A view from the other side21 Dec 2019 03:04
20/12/2019
21:02chessmaster10: I feel like i'm in the minority here, in that I'm now trying view bids with complete neutrality. The suggestion of incredible potential is still there, but there are some big red flags which have to be acknowledged. When the H1 results came out, the opinion on here was pretty much unanimous that they MUST deliver for FY, but instead they've had another big miss. I think some on here are being very forgiving for that. Really no evidence of delivery yet, but many believing its a sure thing and only a matter of time. 3 games have been live for a couple of months now, and we were told first revenues started arriving in July, but it seems income is still negligible. Why? We were told revenues would be significantly 2nd half weighted, but that didn't materialise. So they were basing 2nd half revenue projections on deals that were yet to be signed to generate the advertising spend. Is that normal? To my mind, projections should be based on existing revenue streams, and new deals would trigger a new RNS to say "based on X deal being signed, revenues are now expected to be ahead of market expectations". It's just another issue with how they're communicating, they REALLY need to improve this aspect in 2020. On the plus side, whichever way you cut it, the new deal looks like it will deliver an uplift in revenues for 2020, but to a level which is open to a lot of guesstimation. I'm ready to jump back in here as soon as we get more clarity. The 'Unreal SDK going live' RNS can't be too far off... perhaps a fortnite or FIFA announcement in the works too. Wishlist for Q1/Q2 2020: - MUCH better communication - Unreal SDK live - FIFA and/or Fortnite deal - No placing - Clear and transparent FY report and trading update Hoping for the best. P.s. sorry, I know I waffle on a bit.
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