Media and Games Invest (MGI) impressively continues growth dynamics in 2019 and in the 1st quarter of 2020

June 18, 2020

Revenue increases by 157% or more than EUR 50 million to EUR 83.9 million (2019)
EBITDA increases by 80% to EUR 15.5 million (2019)
EBIT increases by 115% to EUR 5.0 million (2019)
Operating cash flow grows over-proportionately by EUR 11.3 million to EUR 16.2 million (2019)
Strong revenue and profit growth also in Q1 2020
MGI aims to continue the growth dynamics organically and through M&A (+ >30%)

18. Juni 2020 - Media and Games Invest plc ("MGI", ISIN: MT0000580101; Symbol: M8G; Basic Board, Frankfurt Stock Exchange) has strongly increased revenues, EBITDA and cash flow in 2019 and the first quarter of 2020. MGI today published its preliminary unaudited consolidated financial statements for 2019 as well as the interim report for the first quarter of 2020 and confirmed the growth dynamics of the past, based on a stringent "BUY. INTEGRATE. BUILD & IMPROVE" strategy. MGI aims to continue its average revenue growth of more than +30% annually via organic growth as well as M&A. Increasing revenues and earnings resulting from synergies within and between the media and gaming sectors will also lead to a further improvement in profitability and cash flow.

Revenues 2019 grow by 157% to EUR 83.9 million (2018: EUR 32.6 million)

The Gaming segment again grew strongly in 2019, was consolidated for the first time for the full 12-month period (previous year: 8 months) and thus showed its full revenue and EBITDA effect. In addition, MGI has considerably expanded the synergetic media segment in the second half of 2019 by value-creating bolt-on acquisitions that can be seamlessly integrated into the existing business.

EBITDA amounted to EUR 15.5 million in 2019; an increase of 80% (2018: EUR 8.7 million)

The Gaming segment has substantially improved its profitability in 2019 through revenue growth and synergies. Although the most recent acquisitions in the media sector have already led to strong revenue growth in 2019, they are not yet showing their full EBITDA potential, as the optimization and synergy effects will only become apparent in the coming quarters.

EBIT doubled in 2019 to EUR 5.0 million (2018: EUR 2.3 million)

EBIT doubled due to the strong earnings development in the Gaming segment, but the Media segment is also already making a positive contribution to EBIT.

Net result 2019 of EUR 1.3 million still burdened by purchase price allocations (PPA) and financial result (2018: EUR 1.6 million)

The positive net income declined slightly due to increased purchase price allocation and higher financial expenses as a result of the bond issues. While amortization of the purchase price of acquired companies burdens the income statement over the years, the acquisitions have a direct positive effect on cash flow.

Cash flow from operating activities tripled in 2019 to EUR 16.2 million (2018: EUR 4.9 million)

Cash flow from operating activities tripled year-on-year from EUR 4.9 million to EUR 16.2 million. This is a characteristic trend for the business model, which shows how sustainably positive the operating business is developing. At the same time, the strong operating cash flow supports the financing of new M&A transactions and forms the basis for future growth dynamics.

Positive revenue, cash flow and earnings trend continues in Q1 2020

Revenues of EUR 26.5 million; an increase of 99% (Q1 2019: EUR 13.3 million)
EBITDA of EUR 5.3 million; an increase of 40% (Q1 2019: EUR 3.8 million)
EBIT of EUR 2.1 million; an increase of 26% (Q1 2019: EUR 1.7 million)
Profit of EUR 0.1 million (Q1 2019: EUR 0.5 million)
Cash flow from operating activities of EUR 5.9 million (Q1 2019: EUR 2.5 million)

In the first quarter of 2020, the positive basic trend is accelerating: in addition to the doubling of revenues to EUR 26.5 million and the 40% increase in EBITDA to EUR 5.3 million, the more than doubled operating cash flow of EUR 5.9 million is especially remarkable. CEO Remco Westermann: "Our operating cash flow is once again increasing over-proportionally and proves our business model to be right. In the first quarter of 2020, MGI shows again that we are able to combine organic and inorganic growth and thus create value".

Remco Westermann, CEO: "2019 was another good year for us. We began our consolidation and growth path at the end of 2012 with gamigo. Now that MGI holds 99% of gamigo and is also becoming stronger in the synergetic media segment and has access to the capital markets, MGI is well prepared for further profitable growth thanks to the high operating cash flows and good access to financing options. We are very satisfied with the fact that our increased investment in organic growth has shown good results in 2019 and is expected to lead to a further increase in organic growth in 2020. With over 30 acquisitions since 2013 and the integration of these acquisitions, we have a strong track record. With a well-filled pipeline of further M&A opportunities, we expect to continue our buy and build strategy in 2020 and beyond.“

Selected key performance indicators, MGI Group:

In EUR million	FY 2019	FY 2018	Q1 2020	Q1 2019
Net Revenues	83.9	32.6	26.5	13.3
YoY Growth in revenues	157%	-	99%	-
EBITDA	15.5	8.7	5.3	3.8
EBITDA margins	19%	27%	20%	28%
Adj. EBITDA	18.1	10.1	5.9	4.5
Adj. EBITDA margins	22%	31%	22%	33%
Operational EBIT	7.8	3.8	2.8	2.2
Operational EBIT margins	6%	7%	11%	17%
Net Result	1.3	1.6	0.1	0.5

The consolidated MGI financial data for 2019 and the consolidated MGI financial data for Q1 2020 are based on IFRS. They are preliminary and unaudited. Audited annual financial statements are expected for 30.06.2020.

The reports are also available as a video on the MGI website in the section Presentations in the Investor Relations area as part of a capital market presentation, and as pdf files in the Financial Reports section in the Investor Relations area.

About Media and Games Invest plc:
Media and Games Invest plc, MGI, is a fast and profitable growing company in the synergetic digital media and online games sectors pursuing 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 30 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. 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.

Press contact:

edicto GmbH

Axel Mühlhaus / Dr. Sönke Knop

Telephone: +49 69 9055 05 51

Email: MGI@edicto.de

Issuer

Media and Games Invest plc

Sören Barz, Head of Investor Relations

St. Christopher Street 168

Valletta VLT 1467

Malta

Email: investor.relations@media-and-games-invest.com
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