Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — MGI - Media and Games Invest — Q4 2023 Earnings Presentation
18 slides from Verve Group Se Class A's earnings presentation, 2024
Slide 1: MGI - Media and Games Invest SE Year End Report Q4 2023
MGI - Media and Games Invest SE Year End Report Q4 2023
Slide 2: Ready For Accelerated Growth!
Ready For Accelerated Growth! 16% 2023 Organic Growth Q4‘23 2024 Strategic Streamlined investments 18% operations in data & AI Organic Growth Jan ‘24 Ready for strong Improved Winning organic growth direct supply market in 2024 position share 2
Slide 3: Streamlined Operations
Streamlined Operations Adj. EBITDA Net Revenue 95 mEUR 324 mEUR Annual EUR 10 million cost saving program 93 mEUR 322 mEUR Focus on flexible cost structure, including off-shoring 2022 2023 2022 2023 Emphasis on integration & platform Increasing profitability optimization Lower cost base for the futu
Slide 4: Strategic Investments in Data & AI
Strategic Investments in ATOM Data & AI (Launched in 2021) Best Contextual Targeting Offering Moments.AI (Launched in 2022) AI for better targeting and more efficiency ML-Driven Optimization for SKAN (Launched in 2023) Data for the creation of added value Ready for a World AI & Data for strong posit
Slide 5: Improved Direct Supply Position
Improved Direct Supply Position Focus on improving our leading in-app and CTV direct-to-consumer positions Increasing added value from amongst others data and unique formats Enable cross-platform targeting through multi- channel supply Also increased focus on the demand side; Supply Path Optimizatio
Slide 6: Winning Market Share
Winning Market Share Leading to Market Share Gains New Software Clients e.g. Mobile In-App on iOS2 Total Software Clients Apple (North America) Google Play (North America) Verve Group 12% Verve Group 12% +19% Google AdExchange 11% Google AdExchange 9% 2,276 Magnite 8% Magnite 8% 1,915 Nexxen 6% Equa
Slide 7: Ready for Accelerated Organic Growth in 2024
Ready for Accelerated Organic Growth in 2024 Company-Specific Growth Drivers Capitalize on Strong Demand Sector STRONG Direct Supply in in-app and CTV Side Growth START TO THE YEAR Advertising market expected to turn upward Leveraging Early Growing ID-Less Investments in Targeting 18% Organic Growth
Slide 8: Financials
G Media and Games Invest G FINANCIALS
Slide 9: Core KPIs Underscoring Sustainable Organic Growth
Core KPIs Underscoring Sustainable Organic Growth Ad Impressions >100k $ Software Clients1 206 568 557 559 559 Ad impressions delivered 181 181 186 546 551 (in bn) 173 172 166 156 161 135 513 479 59 37 44 22 418 15 17 Q2’20 Q4’20 Q2’21 Q4’21 Q2’22 Q4’22 Q2’23 Q4’23 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’2
Slide 10: Return to Organic Growth
Return to Organic Growth Q4 2023 Highly Profitable and Cash Generating 6% 16% Profit Growth % Revenue Growth Organic Revenue Growth adjusted for FX and divestments 1% 225% Adj. EBITDA growth Adj. Net Result growth 99 Net Revenues Adj. EBITDA 6% revenue 93 growth Strong Margin % 76 78 69 32% 8% Adj.
Slide 11: Deep Dive in Organic Growth
Deep Dive in Organic Growth 6% total growth, of which 5% is Organic Revenue Growth, based on normalized 2022 numbers +6% 324 322 21 15 303 4 FY 2022 FX Effects & FY 2022 M&A Revenue Organic FY 2023 Divestments Normalized H1 2023 Revenue Growth Note: Rounded values 11
Slide 12: Streamlined Business, Increasing Margins, Return to Organic Growth
Streamlined Business, Increasing Margins, Return to Organic Growth Highly Scalable and Profitable Business Model CAGR 48%3 322 4 303 38% 252 EURm1,2 Organic Growth5 30% 30% 28% 29% 18% 18% 140 16% 25% 22% 21% 20% 18% 93 95 84 71 1% 10% 42 45 39 29 2021 2022 Q1-Q3 23 Q4 23 Jan-24 22 18 15 11 13 2 4 7
Slide 13: Operating Cash Flow and Capex Development
Operating Cash Flow and Capex Development Strong cash flow from operations, continuous investments in organic growth Operating cash flow development1,2,3 Capex development3 134 296 Operating Cash Flow Free Cash Flow after Interest Expenses 23 Cash Interest Expenses (EURm) (EURm) Maintenance Capex5 1
Slide 14: Net Leverage Ratio
Net Leverage Ratio Focusing on deleveraging in the coming quarters Net debt to Adj. EBITDA ratio development1 (EURm) 308 295 €35m Earn-Outs Net leverage 274 largely payable in shares or cash Net Interest Bearing Debt at MGIs sole discretion Earn-Out 112 199 35 7.0x 62 3.0x 3.0x 35 2.8x 2.9x 3.2x 3.1
Slide 15: Interest Coverage Ratio
Interest Coverage Ratio Interest Coverage ratio development1 3-Month Euribor Forecast2 (EURm) 93 95 95 95 95 3.90% Interest Coverage Ratio 3.70% Adj. EBITDA 3.45% 71 3.20% 2.96% 2.77% 2.60% 2.44% 5.6x 29 4.0x 2.26% 4.7x 3.5x 2.38% 3.0x 3.1x 4.1x 3.0x 2.8x 2.7x 18 2.5x 1.9x 13 1.4x 11 7 4 2 Source: B
Slide 16: MGI Clearly Exceeds Updated Guidance For 2023
MGI Clearly Exceeds Updated Guidance For 2023 Initial Updated Actuals Guidance Guidance 2023 2023 20231 Revenue 335-345 303 322 (in €m) Adj. EBITDA 95-105 93 95 (in €m) Notes: 1) The Initial Guidance 2023 was updated on 31 August 2023 Copyright © 2024 MGI - Media and Games Invest SE. All Rights Rese
Slide 17: Strong Outlook for Double-Digit Organic Growth in 24
STRONG OUTLOOK FOR DOUBLE-DIGIT ORGANIC GROWTH 16% 18% IN 2024 1% Q3 23 Q4 23 Jan-24
Slide 18: Thank You.
Thank You. www.mgi-se.com 18
MGI - Media and Games Invest — Q4 2023 Earnings Presentation on 6ix