GCA Altium Digital, Media & Internet Monitor Q1 2018
GCA Altium is pleased to provide you with the Q1 2018 edition of our Digital, Media & Internet Monitor, which offers a quarterly update on global market data, sector valuations and M&A activi
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 negative across almost all subsectors, except for Marketplaces (+10.1%) and Consumer/B2C Services (+5.9%), the only sectors posting positive returns in Q1 2018. Gambling (-12.3%), Inventory-based E-commerce (-12.0%), Social Networks & Communities (-11.7%) and Champions (-10.0%) emerged as clear losers. Since the beginning of 2018 equity markets again showed increased volatility. Although overall economic figures remained positive, the Cambridge Analytica scandal with regards to Facebook’s data privacy and mentions of a US-China trade war rattled markets and sustained high levels of volatility in the Digital, Media & Internet sector throughout the quarter.
- EV/EBITDA valuations (2018E) decreased in most subsectors with Gambling (-16.9%), E-commerce & Marketing Solutions (-10.3%) and Champions (-7.8%) suffering the largest losses. Devaluations can mostly be attributed to weakened stock performance.
- EV/Sales valuations (2018E), despite stable revenue generation, were driven by worsened equity market conditions leading to a valuation decrease in a majority of subsectors. Marketplaces (+10.0%), Consumer/B2C Services (+6.8%) and Content Monetization (+5.5%) were the most notable exceptions.
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