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The latest news from the company itself: “While the important trading periods of Black Friday and Christmas are not yet complete, management believes the Group remains well positioned with strong traction across its new release and back catalogue titles, and currently expects FY23 revenues to be modestly ahead of current market expectations.” So, revenues are going to be better than expected. That’s not usually a cause for a share price collapse.
“Consequently, the Group now expects to deliver full year adjusted EBITDA of at least £28.5m, which includes non-cash title impairments of up to £11.5m.” Ah, but earnings aren;t going to be so good. Thus the share price reaction.
“The Group has an exciting schedule of high-quality new releases planned across the Group in 2024, while back catalogue investments will continue to support revenue growth. Management will provide greater clarity on FY24 at the full year results, but currently expects to see an improved underlying trading performance compared to FY23.” And, of course, things will be much, much, better next year.
Basically, the costs of that reorganisation have come as a nasty surprise to the market.
Team 17 (LON: TM17) shares are down 40% today. TM17 shares dropping this much is a bit of a surprise to be honest. For the bad news had already been announced - or at least railed - a month back when some one third of the company was destined for the chop. We did, after all, get told about this: “Team17 is poised to lay off up to 91 people - a third of the company - as part of its major restructuring programme, Eurogamer can reveal. The publisher of Worms, Dredge and Hell Let Loose confirmed it was planning to make redundancies earlier this month, after Eurogamer broke news that extensive cuts were being made to Team17's QA department in favour of outsourcing work elsewhere. But the job losses go much further than those at risk in QA, Eurogamer understands, with staff across a wide range of departments affected - including those employed in Team17's marketing, usability, customer service, IT and HR teams.”
That things were bad was therefore obvious. Not that things have been going that well for some years now: “But the long term shareholders of Team17 Group plc (LON:TM17) have had an unfortunate run in the last three years. Unfortunately, they have held through a 65% decline in the share price in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 34% lower in that time.”
Probably somehow related to the huge buys @185p around 10am, one of which has been reprinted after close.
Some big sells showing up now. Big chunks at 1.70. I wonder if they are done for now....
@Turtle: I will be long gone by then.
You mean 300p surely?
It will be 200p before this time next week, guaranteed.
Why worry yourself with facts sparkly ass?
The way I see it, it's boom time from these levels, you're either in or out.
Judging by your reaction you're already in for a loss, I hope you make it back before I sell for profitss
You’ve counted the write downs twice, that’s the reason for the difference vs last year, it’s factored n to the figures.
Of course its a profit warning Turtle Brain! They are now forecasting adjusted EBITDA of £28.5m vs £48.8m last year. Sure, revenues are slightly above forecast but margins are well down and there is mention of write offs for both games under development and recent releases - which has further spooked the market.
Can see this bouncing back. I’m in
Thanks for your reply Bladey.
You comments make perfect sense. I'm relatively new at this so still learning.
Regards
Ugh HH, my bad... that's what happens when u try to watch deadwood and make posts... lol Series 2 ep1, in case you're wondering!
Can't buy £50 worth now, I'd say seller done
Might have taken it down to capture the large sell at 170. Could be free to move up now after expecting bounce off 175. Fundamentals out the window atm, it all about which II is selling and how much is left. Clearly massive value at these levels but all needs to clear out first. I’m in now rather than waiting.
150k block sold just popped up, will have been started earlier, now done.. I don't have level 2 anymore... but can't be much more of any large blocks..IF any!
@LoveMonke, U won't see the large blocks behind the scenes being bought into. (Will be reported after hours or tomorrow)
I agree, the current market cap is very undervalued currently based on THAT update! This is not a going concern! Expecting a turnaround here!
Bid and offer moving up a smidge into close, seller almost done?
Doubt it very much.
The redundancies have been an open secret for some time, it was announced and reported on off RNS.
There's big money on thre table to buy here, they knew there were shares available at this price hence the drop.
Plucking numbers out the air?
This could drop to £1.30s. Good luck.
Once these 175 sells are cleared expect a re rate, additionally after people have to whole weekend to assess the value here expect a good Monday.
My average now down to 180p. Hopefully good times coming :-)
Just bgt in here at 179. Give it a few days and this will find a higher level. Looks oversold. This scenario happens a lot currently, quite bad news is sold off massively then comes back. Definitely worth a trade imho.
I was thinking the same. How can a share, with almost twice as many shares bought than sold, be some 44% down on the day?