I realise it's small but that dividend payout frustrates me. I would have previously thought of management as great capital allocators. But given the extended share price slump, an acceleration of the buyback scheme surely would have been better for shareholders.
I’m in agreement with you here, I would much prefer to see them buy back shares rather than pay out a dividend, especially given the valuation over the past several months. I don't see this changing, though, given the strong preference for dividends in Sweden.
Regarding management’s capital allocation, the €2 billion acquisition of NetEnt appears to have been a poor decision, particularly given how weak slot performance has been since. That said, I believe they’ve learned from this and have since focused on smaller bolt-on acquisitions that can be easily integrated into the one-stop shop.
Nice analysis! Thx I bought you a coffee for it. Looking forward, I think things will only get better with the new studio’s
and progress in Asia and America and Europe will grow again from 2026 onwards
Thank you for the support. I’m cautiously optimistic looking ahead but there is still a lot of work to do to return to double-digit growth.
Thank you for the overview. Doesn't share buybacks affect FCF most ?
No, buybacks and dividends are classified as financing activities and do not impact FCF.
I realise it's small but that dividend payout frustrates me. I would have previously thought of management as great capital allocators. But given the extended share price slump, an acceleration of the buyback scheme surely would have been better for shareholders.
Another great write up thanks Wolf
Hi Andy,
I’m in agreement with you here, I would much prefer to see them buy back shares rather than pay out a dividend, especially given the valuation over the past several months. I don't see this changing, though, given the strong preference for dividends in Sweden.
Regarding management’s capital allocation, the €2 billion acquisition of NetEnt appears to have been a poor decision, particularly given how weak slot performance has been since. That said, I believe they’ve learned from this and have since focused on smaller bolt-on acquisitions that can be easily integrated into the one-stop shop.