Verve Group SE
Original-Research: Media and Games Invest plc (von GBC AG): Kaufen
Original-Research: Media and Games Invest plc – von GBC AG
Einstufung von GBC AG zu Media and Games Invest plc
Unternehmen: Media and Games Invest plc
ISIN: MT0000580101
Anlass der Studie: Research Comment
Empfehlung: Kaufen
Kursziel: 2,10 Euro
Kursziel auf Sicht von: 31.12.2020
Letzte Ratingänderung:
Analyst: Dario Maugeri, Cosmin Filker
Clearly higher revenues for gamigo AG in 2019; earning power from the
platform strategy and open up of new markets and countries; investments
realised in cloud technology useful in the current corona crisis phase;
Target Price and Rating unchanged
On April 28th gamigo released its annual financial statement highlighting
strong growth in sales and profitability. Key driver was the game segment
(i.e. console, online and mobile games) which rose by 45.4% from EUR 29.67m
to EUR 43.13m. The figure would have been even higher including EUR 7.07m
in deferred revenues for games. The business in platform services seems
stable, up EUR 0.17m to EUR 15.79m which led to a 30% increase of the
consolidated turnover to EUR 58.92m (2018: EUR 45.29m).
Owing to the growth in revenues and positive synergies, gamigo EBITDA grew
disproportionately to EUR 16.33m (2018: EUR 11.05m), +47.8% on an annual
basis. In detail, the company reported an increase in purchased services to
EUR 26.69m (2018: EUR 17.64m) mainly due to royalties and technology costs;
the number includes also advertising and media costs which were previously
included under other operating expenses. Personal expenses rose by EUR
6.84m to EUR 21.57m mainly due to new employees under the acquired US-based
company Trion. The amortization and depreciation for intangible and fixed
assets amounted to EUR 10.07m against EUR 8.46m in the previous year. After
taking bond-related financial expenses of EUR 5.11m and tax income of EUR
0.82m resulting from deferred taxes into account, net income for the year
rose by 21.8% from EUR 1.62m to EUR 1.97m.
Following successful M&A deals, intangible assets climbed to EUR 76.17m
(2018: EUR 67.59m) around 61.1% of total assets on balance sheet. The
number is mainly connected to acquired assets or to internally generated
intangible asset for research and development activities.
Due to the fast growing business in games and favourable interests rates,
the company gathers the opportunity to finance its investments and
acquisitions issuing new debt. Examples are the tap issues of EUR 10.00
million in March 2019 and EUR 8.00m in June 2019 of gamigo senior secured
floating rate callable bonds (coupon of 3 months EURIBOR, with a zero
floor, plus 7.75 % per annum). Total bonds amounted to EUR 48.67m at the
end of December 2019.
As part of our last research study, we already commented on the preliminary
results of gamigo AG on 9 March 2020. As there are no significant changes
following the publication of the annual report, we will leave our estimates
confirmed in the last study unchanged. We will only update our estimates
for Media and Games and update the valuation on the basis of the Media and
Games annual report. This is expected to be available in June 2020.
Current events related to the coronavirus crisis and consequent economy
slowdown are posing a challenge on the demand for luxury goods such as
virtual items. This is mainly measured by the consumer confidence index
trend. Although the scenario might impact faster the digital media business
growth (B2B), the business in games, which is normally a non-cyclical
business, might be positively affected by people leisure time. Assuming
improved contributions of the acquired assets, new game launches as well as
the Verve Wireless Inc. assets acquisition on January 2020 in the B2B
business we have kept our target price of EUR 2.10 and the BUY rating for
the group MGI plc unchanged.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/20695.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm
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Date (Time) completion: 07.05.2020 (8:41 am)
Date (Time) first distribution: 07.05.2020 (10:00 am)
——————-übermittelt durch die EQS Group AG.——————-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
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