We met the management yesterday to discuss about the recent share issue and the future outlook. We got an impression that the improved liquidity together with an active market among IP-holders that seek new partnerships could help Next Games to secure new IP licensing deals for its following game projects.
The improved balance sheet could also provide additional room for marketing investments when it comes to upcoming game launches although we believe that the company may utilise other sources like credit lines as well if needed.
We see the launch of Stranger Things to be a major trigger in 2021. The new games Stranger Things and Blade Runner are scheduled to be published in Q2 but the sales contribution to H1 could still remain limited why we expect soft financial performance in H1 and steep increase in sales during H2.
Looking to a data sample provided by Reflection analytics service, Next Games’ revenue dec lined by 18% q/q during a period of 1.1.-20.3.2021 compared to our FX-adjusted growth estimate of -8% (q/q) for a seasonally lower period of Q1.
Source: Finwire News.