Game Digital (GMD) has posted good sales growth over its first 23 weeks and even better results over the Christmas peak. While sales have been led by hardware, management is confident of covering any mix issue through cost savings, and we retain our forecast. With net cash at 35p, the market is valuing this business at 3.5x FY18e EBITDA, which looks misplaced.
11 Jan 2018
Game Digital - Good seasonal trading
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Game Digital - Good seasonal trading
Game Digital (GMD:LON) | 0 0 4.4% | Mkt Cap: 64.9m
- Published:
11 Jan 2018 -
Author:
Paul Hickman -
Pages:
3
Game Digital (GMD) has posted good sales growth over its first 23 weeks and even better results over the Christmas peak. While sales have been led by hardware, management is confident of covering any mix issue through cost savings, and we retain our forecast. With net cash at 35p, the market is valuing this business at 3.5x FY18e EBITDA, which looks misplaced.