Redeye: G5 Entertainment - The valuation is too conservative

Industry-leading research firm Newzoo has reduced its initial forecast for the global games market in 2018. Estimated growth in 2018 is now 13 percent (previous 26 percent). Hidden City is now a more mature product were the most explosive growth likely is behind us. In 2019 we estimate Hidden City will continue to be the company´s big cash cow, but the game will grow more in line with the industry as a whole. We have lowered our expected revenue growth for 2019-2021 due to the changed estimated growth in the mobile games industry. Our more conservative approach still indicates a potential of more than 100% to our new base case.

Read more and download the research update by Tomas Otterbeck: 

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This is a press release from Redeye - Research Powered Investment Banking.

About Us

G5 Entertainment Group (NASDAQ OMX: G5EN.ST, OTCQX: GENTF) ) develops and publishes high quality free-to-play games for both smartphones and tablets that are family-friendly, easy to learn, and targeted at the widest audience of both experienced and novice players. The company distributes its games through the Apple, Google, Amazon, and Windows application stores. The company’s portfolio includes popular games like Jewels of Rome™, Hidden City®, Mahjong Journey®, Homicide Squad®, The Secret Society®, Wordplay: Exercise your brain™ and Jewels of the Wild West™. Through its head entity G5 Entertainment AB Publ, G5 Entertainment is publicly listed on Nasdaq Stockholm main market under trade symbol G5EN.ST. For more information about G5 Entertainment: