BREAKING NEWS – 19.09.2023

In a press release of September 12th, 2023, Convergenze SpA – a Benefit Company operating in the 100% green Telecommunications and Energy market, nationally present through the patented EVO (Electric Vehicle Only) network and the proprietary optical fiber network with the innovative XGS-PON technology and listed on the Euronext Growth Milan market – announces that it has signed a five-year agreement aimed at offering entertainment content to its subscribers throughout the Italian territory, starting from the first quarter of 2024, establishing a collaboration with the Spanish company Agile Content, internationally active in on-demand and live pay streaming services through the “Agile TV” platform. Under the terms of the agreement, the Company will pay a pre-determined fee to Agile Content for each activated customer. Similarly, Convergenze’s customers will pay the monthly subscription fee, which will appear directly on their utility bill. Through the operation, Convergenze will realize an important increase in its content portfolio, consolidating its position in the country, also as a result of the significant penetration capacity expected from “Convergenze TV” starting from the first quarter of 2024, when the service will enter the production phase. Through the latest-generation SetTopBox (4k, DVB-T2), provided on free loan to users, they will benefit from the possibility of accessing a broad multimedia offering composed of Agile Content (which, by itself, includes more than 1,000 on-demand products including movies, series, documentaries, and children’s content, as well as a monthly offering of premium premiere movies, and a package containing one of the world’s leading OTT services) and other national and international entertainment channels. Through this tool, “Convergenze TV” will be able to provide access to the most important international on-demand and live pay streaming platforms, without the need to use other devices, such as Smart TVs or other SetTopBoxes. Taking into consideration the scope of the agreement, it seems that Convergenze is manifesting its strategic will to increase its competitive positioning and its ability to penetrate the connectivity market nationwide through a continuous and targeted expansion of its production portfolio, according to current consumer preferences. Thus Convergenze realizes the activation of its third business unit Media&Content Delivery Network, complementing its two pre-existing business lines, TLC and Energy.    Taking into consideration the press release and while waiting to meet with management and evaluate the half-year results, we confirm our estimates: target price € 3.50, BUY rating and risk Medium.

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