DGAP-Adhoc

Correction of a release from 16/01/2021, 00:26 CET/CEST - Media and Games Invest entered into an agreement to acquire KingsIsle Entertainment Inc. for USD 126m plus earn-outs. In this context, Oaktree is subscribing for a EUR 25m share issue. - Seite 2

The Transaction is transformative for MGI as it is expected to materially increase the size and profitability. Given the stable revenues and high EBITDA margin that the successful game Wizard101 generates, it will further strengthen the quality of earnings in the digital games segment.

On a proforma basis MGI's EBITDA would have been increased by app. 60 percent as a result of the acquisition for the first nine month of 2020. MGI Group generated EUR 19 million and KingsIsle EUR 12 million of adjusted EBITDA during the first nine months 2020. The adjustments made for KingsIsle include a reduction of actual revenue and EBITDA to eliminate favorable revenue developments related to Covid-19 in the earlier part of 2020.

 

TRANSACTION OVERVIEW
 

Pro Forma Financials Jan - Sep 2020 (unaudited)

mEUR	MGI Group (IFRS)	KingsIsle (US Gaap)1	Combined Pro Forma2
Revenue	92	18	109
adj. EBITDA	19	12	31
adj. EBITDA Margin	21%	66%	28%

_{Note (1): Carve out of mobile business not related to Wizard and Pirate 101 and adjusted to pre Covid MMO revenue growth rates from 2019 applied for Jan - Sep 2020 while full operating expenses from the MMO business of 2020 have been included. Note (2) Numbers may not add up due to rounding}