G5 Entertainment Q3 2019: The Rise of Rome
The stock is down around 17-20% after the Q3-report was released. We have earlier argued that the investment case in G5 could be considered a short-term profitability case, a statement that today does not match very well with reality. Jewels of Rome has only in a few months become the second-biggest revenue driver on a monthly basis. But this comes at a price.
We make some comments about higher gross margins, aggressive UA-investments and expected profitability.