Team17 (TM17)

Team17 TM17 Logo

A UK based company that develops video games with a portfolio that includes over 90 games, including the Worms franchise, Overcooked and The Escapists

18-Jul-2018 – 232.5p – £305.2m – PER 50.7

Trading Update For The 6 Months To End June 2018 – In-line.

Certainly flavour of the month, gaming companies – I need to do more research here though before considering investment. On a PER of 50.7 it better be compelling!

11-Sep-2018 – 225p – £295.4m – PER 26.6

Interim Results For The 6 Months To End June 2018 – “Record H1 Performance” – Revenueup 48% to £15.4m (H1 2017: £10.4m), Gross Profit up 25% to £6.9m (H1 2017: £5.5m), Adjusted EPS of 1.93 pence (H1 2017: 0.56 pence) with Net Cash (debt) of £13.4m (H1 2017: (£37.5m)).

Looks more tempting at this price, will go on the Watchlist if I don’t get involved this week.

Subsequent note: After further analysis decided to go Neutral here as upgrades are required for 2019E (currently forecast for a fall in EPS).

29-Jan-2019 – 222p – £292m – PER 25.9

Trading Update For The 12 Months To End December 2018 – Revenues ahead of expectations with EBITDA at the upper end. A solid portfolio of game launches planned for 2019.

Could be tempted here, will keep an eye out for Broker notes.

19-Mar-2019 – 230p – £302m – PER 26

Results For The 12 Months To End December 2018 – Revenue up 46% to £43.2m, Profit up 18% with Adjusted Basic EPS up from 4.3p to 6.1p (both ahead of expectations). Net Cash stands at £23.5m (£8.4m last time).

Still quite like this and would like to see revised Broker notes following these results.

18-Jun-2019 – 247p – £319m – PER 25.9

H1 Trading Update – Strong start, expects FY Adjusted Revenue and EBITDA to be ahead of market expectations.

I still reckon this is overvalued but will now keep an eye out for updated forecasts.

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