Ytd nevertheless in the red and on a monthly basis too. Why is that?
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1Mes
@topicswithhead It was hoped that Frostpunk 2 would significantly exceed the sales figures of the extremely successful first part. At the moment, it looks more like the sales figures will be slightly undercut. Hence the disappointment.
On the other hand, we are currently close to the 5-year low - although we are making more turnover and profit than 5 years ago and growth has also accelerated significantly. For the first time, 11 Bit has been able to publish several titles as a publisher within one year and was also able to develop two of its own titles in parallel for the first time.
This improvement in operational growth is completely forgotten, alongside the disappointment of an FP2 that was only "good" instead of exceeding all expectations. However, the entire media industry is suffering from negative market sentiment. Most film and gaming studios are now lower on a 5-year view, with many of them such as Disney, Embracer Group, Ubisoft etc. also having operational problems, which cannot be said for 11 Bit - which is debt-free and financially solid.
On the other hand, we are currently close to the 5-year low - although we are making more turnover and profit than 5 years ago and growth has also accelerated significantly. For the first time, 11 Bit has been able to publish several titles as a publisher within one year and was also able to develop two of its own titles in parallel for the first time.
This improvement in operational growth is completely forgotten, alongside the disappointment of an FP2 that was only "good" instead of exceeding all expectations. However, the entire media industry is suffering from negative market sentiment. Most film and gaming studios are now lower on a 5-year view, with many of them such as Disney, Embracer Group, Ubisoft etc. also having operational problems, which cannot be said for 11 Bit - which is debt-free and financially solid.
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@Soprano sounds okay, but the share is at the 2019 level. The stock market doesn't seem to support your buy theory here and in the media sector, only the shares that have sustainable problems are doing badly. Disney, Ubisoft, CNBC and others. Netflix, YouTube, CD Projekt, EA have good times behind them without really having it in mind.
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1Mes
@topicswithhead So the media sector as a whole looks bleak in terms of share performance, even for those that are doing quite well operationally. CD Projekt still -60% below ATH and still negative even over 6 years. So it's as if they haven't made any money since 2018. Paradox Interactive is also at about the same price as 5 years ago, except that sales have almost tripled. The FCF yield for next year is now over 6% and the PEG is 0.5.
PlayWay has been paying a dividend of over 7% for years and has a profit margin of 40%, and yet the share price has not budged.
Netflix is really the exception and the only entertainment stock that is really rewarded by the share price.
PlayWay has been paying a dividend of over 7% for years and has a profit margin of 40%, and yet the share price has not budged.
Netflix is really the exception and the only entertainment stock that is really rewarded by the share price.
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@Soprano I'm just seeing that they're all not doing so well, but CD is still up for the year. Yes, youtube and Netflix seem to have gained in value now
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