Source: Sharecast
Canaccord Genuity highlighted 18% revenue growth to £16m in H125, with adjusted underlying earnings up 30% to £7.5m and net cash rising £5.5m to £19.0m. Licensing revenue climbed 22% to £14.1m, driven by six new Slingo titles and 19 additional operator launches. Brand licensing surged to £2.6m from £0.3m, while social publishing dipped 7%.
Despite UK content licensing falling 13% in H1 and 21% in Q2 due to April's staking limit regulations, Canaccord noted a sharp recovery in July and August as new game formats gained traction. Management expects UK revenues to normalise by year-end.
Licensing revenue rose 2% in the first two months of H2, which the Canadian bank deemed satisfactory given FX headwinds and UK regulatory drag.
Canaccord Genuity also said the current CY25E/26E enterprise value/EBITDA multiples of 8.4x/6.8x undervalue the group's growth profile and increasing North American exposure, and that its new target price was based on a rolled-forward CY26E PER of 10x.
Reporting by Iain Gilbert at Sharecast.com