PopReach Posts A Wide Loss In 4Q And Full-Year 2020

On April 19, PopReach posted its fourth quarter and full-year 2020 results. The free-to-play game publisher reported a higher loss compared to a year earlier.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

PopReach’s (POPR) net loss for full-year 2020 came in at $6.3 million, or ($0.13) per share, compared to $4.4 million, or ($0.11) per share, in 2019. EBITDA increased by 327% to $3 million, while cash generated by operating activities increased by 125%.

For 4Q 2020, the company posted a net loss of $3.3 million, or ($0.05) per share, compared to a net loss of $1.4 million, or ($0.04) per share in 4Q 2019. As for EBITDA, it increased to $0.8 million in 4Q 2020, from $0.0 million in 4Q 2019.

PopReach’s Co-founder and President Christopher Locke said, “PopReach delivered record results in 2020, with significant improvements to EBITDA, Adjusted EBITDA, and cash generated by operating activities, thanks to the successful execution of two pillars of our playbook; operating cost reductions, and stabilization of our franchises. Our focus in 2021 are investments in our key franchises to increase player retention and monetization, positioning the Company for organic growth in the back half of the year.”

In the fourth quarter of 2020, PopReach made a significant effort to improve its growth game franchises, including War of Nations, Kitchen Scramble, and Smurfs’ Village. The launches of these games are expected in the second half of 2021. (See PopReach stock analysis on TipRanks)

A month ago, Echelon Wealth Partners analyst Rob Goff assigned a Buy rating on the stock and a C$2 price target (132.6% upside potential).

Goff stated, “We look for PopReach to create significant shareholder returns executing on its consolidation strategy where the Company has demonstrated success realizing accretive acquisitions on upfront economics then adding value through implementing revenue-enhancing and cost-efficiency strategies.”

Overall, consensus among Wall Street analysts is a Moderate Buy, based on 2 Buys. The average analyst price target of C$1.85 implies upside potential of about 115% to current levels.