<h6>Q1’21 EBITDA SEK -10m vs. ABGSCe SEK -14m</h6><h6>GBK studios deal (SEK 37m) and D&A drive estimates</h6><h6>SOTP fair value range SEK 2.0-6.8 (2.1-7.0) per share</h6><strong>Pre-announced Q1’21 figures slightly better than ABGSCe</strong><br />Goodbye Kansas Group reported a solid Q1’21 report, where the sales and EBITDA figures were pre-announced in conjunction with management’s new financial targets of growing sales by an average of 20% per year and reaching an EBITDA margin of at least 20% by 2024. Reported net sales were SEK 59m, -9% vs. ABGSCe, where Goodbye Kansas Studios generated ~90% of total sales through its SEK 53m contribution. This was slightly below our expectations, as the film/TV business remained inhibited by COVID-19, but profitability within the segment was slightly better than expected with EBITDA of SEK -5m vs. ABGSCe at SEK -6m. Group EBITDA in Q1’21 was SEK -10m vs. ABGSCe SEK -14m, mainly driven by lower personnel expenses than we had anticipated. <br /><br /><strong>GBK studios deal raises sales, but game delay pressures</strong><br />Our estimate changes are driven primarily by increasing our sales estimates for Goodbye Kansas Studios by 7.8-9.3% for ‘21e-‘23e, where the short-term driver is the newly signed SEK 37m performance capture deal to be delivered in Q2/Q3’21e. We also lower our sales assumptions for Games & Apps in 2021e, as the launch of Hello Kitty AR: Kawaii World has been postponed and will not happen in 2021. Following our estimate changes, we arrive at a ‘21e-‘23e sales CAGR of 23% and an EBITDA margin of 11.5% by ‘23e, which can be viewed in relation to the new financial targets above. <br /><br /><strong>SOTP on ‘21e sales yields fair value of SEK 2.0-6.8 per share</strong><br />We adjust our SOTP fair value range to SEK 2.0-6.8 per share (2.1-7.0). At the current share price, GBK is trading at an EV/sales of 1.1-0.8x for ’21e-’23e, which is well below both our Nordic software and mobile game developer peer group medians.<br /><br />