Atari SA (ALATA.PA) fair value

ACCE thesis

Atari SA owns a catalogue of classic video game franchises, including Atari 2600 and Atari arcade titles, and sells them through digital storefronts, licensed re-releases and retro hardware such as the Atari 2600+ console. Its edge is the brand and the back catalogue itself: the IP is cheap to exploit because the games already exist, so gross margin sits at 74.6% even though the company is loss-making at the operating line (-14.3%). Revenue grew 86.4% on the latest reported figures, which points to the catalogue monetising faster than costs are growing, and the next leg depends on whether that growth holds through new releases and platform deals. At a 55M EUR market cap and with ROE at -800% on a thin equity base, the balance sheet and cash burn need checking before anything else. The name is worth a deeper look for the margin structure and the growth rate; the earnings trajectory and funding runway are the questions to answer first.