Verve Group SE
Original-Research: Media and Games Invest plc (von GBC AG): BUY
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: Researchstudie (Initial Coverage)
Empfehlung: BUY
Kursziel: 1.90 EUR
Kursziel auf Sicht von: 31.12.2020
Letzte Ratingänderung:
Analyst: Dario Maugeri, Cosmin Filker
Dynamic and profitable investment group within the synergetic gaming and
media sectors
Media and Games Invest plc (formerly Blockescence plc) was created in May
2018 as a result of a business focus change from real estate to the current
game and media segment. As a result of the new orientation, the group
acquired a controlling stake in the gaming publishing platform gamigo AG.
At the same time, the media sector was gradually strengthened, with a focus
on social media and digital influencers companies.
Under the brand gamigo AG, there are grouped several titles (e.g. Fiesta,
Desert Operations or Trove) which have recorded a long lifetime among users
and a high conversion rate from users to paying customers. The latter is a
significant metric in free-to-play games where revenues are generated from
the sales of in-game virtual items and micro-transactions. In order to
expand the business in the high-value U.S. market, gamigo acquired first
the assets of Trion Worlds Inc. in October 2018 (i.e. the titles Trove,
Rift, Defiance and ArcheAge) and then the casual games publisher
WildTangent Inc. As usual for a technology company, the acquisitions led to
a sharp increase in intangible assets, which turned to EUR 38.84m (previous
year: EUR 18.13m) at the end of 2018.
Integrations and synergistic effects led to a higher level of profitability
for gamigo AG in the first six months of 2019. A key metric in our
financial analysis was the EBITDA margin, which was up to 29.3% in H1/2019
(from the previous 24.3%). In order to finance the growth, bonds with an
outstanding volume of around EUR 55m have been issued: a) EUR 50m on gamigo
level with a coupon of 7.75% and above the 3-month EURIBOR; b) a EUR 5m
bond on MGI level with a coupon of 7.00%. However alone with its operating
cash flows (around EUR 10.5m in 2018) gamigo was able to face acquisitions
costs for the mentioned US assets.
The group MGI plc also carried out important acquisitions in digital media.
The acquisitions strengthened the offer in business intelligence such as
data and performance analysis and in social media marketing services such
as influencers or YouTube campaigns. Therefore, synergies are expected in
customer acquisitions, user performance analyses or offering video games
advertising space (e.g. in-game advertising) aimed at a wider panel of
potential clients.
The market for in-game virtual items has improved substantially in the last
few years. According to the agency ‘game’, the in-game purchase sector
improved by 28% from 2017 to 2018 in Germany. Video games are used almost
equally among the different age cohorts in the country, with those 50 years
old having the largest share. In free-to-play games, however, sales lie in
making virtual items important to get new contents or having more of a
chance to win the game, pushing purchase of goods and thus increasing the
payment made per player.
In Q2 2019 gamigo recorded an increase in monthly active users of 149%
(1.3m vs. 0.5m) accompanied by an increase of +1.1% in average monthly
spending per player to EUR 46.1. Basis for our organic growth assumptions
are the game updates, the launch of new games along with the social media
advertising services. We have forecasted revenues of EUR 74.46m in 2019 and
EUR 90,96m in 2020. Under our DCF valuation model, we have calculated a
stock price target of EUR 1.90, and the rating is BUY.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/19321.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) of completion: 11.11.2019 (9:42 am)
Date (time) of first distribution: 11.11.2019 (11:00 am)
——————-übermittelt durch die EQS Group AG.——————-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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