Media and Games Invest Reports Strong Q1 Growth and Strategic Positioning in AdTech

On May 8, 2024, Edison Investment Research Limited released an update on Media and Games Invest (M8G), detailing a robust start for the year with a 21% organic growth in revenue compared to Q1 2023. This growth is attributed to an increase in new client engagement and higher spending among existing clients, signaling rising corporate confidence.

The update highlights MGI's successful adaptation to privacy-centric advertising trends, amidst ongoing delays in Google's cookie withdrawal schedule. MGI's AI-powered contextual targeting solution positions it favorably within the evolving market landscape. Furthermore, the transition to Google cloud infrastructure is anticipated to boost scalability and operational efficiency.

Despite an 80% surge in share price year to date, MGI's valuation remains below its peers. However, improved financial forecasts, combined with the company’s strong performance (+80% year to date and +43% over the last 12 months), suggest a closing gap in its market valuation. Edison projects an increase in MGI's share price to €3.73, reflecting potential equity value realignment with industry averages on future earnings and revenue.