18 September 2019 – Media and Games Invest plc ("MGI", ISIN: MT0000580101; Symbol: M8G) continuously strengthens its position in gaming and media via its subsidiaries. gamigo AG, one of the leading publishers of mobile and online games in Europe and North America, today announced that it acquired a minority interest of less than 5% in Phoenix Games Holding GmbH. Phoenix Games is a holding company focused on acquiring and maximizing the potential of mobile gaming studios, founded by serial games sector entrepreneur Klaas Kersting. Phoenix and gamigo are planning to leverage synergies in mobile game development and publishing, in user acquisition as well as technical innovations.
gamigo AG has shown continuous strong growth over the past 4 and ½ years, with average revenue growth of 32%. Over the same period, the EBITDA margin has increased to 25% - 30% and earnings before interest and taxes, EBIT, consistently showed a positive trend reaching 11% of revenues in the first half of 2019 with an further upward trend. Based on these past results, in combination with many further acquisition targets being available, as well as several organic growth opportunities – including eg. three game launches and several major content updates that are planned for the second half of 2019-, and further efficiencies that are realized with larger scale, the board of directors of gamigo expects in line with past development, continuous further revenue CAGR for the next 3-5 years of 25% - 30%, in combination with an EBITDA margin of 25% - 30% and an EBIT margin of 15% - 20%. In addition to its positive operating cash flow and freely available cash of over 20 million euros from the bond issued on Nasdaq Stockholm, gamigo has retained Pareto Securities AB to explore further financing equity and non-equity- options to support further organic and non-organic growth.
In the media and advertising segment the integration of recently acquired Applift GmbH is proceeding well. Following the acquisition of Applift by MGI a change of strategy has been decided based on further focusing on high quality performance-based user acquisition while giving transparency to its customers and using synergies with the other media companies as well as with the gaming companies. Advertiser portal ‘DashX’, developed by Applift, is ready for a global roll-out in October. It gives brands at-a-glance access to the real time mobile campaign data, information about top traffic sources, automatic traffic quality optimizations, and insights of the campaign performance against the KPIs. The ‘DashX’ portal enables transparency to advertisers like never before, meeting their trust and brand safety expectations. Transparency and traffic quality are top challenges in mobile app marketing and Applift will continue to invest into product improvements in this area
Group subsidiary PubNative GmbH, operating a programmatic supply side platform for mobile apps, enters the fast-growing market of connected TV via releasing its innovative ADCast CTV SDK for Google Chromecast in a private beta version, which makes PubNative an early adopter and innovator and offers additional growth opportunities.
Within the influencer business Influencer-SaaS platform provider and MGI Group Subsidiary ReachHero GmbH has signed a contract with leading advertising and PR agency fischerAppelt, to extensively get access and use of the ReachHero Influencer platform. After signing its first contract with ReachHero in 2018, fischerAppelt has used the ReachHero platform for over a year and now signed an extensive contract. Katrin Joppig, Senior Expert and Competence Manager Influencer at fischerAppelt: “The ReachHero platform and software enables us to run Influencer Marketing campaigns in an efficient and effective manner. The data-based platform gives us relevant influencer and audience insights to select the perfect influencers for our campaigns.” Also, ReachHero has started the internationalization of its platform, starting roll-out into Poland and Turkey.
Chairman of the Board of Directors Remco Westermann: "The subsidiaries of MGI show positive developments and are actively working on organic growth opportunities as well as on building USP’s. Our strategy of creating critical mass via M&A and organic growth, creating competitive advantages through the use of state-of-the-art technology as well as leveraging synergies between the companies shows good results. Apart from our focus on organic growth we are also looking into further acquisitions as well as increasing our stake in our major subsidiary gamigo."
With its focus on the media and games segments and growth via acquisitions and market consolidation as well as via organic growth Media and Games invest is expecting to further show strong growth in the gamigo group as well as in its other subsidiaries.
About Media and Games Invest plc:
Media and Games Invest plc, MGI, is a fast and profitably growing company focusing on a “buy, integrate, build & improve” strategy through organic growth and acquisitions in the media and games markets. Technology is actively used to create efficiency improvements and competitive advantages within the group. Synergy and integration potentials are important criteria for the expansion of the portfolio. The most important investments include gamigo AG, a fast-growing gaming and media company (52.6% of shares and 66.9% of voting rights), ReachHero GmbH (67% of shares), a leading influencer SaaS platform, Applift GmbH (100%), a leading media company specializing in mobile advertising, and Pubnative (89%), an SSP platform for mobile advertising. Media and Games Invest is listed on the Frankfurt Stock Exchange and on XETRA.
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