DGAP-News

Media and Games Invest SE: Media and games segments show further strong business performance, gain further market share and outperform the markets disrupted by blocking IDFA - Seite 3

Recent disruptions of global supply chains could cause affected companies to scale back advertising - why could MGI benefit from that?

Disrupted global supply chains are leaving the warehouses of many companies around the world empty. Companies that can't sell products due to supply chain problems may be forced to scale back advertising for their products which then also impacts several media companies which run campaigns for them. MGI and its media segment Verve, however, are in the fortunate position to have a customer base, which is largely composed of companies in the digital industry, especially the digital games industry. This industry offers mainly intangible products and services that are not affected by the physical constraints in global supply chains. Hence, MGI does not expect to be adversely impacted. On the contrary, MGI expects that demand and consumer spend will rather shift more towards intangible products and services due to the issues in the global supply chains for tangible products. While at the moment game console manufacturers are heavily affected by the supply shortages, this will not negatively affect the performance of MGI's console titles as the player base is largely playing with the previous console versions while the games are ready to be played with the next generation of consoles when a player switches.

Integration update on Smaato - strong outlook for Q4 2021 and FY2022

The integration of recently acquired Smaato is progressing well. While the operations are further run by the Smaato teams; Verve's top management consisting of the Co-CEO's Sameer Sondhi and Ionut Ciobotaru are steering the planning and execution of the commercial, technical and product roadmaps in alignment with the overall Verve strategy as planned pre-acquisition. Initial revenue synergies have already been leveraged by connecting the platforms and by initial cross-selling activities with existing customers - both on the demand and supply side. The combined access to first-party mobile data via proprietary SDKs from Verve and Smaato is among the top 10 globally, giving the group a very strong position in a world without identifiers. While Smaato standalone (excluding the divestment of manage.com in 2018) has shown continues organic revenue growth in the previous years, we are pleased that we have been able to accelerate the organic growth in September and October 2021 already by unlocking several revenue synergies throughout Verve. The initial guidance of app. 20% organic growth for 2021 for Smaato standalone will be well achieved based on further additional synergies and growth initiatives to be realized in the coming quarters.