Currency in PLN
Last close As at 09/06/2023
PLN6.10
▲ 0.48 (8.54%)
Market capitalisation
PLN1,116m
Research: TMT
Following its strategic review, announced in August 2021, CI Games has today announced that it is considering a dual listing in London. It has appointed Berenberg as its financial adviser in relation to the potential listing and announced the appointment of David Broderick (ex Keywords Studios and Ryanair) as CFO. As a domestically held stock, CI Games trades on 1.7x EV/EBITDA and 2.7x P/E in FY23e, well below its peer group. If it can successfully launch the next Sniper: Ghost Warrior game and Lords of the Fallen 2 in FY23 to establish a broad-based portfolio, both our DCF analysis and peer multiples indicate the potential for significant upside as a reward for early investors in this growth story.
CI Games |
Considering a London dual listing |
Potential dual listing |
Video games |
3 March 2022 |
Share price performance Business description
Analysts
CI Games is a research client of Edison Investment Research Limited |
Following its strategic review, announced in August 2021, CI Games has today announced that it is considering a dual listing in London. It has appointed Berenberg as its financial adviser in relation to the potential listing and announced the appointment of David Broderick (ex Keywords Studios and Ryanair) as CFO. As a domestically held stock, CI Games trades on 1.7x EV/EBITDA and 2.7x P/E in FY23e, well below its peer group. If it can successfully launch the next Sniper: Ghost Warrior game and Lords of the Fallen 2 in FY23 to establish a broad-based portfolio, both our DCF analysis and peer multiples indicate the potential for significant upside as a reward for early investors in this growth story.
Year end |
Revenue* |
EBITDA* |
PBT** |
EPS** |
DPS |
P/E |
12/19 |
47.5 |
21.6 |
2.0 |
(0.01) |
0.00 |
(146.1) |
12/20 |
46.0 |
28.9 |
9.2 |
0.05 |
0.00 |
32.2 |
12/21e |
112.3 |
65.4 |
41.3 |
0.18 |
0.00 |
8.1 |
12/22e |
58.0 |
34.6 |
15.0 |
0.07 |
0.00 |
22.3 |
12/23e |
277.9 |
141.9 |
121.6 |
0.53 |
0.00 |
2.7 |
Note: *Estimates are based on sales forecasts largely denominated in €/US$, and therefore vary with exchange rate movements to the PLN. **PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
David Broderick brings extensive capital markets experience from his roles as CFO of Keywords Studios for over three years, where he was responsible for finance and M&A. He was also director of investor relations at Ryanair for eight years.
CI Games owns IP including the Sniper Ghost Warrior and Lords of the Fallen franchises and announced a third new game under development in Q421 – a survival game (Project Survival), working with a third-party Czech games developer, BatFields. CI Games has three major titles under development, with the first two due for release in 2023, alongside smaller releases by United Label, its publisher of indie games. Please refer to our initiation note, An emerging European games publisher, published in October 2021.
Benefiting from heightened demand during lockdown, growth in the games industry was in excess of 20% in 2020. Market analyst Newzoo expects more regular annual growth of c 8% in 2021–24, building to a total market size of US$219bn by 2024. Long-term growth is expected to remain high, supported by a number of secular trends – the games sector is set to remain a growth industry.
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Research: Financials
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