Media and Games Invest SE: Strong Q4 2022, 16% Total and 13% Organic Revenue Growth, 34% Adj. EBITDA Margin, Net Leverage Reduced to 2.9x, One-Off Amortization of Non-Core Games Assets and EG7 Sale

February 28, 2023 (08:00 CET) MGI - Media and Games Invest SE ("MGI" or the "Company", ISIN: SE0018538068; ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange) closes the full-year 2022 with 324.4 mEUR revenues, which is at the top end of the 315-325 mEUR range of the revenue guidance for 2022. 70% of the revenues were generated in North America and 17% in Europe. The adj. EBITDA in financial year 2022 amounted to 93.2 mEUR and is at the top end of the EBITDA guidance for 2022 of 83-93 mEUR. In addition to potential bond buybacks and subject to market conditions, a new bond issue may also be considered in order to extend the maturity profile of MGI’s outstanding debt instruments. ​

HIGHLIGHTS Q4 2022

HIGHLIGHTS FULL-YEAR 2022

SELECTED KEY PERFORMANCE INDICATORS, MGI GROUP

The Year-End 2022 report is available on MGI’s corporate website at www.mgi-se.com in the Investor Relations section. All financials are preliminary and reviewed but not audited. _​

A Word from Remco Westermann, CEO

“MGI ends the year 2022 at the high end of its increased guidance, with 324mEUR revenues and 93mEUR adj. EBITDA, reflecting a solid financial performance and profitability. Our business continued to generate significant cash flows and we reduced our net leverage to 2.9x as of 31 December 2022. In 2022, growth mainly came from new customers, we added 133 new software clients to our active portfolio, which now consists of 551 Software Clients. Existing customer cohorts were due to the market headwinds rather flat which is reflected in our net dollar expansion rate of 96% in Q4 2022. By onboarding new software clients, we were able to grow and increase our market share considerably. Regarding our own games content, we continued to shift our strategy towards games with substantial advertising income as well as access to customer data, away from smaller desktop-based PC games. As part of the portfolio streamlining, we reduced our games workforce by approximately 50 FTEs, recognized a one-time amortization in the amount of 23.6 mEUR and decided to sell our EG7 stake, which was realized in mid Q1 2023. MGI is now streamlined, more efficient than ever, ready for the future and will continue to focus on its ad-software platform supported by accretive games with a large amount of first-party data. While we expect the advertising markets to recover, we are also well-positioned to grow even in the current difficult environment, by constantly adding new software clients to our portfolio. We are eager to show further growth and value creation for our shareholders in 2023 and for many years to come.” commented Remco Westermann, CEO MGI Group.

Notes - All Notes are defined as in the Year End Report 2022 of MGI
​^{Note (1) Organic Revenue Growth: Organic revenue growth does include growth calculated on a year-over-year basis from companies being within the Company for twelve months or more. What is excluded is the revenue growth from acquisitions that have not been part of the group in the last twelve months, and the decline from sales stemming from closures / divestment of whole businesses.}

^{Note (2) Number of new software clients: software clients with gross revenues exceeding 100k USD}

^{Note (3) Adjusted EBITDA: Reported EBITDA excluding one-time costs. EBITDA adjustments amounted to 5.1 mEUR in Q4 2022 and were made largely for one-time costs M&A related costs as well as the ESOP program.}

^{Note (4) Adjusted EBITDA margin: Adjusted EBITDA as a percentage of net revenues.}

^{Note (5) Leverage ratio: Net interest-bearing debt divided by adjusted EBITDA for the past 12 months excluding shareholder and related party loans.}

^{Note (6) Adjusted EBIT: Earnings before interest and taxes excluding one-time costs and PPA-amortization resulting from M&A related purchase price allocations. For adjustments, please see footnote 3 above.}

^{Note (7) Adjusted Net result: Net result excluding PPA amortization}

^{Note (8) Net interest bearing debt: Interest bearing financial indebtedness excluding shareholder and related party loans minus cash and cash equivalents.}

^{Note (9) EBITDA: Earnings before interest, taxes, depreciation and amortization.}

^{Note (10) EBITDA margin: EBITDA as a percentage of net revenues.}

^{Note (11) Adjusted EBIT margin: Adjusted EBIT as a percentage of net revenues.}

^{Note (12) PPA-amortization: Amortization on M&A-related purchase prices which are not tax deductible.}

Invitation to investor presentation

MGI invites investors to participate in the presentation of the Year End results by Remco Westermann (CEO) and Paul Echt (CFO) on Tuesday, February 28, 2023 at 10am CET. The presentation will be held in English and will also be available on-demand on the Company’s website www.mgi-se.com.

To participate via webcast, please visit:
​https://ir.financialhearings.com/media-and-games-invest-q4-2022

To participate via phone, please call:
​SE: +46 8 505 163 86
​UK: +44 20 319 84884
​For other country participants please use (toll-free): +1 412 317 6300
​Pin code: 0436867#

Responsible parties

This press release contains inside information that MGI - Media and Games Invest SE is required to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out below, at the time stated by MGI's news distributor EQS Newswire upon publication of this press release.

For further information, please contact:

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 MGI - Media and Games Invest SE

MGI - Media and Games Invest SE (MGI) operates a fast-growing, profitable ad-software platform that matches global advertiser demand with publisher ad-supply while improving results through first party data from own games. MGI’s main operational presence is in North America and Europe. Through investments in organic growth and innovation, as well as targeted M&A, MGI has built a one-stop shop for programmatic advertising, enabling companies to buy and sell ad space across all digital devices (mobile apps, web, connected TV and digital out of home), with the mission to make advertising better. MGI is registered as Societas Europaea in Sweden (registration number 517100-0143) and its 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 two secured bonds that are 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; info@fnca.se.

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 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.