Tough market environment persisting
MGI’s Q3 revenues declined as expected, while adjusted operating profit fell short of our expectations due to higher operating costs than estimated. MGI reiterated its guidance of lower revenues in 2023 due to a challenging market environment. During the quarter, MGI increased its market share further, and we believe MGI is well-positioned to continue to do so. We, therefore, see a clear upside in the low valuation as ad spending recovers. We recognize the possibility that the recovery might take longer than expected, which could impede the stock's performance until the outlook improves.
Verve
Verve (Ticker: VER) is a fast-growing, profitable, digital media company that provides AI-driven ad-software solutions. Verve matches global advertiser demand with publisher ad-supply, enhancing results through first-party data from its own content. Aligned with the mission, “Let’s make media better,” the company focuses on enabling better outcomes for brands, agencies, and publishers with responsible advertising solutions, with an emphasis on emerging media channels. Verve’s main operational presence is in North America and Europe. Its shares are listed on the Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The company has three secured bonds listed on Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market.
Read more on company pageKey Estimate Figures01.12.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 324.4 | 303.0 | 312.0 |
growth-% | 28.66 % | -6.60 % | 2.97 % |
EBIT (adj.) | 76.6 | 74.4 | 63.0 |
EBIT-% (adj.) | 23.60 % | 24.55 % | 20.18 % |
EPS (adj.) | 0.19 | 0.14 | 0.11 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 9.07 | 22.82 | 30.31 |
EV/EBITDA | 6.43 | 6.53 | 9.75 |