| In the press release of September 29, 2023, the Company announced the Board of Directors’ approval of the results as of June 30, 2023. During the first part of 2023 fiscal year, the Company generated: Value of production of € 1.29 million, compared with € 2.13 million in 1H22A; EBITDA of € 0.43 million, compared to € 0.52 million in 1H22A; EBIT of -€ 0.12 million, compared to € 0.12 million in 1H22A; Net Income negative for € 0.13 million, compared to a profit of € 0.11 million in 1H22A; NFP increased from € 1.44 million at the end of the previous year to € 1.81 million in 1H23A, mainly due to investments made in the production of the animated series Grisu. The value of production is attributable to the delivery of 10 episodes of the animated series Grisù in the first half of the year, while in 1H22A it was due to the delivery of 8 episodes of the animated series Disco Dragon and the first episode of the series Grisù. It should be noted that the uneven trend in the value of production is determined by episode deliveries and is inherent to the Company’s business model. Regarding the expected trend for the second part of the fiscal year, the delivery of additional episodes of the animated series Grisù is expected, which, together with the beginning of the commercial exploitation of the series, lead to an estimated recovery in the second half of the year both in terms of revenues and net income, wihich the Company expects to be positive expected for 2023. In addition, the development of new projects (le Poulpe, Wonder Pony, Souzon) that are expected to start their production in 2024, once the current financing activities are completed, proceeded. Finally, it is reported that on June 27, 2023, the merger of Mondo Tv Suisse into the Company was approved by both boards of directors. The purpose of the operation is to integrate the two businesses, and to make overall structural costs more efficient, thus taking advantage of the benefits of integrating management and increasing economies of scale. This merger process with Mondo Tv Suisse is expected to be completed by the end of the year. With the press release in mind, we confirm our recommendation: target price U/R, rating U/R and risk MEDIUM. |