Hacksaw shares fall on softer Q3 growth

Hacksaw Gaming released a preliminary trading update for the third quarter, providing guidance on revenue and profitability. The company said total revenue for Q3 was expected at about €57.5–58.5 million. It indicated that revenue growth in the period was below the group’s historical pace, signalling a moderation compared with previous quarters.

The update focused on headline financial metrics rather than detailed segment information. By setting out a revenue range, Hacksaw gave the market an early view of performance ahead of full quarterly results. The company characterised the quarter as one where growth continued but at a slower rate than it has achieved historically.

Alongside the revenue range, Hacksaw guided for adjusted operating profit of about €48–49 million in the third quarter. On this basis, the adjusted operating margin is expected to be around 83%. The company indicated that this represents an improvement on the margin achieved in the same quarter a year earlier, when it was 81%.

The guidance implies a year‑on‑year increase in adjusted operating profit of roughly 14–16%. This points to stronger earnings despite the slower revenue growth. The figures suggest that Hacksaw maintained, and even enhanced, its profitability through cost control, operational efficiency, or a favourable revenue mix.

The market response to the trading update was negative. Following publication of the figures and the comment that revenue growth was below the historical pace, Hacksaw’s shares slumped roughly 27% in early trading on October 12.

The sharp share price move indicates that investors focused on the slowdown in growth, even though the company reported higher profitability and an improved margin compared with the same quarter a year earlier. The trading session highlighted how sensitive the valuation is to changes in the revenue growth trend.

The combination of moderated revenue growth and higher profitability frames the key issue for investors. The preliminary numbers show that Hacksaw remains highly profitable on an adjusted basis, but the update also signals that its pace of expansion has cooled relative to its own history.

With only headline ranges provided, the update leaves detailed drivers of the quarter’s performance to be clarified in full results. For now, the figures establish that Hacksaw’s third quarter featured revenue in the high‑fifties millions of euros, an adjusted operating profit approaching €50 million, and a margin of around 83%, set against a notably negative initial share price reaction.