Disclosure of inside information according to Article 17 of the Regulation (EU) No 596/2014 (MAR)
- Net revenues amounted to 80.2 mEUR in Q4’21 (Q4’20: 48.7 mEUR), which is an increase of 65% based on a strong Organic Revenue Growth1 of 36% as well as the transforming acquisitions of KingsIsle and Smaato in 2021.
- EBITDA2 amounted to 23.3 mEUR in Q4’21 (Q4’20: 10.1 mEUR), reflecting a significant increase in the adj. EBITDA margin9 to 29% (Q4’20: 21%), driven by economies of scale and cost synergies within MGI’s media and games activities.
- MGI further transformed in 2021 from a pure games company, that was started in 2012, into an advertising software platform with strong first party games content.
- Guidance 2022: Revenue with a range of 290 mEUR – 310 mEUR, which is an increase of 25% – 34% based on pro-forma FY2021 revenues of 232 mEUR. The 2021 revenue is adjusted for discontinued businesses in the amount of c. 20mEUR. The adj. EBITDA Guidance for 2022 ranges from 80 mEUR – 90 mEUR.
February 28, 2022 – Media and Games Invest SE (“MGI” or the “Company”, ISIN: MT0000580101; ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange) closes the full year 2021 with 252.2 mEUR revenues which is at the high end of the 232-254 mEUR range of the Revenue Guidance for 2021 and the third year in a row with over 70% revenue growth. 69% of the revenues were generated in North America and 19% in Europe (with less than 1% of total revenues in Russia). The adj. EBITDA in the financial year 2021 amounted to 71.1 mEUR and exceeds the EBITDA Guidance 2021 range of 65-70 mEUR adj. EBITDA.
MGI herewith also publishes its Guidance for the financial year 2022, reflecting a strong pro-forma revenue growth of 25-34%. The 2021 revenue is adjusted for discontinued businesses in the amount of c. 20mEUR. This results in a “Revenue Guidance 2022” with a range of 290-310 mEUR with an adj. “EBITDA Guidance 2022” of 80-90 mEUR. The reported revenue growth of 15-23% reflected in the Revenue Guidance is largely driven by organic revenue growth due to the fact that the M&A driven growth from the Smaato acquisition is set-off to a large extent by the discontinuance of the affiliate and influencer marketing activities in 2021.
HIGHLIGHTS Q4 2021
- Net revenues amounted to 80.2 mEUR (Q4’20: 48.7 mEUR), which is an increase of 65%, whereof 36% have been contributed by Organic Revenue Growth.
- EBITDA2 amounted to 23.3 mEUR (Q4’20: 10.1 mEUR), which is an increase of 131%.
- EBIT3 amounted to 19.4 mEUR (Q4’20: 5.8 mEUR), which is an increase of 232%.
- Earnings per share (EPS) amounted to EUR 0.05 (Q4’20: EUR 0.02). EPS adjusted for PPA-amortization10 amounted to EUR 0.07 (Q4’20: EUR 0.03).
HIGHLIGHTS FULL YEAR 2021
- Net revenues amounted to 252.2 mEUR (FY’20: 140.2 mEUR), which is an increase of 80% compared to FY’20, whereof 38% have been contributed by Organic Revenue Growth.
- EBITDA2 amounted to 71.1 mEUR (FY’20: 29.1 mEUR), which is an increase of 144%.
- EBIT3 amounted to 54.8 mEUR (FY’20: 17.5 mEUR), which is an increase of 213%.
- Net interest-bearing debt4 as of December 31, 2021 amounted to 198.6 mEUR (December 31, 2020: 61.6 mEUR).
- Leverage ratio5 amounted to 2.8 as per December 31, 2021 (2.1 as per December 31, 2020).
- Cash and cash equivalents amounted to 180.2 mEUR (December 31, 2020: 46.3 mEUR); this increase is due to cash flow from operations, a capital increase as well as a bond issue in FY’21.
- Earnings per share (EPS) amounted to EUR 0.11 (FY’20 undiluted: EUR 0.04 / diluted: EUR 0.03). EPS adjusted for PPA-amortization10 amounted to EUR 0.20 (FY’20 undiluted: EUR 0.04 / diluted: EUR 0.03).
SELECTED KEY PERFORMANCE INDICATORS, MGI GROUP
| In mEUR | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 |
| Net Revenues | 80.2 | 48.7 | 252.2 | 140.2 |
| YoY Growth in revenues | 65% | 73% | 80% | 67% |
| EBITDA6 | 20.9 | 9.0 | 65.0 | 26.5 |
| EBITDA margins7 | 26% | 19% | 26% | 19% |
| Adj. EBITDA2 | 23.3 | 10.1 | 71.1 | 29.1 |
| Adj. EBITDA margins9 | 29% | 21% | 28% | 21% |
| Adj. EBIT3 | 19.4 | 5.8 | 54.8 | 17.5 |
| Adj. EBIT margins8 | 24% | 12% | 22% | 12% |
| Net Result | 7.4 | 2.0 | 16.1 | 2.7 |
SELECTED KEY PERFORMANCE INDICATORS, MGI SEGMENTS
| MGI Media Segment | ||||||||||||||
| In mEUR | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | ||||||||||
| Net Revenues | 51.2 | 24.2 | 139.6 | 65.0 | ||||||||||
| YoY Growth in revenues | 111% | – | 115% | 59% | ||||||||||
| EBITDA | 11.7 | 2.1 | 25.8 | 5.1 | ||||||||||
| EBITDA margins | 23% | 9% | 19% | 8% | ||||||||||
| Adj. EBITDA | 12.3 | 2.4 | 28.0 | 6.0 | ||||||||||
| Adj. EBITDA margins | 24% | 10% | 20% | 9% | ||||||||||
| MGI Games Segment | ||||||||||||||
| In mEUR | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | ||||||||||
| Net Revenues | 29.0 | 24.5 | 112.6 | 75.2 | ||||||||||
| YoY Growth in revenues | 19% | – | 50% | 74% | ||||||||||
| EBITDA | 9.2 | 6.9 | 39.2 | 21.4 | ||||||||||
| EBITDA margins | 32% | 28% | 35% | 29% | ||||||||||
| Adj. EBITDA | 11.0 | 7.7 | 43.1 | 23.2 | ||||||||||
| Adj. EBITDA margins | 38% | 31% | 38% | 31% | ||||||||||
The Year End 2021 report is available on MGI’s corporate website at https://mgi-se.com/investor-relations/financial-reports/ in the Investor Relations section. All financials are preliminary and reviewed but not audited.
-End of MAR release-
-Information and Explanation of the Issuer to this News-
A Word from Remco Westermann, CEO
“2021 has been an important part of our exciting journey, transforming MGI from a pure games company in 2012 into an advertising software platform with a strong access to first party games content. In the last two years, via our focus on integrating and linking the two successful elements media and games, a unique company has emerged that combines the advantages of the fast-growing digital media and games markets. The advantage of a fully integrated ad software company with own content is obvious and the market is realizing this. Microsoft’s recent purchase of Activision Blizzard as well as the ad tech platform Xandr is a signal and with companies like AppLovin, Zynga and Skillz more successful companies have combined or started to combine media and games during the past years.
This happens at a time when it is becoming more and more difficult for advertisers and media companies to acquire targeted users based on reliable data. First-party data from the games portfolio is a strong competitive advantage for the media arm, and a strong media arm is an enormous competitive advantage for the efficient user acquisition for, as well as the monetization of the company’s own games. This synergetic interdependence has created a flywheel that has led to 38% YoY organic growth for MGI in 2021. Overall, we were able to grow the net revenues organically and through M&A by 80% to 252mEUR in 2021. This was paired with a solid adj. EBITDA margin of 28%.
Our business continued to generate strong free cash flows despite record investments in our ad-software platform combined with more than 350 casual game launches which resulted in ad revenues from own games at a record level. In parallel, we grew our ad-software platform’s customer base to 418 software clients with more than 100kEUR revenues per year. This is based on adding 316 additional software clients with over 100kEUR revenues per year, which altogether reflects a 410% growth rate in software clients. We look forward to continue on this path – by further combining our advertising-software platform with own games – and see a great potential for the coming years,” says Remco Westermann, CEO of MGI.
Notes – All Notes are defined as in the Year End Report 2021 of MGI
Note (1) Organic Revenue Growth: Organic revenue growth does include growth calculated on a year-over-year basis from companies being within the Group for twelve months or more. What is excluded is the revenue growth from acquisitions that have not been part of the group in the last twelve month, and the decline from sales stemming from closures/divestment of whole businesses.
Note (2) Adjusted EBITDA: Reported EBITDA excluding one-time costs. EBITDA adjustments amounted to 2.4 mEUR in Q4 2021 and were made largely for one-time costs M&A related costs as well as the ESOP program.
Note (3) Adjusted EBIT: Earnings before interest and taxes excluding one-time costs and PPA-amortization resulting from M&A related purchase price allocations. [For adjustments, please see footnote 2 above.]
Note (4) Net interest bearing debt: Interest bearing Financial Indebtedness excluding Shareholder and Related Party Loans minus Cash and Cash Equivalents.
Note (5) Leverage ratio: Net Interest-Bearing Debt divided by adjusted EBITDA for the past 12 months.
Note (6) EBITDA: Earnings before interest, taxes, depreciation, and amortization.
Note (7) EBITDA margin: EBITDA as a percentage of net revenues.
Note (8) Adjusted EBIT margin: Adjusted EBIT as a percentage of net revenues
Note (9) Adjusted EBITDA margin: Adjusted EBITDA as a percentage of net revenues
Note (10) PPA-amortization: amortization on M&A related purchase prices which are not tax deductible
Invitation to investor presentation
MGI invites investors to participate in the presentation of the Year End results by Remco Westermann (CEO) and Paul Echt (CFO) on Monday, February 28, 2022 at 10am CET. The presentation will be held in English and will also be available on-demand on the Company’s website www.mgi-se.com.
To participate via webcast, please visit:
https://tv.streamfabriken.com/media-and-games-invest-q4-2021
To participate via phone, please call:
Sweden: +46856642692
United Kingdom: +443333009261
USA: +16467224903
Germany: +4969222239167
Responsible parties
This information is such information Media and Games Invest SE is obliged to make public in accordance with the (EU) Market Abuse Regulation 596/2014. The information in this release has been made public through the agency of the responsible persons set out below for publication at the time stated by MGI’s news distributor EQS Newswire at the publication of this release. The responsible persons below may be contacted for further information.
For further information, please contact:
Sören Barz
Head of Investor Relations
+49 170 376 9571
soeren.barz@mgi-se.com, investor@mgi-se.com
www.mgi-se.com
Jenny Rosberg, ROPA, IR contact Stockholm
+46707472741
Jenny.rosberg@ropa.se
Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
+49 69 9055 05 51
mgi@edicto.de
About Media and Games Invest SE
Media and Games Invest SE (“MGI”) is an advertising software platform with strong first party games content. MGI’s main operational presence is in Europe and North America. 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). Next to strong organic growth, the MGI Group has successfully acquired more than 35 companies and assets in the past 6 years. The acquired assets and companies have been integrated and amongst others 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.
The Company’s certified advisor on Nasdaq First North Premier Growth Market is FNCA Sweden AB; info@fnca.se, +46-8-528 00 399.
Forward-looking statements
This release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s and the group’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this release, including the pro-forma financial figures addressed therein, are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements and pro-forma financial numbers are reasonable it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this release (including the pro-forma financial figures) are free from errors and readers of this release should not place undue reliance on the forward-looking statements in this release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this release, unless it is so required by law or applicable stock exchange rules.