Media and Games Invest

DE: M8G

€101.5m market cap

€1.45 last close

Media and Games Invest (MGI) is a fast-growing games and media company, following a ‘buy, integrate, build and improve’ M&A strategy. Its principal subsidiaries include gamigo (online games), ReachHero (media influencer), Applift (mobile advertising) and PubNative (mobile advertising).

Investment summary

Media and Games Invest (MGI) is a fast-growing games and media business, supplementing organic growth (Newzoo: 8.4% growth 2019–22) with a ‘buy, integrate, build and improve’ acquisition strategy. Gamigo, MGI’s principal gaming business, delivered an FY14–19 CAGR of 31% for revenue and 61% for EBITDA. MGI’s M&A strategy is focused on the acquisition of assets from distressed businesses at attractive valuations, with growing cash flows expected to rapidly reduce outstanding net debt (estimated at c €70m at H120). It has recently bought out the remainder of gamigo and expects to see further efficiency gains as it scales. MGI is benefiting from increased consumer demand as a result of the COVID-19 lockdown, as can be seen in the double-digit growth in daily active users and new customers. Management sees no slowdown in growth or attractive acquisition opportunities in FY20 or the foreseeable future.

Sector
TMT
Share price graph
Price performance
%
1m
3m
12m
Actual 12.4 31.8 11.1
Relative* 6.2 2.6 13.5
52-week high/low €1.5/€0.9
*% relative to local index
Key management
Paul Echt FD
Remco Westerman Executive Chairman