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Video game developer Coffee Stain Q2 sales rise on Valheim release

By Reuters News


Overview

  • Sweden video game developer's Q2 net sales rose 19% yr/yr, driven by Valheim's full release

  • Q2 EBIT and adjusted EPS declined from last year due to revenue sharing and lower baseline sales

  • Company prioritizes returning Deep Rock Galactic and Welcome to Bloxburg to growth with new content


Outlook

  • Company did not provide specific financial guidance for the current or coming quarters


Result Drivers

  • VALHEIM RELEASE - Co said Q2 sales growth was driven by Valheim's 1.0 release and launch on PlayStation 5 and Nintendo Switch 2

  • REVENUE SHARING IMPACT - Co said lower EBIT margin reflected a higher share of sales from Valheim, where revenue is shared with Iron Gate

  • BASELINE SALES DECLINE - Co said baseline net sales slightly declined, mainly due to lower sales from Deep Rock Galactic and Welcome to Bloxburg


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

SEK 267 mln

Q2 EBIT

SEK 8 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Coffee Stain Group AB is SEK24.00, about 23% above its November 4 closing price of SEK19.52

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Nov 4 - Swedish mobile games maker G5's Q3 revenue falls, margin hits record on cost cuts, direct payments

  • Nov 3 - Swedish game developer Hacksaw Q3 revenue rises 12%

  • Nov 5 - Sweden's MTG Q3 sales meet estimates, adjusted EBITDA beats


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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