18.02.2021 / 09:46 CET/CEST: Disclosure of inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SINGAPORE, SOUTH AFRICA, SOUTH KOREA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES. PLEASE REFER TO IMPORTANT INFORMATION AT THE END OF THE PRESS RELEASE.
Media and Games Invest exceeds revenue and EBITDA targets significantly; announcement of preliminary financials for the fourth quarter and FY 2020.
18.02.2021 / 09:46 CET/CEST – Media and Games Invest plc (“MGI” or the “Company”, ISIN: MT0000580101; Ticker: M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange), accelerated its growth path in Q4 2020 and outperformed its financial targets of EUR 125-135 million revenues and EUR 23-26 million EBITDA for the financial year 2020, which were most recently uplifted in November 2020. Preliminary revenues amount to EUR 140.2 million and adj. EBITDA to EUR 29.1 million. Backed by an excellent Q4 2020 MGI was well above the upper end of the already uplifted target range with EUR 5.2 million in terms of revenue and EUR 3.1 million in terms of adj. EBITDA. Based on the average of the initial Guidance for 2020 (revenue: EUR 115-125m; EBITDA: EUR 20-23m) MGI outperformed its revenue-target by 16.8 percent and its EBITDA-target by 35.3 percent. Compared to the full financial year 2019 the revenue increased by 67 percent and the adj. EBITDA grew by 61 percent. Based on the strong operational development, MGI mandated Carnegie, Jefferies, Swedbank in cooperation with Kepler Cheuvreux and Pareto Securities to evaluate potential further equity and non-equity financing options to support further fast organic and non-organic growth.
Excellent Q4 2020: Revenue increased by 73 percent and EBITDA grew by 74 percent
Based on preliminary figures, revenue grew by 73 percent to EUR 48.7 million in Q4 2020 (Q4 2019: EUR 28.2 million) and adjusted EBITDA1 grew by 74 percent to EUR 10.1 million (Q4 2019: EUR 5.8 million).The overall revenue and EBITDA growth is also based on a continuously increasing organic growth in the media and games segment underscored by M&A-growth.
For the Financial Year ended 31 December 2020, revenue and adjusted EBITDA2 amounted to EUR 140.2 million and EUR 29.1 million, respectively. Including the pro-forma-EBITDA from KingsIsle for 2020, the adjusted pro-forma-EBITDA would amount to EUR 46.0 million.
As per 31 December 2020 net interest bearing debt3 amounted to EUR 61.6 million (31 December 2019: EUR 34.9 million) resulting in a net leverage ratio4 of 2.1, as per 31 December 2020. The net interest bearing debt adjusted for the capital increase with Oaktree and the paid purchase price payments for the KingsIsle and LKQD acquisition in January 2021 amounted to EUR 91.6 million, which leads to a net leverage ratio of 2.0 against the adjusted pro-forma-EBITDA of EUR 46.0 million.
SELECTED KEY PERFORMANCE INDICATORS, MGI Group
| In mEUR | MGI Group Q4 2020 |
MGI Group Q4 2019 |
MGI Group FY 2020 |
MGI Group FY 2019 |
||||
| Net Revenues | 48.7 | 28.2 | 140.2 | 83.9 | ||||
| YoY Growth in revenues | 73% | – | 67% | – | ||||
| Adj. EBITDA | 10.1 | 5.8 | 29.1 | 18.1 | ||||
| Adj. EBITDA margins | 21% | 21% | 21% | 22% | ||||
| EBITDA | 9.0 | 4.1 | 26.5 | 15.5 | ||||
| EBITDA margins | 19% | 14% | 19% | 19% | ||||
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| In mEUR | FY2020 (A) | Consensus | Actuals vs Consensus | FY 2020 Updated Guidance | Actual vs Updated FY’20 Guidance | Initial Guidance | Actual vs. FY’20 Initial Guidance | |||
| Net Revenues | 140,2 | 131,9 | +8,3 | +6% | 125-135 | +10.2 | +8% | 115-125 | +20.2 | +17% |
| Adj. EBITDA | 29,1 | 24,9 | +4,2 | +17% | 23-26 | +4.6 | +19% | 20-23 | +7.6 | +35% |
All financials are preliminary and not reviewed by the auditor nor audited. MGI expects to publish its unaudited Year-End-Report on 25 February 2021.
Note (1) EBITDA: Earnings before interest, taxes, depreciation and amortization.
Note (2) Adjusted EBITDA: Reported EBITDA excluding one-time costs
Note (3) Net interest bearing debt: Interest bearing Financial Indebtedness excluding Shareholder and Related Party Loans minus Cash and Cash Equivalents
Note (4) Net leverage ratio: Net Interest Bearing Debt divided by adjusted EBITDA for the past 12 months excluding Shareholder and Related Party Loans
Responsible parties
This information is such information Media and Games Invest plc 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:
Remco Westermann
Chairman of the Board and CEO
+49 40 411 885206
Sören Barz
Leiter Investor Relations
+49 170 376 9571
[email protected], [email protected]
www.mgi.group
Jenny Rosberg, ROPA, IR contact Stockholm
Phone: +46707472741
Mail: [email protected]
Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
Phone: +49 69 9055 05 51
Mail: [email protected]
About Media and Games Invest plc
Media and Games Invest plc (MGI), is a fast-growing and profitable company operating in the digital games sector with a strong supportive media unit and a focus on North America & EMEA. The company combines organic growth with value-accretive acquisitions, delivering strong and sustainable earnings growth. Since 2014 the MGI Group has successfully acquired well over 30 companies and assets which are integrated onto our platform, exploiting efficiency-enhancing technologies such as the cloud. The Company’s shares are listed on Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The Company also has a bond 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; [email protected], +46-8-528 00 399.
Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in the Company in any jurisdiction, neither from MGI nor from someone else.
This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act“), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into Australia, Hong Kong, Japan, Canada, New Zeeland, Singapore, South Africa, the United States or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.
This announcement is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation“) and has not been approved by any regulatory authority in any jurisdiction. MGI has not authorized any offer to the public of shares or other securities in any member state of the EEA and no prospectus has been or will be prepared in connection with the directed share issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.
In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order“); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.
This press release does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the new shares. Any investment decision in connection with the directed share issue must be made on the basis of all publicly available information relating to the Company and the Company’s shares. Such information has not been independently verified by Pareto Securities AB. Pareto Securities AB acting for the Company in connection with the transaction and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the transaction or any other matter referred to herein.
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This press release does not constitute an invitation to warrant, subscribe, or otherwise acquire or transfer any securities in any jurisdiction. This press release does not constitute a recommendation for any investors’ decisions regarding the directed share issue. Each investor or potential investor should conduct a self-examination, analysis and evaluation of the business and information described in this press release and any publicly available information. The price and value of the securities can decrease as well as increase. Achieved results do not provide guidance for future results. Neither the contents of the Company’s website nor any other website accessible through hyperlinks on the Company’s website are incorporated into or form part of this press release.
Forward-looking statements
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company 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 press release 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 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 press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press 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 press release, unless it is not required by law or Nasdaq Stockholm’s rule book for issuers.
Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II“); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements“), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in MGI have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment“). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in MGI may decline and investors could lose all or part of their investment; the shares in MGI offer no guaranteed income and no capital protection; and an investment in the shares in MGI is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the directed share issue. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Pareto Securities AB will only procure investors who meet the criteria of professional clients and eligible counterparties.
For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in MGI.
Each distributor is responsible for undertaking its own target market assessment in respect of the shares in MGI and determining appropriate distribution channels.