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Research Note englisch - Media and Games Invest SE - 05.05.22

Media and Games Invest SE is a profitable and growing company in the games and digital media sectors. In addition to the increasing focus on organic growth, strategic acquisitions of companies and their consistent integration into the group form an important cornerstone in MGI's growth strategy. 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. During the past 2021 financial year, the following were achieved: 1) Acquisition of renowned US game developer KingsIsle Entertainment Inc - the largest acquisition to date with an incremental pro forma EBITDA of approximately 60.0% 2) The acquisition of North American connected TV platform LKQD, which has a reach of more than 200 million end users, and data-targeting SaaS platform Beemray. 3) Acquisition of media companies Match2One and Smaato (additional reach: 1.30 billion users) In the current COVID-19 pandemic, which is still ongoing, video games have once again proven to be crisis-proof and non-cyclical. Since July 2020, MGI shares have been listed in the Scale segment (previously: Basic Board) of the Deutsche Börse and have had a dual listing on the Nasdaq First North Premier since 6 October 2020.