Verve - Edison Group

Overview
Price performance
Financials
Research
Sector insights
Thematics

Verve is an advertising software platform helping advertisers efficiently acquire customers across different media channels, as well as enabling publishers to efficiently and optimally monetise advertising space.

Q124 ad impressions were 20% up on Q123, in the inherently weakest quarter. CPM pricing has not yet significantly bounced back, particularly at the commodity end of the market where there is little, if any, targeting. This highlights the importance of solutions offering advertisers the benefits of targeting (right people, right places, right time) without compromising user privacy. While the final Google cookie deprecation is delayed again, this time out to 2025, awareness is now finally building and budgets are starting to shift.

Latest Insights

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TMT |
Update

24.06.24

Verve — Jun helps Verve blossom

TMT |
Update

08.05.24

MGI – Media and Games Invest — A strong start to the year

TMT |
Flash note

08.04.24

MGI – Media and Games Invest — Google strategic collaboration

TMT |
Update

04.03.24

MGI – Media and Games Invest — Back on a growth track

Media and Games Invest_resized

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Analyst, Consumer and TMT

Key Management

Paul Echt

FD
Remco Westerman

Executive Chairman

Balance Sheet

Forecast net debt (€m)

369.1

Forecast gearing ratio (%)

96

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	11.1	17.3	90.7
Relative	14.4	18.8	66.1
52 week high/low	€1.9/€0.8

Financials

Verve (formerly MGI – Media and Games Invest) has announced the acquisition of Jun Group for €170m (US$185m), part funded by a €40m directed share issuance. Jun is an excellent fit and scales up Verve’s demand side (ie serving advertisers and agencies) to 30% of the group. It is being sold by Nasdaq-listed Advantage Solutions, which is reducing its leverage by selling its non-core operations. It sought a speedy transaction, hence the attractive deal pricing of 3.8x EV/EBITDA. Synergies built into raised guidance come from revenue opportunities rather than cost deduplication. Given Jun’s EBITDA margins of over 50%, Verve’s margins should rise, with EPS further boosted by lower interest as a percentage of revenue. The current rating does not, in our view, reflect the group’s strong position.

Y/E Dec	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2022A	324.4	84.8	38.6	12.01	15.1	N/A
2023A	322.0	128.5	26.8	32.08	5.7	6.3
2024E	390.0	114.9	44.8	16.59	11.0	15.8
2025E	480.0	167.9	107.6	35.50	5.1	5.4

Research

Update

TMT

22.11.22

Media and Games Invest — Ad tech credentials boosted by Google partnership

Update

TMT

10.11.22

Media and Games Invest — Swedish re-domicile going ahead

Media and Games Invest_resized

TMT

Update

Media and Games Invest — Sharpening focus in digital advertising

Media and Games Invest_resized

edison tv

TMT

12.09.22

Media and Games Invest – executive interview

Initiation

TMT

14.07.22

Media and Games Invest — Focus on ad software platform

QuickView

TMT

03.05.22

Media and Games Invest — Acquisition of AxesInMotion

Update

TMT

08.03.22

Media and Games Invest — Adtech player with first-party content

Flash note

TMT

18.11.21

Media and Games Invest — Q321 results, 41% y-o-y organic growth

Update

TMT

31.08.21

Media and Games Invest — Focus moves from games to media

Flash note

TMT

16.07.21

Media and Games Invest — Acquisition of Smaato and updated guidance

Flash note

TMT

28.04.21

Media and Games Invest — Full steam ahead, with two M&A deals in Q121

Update

TMT

11.03.21

Media and Games Invest — Strong momentum carrying into FY21

Flash note

TMT

19.01.21

Media and Games Invest — Acquisition of KingsIsle Entertainment

Flash note

TMT

01.12.20

Media and Games Invest — Equity+bond placings, FY20 guidance raised

Flash note

TMT

01.10.20

Media and Games Invest — Placing and dual listing in Stockholm

Update

TMT

20.08.20

Media and Games Invest — Strong H1 performance, more to come

Flash note

TMT

05.08.20

Media and Games Invest — Scorching Q220, FY20 guidance raised boldly

Initiation

TMT

13.07.20

Media and Games Invest — Benefiting from lockdown, ready for lift-off

edison tv

TMT

19.05.20

Media & Games Invest (MGI) – executive interview

Initiation

TMT

18.05.20

Media and Games Invest — Following in Stillfront’s footsteps

Further insights

insight

Consumer

21.11.23

MGI – Media and Games Invest: EKF 2023 QuickView

insight

Consumer

16.11.22

Deutsches Eigenkapitalforum (EKF) 2022 CMT

insight

Consumer

26.07.22

Deutsches Eigenkapitalforum (EKF) 2022

thematic

TMT

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back