Flexion Mobile: Exciting times despite muted Q2 - ABG

A rare miss on sales growth in Q2
Monopoly GO! and increased distribution excite
H2 outlook for sales unchanged


Q2: Maturing portfolio and no major launches affect sales

Flexion reported Q2 net sales of GBP 15.5m (-12% y-o-y), with the y-o-y development negatively affected by a slowdown in the mobile gaming space, negative FX developments and a maturing portfolio without the benefit of new major game launches. The game launches from the Scopley deal for Monopoly GO! and Stumble Guys were delayed to Q3, but we think this has more to do with their relative potential rather than any internal problems as especially Monopoly GO! is showing great monetisation and Flexion probably needs to make sure that the game launch becomes a success in its channels and will need to prepare accordingly. EBIT was positive, which was above our assumption, but it was driven by lower intangible amortisation, so we think this should be interpreted with caution.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/flexion-mobile/Equity-research/2023/8/flexion-mobile---exciting-times-despite-muted-q2/