Valetta, 30 August 2019 – Media and Games Invest plc (WKN: MT0000580101; symbol: M8G, "MGI") announces that its major portfolio company, gamigo AG, one of the leading publishers of online games in North America and Europe, continued to show strong and profitable growth in the first half of 2019. According to unaudited consolidated IFRS Group figures, Group revenues in the first half of 2019 rose by 32 percent to EUR 28.4 million (H1 2018: EUR 21.5 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) of gamigo also developed very positively and increased in the first half of 2019 by 59 percent to EUR 8.3 million (H1 2018: EUR 5.2 million), while earnings before interest and taxes (EBIT) grew by 149 percent to EUR 3.2 million (H1 2018: EUR 1.3 million). Operating cash flow improved by 19 percent to EUR 6.5 million (H1 2018: EUR 5.5 million).
The 2nd quarter of 2019 was also characterised by a positive business development. Group sales in the second quarter grew by 26 percent to EUR 15.0 million (Q2 2018: EUR 11.9 million), EBITDA increased by 49 percent to EUR 4.3 million (Q2 2018: EUR 2.9 million). EBIT improved by 67 percent to EUR 1.7 million (Q2 2018: EUR 1 million).
A major focus in the first half of the year was on the integration of TrionWorlds assets and WildTangent assets. Both assets developed very positively and the integration processes were largely successfully completed by the end of the first half of 2019. The considerable synergy potential at various levels is beginning to show its effect and is having a positive impact on the Group's earnings.
The critical mass that gamigo has now achieved, based on its platform strategy of synergetic M&A, enables gamigo to focus on organic growth without having to take the usual industry-specific risks.
In this context, gamigo created the basis for stronger organic growth in the second half of 2019 by preparing three major game launches. These could become significant success drivers for the company.
Media and Games Invest plc currently holds 52.6% of the shares and 66.9% of the voting rights in gamigo AG and plans to further expand its stake. In addition, ReachHero GmbH belongs to MGI with 70 % since April 2019 as well as Applift GmbH with 100 % and Pubnative GmbH with 89 % since May 2019. MGI is expected to publish the consolidated half-year figures at the end of September, although it is already evident that, in addition to the positive development of gamigo, the other synergetic acquisitions ReachHero, AppLift and PubNative will also contribute to MGI's growth in the reporting period.
Remco Westermann, Chairman of MGI: "Following the successful integration of the recently acquired assets of Trion Worlds and WildTangent, gamigo AG has once again focused on organic growth by optimizing its games portfolio. Three major game launches are planned for the second half of the year, whose preparations are in full swing and were announced at the Gamescom trade fair. Due to the good operating performance and the increase of the bond by a further EUR 18 million in the first half of the year, gamigo also has substantial financial resources at its disposal to continue its strategy of market consolidation in the second half of 2019. The acquisition pipeline is accordingly well filled with interesting targets".
The Q2 and H1 2019 report of gamigo AG is available as of today on the gamigo AG homepage in the Investors section of the company's website: https://corporate.gamigo.com/investoren/
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 (90%), an SSP platform for mobile advertising. Media and Games Invest is listed on the Frankfurt Stock Exchange and on XETRA.
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Axel Mühlhaus / Dr. Sönke Knop
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Media and Games Invest plc
Sören Barz, Investor Relations
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