Tough market environment persisting
MGI’s Q3 revenues declined as expected, while adjusted operating profit fell short of our expectations due to higher operating costs than estimated. MGI reiterated its guidance of lower revenues in 2023 due to a challenging market environment. During the quarter, MGI increased its market share further, and we believe MGI is well-positioned to continue to do so. We, therefore, see a clear upside in the low valuation as ad spending recovers. We recognize the possibility that the recovery might take longer than expected, which could impede the stock's performance until the outlook improves.
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 Figures2023-12-01
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 324.4 | 303.0 | 312.0 |
growth-% | 28.66 % | -6.60 % | 2.97 % |
EBIT (adj.) | 76.6 | 74.4 | 63.0 |
EBIT-% (adj.) | 23.60 % | 24.55 % | 20.18 % |
EPS (adj.) | 0.19 | 0.14 | 0.11 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 9.07 | 11.52 | 15.30 |
EV/EBITDA | 6.43 | 4.48 | 6.71 |