Verve (OMX: VER)

Last close As at 19/07/2024

EUR2.63

−0.02 (−0.57%)

Market capitalisation

EUR419m

Verve 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.

Q124 ad impressions were 20% up on Q123, in the inherently weakest quarter. CPM pricing has not yet significantly bounced back, particularly at the commodity end of the market where there is little, if any, targeting. This highlights the importance of solutions offering advertisers the benefits of targeting (right people, right places, right time) without compromising user privacy. While the final Google cookie deprecation is delayed again, this time out to 2025, awareness is now finally building and budgets are starting to shift.

Latest Insights

View More
Media and Games Invest_resized

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Analyst, Consumer and TMT

Key Management

  • Paul Echt

    FD

  • Remco Westerman

    Executive Chairman

Balance Sheet

Forecast net debt (€m)

369.1

Forecast gearing ratio (%)

96

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 47.5 83.8 120.6
Relative 45.7 78.6 93.8
52 week high/low €2.6/€0.8

Financials

Verve (formerly MGI – Media and Games Invest) announced the acquisition of Jun Group for €170m (US$185m), part funded by a €40m directed share issuance. Jun is an excellent fit and scales up Verve’s demand side (ie serving advertisers and agencies) to 30% of the group. It is being sold by Nasdaq-listed Advantage Solutions, which is reducing its leverage by selling its non-core operations. It sought a speedy transaction, hence the attractive deal pricing of 3.8x EV/EBITDA. Synergies built into raised guidance come from revenue opportunities rather than cost deduplication. Given Jun’s EBITDA margins of over 50%, Verve’s margins should rise, with EPS further boosted by lower interest as a percentage of revenue. The current rating does not, in our view, reflect the group’s strong position.

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 21.9 N/A
2023A 322.0 128.5 26.8 32.08 8.2 9.1
2024E 390.0 114.9 44.8 16.59 15.8 22.8
2025E 480.0 167.9 107.6 35.50 7.4 7.7

Further insights

insight

Consumer

MGI – Media and Games Invest: EKF 2023 QuickView

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022 CMT

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022

Thematics

thematic

TMT

MediaWatch – Glimpses of positivity

thematic

TMT

MediaWatch – Rinse and repeat

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free