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Bublar Group

Bublar Group

Consolidating the XR & AR space

The Bublar Group of today is a conglomerate of four companies that leverage its proprietary technology within extended realty (XR), augmented reality (AR), motion capture and visual effects (VFX) with the aim of becoming the global leader within the space. The group has an M&A-driven growth strategy and it recently added ~SEK 200m in sales by acquiring the award winning VFX studio Goodbye Kansas Studios.

We anticipate that Bublar Group will enjoy accelerated growth in our forecast period. Key drivers are: the commercialization and appropriate packaging of its platforms via Vobling and Sayduck, the imminent release of Otherworld Heroes and Hello Kitty AR: Kawaii World from Virtual Brains, and Goodbye Kansas Studios opting to enter more extensive framework agreements with its key customers and leveraging its proprietary software through a licensing model.

We see financial risk given if Bublar’s internally developed games, Otherworld Heroes and Hello Kitty AR: Kawaii World, are unsuccessful, Bublar will likely have to raise additional funds. Furthermore, there is a competitive risk where larger companies with greater funding could develop their own platforms to compete with, for example, Vobling and Sayduck.

SEKm 2019 2020e 2021e
Sales 17 144 289
Sales growth (%) 392 742,8 100,7
EBITDA -31 -18 12
EBITDA margin (%) -182,2 -12,8 4
EBIT adj -46 -45 -18
EBIT adj margin (%) -267,8 -31,4 -6,3
Pretax profit -46 -45 -18
EPS rep -0,78 -0,46 -0,19
EPS growth (%) -26,6 40,6 59,4
EPS adj -0,78 -0,46 -0,19
DPS 0 0 0
EV/EBITDA (x) -8,9 -18,9 29,6
EV/EBIT adj (x) -6 -7,7 -18,8
P/E (x) -6,8 -8,7 -21,4
P/E adj (x) -6,8 -8,7 -21,4
EV/sales (x) 16,2 2,4 1,2
FCF yield (%) -14 -41,7 1,1
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 1,2 2,3 -4,1
SEKm 2019 2020e 2021e
Sales 17 144 289
COGS -4 -36 -68
Gross profit 13 108 221
Other operating items -44 -127 -210
EBITDA -31 -18 12
Depreciation on tangibles 0 0 0
Depreciation on intangibles -15 -27 -30
EBITA -46 -45 -18
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -46 -45 -18
Other financial items 0 0 0
Net financial items 0 0 0
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -46 -45 -18
Tax 0 0 0
Net profit -46 -45 -18
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -46 -45 -18
EPS -0,78 -0,46 -0,19
EPS Adj -0,78 -0,46 -0,19
Total extraordinary items after tax 0 0 0
Tax rate (%) 0 0 0
Gross margin (%) 73,7 75,2 76,6
EBITDA margin (%) -182,2 -12,8 4
EBITA margin (%) -267,8 -31,4 -6,3
EBIT margin (%) -267,8 -31,4 -6,3
Pretax margin (%) -267,4 -31,4 -6,3
Net margin (%) -267,4 -31,4 -6,3
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 392 742,8 100,7
EBITDA growth (%) -56,6 40,6 163,1
EBIT growth (%) -85 1,2 59,4
Net profit growth (%) -81,8 1,1 59,4
EPS growth (%) -26,6 40,6 59,4
Profitability 2019 2020 2021
ROE (%) -50,8 -35,6 -12,4
ROE Adj (%) -50,8 -35,6 -12,4
ROCE (%) -50,1 -35,2 -12,3
ROCE Adj(%) -50,1 -35,2 -12,3
ROIC (%) -76,4 -51,7 -17,8
ROIC Adj (%) -76,4 -51,7 -17,8
Adj earnings numbers 2019 2020 2021
EBITDA Adj -31 -18 12
EBITDA Adj margin (%) -182,2 -12,8 4
EBITA Adj -46 -45 -18
EBITA Adj margin (%) -267,8 -31,4 -6,3
EBIT Adj -46 -45 -18
EBIT Adj margin (%) -267,8 -31,4 -6,3
Pretax profit Adj -46 -45 -18
Net profit Adj -46 -45 -18
Net profit to shareholders Adj -46 -45 -18
Net Adj margin (%) -267,4 -31,4 -6,3
SEKm 2019 2020e 2021e
EBITDA -31 -18 12
Net financial items 0 0 0
Paid tax -1 0 0
Non-cash items 0 0 0
Cash flow before change in WC -32 -18 12
Change in WC 5 0 0
Operating cash flow -27 -18 12
CAPEX tangible fixed assets -1 -1 -3
CAPEX intangible fixed assets -2 -3 -4
Acquisitions and disposals -14 -141 0
Free cash flow -44 -164 4
Dividend paid 0 0 0
Share issues and buybacks 62 191 0
Other non cash items -5 -20 0
Decrease in net IB debt 12 7 4
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 51 107 80
Indefinite intangible assets 0 0 0
Definite intangible assets 10 10 12
Tangible fixed assets 1 1 1
Other fixed assets 0 0 0
Fixed assets 62 118 93
Inventories 0 0 0
Receivables 5 5 5
Other current assets 2 2 2
Cash and liquid assets 37 44 49
Total assets 106 169 148
Shareholders equity 96 158 137
Minority 0 0 0
Total equity 96 158 137
Long-term debt 1 1 1
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Short-term debt 0 0 0
Accounts payable 2 2 2
Other current liabilities 7 7 7
Total liabilities and equity 106 169 148
Net IB debt -36 -43 -47
Net IB debt excl. pension debt -36 -43 -47
Capital invested 59 116 90
Working capital -3 -3 -3
EV breakdown 2019 2020 2021
Market cap. diluted (m) 312 393 393
Net IB debt Adj -36 -43 -47
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 276 350 345
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 17,2 104,6 182,3
Capital invested turnover (%) 28,5 164,6 281,3
Capital employed turnover (%) 18,7 112,1 193,6
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 17,5 2,4 1,2
Payables / sales (%) 9,4 1,5 0,7
Working capital / sales (%) -1,8 -1,8 -0,9
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -37,9 -27,1 -34,6
Net debt / market cap (%) -13,7 -11,4 -12,6
Equity ratio (%) 90,1 93,7 92,8
Net IB debt adj. / equity (%) -37,9 -27,1 -34,6
Current ratio (%) 476,3 554,3 602,7
EBITDA / net interest (%) -42045,9 -154001,8 0
Net IB debt / EBITDA (%) 116,4 232,8 -406,9
Interest cover (%) 61814,9 -376560,2 N/A
SEKm 2019 2020e 2021e
Shares outstanding adj. 55 94 94
Fully diluted shares Adj 59 98 98
EPS -0,78 -0,46 -0,19
Dividend per share Adj 0 0 0
EPS Adj -0,78 -0,46 -0,19
BVPS 1,74 1,68 1,46
BVPS Adj 0,63 0,44 0,49
Net IB debt / share -0,7 -0,5 -0,5
Share price 4,82 4 4
Market cap. (m) 265 377 377
Valuation 2019 2020 2021
P/E -6,8 -8,7 -21,4
EV/sales 16,16 2,43 1,2
EV/EBITDA -8,9 -18,9 29,6
EV/EBITA -6 -7,7 -18,8
EV/EBIT -6 -7,7 -18,8
Dividend yield (%) 0 0 0
FCF yield (%) -14 -41,7 1,1
P/BVPS 3,04 2,38 2,75
P/BVPS Adj 8,42 9,13 8,24
P/E Adj -6,8 -8,7 -21,4
EV/EBITDA Adj -8,9 -18,9 29,6
EV/EBITA Adj -6 -7,7 -18,8
EV/EBIT Adj -6 -7,7 -18,8
EV/cap. employed 2,8 2,2 2,5
Investment ratios 2019 2020 2021
Capex / sales 18,7 3 2,5
Capex / depreciation 21,8 16,2 24,1
Capex tangibles / tangible fixed assets 85,5 144 289
Capex intangibles / definite intangibles 23 28 37,3
Depreciation on intangibles / definite intangibles 145 259,4 257,9
Depreciation on tangibles / tangibles 0 0 0

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Media

Bublar Group - Company presentation with CEO Maria Grimaldi & Founder Magnus Granqvist (in Swedish)

Main shareholders - Bublar Group

Main shareholders Share capital % Voting shares % Verified
Handelsbanken Fonder 8.0 % 8.0 % 30 Jun 2020
Connecting Capital Venture AB 6.5 % 6.5 % 31 Mar 2020
Magnus Granqvist 4.6 % 4.6 % 31 Mar 2020
Kenneth Häggmark 4.6 % 4.6 % 31 Mar 2020
Varde Holding AB 4.6 % 4.6 % 31 Mar 2020
Avanza Pension 4.1 % 4.1 % 31 Mar 2020
Åhlén-stiftelsen 4.0 % 4.0 % 31 Mar 2020
Alexander Hamilton 1.8 % 1.8 % 31 Mar 2020
Deepio AB 1.7 % 1.7 % 31 Mar 2020
Per-Anders Wärn 1.6 % 1.6 % 17 Jun 2020
Source: Holdings by Modular Finance AB