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Yesterday (2 December), Next Games expectedly announced that it would not reach its 2021 guidance. The main reason for this appears to be the postponement of certain UA investments for Stranger Things: Puzzle Tales closer to next summer, i.e., the Netflix release of season 4 of Stranger Things. The company remains upbeat regarding the game's KPIs, which we find somewhat puzzling given the postponed marketing efforts. After revisiting our estimates, we cut 2022-23E sales and EBIT by ~20-35%, effectively resetting our expectations for the coming years. We lower our fair value range to EUR 1.3-1.9 (1.5-2.1). Marketing material commissioned by Next Games.



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.