G5 Entertainment: Delivers stability in an uncertain market - ABG

EBIT SEK 40m, +3% vs.ABGSCe, -3% vs. cons.
Continues with margin improvements and high FCF conversion
A tad soft growth in New Gen, but also lower UAC/sales (18% of sales)


Q1 details

Sales SEK 345m (-1% vs ABGSCe 350m and -6% vs cons 368m), EBIT SEK 40m (3% vs ABGSCe 39m and -3% vs cons 41m), Net profit SEK 48m (37% vs ABGSCe 35m and 19% vs cons 40m). EBIT was lower y-o-y as expected due to the new accounting standard. On the old standard, EBIT would be SEK 20m higher. Organic growth was -7% vs. ABGSCe -5% (in line with market), mainly explained by a bit weaker growth in Sherlock (-1% q-o-q vs. ABGSCe +2%). Hidden City was stable, with is positive. Gross margin increased y-o-y because of high growth in G5 Store (now 8% of sales vs. 3.7% Q1'22). Net financials impacted by +9.6m revaluation of short-term investment. Strong FCF of SEK 40m, up 11% y-o-y.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/g5-entertainment/Equity-research/2023/5/g5-entertainment---delivers-stability-in-an-uncertain-market/