Q1 2019 edition of Digital, Media & Internet Monitor published
The GCA Altium Digital, Media & Internet Monitor is tailored to the needs of busy executives and investors seeking a comprehensive overview of the M&A and valuation landscape, trend analyses and insights into the current transaction environment.
Key developments in Q1 were:
- Share price performance was positive across all subsectors, particularly for Payment (+36.6%), Marketplaces (+33.5%) and E-commerce & Marketing Solutions (+29.6%) which posted the highest returns in Q1 2019. In contrast, Consumer/B2C Services (+3.6%), Diversifieds & Portals (+7.3%), Gambling (+11.8%) and Customer Acquisition (+12.0%) had the lowest increases. The overall positive trend in media and technology stock returns was driven by positive geopolitical signs, signals from the Federal Reserve to be patient in a further increase in interest rates and strong M&A activity level, including a number of large M&A deals.
- EV/EBITDA valuations (2019) significantly increased in every subsector with Gaming (+42.9%), Social Networks & Communities (+33.2%) and Travel (+31.8%) showing the largest gains, while Consumer/B2C Services (+6.3%), Customer Acquisition (+10.4%) and Gambling (+10.6%) had the smallest increase in EV/EBITDA valuations. Increased valuations can mostly be attributed to stronger market performance.
- EV/Sales valuations (2019) showed an increase in nearly all subsectors. Gaming (+34.6%), Inventory-based (+33.9%) and E-commerce & Marketing Solutions (+31.0%) rose the most. Consumer/B2C Services (-2.1%) was the only subsector that posted a decline in sales valuation.
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