Q2 2019 edition of Digital, Media & Internet Monitor published
GCA Altium is pleased to provide you with the Q2 2019 edition of our Digital, Media & Internet Monitor, which offers a quarterly update on global market data, sector valuations and M&A activity.
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 Q2 were:
- Share price performance was positive for approximately half of all subsectors, particularly for Payment (+25.6%), E-commerce & Marketing Solutions (+9.5%) and Diversifieds & Portals (+5.0%), industries which posted the highest returns in Q2 2019. In contrast, Social Networking & Communities (-14.6%), Travel (-7.7%), Inventory-based (-4.8%) and Gaming (-4.5%) experienced the worst returns. The mixed returns were on the one hand driven by deflating hopes of an interest rate cut by the Federal Reserve and the prospect of weak Q2 earnings and on the other hand by strong economic fundamentals and growth.
- EV/EBITDA valuations (2019) experienced mixed trends, with Payment (+23.4%), E-commerce & Marketing solutions (+18.1%) and Content Monetization (+10.8%) showing the largest gains, while Gaming (-13.6%), Other Online Marketing (-5.0%) Gambling and Travel (-4.6%) experienced the largest decreases in EV/EBITDA valuations. This mixed landscape can mostly be attributed to industry specific developments.
- EV/Sales valuations also experienced mixed trends. Whereas Payment (+25.9%), E-Commerce & Marketing Solutions (+18.5%) and Classifieds (+13.1%) experienced the largest increases, Social Networks & Communities (-11.5%), Travel (-5.7%) and Gaming (-5.7%) posted the largest declines in EV/Sales valuations.