Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

G5 Entertainment

G5 Entertainment

Free-to-play games for mobile devices

G5 Entertainment develops and publishes free-to-play games for smartphones and tablets. The games are family-friendly, easy to learn and target a wide audience of experienced and inexperienced players. Distribution is achieved digitally through the various app stores of Apple, Google, Amazon and Windows. In addition to its proprietary games, the company is also a publisher of games licensed by other developers, in which case a royalty is paid to the developer based on the game’s sales performance.

As the total amount of revenue from fully owned games increases, stronger margins are expected due to the lower royalty costs that G5 today pays to external developers. As a market-leader within the hidden object game category, along with a strong fan base, newly launched games are easily adopted by the market. In addition, newly launched games within new gaming categories increase their list positions in app stores without significant marketing due to cross selling.

Despite the business model's stickiness, the company faces the risk that users may stop playing certain games. Risks hence arise if the main driver games, which generate most of G5's revenues, start to lose their momentum. The scenario hence requires other games to drive revenue or else a higher amount of UA costs will be necessary. Also, having its distribution through different app stores, G5 is dependent on both the relationship with the distributers as well as their standard terms and conditions.

SEKm 2019 2020e 2021e
Sales 1233 1440 1635
Sales growth (%) -15 16,8 13,5
EBITDA 171 196 285
EBITDA margin (%) 13,9 13,6 17,5
EBIT adj 52 88 130
EBIT adj margin (%) 4,2 6,1 8
Pretax profit 52 88 130
EPS rep 5,1 8,68 12,63
EPS growth (%) -64,4 70,1 45,6
EPS adj 5,1 8,68 12,63
DPS 2,5 2,5 2,5
EV/EBITDA (x) 4,6 4,7 3
EV/EBIT adj (x) 15,1 10,4 6,5
P/E (x) 19,8 13,5 9,3
P/E adj (x) 19,8 13,5 9,3
EV/sales (x) 0,6 0,6 0,5
FCF yield (%) 4,3 2,7 8,6
Dividend yield (%) 2,5 2,1 2,1
Net IB debt/EBITDA -1 -0,9 -0,8
SEKm 2019 2020e 2021e
Sales 1233 1440 1635
COGS -532 -630 -708
Gross profit 701 811 927
Other operating items -530 -614 -641
EBITDA 171 196 285
Depreciation on tangibles 0 0 0
Depreciation on intangibles -108 -103 -152
EBITA 52 88 130
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 52 88 130
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 52 88 130
Tax -6 -10 -16
Net profit 46 78 114
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 46 78 114
EPS 5,1 8,68 12,63
EPS Adj 5,1 8,68 12,63
Total extraordinary items after tax 0 0 0
Tax rate (%) -11,2 -11,2 -12,5
Gross margin (%) 56,9 56,3 56,7
EBITDA margin (%) 13,9 13,6 17,5
EBITA margin (%) 4,2 6,1 8
EBIT margin (%) 4,2 6,1 8
Pretax margin (%) 4,2 6,1 8
Net margin (%) 3,7 5,4 7
Growth rates Y/Y 2019 2020 2021
Sales growth (%) -15 16,8 13,5
EBITDA growth (%) -26,3 14,6 45,4
EBIT growth (%) -63,9 70,6 47,7
Net profit growth (%) -64,3 70,1 45,6
EPS growth (%) -64,4 70,1 45,6
Profitability 2019 2020 2021
ROE (%) 12,6 18,9 23,4
ROE Adj (%) 12,6 18,9 23,4
ROCE (%) 13,7 20,2 25,6
ROCE Adj(%) 13,7 20,2 25,6
ROIC (%) 25,3 32,2 40,8
ROIC Adj (%) 25,3 32,2 40,8
Adj earnings numbers 2019 2020 2021
EBITDA Adj 171 196 285
EBITDA Adj margin (%) 13,9 13,6 17,5
EBITA Adj 52 88 130
EBITA Adj margin (%) 4,2 6,1 8
EBIT Adj 52 88 130
EBIT Adj margin (%) 4,2 6,1 8
Pretax profit Adj 52 88 130
Net profit Adj 46 78 114
Net profit to shareholders Adj 46 78 114
Net Adj margin (%) 3,7 5,4 7
SEKm 2019 2020e 2021e
EBITDA 171 196 285
Net financial items 0 0 0
Paid tax -6 -10 -16
Non-cash items 0 0 0
Cash flow before change in WC 166 186 269
Change in WC -22 -17 4
Operating cash flow 163 169 272
CAPEX tangible fixed assets 0 0 0
CAPEX intangible fixed assets -124 -141 -181
Acquisitions and disposals 0 0 0
Free cash flow 39 29 91
Dividend paid -22 -23 -23
Share issues and buybacks 0 0 0
Other non cash items -51 5 3
Decrease in net IB debt -36 6 69
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 211 244 271
Tangible fixed assets 31 31 31
Other fixed assets 38 38 38
Fixed assets 299 332 358
Inventories 0 0 0
Receivables 116 190 216
Other current assets 0 0 0
Cash and liquid assets 152 158 227
Total assets 567 680 801
Shareholders equity 386 441 533
Minority 0 0 0
Total equity 386 441 533
Long-term debt 4 4 4
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 159 216 245
Other current liabilities 0 0 0
Total liabilities and equity 567 680 801
Net IB debt -167 -173 -242
Net IB debt excl. pension debt -167 -173 -242
Capital invested 219 268 291
Working capital -43 -26 -29
EV breakdown 2019 2020 2021
Market cap. diluted (m) 912 1055 1055
Net IB debt Adj -130 -135 -204
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 783 919 851
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 224,1 231 220,8
Capital invested turnover (%) 679,1 591,6 584,4
Capital employed turnover (%) 326,3 330,2 320,7
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 14 13 14,1
Working capital / sales (%) -4,4 -2,4 -1,7
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -43,3 -39,2 -45,3
Net debt / market cap (%) -17,3 -16,4 -22,9
Equity ratio (%) 68 64,9 66,5
Net IB debt adj. / equity (%) -33,6 -30,7 -38,3
Current ratio (%) 169 161,3 180,5
EBITDA / net interest (%) -342744 117922,1 142704,7
Net IB debt / EBITDA (%) -97,5 -88,1 -84,6
Interest cover (%) -103544 53049,4 65204,7
SEKm 2019 2020e 2021e
Shares outstanding adj. 9 9 9
Fully diluted shares Adj 9 9 9
EPS 5,1 8,68 12,63
Dividend per share Adj 2,5 2,5 2,5
EPS Adj 5,1 8,68 12,63
BVPS 42,75 48,92 59,05
BVPS Adj 19,31 21,85 29,06
Net IB debt / share -18,5 -19,2 -26,8
Share price 106,74 116,9 116,9
Market cap. (m) 963 1055 1055
Valuation 2019 2020 2021
P/E 19,8 13,5 9,3
EV/sales 0,63 0,64 0,52
EV/EBITDA 4,6 4,7 3
EV/EBITA 15,1 10,4 6,5
EV/EBIT 15,1 10,4 6,5
Dividend yield (%) 2,5 2,1 2,1
FCF yield (%) 4,3 2,7 8,6
P/BVPS 2,37 2,39 1,98
P/BVPS Adj 5,24 5,35 4,02
P/E Adj 19,8 13,5 9,3
EV/EBITDA Adj 4,6 4,7 3
EV/EBITA Adj 15,1 10,4 6,5
EV/EBIT Adj 15,1 10,4 6,5
EV/cap. employed 1,9 2 1,5
Investment ratios 2019 2020 2021
Capex / sales 10,1 9,8 11,1
Capex / depreciation 115,7 136,7 119,3
Capex tangibles / tangible fixed assets 0 0 0
Capex intangibles / definite intangibles 58,9 57,7 67
Depreciation on intangibles / definite intangibles 50,9 42,2 56,2
Depreciation on tangibles / tangibles 0 0 0

Equity research

Read earlier research

Media

G5 Entertainment - Interview with CFO Stefan Wikstrand (in Swedish)
G5 Entertainment - Company presentation with CFO Stefan Wikstrand

Main shareholders - G5 Entertainment

Main shareholders Share capital % Voting shares % Verified
Wide Development Ltd 6.9 % 7.1 % 10 Mar 2020
Swedbank Robur Fonder 6.3 % 6.5 % 29 Feb 2020
Purple Wolf Ltd 5.7 % 5.9 % 29 Feb 2020
Avanza Pension 5.4 % 5.5 % 29 Feb 2020
Proxima Ltd 4.9 % 5.0 % 30 Jun 2019
Aktia Asset Management 4.4 % 4.6 % 29 Feb 2020
Tommy Svensk 4.3 % 4.5 % 29 Feb 2020
Nordnet Pensionsförsäkring 2.4 % 2.5 % 29 Feb 2020
Consensus Asset Management AB 2.4 % 2.5 % 31 Mar 2020
G5 Entertainment AB 3.1 % 0.6 % 1 Apr 2020
Source: Holdings by Modular Finance AB

Insider list - G5 Entertainment

Name Quantity Code Date
Vladislav Suglobov + 5 000 BUY 10 Mar 2020
Vladislav Suglobov + 10 000 BUY 9 Mar 2020
Vladislav Suglobov + 10 000 BUY 13 Jan 2020
Vladislav Suglobov + 107 BUY 13 Jan 2020
Aleksandr Tabunov + 17 000 BUY 2 Oct 2019
Aleksandr Tabunov - 17 000 SELL 2 Oct 2019
Jan Stefan Wikstrand - 4 000 SELL 10 Sep 2019
Jan Stefan Wikstrand - 5 000 SELL 10 Sep 2019
Jan Stefan Wikstrand - 5 000 Redemp 10 Sep 2019
Jan Stefan Wikstrand + 5 000 Redemp 10 Sep 2019

Show More