution risk but could cause delays to its current pipeline.

Project Survive, the next release in its pipeline targeted for a 2025 release, seeks to capitalise on the high-growth survival genre and broaden its IP portfolio. Project Scorpio, another strategic pillar, will be in a games as a service (GaaS) format, another company first, offering a recurring subscription model, as opposed to generating most revenue upfront.

Management has also identified opportunities across media, licensing its IP in new formats (eg mobile, virtual reality), new media (eg film, TV) and other entertainment products (eg table-top games, books) with its Project Expand pillar. The recent success of CD Projekt’s The Witcher, Naughty Dog’s The Last of Us, as well as one of the highest-grossing films of 2023, The Super Mario Bros. Movie, illustrate the possibilities in this space. CI Games already looks for other media opportunities for its franchises, as highlighted by its music publishing partner Laced, which has supported LotF’s soundtrack release across major platforms like Spotify, iTunes and Amazon Music, as well as creating a physical vinyl version.

CI Games was founded as City Interactive in 2002, through the merger of three video game companies: Lemon Interactive, We Open Eyes and Tatanka. In 2007, City Interactive merged with Oni Games and Detalion before listing on the Warsaw Stock Exchange later that year.

City Interactive released its first sniper title, Sniper: Art of Victory, in 2008 and then Sniper Ghost Warrior (SGW) in 2010, launching the eponymous franchise, before announcing its change of name to CI Games. SGW2 was launched in 2013 and its second franchise, LotF, co-developed by Deck13, was released in 2014. After problems with SGW3 in February 2018, CI Games’ development team was shrunk to 30 staff, before being rebuilt. United Label, a publishing arm for independent games, was established later in 2018. Since then, the company’s headcount has grown steadily, reaching 170 at end-H123, underpinning the group’s investment in ensuring upcoming releases are developed to a high AAA quality.

CI Games’ highly anticipated next iteration of LotF launched in October 2023 following a marketing campaign that lasted more than a year, which successfully drove strong wishlist numbers and broadened appeal beyond core niche fans to a general audience. However, initial reception was hampered by performance issues stemming from third-party hardware incompatibility with the latest UE5 technologies. Acting swiftly, management released a patch, resolving the bulk of compatibility problems on day one, and it continues to provide daily updates to fix residual bugs (26 as of 28 November).

Through this agile response, sentiment in LotF has recovered rapidly, from a low of 50% to over 70% currently, according to management, with robust initial sales volumes affirming the game’s strengths. With the post-launch recovery validating LotF’s commercial potential, CI Games is positioned to capitalise on the title’s momentum into Q4. We believe discounted Black Friday and Christmas sales will be a catalyst to the game’s performance, supported by improving reviews and award shortlisting.

The 2023 release of LotF builds on CI Games’ soulslike RPG franchise and marks the first title developed by the company’s internal studio Hexworks, launched in 2020 to specialise in the soulslike genre. The success of comparable titles like Resident Evil 4 and Remnant II – both ranked among the top 20 best-selling games in 2023 – demonstrates growing interest in the genre.

LotF is one of the first games globally to utilise Epic’s UE5 (released in 2022), enabling next-generation graphics, art and physics not found in other third-party engines. Using a third-party engine also saves significant development time, allowing teams to focus on gameplay rather than building their own proprietary engine from scratch. With internal UE5 experience now established, CI Games can better leverage the platform’s capabilities for future titles. This aligns with the company’s preference for in-house development, which it believes better delivers on its creative vision compared to using third-party partners.

LotF is the company’s largest game to date, taking three and half years to develop. The game is broadly five times larger than the 2014 original, with more characters and features to broaden audience appeal. Total estimated costs for LotF include:

LotF’s marketing costs were 2.7x higher than CI Games’ previous largest title, SGW Contracts 2 (SGWC2), driving a successful marketing campaign, which launched in August 2022 at Gamescom. Since then, the marketing campaign has achieved 214m campaign views, 150m trailer views, 12.7m articles, appeared on 1.2m Steam wishlists and reached number 10 in the Steam Global Wishlist Chart.

LotF was also an Imagine Games Network (IGN) First feature game for August. IGN is a leading gaming media company with a monthly reach of over 100m gamers. Being highlighted this way demonstrates management’s efforts to substantially broaden audience appeal. We believe it helps justify the higher marketing spend given LotF’s strong visibility even in a year with significant AAA competitor releases (see Market section). Additionally, management expects lifetime sales to total US$100m, equating to a robust 33.5% margin over its total production and marketing costs.

Since launch, LotF’s sales performance has been robust, reaching 1m units sold within eight days and 1.2m by end-November (a mix of digital sell-throughs – direct to consumer and physical sell-ins – sold to retailer, not necessarily to the consumer due to lack of visibility on the retailer’s physical inventory). It ranked among the top 10 best-selling games across Europe in October (and the top 20 in the US). Notably, over half of sales continue to come from higher-priced console and deluxe versions, exceeding management expectations.

The game debuted to broadly positive reviews. A large share of users praised the gameplay and graphics, including the unique dual-world mechanics between the living Axiom and dead Umbral realms. As Exhibit 3 shows, 78% of influencers gave a positive rating. This led to LotF trending at number two on Twitch during launch week and achieving 15m streaming hours by end-October.

However, negative sentiment stemmed mainly from performance issues on PCs using legacy graphics drivers, dampening initial reception with sentiment declining to the low 50% range. Sentiment differences were largely geographic – China drove much of the negativity (c 30% positive post-launch) where PC is the preferred platform. In countries with higher next-gen console adoption like PlayStation 5 and Xbox Series X/S, sentiment remained largely positive at 70%. We note Remnant II, another soulslike fantasy title and one of the only other UE5 games, faced similar performance problems at launch.

Management responded quickly with a patch fix, bringing positive sentiment back over 70%, including in China. The group is continually working with NVIDIA and AMD on UE5 optimisation. On gameplay, in-game difficulty has been the main feedback topic, which is being addressed through weekly updates to better balance difficulty and enjoyability.

As Exhibit 4 shows, these updates have improved reviews, building sales momentum towards major holiday events. On 24 October, LotF was shortlisted for the Golden Joysticks Game of the Year Award – one of gaming’s most prestigious public-voted prizes, indicating significant player interest.

Initial sales statistics following LotF’s launch provide greater certainty around our base revenue and EBITDA assumptions for FY23, as shown in Exhibit 5. Our base case indicates combined year one and two revenue of PLN312.4m (c US$78m), equating to 78% of management’s expected lifetime net reported sales of US$100m.

Q423 looks set to be driven by Black Friday and Christmas sales expanding volumes at lower unit prices. Since 17 November, discounts for LotF have exceeded 30% across platforms, including PlayStation, Xbox and Steam. On 29 November, PlayStation launched a targeted offer for LotF, only given to 10 titles in 2023, which includes a full PlayStation Network support program including additional marketing, featuring and monetary benefits. CI Games’ track record of robust back catalogue sales gives us confidence that sales momentum can continue into FY24.

Given the evolving dynamics around pricing, volumes and discounts, we model three scenarios: lower, base and upper case. The base case underpins our forecasts, where we expect LotF to contribute 88% to FY23 revenue falling to 71% in FY24, reflecting a potential small contribution from a beta version of Survive. The aspirational upper case is driven by higher volumes, with operating leverage expanding margins, with most production and marketing costs now accounted for. The lower case is unlikely, only requiring a small increase in sales to the 1.2m reported by end-November.

Below we summarise CI Games’ FY23–27 roadmap, illustrating the company’s ambition to increase the rate of new game releases to every 12–18 months, as well as to expand its IP portfolio, entry into new formats and cross-media potential. Exhibit 6 provides an update to the 2022 roadmap from its Q323 results, with some delays in releases to ensure AAA game quality.

We provide further detail on these pillars below:

Alongside LotF (from 2014), CI Games’ other leading franchise is SGW. As the bestselling first-person sniper series in history, the SGW franchise has sold over 12.5m units across more than a decade.

Sniper: Art of Victory was the first sniper game developed and published by CI Games in 2008. Since 2010, a further five titles have been released as part of the SGW franchise. SGW (2010) was a commercial success, selling over 1.5m units in the 12 months after launch. SGW2 (2013) achieved similar sales figures. However, SGW3 (2017) received disappointing reviews despite being developed on a larger budget. Based on this misstep, CI Games pivoted to a streamlined, lower-budget model focused on delivering quality sniping experiences for core fans.

This approach succeeded, with Sniper Ghost Warrior Contracts (SGWC) and its recently released sequel, SGWC2 in June 2021, driving improved sales and financial returns. Both games have driven FY23 performance, with SGWC2 accounting for 44% of H123 sales (H122: 55%) and SGWC generating 13% of revenue (H122: 11%).

In 2018, CI Games founded United Label, an indie publishing arm specialising in ambitious smaller titles. United Label subsequently listed on NewConnect (Warsaw’s alternative investment market) in January 2021, raising PLN4.1m for its publishing business, with CI Games holding a 78.4% stake following the IPO, which has since expanded to 91.7% as at-end H123.

United Label was established to work with innovative and experienced independent developers, offering a flexible publishing structure that works for both parties. So far, United Label has worked with four studios: Fallen Flag, Lunaris Iris, Odd Bug (now working on its second title with United Label) and Polygon Treehouse.

United Label’s first title, Röki, was released in July 2020 (PC, Nintendo Switch) and received positive reviews from both critics (Metacritic: 79) and users (user review: 8.5). In March 2021, the game broke even for CI Games, recouping all production and marketing expenses. Röki received a nomination at The Game Awards in the ‘Best Indie Debut of 2020’ category, was nominated for ‘Best Debut Game’ and ‘Best British Game’ at the BAFTAs in 2020 and has been nominated for ‘Best Narrative’ at the 2021 Develop:Star Awards, where the developer, Polygon Treehouse, has also been nominated for ‘Best Micro Studio’.

United Label launched its second title, Eldest Souls (an RPG soulslike adventure), in July 2021 on PC, Switch, PS4/5 and Xbox Series S/X, with Tails of Iron (an adventure RPG-lite) released in September 2021 on PC, Switch, PS4/5 and Xbox Series S/X.

In 2023, United Label signed an agreement with Sony PlayStation to include all of its games in the PS Plus subscription service. This drove a substantial contribution to CI Games’ group revenue, accounting for 26% of half-year sales, up 15pp y-o-y. Notably, Tails of Iron saw its player base double within the first two weeks after going live on the service in April.

United Label provides some diversification benefits, however management does not see the publisher contributing substantially to CI Games’ revenue. To date, the publishing unit has generated US$5.1m in lifetime net revenue from the sale of 571k units.

The global video games market is set for robust market growth driven by a confluence of trends, including AI, cloud gaming and other tools that can extend the lifetime value of a game and enable greater player immersion. Valuations are normalising after pandemic highs as consumers become more selective amid macro uncertainty, increasing pressure on developers to create hit titles that drive long-term engagement.

The eventual approval of Microsoft’s acquisition of Activision Blizzard for US$69bn, the largest in the industry’s history, could lead to the realisation of consumer fears that games may become exclusive to a platform. Exclusivity could make popular Activision franchises like Call of Duty exclusive to Microsoft’s platforms, establishing walled gardens that could hamper cross-platform play and limit future engagement. That said, the size of the deal does highlight the industry’s significant growth potential.

Statista forecasts a robust 10% CAGR in the global video games market between 2022 and 2027, with year-on-year growth moderating following lockdown related highs. Mobile is expected to continue to drive growth, however the latest generation consoles and the latest PC ecosystems could also gain share. Cloud gaming and the rise of other monetisation tools could provide further tailwinds, see below.

We believe there are several key trends expanding the monetisation potential of games developers and publishers, including:

Cloud gaming, alongside extensive 5G rollouts globally, are enabling better connectivity between gamers and platforms, which are now capable of delivering AAA gaming experiences to any device without expensive hardware. Developments in this area will be key to driving cross-platform capabilities, allowing users to continue on the same game on various platforms, which we believe will further drive user engagement.

Virtual reality (VR) and augmented reality (AR) also promise to immerse players deeper and enable new titles and experiences. Though early VR hardware sales have been modest, rapid device improvements and cost reductions could drive adoption. Leading platforms like Meta Quest 3 and PlayStation VR 2 can catalyse developer support. Apple Arcade will also provide AR games for the Apple Vision Pro.

AI can accelerate content production and frees creators to focus on high-value design elements, with NVIDIA’s Omniverse platform providing a key example. Generative content in games can also enhance the player experience by enabling more immersive and responsive in-game environments, characters and narratives. Leading game engines, like UE5, provide developers with AI tools to support game production. Platforms, including Steam, also use machine learning to analyse playing habits and recommend games to users based on other users’ gaming patterns.

As Exhibits 10 and 11 illustrate, average valuations for European video game publishers have fallen since COVID-19 related highs and are now at lower levels than the broader European STOXX 600 Media and STOXX 600 indices.

Globally, Statista forecasts much lower revenue growth in the media sector, projecting a 4% CAGR from 2022–27 versus 10% for video games. As previously discussed, the video game market is seeing multiple channels for monetisation, driving robust, diverse revenue growth, making current valuations unjustified in our opinion.

Historically, games have proven resilient across recessions by offering consumers cost-effective entertainment, particularly in 2020 where the sector saw a boost from COVID-19 related lockdowns. However, pressure grows for developers to create hit titles as gamers become selective, playing fewer new games in favour of long-term engagement with existing titles. Poor reception for key releases like EA’s Battlefield 2042 can also hurt valuations.

CI Games has a two-board structure. The management team is led by CEO Marek Lech Tymiński, who has extensive experience in the industry, having launched his first enterprise in 1997 and been on the board of several video games companies since. He is supported by CFO David Broderick, who has more than two decades of strategic, technical finance and operational leadership experience, including three years as CFO at Keywords Studios.

The supervisory board includes six members, with key personnel detailed at the end of the report.

CI Games has an international development strategy, partnering Polish (Warsaw) with European development expertise (Barcelona and Bucharest), and an international management team (Exhibit 12). This is a continuation of the remote development strategy implemented by necessity during COVID-19 lockdowns, recognising that Polish development capacity remains constrained, leading to high wage inflation. This strategy allows CI Games to attract and retain experienced senior staff and developers, who would otherwise not be prepared to relocate to Poland. As a result, CI Games has built teams in several European countries, notably Spain and Romania (Hexworks), as well as the UK. CI Games also has a US-based distribution business.

CI Games develops, publishes and distributes video games, both digitally and physically:

The company has worked with third-party developers in the past, but we believe future development is likely to be brought inside given management’s emphasis on expanding the scope and quality of its pipeline, as highlighted by the termination of its agreement with Batfields.

As highlighted in our last note, CI Games’ Q323 results were the last prior to the release of LotF. Performance was driven by boxed pre-sales of LotF invoiced in September, alongside continued strong back catalogue performance, especially SGWC2 (released in 2021) and releases from United Label. Revenue increased 43% y-o-y to PLN59.1m and gross margin contracted 17.7pp to 53.7%, reflecting marketing investment in LotF included in COGS and the longer lifecycle of current releases. Lower revenue, an expanding global employee base and other marketing costs drove an operating loss of PLN1.7m (H122: PLN6.2m profit).

To support expenses, the group drew PLN20m from its credit facility and issued a PLN27.8m convertible bond. Net debt reached PLN62.0m, including leases of PLN2.8m.

We expect sales from LotF to pay down the debt across FY23 and FY24, as highlighted by our updated forecasts below.

Our forecasts are driven by sales in LotF, accounting for 88% of FY23 revenue and 71% of FY24 revenue. The remaining sales are from CI Games’ back catalogue, namely SGW, as well as from its share in United Label. We note that SGWC2 was a featured title on Steam’s Black Friday sale alongside LotF, providing a boost to back catalogue sales in Q4. In FY24, we expect there may also be a small contribution from a beta version of Survive.

We reduce our FY23 revenue forecast to PLN242m following the launch of LotF, primarily driven by the initial negative sentiment relating to performance issues. We believe the quick resolution of these problems as well as robust sales of the higher-priced deluxe and console versions of LotF have largely offset this, with our forecast indicating 328% y-o-y growth. Assuming stable pricing, we believe CI Games delivered broadly half the sales required to reach our updated forecast in LotF’s first eight days post release. However, we expect that remaining sales for FY23 will be driven by higher volumes of discounted units concentrated around major sales events, including Black Friday and Christmas.

Additionally, our FY23 revenue forecast includes some impact from greater provisions for price protection on physical sales set aside for retailers as prices drop to incentivise purchases. At the current spot rate, the 14% depreciation of the US dollar against the zloty since we last updated forecasts has also affected our expectations. It is worth highlighting that we assume games are sold in US dollars, which we then translate into zloty, CI Games’ reporting currency.

Expanded marketing efforts for LotF post launch and price protection for retailers drives our COGS forecast, lowering our gross margin forecast by 10pp to 55% in FY23. We note most of CI Games’ variable costs relating to units sold are included in COGS. Effective marketing may widen audience reach, attracting new players to try the latest updates, further improving sentiment and generating momentum. Our depreciation and amortisation expectations are driven by the PLN178m production costs for LotF, where we assume that most of these costs will be amortised over three years, consistent with the company’s historical amortisation schedule.

On the balance sheet, we note CI Games recognises revenue from boxed versions of the game when distributed to retailers, receiving a portion of the invoiced cash upfront and the remainder over time dependent on the individual retail partner agreements. Due to timing in 2023, we expect a large increase in debtor days, which should decline in FY24 as the company continues collecting cash from retail partners. This drives our year-end net debt position of PLN23.8m, alongside assumed capitalised development costs of PLN93m for its strategic pipeline based on a Q3 run rate.

Our FY24 revenue forecast of PLN140m is down 42% on our FY23 expectation, given there are no planned releases for the year.

We believe revenue will be primarily generated by LotF, which may continue to see strong sales given its late release timing in the year. As highlighted by our strategic roadmap analysis, management’s focus on producing games to a similar standard as LotF has pushed the full version of Survive and the next iteration of SGW to FY25.

As discussed previously, digital versions of the LotF should increase as a share of total sales over time, underpinning our 2pp increase in gross margin. We forecast opex to remain high given the group’s release pipeline, leading to a 3pp contracting in EBIT margin on lower revenue. Our EBITDA margin forecast indicates a 14.1pp year-on-year expansion to 57.1% because we expect a higher proportion of costs relative to FY24 revenue to be amortised.

We forecast a positive working capital movement as cash is collected from retailers to drive free cash flow of PLN25.9m. This will be key to paying down debt, and management indicated in its Q3 results presentation that it plans to become debt free in FY24. As a result, we expect a swing back to a net cash position of PLN1.2m by year-end.

At its AGM on 29 June, management proposed an incentive programme for key employees of CI Games, including management, designed to bolster long-term objectives, including the financial success of its strategic pillars. Eligible employees will be awarded warrants at an issue price of PLN3.5 (a 70% premium to the current share price) contingent on certain net profit targets, as illustrated by Exhibit 15.

The implementation of the programme will begin if the company totals net profit of PLN150m across FY23 and FY24. If this target is missed, the threshold becomes PLN250m across FY23 to FY25, which we believe is the more likely scenario using our forecasts. A total of 9m warrants will be issued in either scenario. Employees can then earn an additional 1m warrants for each additional PLN25m of net profit generated, up to a total of 13m warrants, as indicated by Exhibit 15.

In the short term, maintaining LotF’s momentum into FY24, generating cash and paying down debt are key to the investment case. In the longer term, delivering on the strategic roadmap looks more compelling, enabling smoother revenue generation through more frequent releases and decreasing dependence on its two main franchises. As an early adopter of UE5, the central development platform going forward, CI Games can leverage lessons learned from LotF’s launch to ensure quicker development to the highest industry standard and mitigate potential post-release problems. If management can deliver on its strategic vision, the path is clear for stable year-on-year revenue growth and cash generation to be priced into the stock.

We value CI Games against other mid- to small-sized European games publishers, mainly those focused on AAA game production. On EV/sales, CI trades at 1.7x FY1e and 3.0x FY2e, a 48% average discount to peers. This discount widens to 76% when using EV/EBITDA, where the company trades at just 4.0x and 5.2x in FY1e and FY2e respectively.

We note that the peer multiples have been driven by a few key names, such as the larger CD Projekt, which develops the well-known Witcher and Cyberpunk franchises, and 11 Bit Studios, poised to scale rapidly following the release of highly reviewed titles after a significant hiatus. We believe this highlights the potential for CI to trade at multiples above its current rating if it delivers high-quality titles from its strategic pipeline.

A summary of the principal risk factors relating to CI Games is set out below.