GCA Altium is pleased to provide you with the Q3 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 Q3 were:
- Share price performance was negative for almost all subsectors, except for Content Monetization (+2.5%), Payment (+2.2%), Classifieds (+0.5%) and E-Commerce & Marketing Solutions (+0.5%). All other subsectors posted negative results with the most negative in Other Online Marketing (-18.7%), Customer Acquisition (-10.7%) and Diversified & Portals (-8.3%). The negative returns were mainly driven by weak Q3 earnings exceeding analyst expectations and major concerns from the US-China trade war.
- EV/EBITDA valuations (2019) mainly decreased in almost all subsectors with Payment (+5.9%), Champions (+1.4%) and Inventory-based (+1.2%) showing the largest gains, while Other Online Marketing (-7.3%), Marketplaces (-4.2%) and Customer Acquisition (-4.1%) experienced the largest decreases in EV/EBITDA valuations.
- EV/Sales valuations (2019) also experienced downward trends with Gambling (+3.4%) and Payment (+2.0%) as the only positive performers. On the opposite side, Other Online Marketing (-16.3%), Travel (-14.1%) and Customer Acquisition (-10.3%) showed the largest declines in EV/Sales valuations.
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