Media and Games Invest


Market Cap€255m

Last Close €1.6

Media and Games Invest is an advertising software platform with strong first-party games content. It mainly operates in North America and Europe. Organic growth is supplemented with acquisitions and the group has bought more than 35 companies and assets in the past six years.

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Investment summary

Media and Games Invest’s (MGI’s) media operation, Verve Group, has been made a partner on Google’s Open Bidding platform. This gives it far wider reach on both the demand (advertiser) side and supply (publisher) side, accessing inventory (advertising opportunities) via real-time auctions. MGI’s Q3 revenue growth was strong at 39% (23% organic) and FY22 guidance was lifted, with margin pressure from market conditions resulting in unchanged EBITDA guidance. We have adjusted our forecasts accordingly. Google’s endorsement should give greater confidence in MGI’s medium-term prospects as it concentrates on organic growth rather than on M&A. The rating remains at a market discount to peers.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 140.2 35.8 21.2 16.35 9.8 50.7
2021A 252.2 71.1 33.0 19.77 8.1 14.2
2022E 322.0 88.5 39.0 21.50 7.5 13.7
2023E 393.5 102.5 48.5 25.97 6.2 10.6
Industry outlook

Free-to-play games (which account for 50% of group EBITDA) tend to be reasonably robust in a downturn, particularly when compared to subscription packages. While based out of Europe, MGI is very much an international business, generating around 70% of its advertising revenues from the US, where the current economic indicators are looking considerably more benign than those in Europe. Management is aiming to come out of the recession stronger. To do this, it must continue to invest and manage the cost base.

Last updated on 30/11/2022
Content on Media and Games Invest
Media and Games Invest – Swedish re-domicile going ahead
TMT | research Update | 10 November 2022
Media and Games Invest – executive interview
TMT | Edison TV | 12 September 2022
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Share price graph
Balance sheet
Forecast net debt (€m) 310
Forecast gearing ratio (%) 77
Price performance
Actual (2.7) (29.3) (67.1)
Relative* (10.5) (37.0) (65.4)
52-week high/low €4.9/€1.4
*% relative to local index
Key management
Paul Echt FD
Remco Westerman Executive Chairman