Oppdatert analyse fra Pareto. Full rapport som Pareto
Below expectations, eyes on FY’23
Zordix just reported its Q3’22 report, where we saw topline, EBITDA and Operational EBIT all coming in below our expectations, where it was negative to see Operational EBIT declining y/y from SEK 15m to 13m. We are likely to lower our estimates for Q4’22 following this report, but maintain our belief in a strong FY’23, which will be a year full of games releases, likely seeing the releases of Smalland, Maximum Football and Bramble: The Mountain King. TP SEK 29 (under review).
Takeaways
• Revenue came in at 259m vs PAS at 300m, due to fewer game releases this quarter compared to the corresponding quarter last year
• EBITDA came in at SEK 19m vs PAS at 28m, with operational EBIT at 13m vs PAS at 23m
• On a pro-forma basis, revenue increased 1.1% over the first three quarters of 2022 when compared with the same period last year, again, largely as a result of fewer game releases this year when compared to last year
• The large increase in working capital, where we saw a build-up in both inventories and accounts receivable, follows the seasonal pattern, but the build up is however much greater than our expectations
• The overall cash burn was also significantly greater than we had anticipated (~71m including changes in working capital) which we view as negative
• All in all, a rather weak report from Zordix, where we hope that the large inventory and accounts receivable build up will convert into sales in Q4’22, despite the tougher retail climate that the company is facing. Looking beyond Q4’22 however, we continue to believe FY’23 will be a very strong year for Zordix, driven primarily by the releases of the aforementioned games
[image]
Contact analyst(s)
Analyst(s):
Joakim Walldoff, +46 8 402 52 85, joakim.walldoff@paretosec.com
