Edison Investment Research Limited: Media and Games Invest (M8G): Initiation - Focus on ad software platform

London, UK, 15 July 2022

Media and Games Invest (M8G): Initiation - Focus on ad software platform

Media and Games Invest (MGI) is grasping an opportunity to leverage its extensive first-party data resource, generated through its games content, to build out a full stack advertising software platform that can offer good returns to both advertisers and publishers. Changes to the advertising ecosystem to protect user privacy are prompting a strategic shift to first-party data, with added benefits of improved targeting and transparency. MGI has already assembled a strong offering on the supply side and is now expanding its offering on the demand side, through organic growth and targeted M&A, which should generate further scale and efficiency.

The share price has fallen by roughly 50% year-to-date, while global adtech peers have fallen by 47% on average, reflecting the market rotation away from high-growth sectors. The quoted gaming companies have done a little better, falling by 16%. MGI’s shares are valued below both sets of peers. If they were to trade at parity on average across FY21–23, the price would be €5.06, ahead of the level derived by a DCF (€3.92) and above the price at which they started the year.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Fiona Orford-Williams +44 (0)20 3077 5739 media@edisongroup.com

Richard Williamson +44 (0)20 3077 5700 media@edisongroup.com

Max Hayes +44 (0)20 3077 5700 media@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-/

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv