EUR 160.00 For Business Accounts Only

Research Comment english - Media and Games Invest plc - 20.02.20

The Media and Games Invest plc (formerly Blockescene plc) is a profitable investment holding with focus on game publishing and media sectors. Since May 2018 the group has changed its business purpose, deconsolidating
the real estate business and acquiring the controlling stake in the game publishing platform gamigo AG. Currently the strategy is based on four pillars: “buy, integrate, build and improve” and is carried on with organic and non-organic growth. The business is divided into two segments: 1) game publishing, which includes a broad portfolio of online, mobile and console games and 2) digital media, related to online advertising and social marketing services for in-house games and third-party clients. The lion´s share of consolidated revenue comes from gamigo free-to-play games where users can buy goods (virtual items) for a more intensive gaming experience or successful competition. On a daily basis the group registers traffic of more than 600k users while most of the revenues (over 50%) in the core games are generated by users that have been on the platform for more than 5 years. Hence, gamigo video games usually have a long life and high customer retention. Since H1/2019 the digital media business has been strengthened with the acquisitions of the online advertisers ReachHero, Applift and PubNative. The shares of MGI are listed in Frankfurt (XETRA) while two bonds with a total volume of EUR 67m outstanding are traded on the NASDAQ Stockholm and Frankfurt Stock Exchange.