Media and Games Invest publishes Half Year Report 2021 - Strong organic revenue growth of 36% in Q2'21 while adj. EBITDA increased by 127%; intends to refinance German Bond of 25 mEUR

Disclosure of inside information according to Article 17 of the Regulation (EU) No 596/2014 (MAR)

• Strong organic revenue growth of 36% in Q2’21 (compared to Q2'20) significantly outperforms the already boosted Covid-19 financials from the previous year and confirms positive underlying trend
• Adj. EBITDA significantly increased by 127% to 28.7 mEUR in Q2'21 as a result of synergies and economies of scale in combination with further cost savings driven by integration
• Guidance for FY 2021 incl. Smaato: Revenue 234 mEUR – 254 mEUR (67% - 81% YoY growth) and adj. EBITDA 65 mEUR – 70 mEUR (123% - 141% YoY growth).
• Intends to refinance its German unsecured bond (25 mEUR) through a subsequent bond issue of its Senior secured bond of up to EUR 80 million. The remaining up to EUR 55 million are envisaged to be used for further M&A and organic growth investments. 

August 18, 2021, 08:00 CEST - 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) publishes its Half Year Report 2021 showing strong organic revenue growth of 37% with additional 56% M&A driven revenue growth in H1'21 compared to H1'20, resulting in total H1'21 revenue of 109 mEUR, and overall growth of net revenues of 93%. Profitability also more than doubled in H1’21, with adjusted EBITDA (+127%) and adjusted EBIT (+168%) growing even stronger than revenues in H1'21. The financial performance confirms the positive underlying trend and is outstanding considering the already strong numbers in the H1'20 where lockdowns due to Covid-19 resulted in a strong uplift of the revenues especially in the second quarter of 2020. Due to the strong financial performance, MGI has experienced a declining cost of capital in recent times. Therefore, the Company plans to refinance its German unsecured bond (ISIN: DE000A2R4KF3) with a volume of 25 mEUR and an interest rate of 7.00% at a price of 103% of the nominal value in October 2021 (in line with the bond's terms and conditions). For this purpose, MGI has mandated Pareto Securities to evaluate a subsequent bond issue of its Senior secured bond (ISIN: SE0015194527) of up to 80 mEUR. The remaining amount after the repayment of up to 55 mEUR are envisaged to be used for further M&A and organic growth investments. 

HIGHLIGHTS Q2 2021

• Net revenues amounted to 57.1 mEUR (Q2’20: 30.0 mEUR), which is an increase of 90%, whereof 36% have been contributed from organic growth.
• Adj. EBITDA¹ amounted to 15.3 mEUR (Q2’20: 6.7 mEUR), which is an increase of 127%.
• Adj. EBIT² amounted to 11.1 mEUR (Q2’20: 4.2 mEUR), which is an increase of 164%.
• Earnings per share (EPS) undiluted/diluted amounted to EUR 0.02 (Q2’20: EUR 0.01). EPS undiluted/diluted adjusted for PPA-amortization amounted to EUR 0.04 (Q2’20: EUR undiluted: 0.02, diluted: 0.01).

HIGHLIGHTS H1 2021

• Net revenues amounted to 109.0 mEUR (H1’20: 56.6 mEUR), which is an increase of 93%, whereof 37% have been contributed from organic growth.
• Adj. EBITDA amounted to 28.7 mEUR (H1’20: 12.7 mEUR), which is an increase of 127%.
• Adj. EBIT amounted to 20.4 mEUR (H1’20: 7.6 mEUR), which is an increase of 168%.
• Net interest-bearing debt³ as of June 30, 2021 amounted to 44.1 mEUR (December 31, 2020: 61.6 mEUR).
• Leverage ratio⁴ amounted to 1.0 as per June 30, 2021 (2.1 as per December 31, 2020) and thus remained below MGI’s target range of 2-3x leverage.
• Cash and cash equivalents amounted to 246.1 mEUR as per June 30, 2021 (December 31, 2020: 46.3 mEUR) due to the capital increase as well as a bond raise in H1 2021.

SELECTED KEY PERFORMANCE INDICATORS, MGI GROUP

In mEUR	Q2 2021	Q2 2020	H1 2021	H1 2020	FY 2020
Net Revenues	57.1	30.0	109.0	56.6	140.2
YoY Growth in revenues	90%	97%	93%	98%	67%
EBITDA5	14.5	6.3	26.6	11.6	26.5
EBITDA margins6	25%	21%	24%	21%	19%
Adj. EBITDA	15.3	6.7	28.7	12.7	29.1
Adj. EBITDA margins	27%	22%	26%	22%	21%
Adj. EBIT	11.1	4.2	20.4	7.6	17.5
Adj. EBIT margins7	19%	14%	19%	13%	12%
Net Result	3.4	0.4	5.6	0.5	2.7

SELECTED KEY PERFORMANCE INDICATORS, MGI SEGMENTS

MGI Games Segment
In mEUR			Q2 2021		Q2 2020	H1 2021	H1 2020	FY 2020
Net Revenues			28.0		18.8	55.4	32.7	75.2
YoY Growth in revenues			49%		-	69%	-	74%
EBITDA			10.2		5.3	19.6	9.8	21.4
EBITDA margins			36%		28%	35%	30%	29%
Adj. EBITDA			10.6		5.5	21.4	10.5	23.2
Adj. EBITDA margins			38%		29%	39%	32%	31%
MGI Media Segment
In mEUR			Q2 2021		Q2 2020	H1 2021	H1 2020	FY 2020
Net Revenues			29.1		11.2	53.6	23.8	65.0
YoY Growth in revenues			159%		-	125%	-	59%
EBITDA			4.4		1.0	7.0	1.8	5.1
EBITDA margins			15%		9%	13%	8%	8%
Adj. EBITDA			4.7		1.2	7.3	2.1	6.0
Adj. EBITDA margins			16%		11%	14%	9%	9%

The Half-Year Report 2021 is available on MGI's corporate website at www.mgi-se.com in the Investor Relations section.

A Word from Remco Westermann, CEO

“We are pleased to announce another strong quarter driven particularly by revenue synergies and organic growth from our Media and Games segments. In Q2 2021, MGI’s Group revenues increased by 90% to 57 m EUR (Q2’20: 30 mEUR). With 36%, the organic growth was well above plan and therefore outstanding, especially when taking into account that the second quarter last year had exceptionally strong numbers driven by positive effects of the Covid-19 pandemic. Adjusted EBITDA grew even stronger than the revenues due to the strong performance of KingsIsle in combination with overall economies of scale and increased by 127% to 15 mEUR (Q2’20: 7 mEUR). Economies of scale especially kicked in for the Media segment based on revenue growth and synergy realization, reaching 16% adj. EBITDA margin for the second quarter in 2021 (Q2’20: 11%). While we are happy to deliver outstanding growth, our capital markets activity in Q2 2021 has been equally appealing raising more than 270 mEUR in equity and debt from well-known institutional investors, which enables us to execute on our M&A pipeline and continue our path of strong M&A driven as well as organic growth.” says Remco Westermann, CEO & Chairman of the Board of Media and Games Invest SE.  

Notes - All Notes are defined as in the Half Year Report Q2 2021 of MGI

_{Note (1) Adjusted EBITDA: Reported EBITDA excluding one-time costs. EBITDA adjustments amounted to 2.1 mEUR in H1 2021 (H1'20: 1.1 mEUR) and were made for one-time M&A (legal and advisory) related costs as well as the ESOP program.}

_{Note (2) (Adjusted) EBIT: Earnings before interest and taxes excluding one-time costs and PPA depreciation. [For adjustments, please see footnote 1 above.]}

_{Note (3) Net interest bearing debt: Interest bearing Financial Indebtedness excluding Shareholder and Related Party Loans minus Cash and Cash Equivalents.}

_{Note (4) Leverage ratio: Net Interest-Bearing Debt divided by adjusted EBITDA for the past 12 months.}

_{Note (5) EBITDA: Earnings before interest, taxes, depreciation, and amortization.}

_{Note (6) EBITDA margins: EBITDA divided by Net Revenues.}

_{Note (7) Adjusted EBIT margins: Adjusted EBIT divided by Net Revenues.}

 

CAPITAL MARKETS DAY 2021

Event date
Thursday, August 19, 2021, 10.30 am CEST

Weblink
https://tv.streamfabriken.com/mgi-cmd-2021

Participant dial in number (NOTE: PIN code needed for participants)
DE: +4969222239167
SE: +46850558354
UK: +443333009030
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Participants Pin Code
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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:

Remco Westermann
Chairman of the Board and CEO
+356-203 301 64
board@mgi-se.com

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 is a digital integrated games and media company with main operational presence in Europe and North America. The company combines organic growth with value-generating synergetic acquisitions, demonstrating continuous strong, profitable growth with a revenue CAGR of 78% (2018 – LTM Q2’21). Next to strong organic growth, the MGI Group has successfully acquired more than 30 companies and assets in the past 6 years. The acquired assets and companies are integrated and amongst others cloud technology is actively used to achieve efficiency gains and competitive advantages. The Company's 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 as well as an unsecured bond listed 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][have been developed on a reasonable basis], 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.