EUR 160.00 For Business Accounts Only

Research Comment englisch - #Media and Games Invest plc - 07.05.2020

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, PubNative and Verve Wireless Inc. The shares of MGI are
listed in Frankfurt (XETRA) while two bonds with a total volume of EUR 75m outstanding are traded on the
NASDAQ Stockholm and Frankfurt Stock Exchange.