Digital Magics
On 29 July 2013, Digital Magics was admitted to listing on the AIM Italia market by Borsa Italiana. Collection of 4.56 million Euros through placement exclusively in capital increase and the issue, in pre-IPO of convertible loan capital for a further 4 million Euros.
Digital Magics was the first venture incubator in the history of the Italian market to proceed with a listing. The issue of the convertible loan capital and the capital increase was fully subscribed for a total value exceeding 8 million. The operation demonstrated a strong interest in the sector and involved leading institutional investors, including specialized operators, Italian and foreign investment funds, business angels, and high-potential professional investors.
The placement price is equal to € 7.50.
The enterprise. Digital Magics is a venture incubator focused on providing capital and operational assistance to selected innovative startups in the digital media, advertising, and social sectors. The company operates through a synergistic approach between the typical venture capital activity by providing initial seed capital and the incubator activity by providing strategic, logistical, technical, and commercial support. The joint approach of the venture activity and the incubator activity has allowed the company to achieve a significant track record by developing over 35 strat-ups, creating 6 exits (compared to only 4 write-offs) with an overall IRR on the track record that exceeds 30%.
Ultima Ricerca Digital Magics
UPDATE| In 1H25A, the Group recorded revenues of € 11.04 mln, broadly stable compared to € 11.09 mln in 1H24A (-0.5%). Productive revenues with margin contribution grew by +1.8% to € 10.40 mln, with a recurring component of 46.0%. By business area, Digital, Social and Media Marketing reported growth of +4.8% to € 5.40 mln, and Platform & Technology Services rose by +9.9% to € 4.30 mln, while Consulting (€ 0.20 mln, -63.0%) and Digital Academy (€ 0.50 mln, -24.4%) declined. EBITDA stood at € 1.22 mln (vs € 2.02 mln in 1H24A), with the EBITDA margin decreasing from 17.2% to 10.4%; adjusted EBITDA was € 1.61 mln (vs € 1.87 mln in 1H24A). EBIT amounted to € 0.17 mln (vs € 0.91 mln), while Net Income was € – 0.12 mln (vs € 0.41 mln). From a balance sheet perspective, NFP improved from € 5.71 mln to € 4.84 mln of net debt. In light of the results published in the 1H25A half-year report, we revise our estimates for both the current year and the following years. Specifically, we estimate FY25E revenues of € 22.80 mln and adjusted EBITDA of € 3.78 mln, corresponding to a margin of 16.6%. For the following years, we expect revenues to grow to € 28.50 mln (CAGR 24A-27E: 7.9%) in FY27E, with adjusted EBITDA of € 6.60 mln (margin of 23.2%), compared to € 4.04 mln in FY24A (adjusted EBITDA margin of 17.8%). At the balance sheet level, we forecast a cash positive NFP of € 0.89 mln by FY27E. The equity value of Websolute has been assessed using both the DCF methodology and market multiples of a selected peer group. The DCF method, incorporating a prudential specific risk of 2.5% in the WACC calculation, yields an equity value of € 45.7 million. The market multiples approach results in an equity value of € 30.0 million. Consequently, the average equity value stands at approximately € 37.9 million. The target price is set at € 3.70, with a BUY rating and a MEDIUM risk level. |
