Media and Games Invest: Subsidiary gamigo AG shows strong revenue growth of 30% in 2019 while operating cash flow increases by 56% to EUR 16 million

Deutsche Übersetzung

February 28, 2020 – Media and Games Invest plc ("MGI", ISIN: MT000058010101; Symbol: M8G; Basic Board, Frankfurt Stock Exchange) announces that its subsidiary gamigo AG, one of the leading publishers of online games in North America and Europe, has published its preliminary unaudited consolidated financial statements and has continued to grow profitably in the 2019 financial year.

In the 2019 financial year, gamigo AG further improved all key business figures:

• Revenues of EUR 59 million; an increase of 30% (2018: EUR 45 million)
  • This increase is due to organic growth through the launch of new games such as ArcheAge Unchained, which already generated 10% of the group's gaming revenues in 2019, and M&A growth through the successful integration of Trion Worlds and WildTangent.
• EBITDA of EUR 16 million; an increase of 48% (2018: EUR 11 million)
  • The EBITDA margin increased from 24% to 28% due to higher revenues combined with further efficiency improvements through synergy effects. gamigo has increased its investments in the further development of its own IPs in 2019 and thus in future organic growth.
• EBIT of EUR 6.3 million; an increase of 142% (2018: EUR 2.6 million)
  • The EBIT margin almost doubled from 6% to 11%.
• Net income of EUR 2.0 million; an increase of 22% (2018: EUR 1.6 million)  
  • After the buy-out of the remaining minority shareholders of gamigo by MGI, the participation of MGI shareholders in the future profits of gamigo will increase to 99.9%.

Overall, the 2019 financial year went very well for gamigo AG, the most important investment of MGI. By focusing more strongly on its own games portfolio and launching new games, the share of organic revenue growth within total revenue growth of 30% was increased from 5% in 2018 to 10% in 2019. Gamigo had on average more than 600,000 daily active users and 5 million monthly active users in its gaming portfolio in the 2019 financial year.

2019 was also a good year for gamigo in terms of financing. In the first half of 2019, further tranches of the senior secured corporate bond in the amount of EUR 18 million were placed at a price above par. Following the bond issues, the outstanding volume amounts to EUR 50 million, thus exhausting the entire framework of the bond. By placing further bonds, gamigo has raised additional capital from international investors. In contrast to bank loans, this gives gamigo greater flexibility with regard to M&A, which often requires quick decisions. This flexibility gives us an advantage over our competitors in the M&A processes. The price of the bond on the Frankfurt Stock Exchange is currently 103.88% and reflects the Group's high credit rating.

The outlook of gamigo AG for 2020 sees further growth:

The outlook for further expansion remains positive. gamigo expects the average revenue growth (CAGR) of approx. 30% since 2014 to continue in the coming years as well as a further increase in EBITDA.

Remco Westerman, Chairman of the Board: "2019 was another outstanding year for gamigo. The MGI Group continued its profitable growth in gaming through a combination of M&A and organic growth. With the acquisition of WildTangent in 2019, we were able to build on our track record of over 30 acquisitions over the last 6 years. And by continuing to focus on our games portfolio and launching new games, we have been able to increase the share of organic growth from 5% in 2018 to 10% in 2019.“

Results and operational highlights of gamigo AG in Q4 2019:

• Revenues amounted to EUR 16.0 million (Q4 2018: EUR 13.5 million), which is an increase of 19%.
• EBITDA amounted to EUR 4.0 million (Q4 2018: EUR 3.5 million), which is an increase of 15%.
• EBIT amounted to EUR 1.6 million (Q4 2018: EUR 1.0 million), which is an increase of 55%.
• Net profit for the period was EUR 1.0 million (Q4 2018: EUR 0.7 million), which is an increase of 37%.

Selected key performance indicators, gamigo group:

The Interim Report Q4 2019 has been prepared in accordance with IAS 34, Interim Financial Reporting. These condensed consolidated interim financial statements have been prepared in accordance with IFRS such as adopted by the EU and the relevant references to the German Com-mercial Code and the German Corporation Act. The consolidated financial statements are  for gamigo are preliminary and unaudited. Audited financial statements are expected for 30.04.2020. MGI will publish its audited financial statements for the year 2019 on 30.06.2020.

The Year End Report will also be available as a video presentation on the MGI website by the end of next week.

About Media and Games Invest plc:
Media and Games Invest plc, MGI, is a fast and profitable growing company in the digital media and online games sector that pursues a 'buy, integrate, build & improve' strategy, thus growing organically and exploiting the consolidation potential in its core markets. In the past 6 years, the MGI Group has successfully acquired and integrated more than 25 companies and assets, while actively using the potential of digital technologies. An important criterion for the expansion of the group are synergy and integration potentials. Among the most important participations are gamigo AG, ReachHero GmbH, Applift GmbH, PubNative GmbH and Verve Group Inc,. Media and Games Invest is listed on the Frankfurt Stock Exchange and on XETRA, among others.

Disclaimer
This press release contains possible forward-looking statements that are based on the current assumptions and forecasts of the company management of Media and Games plc or companies associated with it. Various known and unknown risks and uncertainties, as well as other factors, could mean that the actual results, financial circumstances, the development or performance of Media and Games invest plc and the companies associated with it may deviate significantly from the estimations presented here. Neither Media and Games Invest plc nor the companies associated with it are obligated to update this sort of forward-looking statement or adjust them to future results or developments.

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Issuer
Media and Games Invest plc
Sören Barz, Head of Investor Relations
St. Christopher Street 168
Valletta VLT 1467
Malta
Email: [email protected]