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Q1 23 net booking declined -7% YoY but came c.+8% above our estimates thanks to success of Dotemu''s game ''Teenage Mutant Ninja Turtles: Shredder''s Revenge'' and stronger than expected back catalog. The trend should improve in the coming quarters supported by solid line up of new games which will result in c.27% net booking growth YoY for FY23. Looking to the years ahead, we continue to see solid topline growth, margin improvement supporting progressive FCF improvement by FY 25e. We leave our
Companies: Focus Home Interactive (ALFOC:EPA)Focus Entertainment SA (ALFOC:PAR)
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Following management presentation and greater details on mid-term pipeline, we feel more positive on revenue growth prospect (CAGR sales +20% pa) but neutral on adj. EBIT given higher opex to support the pipeline. We continue to see solid upside on margin in the mid to long term thanks to operating leverage and higher share of owned IP. Given the required investment to support the pipeline (game capex), FCF will remain soft in the next 2 years and improve by FY25. We increased our sales estimate
As expected, Q4 FY22 sales were soft (EUR20m, -46% YoY on LFL basis) given limited new content releases and Farming Simulator''s rights expiration. Management confirmed a solid pipeline for next year that should support sales above EUR170m in our view, but highlighted some production challenges. We have reduced our FY23 and FY24 estimates (c.-17%) given increased risk of game delays and more cautious margin assumptions. Given lower margin assumptions we reduce the low end/high end of our valuati
As expected, H1 FY 22 profitability was weak given impairment loss on Hood: Outlaw and legends and Warhammer Age of Sigmar: Storm grounds. After a soft FY 22, momentum should accelerate in the coming years supported by a rich pipeline of new games and contribution from recently acquired companies (Dotemu, Deck 13). We lower estimates by -11% in FY22 and FY23 to reflect H1 22 impairment loss, and risk of some game delays in FY 23. As a consequence, we have reduced the high end of our valuation ra
Focus Home delivered better than expected Q2 FY 22 thanks to new game release. Group reiterates its FY 22 sales guidance but notes profitability this year will be under pressure given underperformance of Hoods: Outlaws and legends and Warhammer Age of Sigmar. In the meantime, Focus announces a new bolt-on acquisition and renewed partnership with Saber which adds five new game in the pipeline. These actions are supportive for the mid to long term growth.
Q2 FY 22 up +12% at EUR 44m (well abov
Following a soft Q1 FY 22 and delays to new games, Focus Home reduced its FY 22 sales guidance and now aims for FY 23 sales below consensus estimates. While painful, in our view this is the right decision if the games are not polished enough. Mid-term prospects remain solid given higher budget games, new partnerships and internal projects. New bank financing (EUR140m) and the recent capital increase (c.EUR70m) give ample room for transformative MandA.
Q1 FY 22 weaker than expected due to soft
FY 21 results came in line with our estimates with EBIT up +29% YoY. Despite mixed reviews, performance of recently released games appear decent. Line up for the rest of the year is solid enough to at least reach the mid-point of guidance. FY 23 could see a net acceleration of sales given major projects (Plague Tale: Requiem + 2 big projects to be revealed by end of 2021). After recent capital increase, Focus Home has what it takes to invest in transformative deal.
FY 21 EBIT up +29% driven by
As expected, Q4 21 sales were solid (+23% YoY) thanks to sustained momentum for the back catalog. Looking at FY22, lower back catalog should be offset by stronger contribution from new games (solid pipeline). Focus announced a second acquisition with a majority stake in Streum On (partner studio since 2013). We leave our estimates (company definition) mostly unchanged while waiting to have more visibility on ''Streum On'' deal impact on FY 22 margin.
Q4 21 sales in the high end of company gui
Focus Home interactive is a French video game publisher that produces and releases video games (AA games mostly) on multiple platforms across the globe. Following a change in majority shareholder, a new management was nominated and is looking to expand the group''s presence across the value chain by increasingly internalizing the development of game and IP ownership.
A leading publisher of AA games
Unlike large listed players (Activision-Blizzard, Ubisoft), which largely vertically integrate
Research Tree provides access to ongoing research coverage, media content and regulatory news on Focus Entertainment SA.
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Companies: Bango plc
Founded by proven entrepreneurs Subash Menon and Sudeesh Yezhuvath who retain a 29% stake, Pelatro is a fast-growing software company focused on customer engagement solutions that help enterprises increase revenue and reduce churn.
Companies: Pelatro Plc
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Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
Companies: SDI FUL PURP OSI IXI BSE BRSD ATM
TEK reported H122 financial results with an increase in net assets to US$77m +13% sequentailly. This translates to a a value of US$0.51/shr. The changes in NAV for the period are the increase in tangible value of Lucyd plc by US$9.7m and Salarius by US$1.6m, and a decrease in Belluscura by US$3.8m since 30 Nov 2021. As at 31 May 2022, TEK had cash of US$1.15m, which included a fundraise of US$2.5m (some of which was received post 31 May 2022). Funds are being used for working capital, and to sup
Companies: Tekcapital Plc
Companies: TIDE EXR FTC KMK PEB RBG ETP
A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F
Companies: FOUR JIM JIM CODE PEN PTD WATR SPSY
National World reported interim results that were well ahead of our estimates and despite the challenging macroeconomic environment we maintain our FY22 estimates.
Companies: National World PLC
This quarter’s key observations
• Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move.
• Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1
Companies: CNIC BIG DEVO LBG OTMP SYS
The prescient demand for cyber security protection is shown in these results, with double-digit organic revenue and EBITDA growth. Major contracts wins are reinforcing revenue visibility and the re-platforming of the Software division bodes well for new sales once completed.
Companies: Shearwater Group plc
Journeo has released a positive trading update following their half-year ending 30 June 2022. The release documents a healthy period of trading and points towards FY22E being another record year for revenue. A new follow-on contract at Heathrow Airport, worth £0.9m, has been announced. The current trading is in-line with our expectations and we leave forecasts unchanged. Journeo remains materially undervalued given its top-line revenue growth and its progress on the SaaS business model. It curre
Companies: Journeo plc
29 July 2022
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objective
Companies: THR TSL SWG ECR SEMP DPP AEE
Q3 21/22 was strong with an acceleration in organic recurring revenue growth (+10% vs +8% in H1 21/22) thanks to demand for cloud software in small/medium-sized companies. Growth was the fastest in North America. Sage Business Cloud revenue surged by +20%. At present there is no impact from the uncertain economic environment on the activities. Sage is confident that it can achieve the high-end of the recurring revenue growth range in FY21/22 (+8-9%) and confirmed guidance of an improvement in th
Companies: Sage Group plc
LSEG realised a strong quarter with continued growth in Data & Analytics (recurring revenue) while benefiting from the volatile market environment in Capital Markets and Post-Trade. Thanks to its good progress on its revenue and cost synergies targets, opex landed particularly low vs consensus, leading to a good improvement in adjusted EBITDA margin, now in line with the 2023 target. Management looks set to achieve all its long-term targets and estimates that momentum seen in H1 should continue
Companies: London Stock Exchange Group plc
H1 revenues increased by a strong 39% to £27.6m, within which recurring software revenues increased by over 60% as management continues to focus on higher margin activities. Whilst wage inflation held back H1 profit growth as previously discussed, price increases will support H2. Market conditions in pharma R&D are robust, with demand for Instem’s solutions remaining high. Visibility for H2 has increased, meaning trading for the full year is reported to be in line with expectations. We make no c
Companies: Instem plc
Singer Capital Markets
Today's update from PEN provides further evidence for the significant positive shifts we see in the business. Notably, we are highly encouraged by software progress: (1) software sales up 40% YoY, (2) a good spread across one-off and ongoing (long-term) revenues and (3) significant exposure to PEN's long-term US target market as well as Australasia. PEN is responsible for software / integrated product support solutions supplied to a prestigious client-base of OEM's and governments, and the gr
Companies: Pennant International Group plc