- MGI subsidiary Gamigo celebrates its 20th birthday and also shows growth in crisis times
- MGI Gaming segment benefits from Stay-at-Home and shows an increase of 64% in new registrations and 19% increase in daily active users
- CEO Remco Westermann: "For 2020 we further expect strong growth"
April 09, 2020 - Media and Games Invest plc ("MGI", ISIN: MT0000580101; Symbol: M8G; Basic Board, Frankfurt Stock Exchange); a fast and profitable growing company in the online games and digital media sector, is pleased to announce the 20th anniversary of its gaming group "gamigo". Gaming has become an established business and shows, especially in the current situation with COVID-19, as well as during previous economic crises, that it is a stable business also in challenging times. At Gamigo, the number of new customers per day in the 14th calendar week (30th March to 5th April) increased by 64% compared to the 11th calendar week (9th-15th March), the number of daily active users (DAU) by 19% - apparently as a result of the "Stay-at-Home" policy of the governments in gamigo's main markets Europe and North America. Since 2014, gamigo has built a sustainable gaming business, with year-on-year revenue growth of more than 30%. gamigo generated EUR 59 million in revenue and 16 million EBITDA in 2019.
Strong existing games portfolio and successful new games
Now in its 20th year, gamigo is one of the most experienced companies in the online gaming sector and has shown that it is capable of both sustainably supporting and further developing games over a very long period of time and successfully launching new games. In addition to games such as Fiesta Online, an Anime Massively Multiplayer Online Game (MMO), and Last Chaos, an fantasy MMO, which are now 13 and 15 years old respectively and furthermore generate considerable revenues, gamigo has also successfully launched new games in the past years, such as ArcheAge Unchained in 2019.
Technology costs reduced from more than 40% to around 10%
An important part of the success is the active use of state-of-the-art technology. In the past, gamigo has continuously invested in the further development of its technology. By developing and constantly improving its own technologies in the area of cloud applications, gamigo has been able to reduce its technology costs from over 40% to 10% of revenues over the past six years, while at the same time significantly increasing the proportion of variable costs. The result is better cost control and more flexibility. By exploiting synergy effects, acquired companies quickly become significantly more profitable.
gamigo supports reforestation projects
To celebrate the 20th anniversary of gamigo, presents for the loyal player base and many additional events are scheduled within the substantial gamigo game portfolio. In addition, gamigo has entered into a cooperation with "Eden Reforestation Projects" to help reforest heavily cleared forests together with the players.
Targeting further growth in 2020
Remco Westermann, CEO: "Congratulations to gamigo and even more to our loyal players! It is great to see how integrated gaming has become into our society and even more in periods of crises. Also during COVID-19, however we should not forget that there are other important matters like our environment. As part of the 20th birthday activities gamigo has within its games introduced a charity event to plant trees from funds collected from selling special packages to its communities. A change by a black swan like COVID-19 also offers opportunities: so we can already say now, that we expect further strong growth in 2020. The operation and support of our games and media platforms is assured, and at the same time we will do everything in our power to contain the spread of the virus and protect our employees."
About Media and Games Invest plc:
Media and Games Invest plc, MGI, is a fast and profitable growing company in the digital media and games sectors. The company comines organic growth with value-generating synergetic acquisitions, MGI continues to demonstrate strong profitable growth. In the past 6 years, the MGI Group has successfully acquired more than 30 companies and assets. The acquired assets and companies are consequently integrated, and amongst others cloud technologies are implemented to generate efficiency improvements and competitive advantages. Media and Games Invest is listed on the Frankfurt Stock Exchange and on XETRA.
Disclaimer
This press release contains possible forward-looking statements that are based on the current assumptions and forecasts of the company management of Media and Games plc or companies associated with it. Various known and unknown risks and uncertainties, as well as other factors, could mean that the actual results, financial circumstances, the development or performance of Media and Games in-vest plc and the companies associated with it may deviate significantly from the estimations presented here. Neither Media and Games Invest plc nor the companies associated with it are obligated to update this sort of forward-looking statement or adjust them to future results or developments.
Issuer
Media and Games Invest plc
Sören Barz, Head of Investor Relations
St. Christopher Street 168
Valletta VLT 1467, Malta
Email: soeren.barz@media-and-games-invest.com
Press contact:
edicto GmbH
Axel Mühlhaus / Dr. Sönke Knop
Telephone: +49 69 9055 05 51
Email: MGI@edicto.de
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