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Research Note englisch - Media and Games Invest plc - 11.05.21

Media and Games Invest plc has a profitable and growing portfolio of companies in the games and digital
media sectors. The group primarily aims to grow through acquisitions of companies, restructuring and integrating
them into one large platform. So far, this strategy has produced various synergies such as cost reductions,
leverage and economies of scale. According to management, this strategy is followed by only a few
competitors, especially in the gaming sector, leaving room for acquisitions at a favourable price. In 2021, the
following has already been achieved: 1) Acquisition of the well-known US game developer KingsIsle Entertainment
Inc, the largest acquisition to date with an additional pro-forma EBITDA of around 60.0% 2) The
acquisition of the North American connected TV platform LKQD, which has a reach of more than 200 million
end customers. In the current COVID-19 pandemic, video games have once again proven to be crisis-proof
and non-cyclical. As consumers have had more free time, demand for entertainment, and therefore video
games, has soared. Since July 2020, MGI shares have been listed on the Scale segment (previously: Basic
Board) of Deutsche Börse and since 6 October 2020, they have had a dual listing on Nasdaq First North
Premier, where many other midcap gaming companies are listed.