Media and Games Invest

Investment summary

Both organic and M&A-driven growth were evident in H121, as net revenues rose 93% to €109.0m, with 36% organic revenue growth year-on-year in Q221, and adjusted EBITDA increased by 127% to €28.7m. Having completed the KingsIsle transaction, in January 2021, to bolster the games division, Media and Games Invest (MGI) announced a second major deal in June 2021, the €140m acquisition of Smaato, a mobile-first adtech platform to drive the growth of MGI’s synergistic media business. This deal marks the move in the group’s focus from games to media. Management raised its FY21 revenue guidance to €234–254m and adjusted EBITDA guidance to €65–70m, an EV/FY21 adjusted EBITDA multiple of 14.0x at the mid-point, assuming pro forma net debt of €148.1m (post-Smaato). Due to its superior growth both prospective and historically (45% five-year revenue CAGR in FY15–20), MGI trades at a justified premium to its European games peers.