Last close As at 05/08/2026
PLN2.58
— 0.00 (−0.19%)
Market capitalisation
PLN472m
Research: TMT
CI Games’ H123 results were reasonably robust, underpinned by continued strong back catalogue performance, especially Sniper Ghost Warrior (released in 2021) and releases from United Label. We are expecting a substantial revenue and profit uplift following the launch of Lords of the Fallen (LotF) on 13 October, with lead indicators continuing to look positive. Borrowings increased to invest in the development and commercialisation of new releases including LotF, Project Scorpio and the group’s new Survival title. Its current pipeline shows management’s efforts to expand its IP portfolio, entering the increasingly popular survival genre as indicated by strong comparable sales. We expect LotF profits to return CI Games to a strong net cash position by year-end, and we will update our forecasts shortly following the release.
Written by
CI Games |
Ready for a transformational journey |
H123 results |
TMT |
4 October 2023 |
Share price performance
Business description
Analysts
CI Games is a research client of Edison Investment Research Limited |
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CI Games’ H123 results were reasonably robust, underpinned by continued strong back catalogue performance, especially Sniper Ghost Warrior (released in 2021) and releases from United Label. We are expecting a substantial revenue and profit uplift following the launch of Lords of the Fallen (LotF) on 13 October, with lead indicators continuing to look positive. Borrowings increased to invest in the development and commercialisation of new releases including LotF, Project Scorpio and the group’s new Survival title. Its current pipeline shows management’s efforts to expand its IP portfolio, entering the increasingly popular survival genre as indicated by strong comparable sales. We expect LotF profits to return CI Games to a strong net cash position by year-end, and we will update our forecasts shortly following the release.
Year end |
Revenue* (PLNm) |
EBITDA* (PLNm) |
PBT** |
EPS |
EV/EBITDA |
P/E |
12/20 |
46.0 |
27.8 |
8.5 |
0.03 |
40.4 |
191.6 |
12/21 |
105.5 |
62.5 |
44.9 |
0.16 |
18.0 |
35.9 |
12/22 |
56.7 |
16.1 |
11.4 |
0.05 |
69.8 |
115.0 |
12/23e |
270.0 |
206.9 |
131.5 |
0.57 |
5.4 |
10.1 |
Note: *Estimates based on sales forecasts in US dollars and therefore vary with exchange rate movements to the Polish zloty. **Normalised, excluding amortisation of acquired
intangibles, exceptional items and share-based payments.
CI Games’ H123 revenue fell 27% y-o-y to PLN22.2m and gross margin contracted 12.9pp to 61.1%, reflecting the longer lifecycle of current releases. Performance from United Label, its indie publishing label, contributed 26% of sales (H122: 11%), led by Tails of Iron, which was launched into PS+ subscription.
Lower revenue and an expanding global employee base drove an operating loss of PLN4.0m (H122: PLN11.0m profit). Headcount rose by 26 to 170, underpinning management’s investment in ensuring upcoming releases are developed to a high AAA quality. Following LotF, games will continue to be built on the latest technologies, like Unreal Engine 5, and suitable for next-generation consoles. This could reduce execution risk if players continue favouring quality over quantity.
The company drew PLN29.2m from its credit facility to fund a PLN48.6m H1 cash outflow for game development. Net debt reached PLN49.3m, including leases of PLN3m and excluding a €6m (c PLN28m) convertible bond issued in July.
Management believes sales from LotF have the potential to pay down this debt increase. Lead indicators for the game continue to improve, reaching 12th on global wish lists and over 86.3m cumulative trailer views. Positive momentum for LotF has been well received by investors, with the stock up 145% year-to-date.
In the longer term, new genres will diversify CI Games’ IP portfolio. Early indicators for its first survival game are encouraging, as illustrated by comparable games, like Sons of the Forest, which sold over 2m copies in the first 24 hours. IP opportunities in film and TV offer further revenue diversification.
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Research: Consumer
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