Interim / Quarterly Report • Aug 31, 2023
Interim / Quarterly Report
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MGI - MEDIA AND GAMES INVEST GROUP "MGI"
"In the second quarter we were able to further increase our market share and improve our market position, driven by AI targeting products like Moments.AI which drove strong results for our advertisers and publishers. Our strong foundation has improved quarter-over-quarter, underscored by the fact that despite macro headwinds we grew year-over-year ad impressions by 13% and our number of Software Clients by 9%. In the light of this, we are navigating the cycle very well. In the second quarter, revenues amounted to EUR 76.2m, representing a positive FX-adjusted organic growth rate of 1% while total revenue adjusted for divestments and FX headwinds increased 3% year-over-year. Reported revenue unadjusted for these events declined by 2%. Yearover-year, our adjusted EBITDA was stable with EUR 21.3m, representing an improved margin of 28% underscoring our strong cost control. While organic growth is positive, it is limited and is expected to also be lower in H2 2023 than earlier expected. Consequently, we remain cautious for the rest of the financial year 2023 and guide on stable year-over-year revenues in the amount of approx. EUR 303m adjusted for divestments in the amount of approximately EUR 9m and FX headwinds in the amount of approximately EUR 12m with a stable adjusted EBITDA of EUR 93m. To mitigate the lower organic growth, in Q3 2023 we initiated an annual EUR 10m cost saving program, enabled by the achieved technical optimizations in the last periods. This will allow us to further increase our robust cashflow and decrease leverage. While we face short-term headwinds resulting from reduced advertising budgets, our mid-term outlook remains positive. Based on historic information, marketing budgets are cut fast in times of uncertainty and economic downturns, but also recover speedily when economic signals become more positive. Based on our improved market position and our unmatched offerings, we have a very strong foundation to grow and profit from the upcoming economic tailwinds which are expected for 2024," commented Remco Westermann, CEO of MGI Group.
| In mEUR | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | FY 2022 |
|---|---|---|---|---|---|
| Net Revenues | 76.2 | 78.1 | 144.9 | 143.9 | 324.4 |
| Y-o-Y Growth in Revenues | -2% | 37% | 1% | 32% | 29% |
| EBITDA | 20.0 | 20.0 | 37.4 | 36.9 | 84.8 |
| EBITDA Margins | 26% | 26% | 26% | 26% | 26% |
| Adj. EBITDA | 21.3 | 21.1 | 40.4 | 38.6 | 93.2 |
| Adj. EBITDA Margins | 28% | 27% | 28% | 27% | 29% |
| Adj. EBIT | 16.6 | 16.4 | 31.7 | 29.9 | 76.6 |
| Adj. EBIT Margins | 22% | 21% | 22% | 21% | 24% |
| Adj. Net Result | 4.0 | 6.4 | 7.0 | 12.0 | 21.1 |
| Adj. Net Result Margins | 5% | 8% | 5% | 8% | 6% |
"Dear Shareholders,
Today we provide you with an update on our Company's performance over the past quarter, and more importantly, want to - despite navigating short-term macroeconomic sector headwinds- reiterate our steadfast commitment to our long-term strategy. While there is lower organic revenue growth due to reduced advertiser budgets, it is a strategic time to gain market share and drive innovation.
In the second quarter we were able to further increase our market share and improve our market position, driven by our AI targeting products like Moments.AI which drove strong results for our advertisers and publishers. Our strong foundation has improved quarter-over-quarter, underscored by the fact that despite macro headwinds we grew year-over-year ad impressions by 13% and our number of Software Clients by 9%. We also improved our market share for In-App advertising. While we already were the leading player on Android, since Q2 2023 we have also been the leading player on IOS in North America as well as in Europe. The growth in market share, media volume and customers continues to provide further proof of our products' appeal and reflects a stronger base to build from in the coming periods.
Despite the strong operational developments, the world around us proves to be more depressed and having more impact on our business than we earlier expected, which results in lower organic growth for MGI. Advertising budgets show negative volume as well as pricing effects due to the macro environment and are expected to remain low for the second half of 2023. Additionally, the stronger than expected EUR vs USD appreciation has impacted our revenues due to 70% of the Company's revenues being generated in North America.
In the light of this, we are navigating the cycle very well. In the second quarter, revenues amounted to EUR 76.2m, representing a positive FX-adjusted organic growth rate of 1% while total revenue (adjusted for divestments and FX headwinds) increased 3% year-over-year. Reported revenue unadjusted for these events declined by 2%. Yearover-year, our adjusted EBITDA was stable with EUR 21.3m, representing an improved margin of 28% underscoring our strong cost control.
The world around us has changed, and as such, we also must adopt our expectations. While we are used to high organic growth levels of 38% in 2021 and 18% in 2022 and an even higher average revenue growth rate of 64% for the period 2018-2022, we see much lower organic growth during 2023. While organic growth is positive, it is limited and is expected to also be lower in H2 2023 than earlier expected. Consequently, we remain cautious for the rest of the financial year 2023 and guide on stable year-over-year revenues in the amount of approx. EUR 303m adjusted for divestments in the amount of approximately EUR 9m and FX headwinds in the amount of approximately EUR 12m with a stable adjusted EBITDA of EUR 93m.
To mitigate the lower organic growth, we initiated in July 2023 an annual EUR 10m cost saving program, enabled by the achieved technical optimizations in the last periods. This will allow us to further increase our robust cashflow and decrease leverage. We expect main effects of these cost reductions from Q4 onwards.
While we face short-term headwinds based on reduced budgets of advertisers, our mid-term outlook remains positive. Based on historic information, marketing budgets are cut fast in times of uncertainty and economic downturns, but also recover speedily when economic signals become more positive. Based on our improved market position and our strong offering, we have a very strong foundation to grow and profit from the upcoming economic tailwinds which are expected for 2024.
Driving cost efficiency via (i) integrations of acquired companies and (ii) via increased scale based on organic growth, has always been a key part of our strategy.
We are also continuously working on efficiency improvements and cost reductions. At the end of last year, we decided to implement a strategic clean-up of our games portfolio and discontinued several smaller and nonstrategic games, which, even though losing revenues, led to a positive effect on our bottom line.
In the past few years we have also been working on deprecating and integrating ad-platforms we acquired. Based on reduced technical complexity and clearer focus on our main growth drivers, but also taking into account current lower speed of growth of advertising, we have decided to reduce our cost by EUR 10m p.a. primarily based on reducing our headcount. We expect main effects of these cost reductions from Q4 onwards.
We will continue to work on becoming even more efficient as this increases our competitive position as well as our profitability and ability to further invest in the future. To give a few other examples, with our geographic team locations, we focus on a good balance between teams in the countries where we generate our revenues and countries with lower labor cost, such as India and the Philippines. Additionally, further infrastructure savings are possible. After tests in the previous 12 months we are now moving substantial volumes from cloud-based to a much more efficient hybrid set-up. Automation and AI are also key in furthering efficiency gains and revenue growth.
In just four years, through M&A, organic growth and innovation, we have become a global leader in the adtech industry. We take immense pride in our positions in mobile in-app, where we are now the leading open internet player in the U.S. as well as Europe for Android and IOS. We are also very proud that we were able to further grow the media volume of our strong position in the CTV market - ad-tech's current strongest growth market - with 34% in Q2 2023.
We understand the intricacies of advertising as publishers and advertisers ourselves, based on our strong roots, and also being a games publisher. This knowledge grants us a unique edge, setting us apart from the competition, and also enabling faster testing cycles, being able to offer unique advertising inventory as well as having access to substantial proprietary opt-in data. Based on our gaming foothold and M&A experience, we have built a vertically integrated multichannel programmatic advertising platform.
Substantial growth opportunities are those where we can make use of disruptions of the advertising environment, such as the deprecation of identifiers and overcoming these changes with AI routines using our strong data footprint. For many years, we have already had a strong focus on this opportunity, by developing AI-driven targeting products such as Moments.AI. In a benchmarking exercise (conducted by TPA Digital) comparing Moments.AI with other leading AI targeting solutions, the results were astounding. Moments.AI outperformed the competition by a factor of 36 when targeting new, contextual media. By adding the roq.ad identity graph to our ad-tech platform, we added additional targeting capabilities for advertisers to the Verve ecosystem. These AI investments will enable further organic growth in the coming periods despite macro headwinds and we see already positive developments in Q3 2023.
Our journey thus far has been guided by strategic investments in the future, laying the foundation for where we stand today. We remain steadfast in our belief that investments in cutting-edge AI technology and talented minds are paramount for long term sustainable and profitable growth.
We are committed to our long-term strategy and focus on what is within our control. The rise of our software customers and increased media volumes positions us strategically for the impending resurgence of advertising budgets - a catalyst that will drive in combination with our AI routines our organic growth forward. Rest assured, the fruits of our visionary strategy will materialize in due time."
Remco Westermann
CEO of MGI
| in kEUR | Q1 2023 | Q2 2023 | H1 2023 |
|---|---|---|---|
| EBITDA | 17,426 | 19,985 | 37,411 |
| Personnel expenses | 937 | 672 | 1,609 |
| Legal and Advisory costs | 692 | 230 | 923 |
| Other Expenses / Income | 0 | 409 | 409 |
| Adj. EBITDA | 19,055 | 21,297 | 40,352 |
Jounce Media released a benchmarking report that collected supply chain data across more than 1.3 million websites, 720,000 mobile apps, and 36,000 connected TV apps to more deeply understand the ways in which buyers and sellers transact with one another. The report showed that Verve Group is the leader in providing premium mobile app supply, ensuring quality ad experiences at a lower cost.
Jounce Media also showed how and where Verve Group ranked in quality CTV supply. The report showed how Verve Group's CTV quality is better than the competitive set with identical reach.
Jounce Media is one of ad tech's most authoritative voices in programmatic supply chain management. It is trusted by the world's largest marketers, media companies, and advertising technology platforms to enable high efficiency programmatic trades.
In Pixalate's Mobile Sell-Side Platform Market Share Q2 2023 Report, Verve Group led the entire North American market for both Google and Apple App Stores. This comes on the heels of Pixalate's Mobile Sell-Side Platform Market Share Q1 2023 Report showing Verve Group leading North America with 12% market share for Android apps and EMEA with 13%.
Pixalate's global ad fraud intelligence and marketing compliance platform helps prevent invalid traffic and improve ad inventory quality. Anyone who's anyone in ad tech sees Pixalate's SSP Market Share Reports — they rank programmatic advertising sell-side platforms (SSPs) by estimated market share for key CTV and mobile platforms.
To verify Verve Group's Moments.AI™ contextual ad targeting capability, TPA Digital conducted an independent test comparing it with two leading providers. The test involved a 24-hour campaign targeting fresh sports-related content in the UK and Germany. It measured the proportion of impressions displayed on sports-related URLs and the percentage of impressions delivered on URLs published on the same day.
Using Moments.AI™, TPA Labs discovered an impressive 96% of impressions being effectively delivered on URLs published on the very same day of the campaign. This strongly outperformed the alternative vendor segments, meaning TPA Labs can independently verify Verve Group's initial claims.
Moments.AI™ delivered 85.9% of impressions on sports-related URLs, while only 4.6% and 4.3% of impressions delivered by the two other vendors appeared alongside articles classified as sports content.
When analyzing these metrics together (% of impressions served on sports-related URLs and % of URLs published on the same day), Verve Group outperformed the leading market alternatives by 36x.
No event signals more about what is happening within the creative, advertising and technology sectors than the collective that is the Cannes Lions Festival of Creativity. Perhaps more than ever, the global advertising community came together riding a wave of anticipation and desire to see how brands, publishers and technology providers were thinking about such topics as sustainability, diversity, equity and inclusion (DEI) and (for what seems like an ongoing topic of conversation) the eventual depreciation of third-party cookies. Verve Group took full advantage of addressing these topics–and a whole lot more.
Verve Group executed the Company's largest integrated marketing program ever executed for one event, driven by thought leadership, sales enablement, thought-provoking and user-driven content and entertainment. The Verve Group team, led by its executive leadership, strategists and business development leads, hosted many current and prospective clients and partners, including:
Verve partnered with Getty Images to accentuate its partnership around Visual Intent to host "The Art of Data Launch Party" that included two panel discussions led by the editor-in-chief and senior technology writer of DIGIDAY to address changing dynamics around the moments that matter to brands and their consumers.
Verve hosted a more casual gathering with MGI's new sustainability measurement partner, Cedara, to give marketers and publishers alike a fresh perspective on why it matters to measure one's carbon footprint. Verve hosted the Association of National Advertisers' Alliance for Inclusive and Multicultural Marketing for a conversation on harnessing DEI's power presented by today's empowered diverse consumers. And, as a first-of-its-kind launch for Verve Group, Verve created "The Art of Data", a Web-based app (found at https://theartofdata.verve.com) designed to capture the spirit and the feelings of Cannes attendees. A user answers questions about one's feelings, style at the very moment he or she is answering them, using a series of curated images. Those images are then "processed" into a piece of abstract art that one can "name" and placed in a gallery that was featured throughout Cannes. THE VERVE GROUP PARTNERS WITH ROQAD In June 2023, The Verve Group Europe engaged Roqad (www.roq.ad), an identity resolution provider, to help Verve to enlarge their addressable audiences in North America, Europe and the United Kingdom, using probabilistic identity graphs and data. The engagement with Roqad adds additional capabilities to Verves ad-tech ecosystem. Companies use identity graphs for improving marketing attribution, audience
In Q2 2023 many new publishers were onboarded, including brands with a global scale that will stimulate Verve Group's strategy of connecting with gaming properties. Among the new publisher brands joining the portfolio of publishers include Erold (a French digital media group company publishing news, videos, and articles about such topics as health and finance), Forza Football (a publisher focused on creating content and community around football), Homa Games (a Paris-based gaming technology lab), MediaNews Group (a leader in North America local newspaper publishing), IdeaSolutions (an Italian-based productivity app provider), El Universal (one of Mexico's oldest media houses, with news focused on the needs of customers in Latin America), LovetoKnow (a popular lifestyle publisher with more than 10 million monthly unique users), Grocery TV (a North American publisher focused on in-store advertising for grocery stores), WeWard (an app that turns one's walking into rewards), FunCraft Games (a San Francisco-based publisher of word games) and Kuaishou – the primary competitor of TikTok.
extension, online ad campaign performance enhancement and customer analytics. Data onboarding allows companies to connect audiences across devices at scale in a GDPR- and CCPA-compliant way.
After successful migration of the European player accounts from previous partner, KingsIsle was able to start its own publishing and marketing activities in Europe. Already in the first few weeks, the European market was the largest growth market (by percentage) for Wizard 101 and Pirate 101. It is expected that the positive trend will continue in the coming months and with the activation of additional countries for Wizard 101 on STEAM, the user numbers will further increase. The planned support of the Steam Deck makes Wizard 101 one of the first MMOs on this platform and would therefore be playable on the go.
To increase user activity and in-game time in the game "Extreme Car Driving Simulation", MGI's Mobile Games studio AxesInMotion is working on a multiplayer feature. The new game mode is to be released before the end of this year. This is expected to significantly increase the number of game sessions, which will lead to higher revenues. With the introduction of this social component, friends of existing players are encouraged to download the game as well in order to compete against each other. With the development of the multiplayer component, the technical competence in the team will be increased accordingly, from which further developments will benefit.
On April 28, MGI - Media and Games Invest SE published its Annual Report 2022 including the audited consolidated financial statement for the fiscal year 2022, and the audited Governance Report 2022. Furthermore, the Company publishes its Sustainability Report for the year 2022. Both the Annual Report and the Sustainability Report are available on MGI's website.
On May 12, 2023 – MGI - Media and Games Invest SE prepared a prospectus which was approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) (the "SFSA") and published by the Company. MGI furthermore applied for listing of its 2027 Bonds on the Corporate Bond List on Nasdaq Stockholm (regulated market).
On June 07, 2023 MGI - Media and Games Invest SE announced the appointment of Prasanna Prasad as Chief Technical Officer (CTO) of its advertising software platform, Verve Group. With nearly 20 years of relevant engineering and technology experience, Prasanna will be responsible for shaping the strategy for Verve Group's portfolio of technology services. Throughout his career, Prasanna has been recognized for his efforts in building large-scale platforms and shaping winning technology-led business strategies. Prior to joining Verve Group, Prasanna served as Chief Technology Officer and Head of Data Sciences at InMobi, where he led a team of over 300 engineers and technologists across North America, the U.K. and India. While at InMobi, he spearheaded the technology strategy for InMobi's Advertising Cloud and platforms, growing the InMobi SSP and DSP into fully fledged business units.
On June 14, 2023 MGI – Media and Games Invest SE signed a liquidity provider agreement with Kepler Cheuvreux effective August 1, 2023. In its assignment as liquidity provider, Kepler Cheuvreux will trade in the Company's shares by continuously placing trading orders on the buy- and sell-side in the order book. This is in accordance with Nasdaq First North Growth Market rulebook regarding liquidity providers and means that the liquidity provider quotes the bid and ask price at a volume corresponding to at least SEK 15,000 with a spread of a maximum of 4% between the buy and sell price. The purpose of the liquidity provider is to improve the liquidity of the Company's share and reduce the spread between the bid and ask price during ongoing trading.
On June 30, 2023 MGI - Media and Games Invest SE held its Annual General Meeting for the year 2022. At the annual general meeting were resolved, among other things, adoption of income statements and balance sheets, re-election of Tobias M. Weitzel, Elizabeth Para, Mary Ann Halford, Remco Westermann, Franca Ruhwedel and Johan Roslund as board members, re-election of Deloitte Sweden AB as auditor as well as an authorization for the board of directors to resolve on issues of shares, warrants and convertibles.
MGI has the strong belief that business is not just about products or numbers; MGI as a company needs to be aware of its actions and take initiative in terms of sustainability. As a company, MGI wants to grow long-term and this can only be achieved if the Company grows sustainably. Acting sustainably and running a successful business is a continuous process and should run-hand-in hand. MGI is committed to fulfill its role towards a more sustainable world. MGI has developed five sustainability priorities: "Diversity and fair play in our products and services", "Providing data protection and security ", "A great team and an inspiring workplace ", "Working towards a greener future" and "Corporate Governance". In quarterly reports, MGI frequently gives its stakeholders short updates about recent events during the quarter while the sustainability report, which is published alongside the annual report, gives a more comprehensive view of the whole year.
On June 14, 2023 MGI - Media and Games Invest SE announced that it has partnered with Cedara as its global sustainability partner. Cedara will be supporting MGI to comprehensively measure its emissions. Sustainability has been an important goal for MGI for many years, with MGI achieving carbon neutrality through carbon reductions as well as compensation of emissions. Together with Cedara, MGI and its leadership would like to build on what has been achieved and continue to work on where and how energy output can be reduced.
On May 31, 2023 MGI - Media and Games Invest SE published its guidance for the fiscal year 2023. On August 31, 2023 MGI - Media and Games Invest SE published its updated guidance for the fiscal year 2023.
| FY 2022 | Normalized FY20221 |
Guidance FY 2023 |
Updated Guidance FY 2023 |
|
|---|---|---|---|---|
| Revenue (in €m) | 324 | 3031 | 335-345 | At Normalized |
| Growth | 29% | 20%1 | 3-7% | 2022 levels2 |
| Adj. EBITDA (in €m) | 93 | 93 | 95-105 | At 2022 |
| Growth | 31% | 31% | 2-13% | levels |
Note (1): Normalized revenue performance for divestments and fx (2) Compared to normalized revenue of 2022.
The world around us has changed, and as such we also must adopt our expectations. While we are used to high organic growth levels of 38% in 2021 and 18% in 2022 and an even higher average revenue growth rate of 64% for the period of 2018 - 2022 we expect lower organic growth during 2023 and therefore expect revenues1 and adj. EBITDA at 2022 levels. To mitigate the lower organic growth, in Q3 2023 we initiated an annual EUR 10m cost saving program, enabled by the achieved technical optimizations in the last periods. Depending on the overall macroeconomic development, advertising spend might also develop more positively, which provides an upside to the conservative Updated Guidance.
On July 12, 2023 MGI - Media and Games Invest SE announced that Ionut Ciobotaru decided to step down as Chief Product Officer (CPO) of MGI and depart the Company. Ionut joined MGI in 2019 with the Company's acquisition of PubNative, which was founded by Ionut in 2014. After the acquisition, Ionut became co-CEO of Verve Group and was appointed CPO of MGI in 2022. After nearly 10 years of intense focus and successful growth, Ionut has decided to step back in order to take time to recharge, after which he plans to reenter the start-up landscape. Ionut's day-to-day responsibilities will be assumed by Sameer, CEO of Verve and CRO of MGI, and Prasanna Prasad, CTO of Verve. The transition in leadership is expected to occur seamlessly, and MGI will maintain its current direction and plans for innovation and growth.
On August 08, 2023 MGI - Media and Games Invest SE invited investors, analysts, and the media to its Capital Markets Day ("CMD") which will take place on Thursday, 31 August 2023 at 10:00 CEST. The aim of the Capital Markets Day is to provide an update on MGI's strategy and a deeper insight into current developments within the programmatic advertising business and MGI's positioning. To this end, there will be presentations from Company representatives as well as presentations from external experts. The results for the second quarter of 2023 will also be presented during the CMD. The Capital Markets Day will be broadcast as a videocast and can be accessed via the following link: https://ir.financialhearings.com/ media-and-games-invest-cmd-2023/register. Further information, including the full agenda, will be made available before the event.
| in kEUR | Notes | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | FY 2022 |
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Net revenues | 9 | 76,179 | 78,059 | 144,933 | 143,930 | 324,444 |
| Own work capitalized | 6,381 | 6,609 | 13,637 | 13,133 | 28,928 | |
| Other operating income | 1,028 | 6,502 | 2,385 | 11,682 | 23,206 | |
| Total Income | 83,588 | 91,170 | 160,955 | 168,744 | 376,578 | |
| Operating Expenses | ||||||
| Services purchased & other operating expenses | 10 | -44,585 | -53,655 | -85,127 | -97,039 | -215,619 |
| Personnel expenses | 11 | -19,018 | -17,475 | -38,418 | -34,793 | -76,207 |
| Total operating expenses | -63,603 | -71,130 | -123,545 | -131,833 | -291,825 | |
| EBITDA | 19,985 | 20,039 | 37,411 | 36,911 | 84,753 | |
| Depreciation and amortization | 12 | -7,170 | -8,069 | -13,547 | -15,163 | -58,135 |
| Thereof: PPA Amortization | -2,454 | -3,332 | -4,933 | -6,459 | -41,490 | |
| EBIT | 12,815 | 11,971 | 23,863 | 21,749 | 26,618 | |
| Financial result | -12,737 | -7,735 | -23,197 | -14,365 | -37,959 | |
| EBT | 78 | 4,235 | 667 | 7,384 | -11,341 | |
| Income Taxes | 1,424 | -1,204 | 1,408 | -1,810 | -9,064 | |
| Net Result | 1,502 | 3,031 | 2,075 | 5,573 | -20,405 | |
| of which attributable to non-controlling interest | -242 | -17 | -494 | -14 | -88 | |
| of which attributable to shareholders of the parent company |
1,744 | 3,048 | 2,569 | 5,587 | -20,317 | |
| Add-back of PPA-Amortization | 2,454 | 3,332 | 4,933 | 6,459 | 41,490 | |
| Adj. Net Result | 3,956 | 6,364 | 7,008 | 12,033 | 21,085 | |
| Earnings per share | 0.01 | 0.02 | 0.01 | 0.04 | ||
| Undiluted | 0.01 | 0.02 | 0.01 | 0.04 | -0.13 | |
| Diluted | 0.02 | 0.04 | 0.04 | 0.08 | -0.13 | |
| Undiluted (adjusted) | 0.02 | 0.04 | 0.04 | 0.08 | 0.13 | |
| Diluted (adjusted) Average number of shares |
0.12 | |||||
| Undiluted | 159,249 | 156,410 | 159,249 | 153,064 | 156,182 | |
| Diluted | 177,449 | 156,410 | 177,449 | 153,064 | 174,382 |
| in kEUR | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | FY 2022 |
|---|---|---|---|---|---|
| Consolidated profit / loss | 1,502 | 3,031 | 2,075 | 5,573 | -20,405 |
| Items that will be reclassified subsequently to profit and loss under certain conditions: |
|||||
| Exchange differences on translating foreign operations | 1,006 | 20,898 | -6,255 | 25,798 | 11,191 |
| Gain / Loss of financial assets | 0 | -3,853 | -132 | -13,447 | -6,392 |
| Gain / Loss of hedging instruments | 2,651 | 0 | 893 | 0 | 545 |
| Other comprehensive income, net of income tax | 3,657 | 17,045 | -5,494 | 12,302 | 5,345 |
| Total comprehensive income | 5,159 | 20,076 | -3,419 | 17,924 | -15,061 |
| Attributable to: | |||||
| Owners of the Company | 5,401 | 20,093 | -2,925 | 17,938 | -14,972 |
| Non-controlling interests | -242 | -17 | -494 | -14 | -88 |
| in kEUR | Notes | 30 Jun 23 | 31 Dec 22 |
|---|---|---|---|
| Intangible assets | 4, 5 | 799,452 | 791,284 |
| Property, plant and equipment | 5,008 | 5,522 | |
| Financial assets and other assets | 12,530 | 26,831 | |
| Long-term assets | 816,990 | 823,637 | |
| Trade and other receivables | 78,392 | 71,030 | |
| Cash and cash equivalents | 107,591 | 149,992 | |
| Short-term assets | 185,984 | 221,022 | |
| Total assets | 1,002,974 | 1,044,659 | |
| Equity attributable to shareholders of the parent company | 8 | 320,794 | 322,956 |
| Non-controlling interest | -1,600 | -1,211 | |
| Total equity | 319,194 | 321,745 | |
| Long-term liabilities | 6 | 497,422 | 503,443 |
| Short-term liabilities | 7 | 186,358 | 219,471 |
| Total liabilities and equity | 1,002,974 | 1,044,659 |
| Common stock | Share Premium |
Capital reserves |
Retained earnings incl. Profit of the year |
Amounts recognised directly in equity |
Shareholders' equity attributable to owners of the parent |
Non controlling interests |
Total shareholders' equity |
||
|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Amount | Amount | Amount | Amount | Amount | Amount | Amount | |
| thousands | kEUR | kEUR | kEUR | kEUR | kEUR | kEUR | kEUR | kEUR | |
| Balance at 1 Jan 2022 | 149,680 | 149,680 | 84,571 | 53,141 | 21,678 | -1,637 | 307,434 | 59 | 307,492 |
| Consolidated profit | -20,317 | -20,317 | -88 | -20,405 | |||||
| Other comprehensive income | 5,345 | 5,345 | 5,345 | ||||||
| Total comprehensive income | -20,317 | 5,345 | -14,972 | -88 | -15,061 | ||||
| Capital increases | 9,569 | 9,569 | 18,947 | 28,516 | 28,516 | ||||
| Addition of non-controlling interests due to acquisition of projects |
0 | -1,182 | -1,182 | ||||||
| Other Equity reserves regarding IFRS 2 | 1,978 | 1,978 | 1,978 | ||||||
| Balance at 31 December 2022 | 159,249 | 159,249 | 103,518 | 55,119 | 1,362 | 3,708 | 322,956 | -1,211 | 321,745 |
| Balance at 1 Jan 2023 | 159,249 | 159,249 | 103,518 | 55,119 | 1,362 | 3,708 | 322,956 | -1,211 | 321,745 |
| Consolidated profit | 2,569 | 2,569 | -494 | 2,075 | |||||
| Other comprehensive income | -5,494 | -5,494 | 8 | -5,486 | |||||
| Total comprehensive income | 2,569 | -5,494 | -2,925 | -486 | -3,411 | ||||
| Capital increases | 0 | 0 | |||||||
| Acquisition of subsidiaries | 0 | 97 | 97 | ||||||
| Other Equity reserves regarding IFRS 2 | 759 | 759 | 759 | ||||||
| Other Reserves from Hedging Instruments | 0 | 0 | |||||||
| Other Equity reserves | 4 | 4 | 4 | ||||||
| Balance at 30 Jun 2023 | 159,249 | 159,249 | 103,518 | 55,879 | 3,930 | -1,782 | 320,794 | -1,600 | 319,194 |
| in kEUR | Notes | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | FY 2022 |
|---|---|---|---|---|---|---|
| Cash flow from operating activities (before change in WC) |
20,771 | 18,532 | 38,493 | 34,308 | 78,936 | |
| Change in working capital | -7,655 | 2,815 | -34,041 | 3,336 | 55,284 | |
| Cash flow from operating activities | 13,116 | 21,347 | 4,452 | 37,644 | 134,220 | |
| Cash flow from investing activities | -24,036 | -116,574 | -15,743 | -149,433 | -176,672 | |
| Cash flow from financing activities | -11,497 | 92,988 | -31,110 | 57,030 | 12,288 | |
| Cash flow for the period | -22,417 | -2,239 | -42,401 | -54,759 | -30,164 | |
| Cash and cash equivalents at the beginning of the period |
130,008 | 127,635 | 149,992 | 180,156 | 180,156 | |
| Cash and cash equivalents at the end of the period |
107,591 | 125,397 | 107,591 | 125,397 | 149,992 |
| in kEUR | Notes | Q2 2023 | Q2 2022 | H1 2023 | H2 2022 | FY 2022 |
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Net revenues | 126 | 253 | 206 | 253 | 253 | |
| Other operating income | 60 | 9 | 167 | 9 | 1,324 | |
| Total Income | 186 | 262 | 373 | 262 | 1,577 | |
| Operating Expenses | ||||||
| Services purchased & other operating expenses |
-5,790 | -5,825 | -7,178 | -7,073 | -14,784 | |
| Personnel expenses | -480 | -354 | -955 | -892 | -3,125 | |
| Total operating expenses | -6,270 | -6,179 | -8,133 | -7,965 | -17,909 | |
| EBITDA | -6,084 | -5,917 | -7,761 | -7,703 | -16,332 | |
| Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |
| EBIT | -6,084 | -5,917 | -7,761 | -7,703 | -16,332 | |
| Financial result | -5,978 | -1,148 | -9,853 | -2,819 | -7,910 | |
| EBT | -12,062 | -7,065 | -17,613 | -10,522 | -24,242 | |
| Income Taxes | 0 | 0 | 0 | 0 | 0 | |
| Net Result | -12,062 | -7,065 | -17,613 | -10,522 | -24,242 |
| in kEUR Note |
30 Jun 23 | 31 Dec 22 |
|---|---|---|
| Intangible assets | 0 | 0 |
| Property, plant and equipment | 0 | 0 |
| Financial assets and other assets | 308,860 | 314,925 |
| Long-term assets | 308,860 | 314,925 |
| Trade and other receivables | 256,658 | 296,763 |
| Cash and cash equivalents | 31,290 | 12,147 |
| Short-term assets | 287,947 | 308,909 |
| Total assets | 596,808 | 623,834 |
| Equity attributable to shareholders of the parent company | 210,336 | 227,323 |
| Non-controlling interest | 0 | 0 |
| Total equity | 210,336 | 227,323 |
| Long-term liabilities | 382,482 | 390,958 |
| Short-term liabilities | 3,989 | 5,554 |
| Total liabilities and equity | 596,808 | 623,834 |
The interim financial information for the Group for the three-month period ended June 30, 2023 has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act and RFR 2 Reporting for legal entities and other statements issued by the Swedish Financial Reporting Board. In all respects other than those described below, the Company has presented the financial statements for the period ended June 30, 2023 in accordance with the accounting policies and principles applied in the Annual and Sustainability Report 2022. The description of these principles and definitions are found in Note 1 in the Annual and Sustainability Report 2022. Disclosures as required by IAS 34 p. 16 A are presented both in the financial statements and notes as well as in other parts of the interim report.
The new and amended IFRSs applicable from January 1, 2023 have no effects to the Company's financial reports for the six-month period ended June 30, 2023.
The consolidation scope of the unaudited condensed consolidated financial statements as of June 30, 2023 changed compared to the audited consolidated financial statements as of December 31, 2022, for the following transactions and entities:
For further information please refer to the Interim Report Q1 2023.
Under IFRS 8, on the basis of the internal reporting, operating segments are to be defined across group divisions that are subject to a regular review by the Chief Operating Decision Maker of the Company with respect to decisions on the allocation of resources to these segments and the assessment of segment performance. Information reported to the Chief Operating Decision Maker for the purposes of resource allocation and assessment of segment performance is focused on the two segments of Demand Side Platform (DSP) and Supply Side Platform (SSP). Following the transformation from a games company towards an Advertising Software Platform with strong access to first-party data from own games the segment reporting has been changed since January 1, 2022 to reflect the new structure of the Company. The Demand Side Platforms are recognized within the DSP Segment while the Supply Side Platforms as well as the own games content which is integrated into the Supply Side Platforms create since January 1, 2022 the SSP Segment.
In the digital advertising market, with its rapid pace of innovation, there exist many players and roles. Within the programmatic advertising industry there are currently two key categories:
Starting from the advertiser's point of view, the first station in the online advertising services industry is, depending on the degree of outsourcing needs, an agency or trade desk. The services of an agency comprise creating, planning and executing advertising campaigns. Large advertising agencies such as WPP offer a full-service package, allowing an advertiser to completely outsource advertising-related activities.
The next step in the value chain and a necessary function in programmatic advertising is a Demand Side Platform (DSP). A DSP bundles the demand of advertising buyers and enriches it with specific data to be able to match the advertising content most efficiently with advertising inventory. An example of a DSP is the company the Trade Desk, or within MGI, Verve DSP.
The counterpart of a DSP is a Supply Side Platform (SSP). An SSP bundles the supply of advertising space from publishers including specific information about the characteristics of the available advertising inventory. Large networks such as Google have their own SSPs, but there are also several independent players such as Fyber or PubMatic and also MGI, who are trying to maximize ad space monetization. An advertising exchange sits between DSPs and SSPs and acts as a marketplace for both the supply and demand of advertising space. Often, this is an automated process in the form of real time bidding (RTB). However, the focus of DSPs, SSPs and ad-exchanges are somewhat blurred (as is the case of MGI where advertising is sometimes conducted through the Verve DSP, which might connect directly with an SSP), while certain publishers negotiate a campaign and its pricing directly with advertisers.
At the other end of the value chain is the publisher, the owner of a medium or media platform wishing to sell its advertising inventory. At this point, the advertisement reaches its audience. Prominent examples include Zynga, King or Embracer, or in the case of MGI, gamigo, WildTangent and AxesInMotion, which are in charge of MGI's games inventory (i.e. games IP`s, audiences, customer purchase data and platforms).
MGI's Demand Side Platform enables advertisers to drive user acquisition campaigns across the open internet. Through our selfservice, cloud-based platform, advertisers can create, manage and optimize data-driven digital advertising campaigns across all relevant ad formats and channels (including e.g. display, native and video) and devices (mobile, desktop, digital out-of-home and connected TV). Based on our vertical infrastructure approach, our Demand Side Platform is integrated with our Supply Side Platform (SSP) which provides access to major first- and third-party inventory from publishers. Our first-party inventory mainly relates to advertising space in casual games from various acquisitions carried out since 2012. The combination of owned content and third-party content in combination with strong AI capabilities provides advertisers a global reach and a broad set of audience data which results in very strong targeting capabilities for their user acquisition campaigns.
Our clients on the demand side are primarily large brands from Fortune 500 Companies as well as agencies such as WPP or Mediacom, which manage the budgets of large advertisers. Our Demand Side Platform generates revenue through services where MGI buys ad inventory at own risk and sells it to advertisers as well as charging usage-based fees based on a percentage of an advertiser's total spend on advertising. With products like ATOM or Moments.AI, MGI's platform offers value-added services which provide targeting solutions to advertisers for a world without identifiers and cookies.
The foundations of MGI's DSP segment were built via acquiring Demand Side Platforms including Platform161, VGI CTV (formerly known as LKQD), Match2One and Adspree Media.
MGI's Supply Side Platform helps third party publishers (games and non-games) and its own games studios to monetize their ad inventory / ad spaces while keeping full control over it. Publishers connect to the SSP by for example, integrating our SDKs into their content. Connected to our own Demand Side Platform, as well as to third-party Demand Side Partners, we enable marketers to drive return on their ad spent and reach addressable audiences across all relevant ad formats, channels and devices. Our infrastructure approach allows for an efficient processing and utilization of data in real time optimized via AI, leading to a superior monetization for publishers by increasing the value of an impression and by providing incremental demand through our own DSP and through our well-established relationships with more than 5,000 advertisers and well over 80 third-party DSPs. Publishers can then sell their ad inventory to advertisers using real-time bidding techniques. Through Verve's AI driven powerful data enrichment engine, content users are segmented in a privacy-compliant manner. As a result, advertisers who consider the user most valuable based on the segmentation will bid the most for the ad space. In this way, the advertising space can be sold by publishers in the most efficient and profitable way.
Our clients on the supply-side are primarily publishers and app developers that allow us to directly integrate with their apps resp. content, maximizing automation and sales efficiency of ad inventory. In addition, the SSP Segment also includes the own games studios which provide first-party data and in-game advertising spaces and enable faster testing cycles of new services. A smaller portion of the revenues in this segment is generated directly with consumers from in-game item sales and game subscriptions. The Supply Side Platform generates revenue through services where MGI buys ad inventory at own risk and sells it to advertisers as well as charging usage-based platform fees of a publisher's total supply volume.
The foundations of MGI's SSP segment were built via amongst others the acquired Supply Side Platforms including Smaato and Pubnative as well as the Games Companies like KingsIsle, WildTangent and TrionWorlds.
| DSP | SSP | CONSOLIDATED | |
|---|---|---|---|
| in kEUR | Apr-Jun 23 | Apr-Jun 23 | Apr-Jun 23 |
| Revenues | 7,884 | 68,296 | 76,179 |
| EBITDA | 1,825 | 18,160 | 19,985 |
| Depreciation and amortization | -7,170 | ||
| Financing income | 430 | ||
| Financing expenses | -13,167 | ||
| Earnings before taxes (EBT) | 78 | ||
| Income taxes | 1,424 | ||
| Net result | 1,502 | ||
| DSP | SSP | CONSOLIDATED | |
|---|---|---|---|
| in kEUR | Apr-Jun 22 | Apr-Jun 22 | Apr-Jun 22 |
| Revenues | 7,703 | 70,356 | 78,059 |
| EBITDA | 631 | 19,408 | 20,039 |
| Depreciation and amortization | -8,069 | ||
| Financing income | 22 | ||
| Financing expenses | -7,757 | ||
| Earnings before taxes (EBT) | 4,235 | ||
| Income taxes | -1,204 | ||
| Net result | 3,031 | ||
| DSP | SSP | CONSOLIDATED | |
|---|---|---|---|
| in kEUR | Jan-Jun 23 | Jan-Jun 23 | Jan-Jun 23 |
| Revenues | 14,097 | 130,837 | 144,933 |
| EBITDA | 2,411 | 35,000 | 37,411 |
| Depreciation and amortization | -13,547 | ||
| Financing income | 796 | ||
| Financing expenses | -23,993 | ||
| Earnings before taxes (EBT) | 667 | ||
| Income taxes | 1,408 | ||
| Net result | 2,075 | ||
| DSP | SSP | CONSOLIDATED | |
|---|---|---|---|
| in kEUR | Jan-Jun 22 | Jan-Jun 22 | Jan-Jun 22 |
| Revenues | 12,307 | 131,623 | 14,930 |
| EBITDA | 744 | 36,167 | 36,911 |
| Depreciation and amortization | -15,163 | ||
| Financing income | 84 | ||
| Financing expenses | -14,449 | ||
| Earnings before taxes (EBT) | 7,384 | ||
| Income taxes | -1,810 | ||
| Net result | 5,573 | ||
The Company does not use geographical information for purposes of internal controlling nor for management reports. A separate collection of such data would result in disproportional costs.
Due to the structure of customers in the DSP and SSP segment, there are no customers that constitute a proportion of more than 10 percent of the Company's revenues. The customers of both segment in general are characterized by a large number of Fortune 500 customers.
The accounting policies of the reportable segments correspond to the Company's accounting policies described above. The segment result represents the result that each segment generates with allocation of the share of the central administrative costs including the remuneration of the Governing Board. The segment results are reported to the Company's Chief Operating Decision Maker for the purpose of resource allocation to the segments and the assessment of segment performance.
| in kEUR | 30 Jun 2023 | 31 Dec 2022 |
|---|---|---|
| DSP | 87,178 | 85,912 |
| SSP | 915,795 | 958,747 |
| Total | 1,002,974 | 1,044,659 |
For the purpose of monitoring segment performance and allocating resources to segments, the Company's Chief Operating Decision Maker monitors the tangible, intangible and financial assets attributable to the individual segments. All assets including goodwill are allocated to the reportable segments.
The change in Goodwill in H1 2023 is related to the translation of goodwill in foreign currencies, mainly USD. Other Intangible Assets included acquired intangible assets from business combinations, self-developed intangible assets, IPs, licenses and advanced payments on licenses due to acquisitions and the in-house development of the games and ad-tech platforms.
| in kEUR | 30 Jun 2023 | 31 Dec 2022 |
|---|---|---|
| Goodwill | 583,906 | 587,739 |
| Other Intangibles | 215,546 | 203,545 |
There were no material sales or disposals in Q2 2023.
As of June 30, 2023, the long-term liabilities of MGI decreased by kEUR -6,021 to kEUR 497,422 (December 31, 2022: kEUR 503,443) driven primarily by the repurchase and acquisition of MGI's bonds into its inventory.
The short-term liabilities of MGI decreased by kEUR -33,113 on June 30, 2023 to kEUR 186,358 compared to kEUR 219,471 on December 31, 2022, mainly affected by reduced account payables, the payment of the deferred purchase price for the acquisition of AxesInMotion S.L., as well as a reduction of legal and restructuring provisions.
As of June 30, 2023, the total shareholders' equity decreased slightly to kEUR 319,194 (December 31, 2022: kEUR 321,745) driven primarily by FX-related depreciation through OCI. The subscribed capital of MGI remained unchanged at kEUR 159,249 by June 30, 2023 (December 31, 2022: kEUR 159,249).
No dividends were paid in Q2 2023.
MGI achieved in Q2 2023 a net revenue of kEUR 76,179 (Q2 2022: kEUR 78,059). The decrease of kEUR 1,880 was driven by FX headwinds as well as by the divestments while Organic Revenue Growth was positive with 1%.
For Q2 2023, MGI disclosed services purchased and other operating expenses of kEUR 44,585 (Q2 2022: kEUR 53,655). The decrease of kEUR 9,070 is driven by reduced tech cost in the amount of kEUR 3,479, reduced media buying cost including FX tailwinds in the amount of kEUR 2,140 and reduced other operating expenses in the amount of kEUR 2,375 as a result of reduced legal and advisory cost provisions.
In Q2 2023, the personnel expenses increased by kEUR 1,543 to kEUR 19,018 (Q2 2022: kEUR 17,475). This increase is largely driven by the acquired employees of AxesInMotion S.L. and Dataseat Ltd. which have not been part of the Company for the full period in the previous year.
Depreciation, amortization and write-downs amounted in Q2 2023 to kEUR 7,170 (Q2 2022: kEUR 8,069). The decrease is mainly due to a reduction in PPA amortization from the divestment in the games portfolio made in Q4 2022.
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated during consolidation and are not explained in these notes. Details of transactions between the Company and other related parties are given below. In addition to the Management Board, family members close to the Board, and in principle, investments and the shareholders can all be considered relationships to associated companies and persons under IAS 24 Related Party Disclosures.
Tobias M. Weitzel is a member of the six-member Board of Directors of the Company since May 31, 2018 and Chairman since September 15, 2022. He holds 500,000 phantom stock and 1,209,228 shares in the Company, as of June 30, 2023.
Remco Westermann is a member of the Board of Directors since May 31, 2018 and CEO of the Company and personally holds 90% of the shares and 100% of the voting rights in Sarasvati GmbH, which in turn holds 100% of the shares and voting rights in Bodhivas GmbH, which in turn holds 26.9% of the shares and voting rights in MGI, as of Jun 30, 2023, as well as kEUR 1,200 bonds with ISIN SE0018042277. In H1 2023 Bodhivas GmbH rolled-over kEUR 1,000 Senior Secured Bonds of MGI (ISIN: SE0015194527) maturing in 2024 into the new Senior Secured Bonds of MGI (ISIN: SE0019892241) maturing in 2027. Remco Westermann is the Managing Director of Bodhivas GmbH, Sarasvati GmbH, Garudasana GmbH, Bodhisattva GmbH, Jarimovas GmbH, and Kittelbach RW Immobilien UG, Düsseldorf. Additionally, Jaap Westermann holds 10% of the shares in Sarasvati GmbH. Hendrika Westermann is the wife of Remco Westermann, Jaap Westermann is the brother of Remco Westermann, Hendrika, Jaap and Remco Westermann are directors of Jarimovas GmbH, Düsseldorf.
Elizabeth Para is a member of the Board of Directors of the Company since January 31, 2020. She holds 500,000 phantom stock and 1,505,716 shares in the Company as of Jun 30, 2023.
Franca Ruhwedel is a member of the Board of Directors of the Company since September 15, 2022. She holds 4,625 shares in the Company, as of Jun 30, 2023.
Johan Roslund is a member of the Board of Directors of the Company since September 15, 2022. He holds 4,900 shares in the Company, as of June 30, 2023.
Mary Ann Halford is a member of the Board of Directors of the Company since September 15, 2022. She does not hold any shares in the Company.
Paul Echt is CFO of the Company. He is Managing Director of PE Global Invest GmbH.
Jens Knauber is COO of the Company. He is Managing Director of elbdiamond digital GmbH.
During the reporting period Ionut Ciobotaru was CPO of MGI but left the Company in July 2023. He is Managing Director of Ionut UG and Good Deals Ventures SRL. In H1 2023 Ionut UG received kEUR 1,150 in earn-out payments from the disposal of PubNative in 2020. kEUR 500 of the proceeds were used to buy Senior Secured Bonds of MGI (ISIN: SE0019892241) maturing in 2027.
Sameer Sondhi is CRO of the Company. He is Managing Director of Sondhi LLC.
Sonja Lilienthal is CIO of the Company. She is Managing Director of Valliorum UG.
There are no new significant litigations or claims in Q2 2023.
| 1 | Bodhivas GmbH | 26.9% |
|---|---|---|
| 2 | Oaktree Capital Management LLP | 17.7% |
| 3 | Sterling Strategic Value Fund | 3.9% |
| 4 | Case Kapitalförvaltning | 2.1% |
| 5 | Trend Finanzanalysen GmbH | 1.6% |
| 6 | PAETA Holdings Limited | 1.4% |
| 7 | Nordnet Pensionsförsäkring | 1.4% |
| 8 | Billings Capital Management LLC | 1.0% |
| 9 | Avanza Pension | 1.0% |
| 10 | Elizabeth Para | 0.9% |
| 11 | Tobias Weitzel | 0.8% |
| 12 | Didner & Gerge Fonder | 0.6% |
| 13 | Stena | 0.6% |
| 14 | Tim Schmiel | 0.3% |
| 15 | T.E.L.L. Verwaltung GmbH | 0.3% |
| 16 | Dory Gevryie | 0.3% |
| 17 | Inbox Capital AB | 0.2% |
| 18 | Crystal Asset Management AG | 0.2% |
| 19 | LOYS AG | 0.2% |
| 20 | Ionut Ciobotaru | 0.2% |
Note (1) Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear as of June 30, 2023.
Note (2): The group of shareholders (acting in concert) hold 8.2% as of June 30, 2023 and consists of: Trend Finanzanalysen GmbH, Smile Autovermietung GmbH, T.E.L.L. Verwaltungs GmbH and the representative Anthony Gordon, as well as other private shareholders.
| Net Result | Total income minus operating expenses, depreciation and amortization, financial result, and taxes |
|---|---|
| Adj. Net Result | Net Income excluding PPA amortization |
| EBIT | Earnings before interest and taxes |
| EBIT margin | EBIT as a percentage of net revenues |
| Adjusted EBIT | EBIT excluding one-time costs and PPA amortization |
| Adjusted EBIT margin | Adjusted EBIT as a percentage of net revenues |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
| EBITDA margin | EBITDA as a percentage of net revenues |
| Adjusted EBITDA | EBITDA excluding one-time costs |
| Adjusted EBITDA margin | Adjusted EBITDA as a percentage of net revenues |
| Equity ratio | Equity as a percentage of total assets |
| Growth in revenues | Net sales for the current period divided by net sales for the corresponding period of the previous year |
| Leverage Ratio | Net Interest Bearing Debt divided by adj. EBITDA for the past 12 months excluding shareholder and related party loans |
| Interest Coverage Ratio | Adj. EBITDA divided by net cash financial items for the past 12 months |
| 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 Company in the last twelve month, and the decline from sales stemming from closures/divestment of businesses. |
| Software Clients | Software clients with annual gross revenues exceeding 100k USD |
MGI with its headquarters in Stockholm, Sweden, is the parent company of the Group.
| Capital Markets Day 2023 | 31.08.2023 |
|---|---|
| Interim Report Q3 2023 | 30.11.2023 |
| Year End Report Q4 2023 | 29.02.2024 |
This report has not been subject to review by the Company's auditor.
The latest information on the Company is published on its website www.mgi-se.com. The Company can be contacted by email [email protected] or [email protected].
Remco Westermann, CEO Email: [email protected] or [email protected]
In all conscience, we assure, as representative for the Board of Directors of the Company, that the unaudited condensed consolidated financial statements give a true and fair view of the financial position of the Group as of 30 June 2023, and of its financial performance and cash flows for the year then ended and have been prepared in accordance with IFRS as adopted by the European Union.
Stockholm, August 31, 2023
Approved: Board of Directors
Tobias M. Weitzel Chairman
Elizabeth Para Director
Franca Ruhwedel Director
Mary Ann Halford Director
Johan Roslund Director
Remco Westermann Director
[This interim report Q2 2023 is information that MGI – Media and Games Invest SE (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.] The information was submitted for publication, through the agency of the contact persons set out below, at 08:00 am CET on Thursday, 31, August, 2023.
Stureplan 6 114 35 Stockholm Sweden
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