Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — MGI - Media and Games Invest — Q1 2023 Earnings Presentation
22 slides from Verve Group Se Class A's earnings presentation, 2023
Slide 1: MGI - Media and Games Invest SE Interim Report Q1 2023
MGI - Media and Games Invest SE Interim Report Q1 2023
Slide 2: Agenda
AGENDA Introduction Business Update Financials
Slide 3: Introduction
G Media and Games Invest G INTRODUCTION
Slide 4: We are pleased to announce that we were able to grow at 4% despite headwinds
„ We are pleased to announce that we were able to grow at 4% despite continuing headwinds in the advertising market and divestments of smaller non-strategic games Remco Westermann, CEO Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 4
Slide 5: Key Facts
LEADING AD-SOFTWARE-PLATFORM WITH STRONG FIRST-PARTY GAMES CONTENT KEY FACTS €327M €69M Revenue Q1’23 LTM Revenue Q1’23 Remco Westermann CEO & Member of the Board since 2012 Holdings in MGI: 42,282,518 shares (26.8%) €95M €19M Adj. EBITDA Q1’23 LTM Adj. EBITDA Q1’23 ~800 4% Revenue Growth Paul Echt
Slide 6: Business Update
G Media and Games Invest G BUSINESS UPDATE
Slide 7: Major Events During Q1 2023
Major Events During Q1 2023 Broad range of initiatives facilitating further growth in the first quarter of 2023 8% ADVERTISING REVENUE GROWTH VERVE ACHIEVED 12% MARKET (OUR CORE BUSINESS) DRIVEN BY SHARE IN NORTH AMERICA AND DSP GROWTH IS INCREASING DIRECT SUPPLY POSITIONING STRONG PERFORMANCE OF US
Slide 8: Further Growth from New Software Clients Despite Headwinds
Further Growth from New Software Clients Despite Headwinds The KPIs driving our top-line growth 6% YoY volume growth Group Revenue5 Ad Impressions in seasonally weak first quarter In-Game Items6 Software Ad impressions delivered (in bn) 173 172 181 156 161 166 31% 20% 19% 135 35% 56% 59 69% 80% 81%
Slide 9: Market Update
Market Update Advertising budgets still depressed … leading to median growth of 2% by macro environment… in the ad tech sector US ad spend forecast for FY 20231 Q1 2023 YoY Growth Listed Ad-Tech2 30% 10,5% 9,5% 20% 8,5% 7,5% 10% 6,5% 0% 5,5% 4,5% -10% 3,5% 2,5% -20% published June published Sep publ
Slide 10: We Are a Leading Mobile SSP
We Are a Leading Mobile SSP Focus on growth of In-App and CTV; segments with solid growth Media volume per consumer device Q1’23 Desktop2 Mobile Strong growth in a tough Connected TV market growing at 8% YoY (CTV) 3% 12% Digital out of Home 1% (DooH) CTV Growing strongly at 10% YoY in “hot CTV marke
Slide 11: Market-Leading Mobile In-App SSP
Market-Leading Mobile In-App SSP Pixalate‘s Mobile SSP Market Share Report confirms market leading position of our Supply Side Google Play Google Play Apple Apple North America EMEA North America EMEA Verve Group 12% Verve Group 13% Magnite 9% Baidu 24% Magnite 8% LoopMe 9% InMobi 8% LoopMe 10% InMo
Slide 12: Innovative Targeting Products
Innovative Targeting Products AI-driven targeting solutions for advertisers that are privacy-compliant and do not require identifiers Moments.AI No personal data Contextual targeting solution Visual Intent AI-Driven Contextual targeting next to Getty Images ATOM No use of Identifiers Anonymous targe
Slide 13: Focus on Further Growing MGI's Demand-Side DSP
Focus on Further Growing MGI’s Demand-Side Significant organic growth potential 35% YoY Growth Omnichannel One-Stop Shop for advertisers Privacy-compliant and AI-driven product solutions Our products do not rely on Strong SSPs builds the dying identifiers like IDFA or basis cookies We have the large
Slide 14: Financials
G Media and Games Invest G FINANCIALS
Slide 15: First Quarter Financial Highlights
First Quarter Financial Highlights Solid Growth Versus Strong profitability and cash generation Q1 2022 Q1 2023 4% of which: 1% Revenue Growth Revenue Growth FX-adjusted Organic Revenue Growth Net Revenues +8% -6% Programmatic Games Adj. EBITDA revenues revenues Adj. EBIT Margin Growth 100 93 90 88
Slide 16: Consistent Long-Term Financial Development
Consistent Long-Term Financial Development Highly scalable and profitable business model with strong organic growth EURm1,2 4% Growth vs. CAGR 59%3 2% Median 324 327 (adjusted EBITDA) 252 30% 29% 29% 140 28% 25% 22% 21% 20% 93 95 18% 84 77 78 71 55 10% 39 42 45 22 29 15 11 13 18 18 4 7 2 7 10 2 2014
Slide 17: MGI – Segment Performance
MGI – Segment Performance Substantial growth on smaller demand side. Supply side growth impacted by discontinued games revenues Demand-Side Segment Supply-Side Segment (EURm) (EURm) +35% +2% 6.2 61.3 62.5 4.6 29% 28% 13% 17.4 18.2 2% 0.8 0.1 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Revenues Adj. EBITDA Margi
Slide 18: Operating Cash Flow and Capex Development
Operating Cash Flow and Capex Development Strong cash flow from operations, continuous investments in organic growth -26mEUR seasonal Operating cash flow development1,2,3 WC effect Capex development3 (EURm) 134 (EURm) 296 Operating Cash Flow Maintenance Capex Free Cash Flow after Interest Expenses 2
Slide 19: Net Leverage & Interest Coverage Ratio
Net Leverage & Interest Coverage Ratio Focus on further deleveraging in the coming quarters Net debt to adj. EBITDA ratio development1 Interest Coverage ratio development1 (EURm) (EURm) 307 93 95 299 Net leverage 288 Interest Coverage Ratio 274 85 Net Interest Bearing Debt Adj. EBITDA 81 71 199 2.7x
Slide 20: Revenues & EBITDA Guidance
REVENUES & EBITDA GUIDANCE Actuals 2022 Guidance 2023 350 -360mEUR pro-forma revenues assuming a Revenue 324 335-345 stable FX rate and adding (in €m) back games closures 8-12% pro-forma growth Growth 29% 3-7% excluding games divestments and stable FX rate YoY Adj. EBITDA 93 95-105 (in €m) No materi
Slide 21: Mid-Term Financial Targets
Mid-Term Financial Targets Mid-term financial targets focus on further substantial growth while keeping leverage under control 2023 anticipated to be softer due to macro environment factors; strong mid-term outlook Revenue CAGR Adj. EBITDA margin Adj. EBIT margin Pro-Forma Leverage1 25-30% 25-30% 15
Slide 22: Thank You.
Thank You. www.mgi-se.com 22
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