MGI: Challenging market leads to lower revenues
MGI’s Q2 revenues came in lower than expected, while operating profit was in line with our estimates. MGI decided to lower its guidance for 2023 due to a more challenging market environment. Operating cash flow improved compared to last quarter and should improve further as the year continues. Despite the challenging short-term outlook, MGI has maintained good operating margins. As highlighted in yesterday’s CMD, MGI is well-positioned to capture further market share and we see a clear upside in the low valuation as ad spending picks back up.
MGI - Media and Games Invest
MGI – Media and Games Invest SE (“MGI”) is an advertising software platform with strong first-party games content. MGI’s main operational presence is in North America and Europe. The Company combines organic growth with value-generating synergetic acquisitions, which has demonstrated continuous strong profitable growth with a revenue CAGR of 77% (2018 –2021). In addition to strong organic growth, MGI has successfully acquired more than 35 companies and assets in the past six years. The acquired assets and companies have been fully integrated and cloud technology is actively used to achieve efficiency gains and competitive advantages. MGI is registered as Societas Europaea in Malta (registration number SE 15) and its shares are listed on Nasdaq First North Premier Growth Market in Stockholm and in the Scale segment of the Frankfurt Stock Exchange. The Company has a secured bond that is listed on Nasdaq Stockholm and on the Frankfurt Stock Exchange Open Market.
Read more on company pageKey Estimate Figures2023-09-01
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 324.4 | 303.9 | 321.3 |
growth-% | 28.66 % | -6.32 % | 5.73 % |
EBIT (adj.) | 76.6 | 74.1 | 69.4 |
EBIT-% (adj.) | 23.60 % | 24.37 % | 21.61 % |
EPS (adj.) | 0.19 | 0.18 | 0.15 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 9.25 | 9.37 | 11.16 |
EV/EBITDA | 6.43 | 6.29 | 5.88 |