MGI – Media and Games Invest is an advertising software platform helping advertisers efficiently acquire customers across different media channels, as well as enabling publishers to efficiently and optimally monetize advertising space.
The programmatic adtech market is highly inefficient, with many layers of complexity each scraping a slice of cost. MGI, through its Verve brand, has built a vertically integrated solution that is gaining traction and growing share. We believe that many advertisers, publishers and intermediaries are ill-prepared for the ongoing withdrawal of Google cookies and that this presents Verve with a major opportunity to accelerate its presence with its established AI-driven solutions.
TMT |
Flash note
Paul Echt
FD
Remco Westerman
Executive Chairman
Forecast net debt (€m)
283.4
Forecast gearing ratio (%)
81
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 1.81 | (4.59) | (41.78) |
Relative | (0.89) | (12.22) | (49.18) |
52 week high/low | €4.3/€1.4 |
MGI started the year strongly, with organic growth of 18% in January and 25% in February, after a good Q4, implying further gains in market share in a trading environment that is starting to recover. Advertising spend from existing clients is also picking up. MGI has leading positions in in-app advertising in the US on both iOS and Android, with the US its largest market at 70% of revenues, and has well established non-identifier-based and AI-driven solutions in the market. In the fast-growing Connected TV (CTV) market, MGI is targeting margin over volume.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 324.4 | 84.8 | 38.6 | 12.01 | 12.5 | N/A |
2023A | 322.0 | 128.5 | 26.8 | 32.08 | 4.7 | 5.2 |
2024E | 355.0 | 98.2 | 32.5 | 12.58 | 11.9 | 22.0 |
2025E | 390.5 | 114.8 | 61.8 | 23.64 | 6.3 | 7.4 |