Media and Games Invest SE Maintains Strong Financial Outlook

Media and Games Invest SE (MGI), in a recent study by GBC AG, has displayed a solid financial performance for the fiscal year 2023, achieving notable sales of €321.98 million, with a 5.0% organic growth year-over-year. The last quarter showed an impressive 16.0% growth, thanks to an 18.9% increase in its software customer base, enhancing its leading position in the US mobile market with a 12.0% market share on both iOS and Android platforms.

MGI’s EBITDA surged by 51.6% to €128.46 million, driven by special gains including a significant revaluation of the AxesInMotion earn-out payment. The adjusted EBITDA stood at €95.20 million, reflecting a modest year-over-year improvement and a successful cost-cutting program which is expected to save approximately €10.0 million annually. The positive trend is set to continue into the financial year 2024, with projected sales between €350.0 million and €370.0 million and adjusted EBITDA ranging from €100.0 million to €110.0 million, thanks to strong anticipated organic growth.

Furthermore, MGI plans to rename itself to Verve in its transformation into a leading digital media company. This is accompanied by an expansion of the Board with new members having extensive media expertise. MGI's strategic focus on enhancing its advertising business and expected market recovery contributes to the optimistic future envisioned by both company leadership and analysts, maintaining a 'BUY' recommendation with a stable target price of €4.50.