PRESS RELEASE : Media and Games Invest closes FY 2020 with a record quarter and significantly exceeds its increased financial targets from November. Revenue and adj. EBITDA grow by 73% YoY and 74% YoY in Q4'20

DGAP-News: Media and Games Invest plc / Key word(s): Preliminary Results/Annual Results 
Media and Games Invest closes FY 2020 with a record quarter and significantly exceeds its increased financial targets 
from November. Revenue and adj. EBITDA grow by 73% YoY and 74% YoY in Q4'20 
2021-02-18 / 12:17 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
Media and Games Invest closes FY 2020 with a record quarter and significantly exceeds its increased financial targets 
from November. Revenue and adj. EBITDA grow by 73% YoY and 74% YoY in Q4'20 
18, February 2021 - Media and Games Invest plc ("MGI" or the "Company", ISIN: MT0000580101; Ticker: M8G; Nasdaq First 
North Premier Growth Market and Scale Segment Frankfurt Stock Exchange) exceeds its full-year 2020 revenue and EBITDA^1 
targets based on an excellent fourth quarter. The preliminary financial figures show accelerated revenue and EBITDA 
growth in the fourth quarter, while the first-9-month 2020 have been strong already. The actual preliminary full year 
2020 revenues amount to EUR 140.2 million, which is a 67% increase versus the previous year (EUR 83.9 million) with an 
EUR 29.1 million adj. EBITDA^2, a 61% increase versus the previous year (EUR 18.1 million). 
The previously in November 2020 communicated upper target range of the Guidance, which was already increased verus 
initial Guidance has been outperformed by EUR 5.2 million in terms of revenues and EUR 3.1 million in terms of adj. 
EBITDA. In comparison with the analyst Consensus Data the outperformance is EUR 8.3 million for the revenues and EUR 
4.2 million in terms of adj. EBITDA. Based on the mean of initial targets for 2020 (revenue: EUR 115-125 million; 
EBITDA: EUR 20-23 million) MGI outperformed its revenue-target by 16.8 percent and its EBITDA-target by 35.3 percent. 
The strong revenues and EBITDA result from positive developments of the gaming- as well as the media business in Q4'20. 
With this very strong year MGI has now outperformed with 67% the revenue CAGR of 45% of the last 6 years. 
 
HIGHLIGHTS FOURTH QUARTER 2020 
  . Net revenues amounted to 48.7 mEUR (Q4'19: 28.2 mEUR), which is an increase of 73% compared to 2019. 
 
  . Adjusted EBITDA amounted to 10.1 mEUR (Q4'19: 5.8 mEUR), which is an increase of 74%. 
 
  . Adjusted EBIT amounted to 5.8 mEUR (Q4'19: 3.6 mEUR), which is an increase of 64%. 
 
  . Net result amounted to 2.0 mEUR (Q4'19: 0.3 mEUR), which is an increase of 534%. 
 
HIGHLIGHTS FULL YEAR 2020 
  . Net revenues amounted to 140.2 mEUR (FY'19: 83.9 mEUR), which is an increase of 67% compared to 2019. 
 
  . Adjusted EBITDA amounted to 29.1 mEUR (FY'19: 18.1 mEUR), which is an increase of 61%. 
 
  . Adjusted EBIT^3 developed strong and increased to 17.5 mEUR (FY'19: 10.5 mEUR), which is an increase of 67%. 
 
  . Net result for 2020 amounted to 2.7 mEUR (FY'19: 1.3 mEUR) and increased as a result of the overall increased 
    profitability of the group which was mitigated by increased financial expenses for future organic and M&A growth 
    which on the other hand provide a strong cash position on the balance sheet. 
 
  . The equity ratio^4 was 46% as of December 31, 2020 (December 31, 2019: 54%) and remained strong while the equity 
    ratio decreased due to bond issues and expanded operations of the group. 
 
  . Cash and cash equivalents as of December 31, 2020 amounted to 46.3 mEUR (December 31, 2019: 33.0 mEUR). 
 
  . Net interest-bearing debt^5as of December 31, 2020 amounted to 61.6 mEUR (December 31, 2019: 34.9 mEUR). 
 
  . Interest coverage ratio^6 2020 was 4.1 compared to 3.1 in 2019 and therefore increased strongly as the operating 
    profitability increased in line with the revenue growth. 
 
  . The leverage ratio^7 amounted to 2.1 as per 31 December 2020 (1.9 as of December 31, 2019) and remained 
    conservative despite 3 M&A transactions and the gamigo minority buyout during 2020. This was achieved by the 
    Company through a strong increase in profitability in combination with an equity raise. MGI ended up on the lower 
    end of its net leverage ratio target of 2-3x. 
 
SELECTED KEY PERFORMANCE INDICATORS, MGI Group 
In mEUR                 MGI Group MGI Group MGI Group   MGI Group 
                        Q4 2020   Q4 2019   FY 2020     FY 2019 
Net Revenues            48.7      28.2      140.2       83.9 
YoY Growth in revenues  73%       -         67%         - 
Adj. EBITDA             10.1      5.8       29.1        18.1 
Adj. EBITDA margins     21%       21%       21%         22% 
EBITDA                  9.0       4.1       26.5        15.5 
EBITDA margins          19%       14%       19%         19% 
Adj. EBIT               5.8       3.6       17.5        10.5 
Adj. EBIT margins       12%       13%       12%         13% 
Net Result              2.0       0.3       2.7         1.3 
In mEUR       FY2020 Consensus   Actuals vs    FY 2020 Updated   Actual vs Updated     Initial      Actual vs. FY'20 
               (A)                Consensus       Guidance         FY'20 Guidance      Guidance     Initial Guidance 
Net Revenues  140,2    131,9    +8,3     +6%       125-135        +10.2        +8%     115-125      +20.2        +17% 
Adj. EBITDA    29,1    24,9     +4,2    +17%        23-26          +4.6       +19%      20-23        +7.6        +35% 

[All financials are preliminary and neither reviewed nor audited. MGI expects to publish its unaudited Year-End-Report on 25 February 2021.]

Remco Westermann, CEO & Chairman of the Board of MGI Group: "We ended 2020 with yet another record quarter Revenue- and EBITDA-wise, supported by consequent continuation of our "buy, integrate, build and improve"-strategy, with a well-balanced games portfolio strongly backed by our media unit. In total, we reported in the fourth quarter EUR 48.7 million revenues, a 73 percent growth versus Q4 last year together with an adjusted EBITDA of EUR 10 million, which is a 74 percent growth versus last year. Our financial development for the full year 2020 was also very strong, outperforming our latest forecast substantially. With revenues of EUR 140.2 million -a yoy growth tof 67 percent- and a high profitability with an adjusted EBITDA of EUR 29 million -a yoy growth of 61%- we were able to show a continuation of our strong performance in the previous years.

We also expect 2021 to become a further strong year. We have numerous organic growth projects in the pipeline, and have already announced the licensing of two new mobile games. Also for our current strong game portfolio we expect further growth, eg. for Trove, which is one of our top games, we create further growth opportunities through internationalisation and platform extensions. A similar strategy will be applied to Wizard101 and Pirate101, two very strong game IPs that we acquired as part of the KingsIsle transaction in January 2021 as well as for several other games.

Furthermore, MGI's media unit "Verve Group" gives MGI's games unit a strong competitive advantage in efficient user acquisition while it is also emerging as a significant player in the global media sector. Verve Group is facing rapid organic growth in all major advertising formats worldwide, but especially in the mobile games sector. Based on management, Verve 's Open Exchange is now among the top 20 programmatic marketplaces worldwide. MGI's sector focus is also reflected in the media unit's strong customer base, which consists of several major games companies such as Zynga and King.

All in all, 2020 was an outstanding year for MGI, with a strong start into 2021 where we closed already two further M&A transactions. Also in the coming months we expect further organic growth from new game launches as well as internationalization, increased user acquisition and content extensions in our current massive multiplayer portfolio as well as further in the games and media segments."

Notes - All Notes are defined as in the latest financial report (Q3 2020) of MGI [Note (1) EBITDA: Earnings before interest, taxes, depreciation and amortization. Note (2) Adjusted EBITDA: Reported EBITDA excluding one-time costs. Note (3) Adjusted EBIT: Earnings before interest and taxes excluding one-time costs and PPA depreciation. Note (4) Equity ratio: Equity as a percentage of total assets. Note (5) Net interest bearing debt: Interest bearing Financial Indebtedness excluding Shareholder and Related Party Loans minus Cash and Cash Equivalents. Note (6) Interest coverage ratio: Adj. EBITDA divided by net financial items for the relevant period. Note (7) Net leverage ratio: Net Interest Bearing Debt divided by adjusted EBITDA for the past 12 months excluding Shareholder Loans.] For further information, please contact: Remco Westermann Chairman of the Board and CEO [phone]

Sören Barz Leiter Investor Relations [phone] [e-mail], [e-mail] www.mgi.group

Jenny Rosberg, ROPA, IR contact Stockholm Phone: [phone] Mail: [e-mail]

Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt Phone: [phone] Mail: [e-mail]

About Media and Games Invest plc

Media and Games Invest plc (MGI), is a fast-growing and profitable company operating in the digital games sector with a strong supportive media unit and a focus on North America & EMEA. The company combines organic growth with value-accretive acquisitions, delivering strong and sustainable earnings growth. Since 2014 the MGI Group has successfully acquired well over 30 companies and assets which are integrated onto our platform, exploiting efficiency-enhancing technologies such as the cloud. The Company's shares are listed on Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The Company also has a bond listed on Nasdaq Stockholm and on the Frankfurt Stock Exchange Open Market.

(MORE TO FOLLOW) Dow Jones Newswires

February 18, 2021 06:19 ET (11:19 GMT)