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Next Games has improved its liquidity position via a share issuance that took place on Thursday (18 March). The company stated that the proceeds of EUR 4m will be used to finance new and existing game development projects, including an aspiration to gain new IP partnership contracts. The improved liquidity will enable the company to continue with its game development projects in 2021-22 even if its upcoming game launches do not meet expectations financially, we believe.

Looking forward, reaching the guided revenue of at least EUR 40m in 2021 is highly dependent on the expected global launch of Stranger Things Puzzle Tales at the end of H1. If the title enjoys a successful reception, we note significant upside potential for revenue in 2022E-23E. As to its results, H1 is likely to be muted but new information about upcoming launches may be a trigger for the she share. We maintain our fair value estimate range of EUR 1.7-2.4 per share.

Source: Finwire News.

Next Games is a developer and publisher of licensed mobile games. We are a trendsetter in service-based mobile games based on mass entertainment products such as movies, TV series or books. We develop games in close cooperation with the license owners of the entertainment products to ensure a tight connection between the game and the original entertainment product – for instance a TV-series. So far, we have published two games that have received praise from the critics, both in 2015. Our game The Walking Dead: No Man’s Land has been downloaded approximately 16 million times.