Currency in PLN
Last close As at 26/05/2023
PLN4.81
▲ −0.41 (−7.85%)
Market capitalisation
PLN880m
Research: TMT
CI Games confirmed Q122 net revenues of PLN12.9m, a 36% rise y-o-y (Q121: PLN9.5m), with adjusted EBITDA of PLN6.5m (Q121: PLN6.3m), a 51% margin, down from 66% in Q121 (FY21: 59%). However, with reduced levels of amortisation, PBT was up 45% to PLN5.0m (Q121: PLN3.5m), with EPS rising 38% to PLN0.02. Cash at period end stood at PLN34.6m, with net cash of PLN29.7m, net of lease liabilities. Since quarter-end, in Q222, CI Games has announced an ongoing tender offer to buy out the 22% minority in United Label. The group has also secured a PLN29m credit facility to support working capital, provide additional development flexibility and support the buyout of the United Label minorities. Despite falling sector multiples, CI Games has held up well, but based on our estimate, still trades on an FY23 EV/EBITDA multiple of only 2.3x.
CI Games |
Q122 shows continuing progress |
Q122 update |
Video games |
31 May 2022 |
Share price performance Business description
Analysts
CI Games is a research client of Edison Investment Research Limited |
CI Games confirmed Q122 net revenues of PLN12.9m, a 36% rise y-o-y (Q121: PLN9.5m), with adjusted EBITDA of PLN6.5m (Q121: PLN6.3m), a 51% margin, down from 66% in Q121 (FY21: 59%). However, with reduced levels of amortisation, PBT was up 45% to PLN5.0m (Q121: PLN3.5m), with EPS rising 38% to PLN0.02. Cash at period end stood at PLN34.6m, with net cash of PLN29.7m, net of lease liabilities. Since quarter-end, in Q222, CI Games has announced an ongoing tender offer to buy out the 22% minority in United Label. The group has also secured a PLN29m credit facility to support working capital, provide additional development flexibility and support the buyout of the United Label minorities. Despite falling sector multiples, CI Games has held up well, but based on our estimate, still trades on an FY23 EV/EBITDA multiple of only 2.3x.
Year end |
Revenue* |
EBITDA* |
PBT** |
EPS** |
DPS |
P/E |
12/20 |
46.0 |
27.8 |
8.5 |
0.04 |
0.00 |
43.5 |
12/21 |
105.5 |
62.5 |
44.9 |
0.16 |
0.00 |
11.3 |
12/22e |
57.3 |
32.9 |
15.3 |
0.07 |
0.00 |
27.2 |
12/23e |
272.2 |
129.4 |
102.0 |
0.45 |
0.00 |
4.1 |
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.
CI Games confirmed that Sniper Ghost Warrior Contracts 2 (SGWC2) has continued to perform well, selling over 1m units by 31 March 2022 (June 2021 launch), contributing 56% to Q122 net revenues. Together, the three latest titles in the Sniper Ghost Warrior franchise contributed c 80% of Q122 net revenues. Tails of Iron also continues to sell well, contributing 9% of net revenues in the quarter.
As has been trailed, FY22 is a year with no major new releases, ahead of the release of Lords of the Fallen 2 and the next game in the Sniper Ghost Warrior franchise expected in FY23. That said, United Label released each of Tails of Iron, Röki and Eldest Souls on Steam (PC) in Q122 and is working on two new indie games, a sci-fi title and a second title with Oddbug Studios.
CI Games continues to move towards a dual listing in London, having appointed David Broderick as its CFO in 2022 and announced Berenberg as its financial adviser in relation to the potential listing.
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Research: Healthcare
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