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    MGI – Media and Games Invest

    MCap

    EUR235m

    Last close

    EUR1.50

    ▲ 0.35 (30.21%)

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    SEK13.05

    ▲ 1.55 (13.48%)

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MGI – Media and Games Invest (OMX: M8G)

Last close As at 10/05/2024

EUR1.55

▲ −0.12 (−7.29%)

Market capitalisation

EUR277m

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.

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Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Associate Analyst, Consumer and Media

Key Management

  • Paul Echt

    FD

  • Remco Westerman

    Executive Chairman

Balance Sheet

Forecast net debt (€m)

281.8

Forecast gearing ratio (%)

80

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (0.9) 79.0 36.3
Relative (4.2) 62.2 16.4
52 week high/low €1.9/€0.8

Financials

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 13.9 N/A
2023A 322.0 128.5 26.8 32.08 5.2 5.8
2024E 360.0 99.9 32.7 12.65 13.2 24.3
2025E 396.0 116.6 61.5 23.51 7.1 8.3

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