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 monetise 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.
Paul Echt
FD
Remco Westerman
Executive Chairman
Forecast net debt (€m)
281.8
Forecast gearing ratio (%)
80
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 12.7 | 77.4 | 47.5 |
Relative | 6.5 | 61.3 | 27.9 |
52 week high/low | €1.9/€0.8 |
MGI’s Q124 report shows an impressive 21% organic revenue uplift over Q123, with both good new client recruitment and higher spend from existing clients as corporate confidence rebuilds. With the market shift towards privacy-first advertising, despite Google’s continued deadline extensions for full cookie withdrawal, MGI’s AI-driven contextual targeting solution is well-placed. The move to a single infrastructure on the Google cloud should enhance scalability and improve efficiency. Our forecasts are edged ahead, to the midpoint of management revenue guidance, which is restrained by caution over the macroeconomic outlook. The rating remains at a discount to peers, despite an 80% share price gain year to date.
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 | 13.7 | N/A |
2023A | 322.0 | 128.5 | 26.8 | 32.08 | 5.1 | 5.7 |
2024E | 360.0 | 99.9 | 32.7 | 12.65 | 13.0 | 23.9 |
2025E | 396.0 | 116.6 | 61.5 | 23.51 | 7.0 | 8.1 |
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