NEW YORK – Media and Games Invest (MGI) is navigating a challenging advertising market with strategic agility, maintaining its leading position on Android and iOS platforms in North America, while also securing strong rankings in the EMEA region. The company has revised its full-year 2023 revenue guidance due to softening advertising prices but has kept its EBITDA projections stable, thanks to a €10 million cost-saving initiative.
The company's success can be attributed to its vertical integration strategy and a series of strategic acquisitions that have strengthened its connected TV services. MGI's efficient market proposition has allowed it to gain market share, even as the industry contends with Google (NASDAQ:GOOGL)'s withdrawal of personal identifiers—a move that MGI sees as an opportunity for further growth.
Despite the current discount in MGI’s trading price compared to its ad tech peers, there is potential for an increase in value. If MGI achieves parity on enterprise value to sales (EV/sales) and enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) metrics for the forecasted period of FY22–24e, its share price could rise to €3.03 from a June valuation of €3.57.
Investors are keeping a close eye on MGI's performance as it continues to leverage its market proposition in North America's mobile open web supply-side platform (SSP) sector. The company's ability to maintain EBITDA levels amidst a tough trading environment speaks to the effectiveness of its cost management strategies, which include a significant €10 million annualized cost-saving program.
As the advertising landscape evolves, MGI is poised to capitalize on changes such as Google's policy shifts. With a focus on operational efficiency and market expansion, MGI is set to continue its trajectory in the competitive ad tech space.
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