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EUR274m
Research: TMT
MGI – Media and Games Invest has announced a strategic collaboration with Google Cloud that will bring all MGI’s marketplaces together by mid-FY25. As well as result in the obvious scalability advantage, this collaboration should boost the effectiveness of MGI’s privacy-first AI-driven products. Management anticipates it will also generate cost savings of €20m over the next four years. MGI has started the year strongly, with organic revenue growth of 18% in January and 25% in February. Q124 results are due on 30 May.
MGI – Media and Games Invest |
Google strategic collaboration |
Google Cloud collaboration |
Media |
8 April 2024 |
Share price performance
Business description
Analyst
MGI – Media and Games Invest is a research client of Edison Investment Research Limited |
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MGI – Media and Games Invest has announced a strategic collaboration with Google Cloud that will bring all MGI’s marketplaces together by mid-FY25. As well as result in the obvious scalability advantage, this collaboration should boost the effectiveness of MGI’s privacy-first AI-driven products. Management anticipates it will also generate cost savings of €20m over the next four years. MGI has started the year strongly, with organic revenue growth of 18% in January and 25% in February. Q124 results are due on 30 May.
Year |
Revenue (€m) |
Adj EBITDA* (€m) |
PBT* |
EPS* |
EV/EBITDA |
P/E |
12/22 |
324.4 |
93.2 |
38.6 |
13.4 |
6.1 |
8.6 |
12/23 |
322.0 |
95.2 |
26.8 |
35.8 |
6.0 |
3.3 |
12/24e |
355.0 |
103.3 |
32.5 |
14.0 |
5.5 |
8.7 |
12/25e |
390.5 |
116.9 |
61.8 |
26.3 |
4.9 |
4.5 |
Note: *Adjusted EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
MGI has been focused on integrating and consolidating its tech stack over recent periods, with this new Google Cloud collaboration taking this a step change further. It should facilitate more efficient and agile development, particularly in the AI space, where the group’s existing solutions for privacy-first ad targeting are already helping build market share. Verve Group (MGI’s adtech brand) was the top mobile supply-side platform on Google Play and the Apple App Store in North America, and second in Europe in December 2023.
With signs of recovery in the key US advertising market (70% group FY23 revenue) and an offering that fits well with the market’s direction of travel with the deprecation of third-party cookies, this year has started strongly. FY24 guidance at the time of the FY23 figures was for ‘meaningful double-digit’ organic revenue growth, which will likely be clarified with the Q1 figures in May.
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Research: TMT
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