French gaming giant Gameloft announced its final FY 2012 numbers on Monday evening. In connection with the release, Gameloft announced an aggressive share buy-back program. Management says: “Given its healthy net cash position and the stock’s historically low multiples, the company has decided to launch an ambitious share buy-back program totaling 1.5 million shares at a maximum purchase price of €7.0 per share over a period of eight months starting on April 16, 2013.”
In 2012, Gameloft’s consolidated sales reached €208.3 million, up by 27% year on year. North America represented 31% of 2012 sales; EMEA, 27%; APAC, 22%; and LATAM, 20%. On a constant exchange rate basis, the full-year growth was 25% in 2012 compared with 19% in 2011. Gameloft’s sales are driven by the massive success of its games on smartphones and tablets for which the installed base is increasing rapidly. The company’s 2012 smartphone and tablet game sales grew by 90% year on year. They represented 51% of total Group sales compared with only 34% a year earlier.
Gameloft’s share is currently trading around EUR 4.6, implying a PE-ratio of 26x. The company thinks its share is undervalued at these levels and will buy back shares up to a level of EUR 7 (at EUR a share, the 2013 PER would be 39x).
In comparison, Swedish mobile gaming company G5 Entertainment is currently trading at a 2013 PE-ratio of 12x, which obviously is not sustainable in the long-run. Expect internationally investors to jump on this share as soon as G5 has completed its relisting to Nasdaq OMX during 2013. All you others that can invest in Swedish companies listed on Aktietorget: have a close look at the Peer valuation table above.
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