| In the half-yearly report as of June 30, 2023, Mondo TV announced that it had closed the first six months with a value of production of € 4.55 million, down 76.1% compared to the result in 1H22A (€ 19.06 million). EBITDA for the period stood at € 2.06 million, down 83.6% compared to the value reported in 1H22A (€ 12.56 million). EBIT came in slightly negative for approximately € -0.26 million, against € +4.23 million in 1H22A. Net Income came in equal to € -1.54, a sharp decrease compared to € 4.27 million in 1H22A. NFP, as of June 30, 2023, stood at a value of € 8.48 million, a clear improvement compared to the value at the beginning of the year of € 12.22 million. In light of the results published in the half-yearly report for 1H23A we have adjusted our estimates for both the current year and coming years. In particular, we estimate a value of production for FY23E equal to € 9.60 million, and an EBITDA equal to € 4.15 million, corresponding to a margin of 43.2%. In the following years, we expect the value of production to rise to € 11.50 million (CAGR 23E-25E: 9.4%) in FY25E, with EBITDA equal to € 5.20 million, corresponding to a margin of 45.2%. We conducted our valuation of the equity value of Mondo TV based on the DCF method and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 57.1 million. Using market multiples, the equity value of Mondo TV is equal to € 41.1 million (including a discount of 25%). The result gives an average equity value of approximately € 49.1 million. The target price is € 0.90, with a BUY rating, and MEDIUM risk. |