11 Bit Studios Q2 miss sparks sell-off in Polish gaming cos

Cherrypick Games SA

31/08/2018 09:55

** Polish game developer shares  11B.WA  dive 12 pct and are
the biggest drag to Poland's mid cap index  .MWIG40  
    ** Negative read across for other Polish game makers: CD
Projekt  CDR.WA  -2 pct, Playway  PLWP.WA  -4 pct, Cherrypick
Games  CHPP.WA  -8 pct, Creepy Jar  CRJ.WA  -6 pct
    ** 11 Bit Posted Q2 net profit 28 pct below market cons
    ** Today's stock price fall is due to lower revenue per
Frostpunk game copy and motivational program costs which were
not included in estimates, BZ WBK analyst Michal Czerwinski says
    ** "Most likely brokers will have to revise their estimates,
particularly on the basis of that revenue per copy [from
Frostpunk sales]," he adds on 11 Bit
    ** In countries such as Russia or China due to exchange
rates this revenue is significantly lower and as apparently
these countries quite weigh on 11 Bit's sales structure, this
revenue per copy is much lower than expected, Czerwinski says
    ** Smaller peer CI Games  CIG.WA  down 17 pct after
reporting H1 loss of 10 mln zlotys

   


 ((pawel.goraj@tr.com))