Redeye today commence coverage of G5 Entertainment Group (G5EN), a Swedish developer and publisher of high quality free-to-play games for smartphones and tablets.
G5 Entertainment can boast an impressive track record with high and stable growth all the way back to the release of the first iPhone. G5 is the dominant player in the niche of Hidden Object games and we believe the company will continue to outgrow the market.
We believe the main drivers of growth will come from cross sales within the growing user base, geographic expansion into Asia, higher smartphone penetration and a strategic bet in Match 3 puzzle games. Our DCF indicates a value range of SEK 130-450 with a base case of SEK 260.
In our Redeye Rating model, G5, receives a high score for its experienced management that since the smart phones birth has delivered high growth and appetizing profitability. The management has been skilled in adapting to the markets driving forces early and started to publish free to play games in 2011, a strategic move that was highly successful. CEO Vlad Suglobov was one of the founders and is currently the third largest owner of the company.
G5 Entertainment was founded in 2001 and is a developer and publisher of casual free-to-play games for smartphones and tablets with loyal players all over the world. The company has its headquarter in Stockholm, Sweden, with development offices in Moscow and Kharkov, Ukraine. There is also a procurement and licensing office in Malta and a small marketing office in San Francisco, USA. In total, G5 has more than 300 employees.
Responsible analysts at Redeye are Tomas Otterbeck and Kristoffer Lindström from the Equity Research team focused on Technology.
Redeye is the next generation equity research and investment banking company, specialized in Life Science and Technology. We are the leading providers of Corporate Broking and Corporate Finance in these sectors. Our clients are innovative growth companies in the Nordics and we use a unique Rating model built on a value based investment philosophy. Redeye was founded 1999 in Stockholm and is regulated by the Swedish Financial Authority (Finansinspektionen).