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 FY25A, the Group reported revenues of € 93.58 million, up 27.4% from € 73.43 million in FY24A and above our estimate of € 87.90 million. EBITDA amounted to € 20.52 million, increasing by 38.6% compared to € 14.80 million in FY24A and exceeding expectations of € 19.40 million, with an EBITDA margin of 21.9%, improving from 20.2% in the previous year. EBIT also showed a positive trend, reaching € 17.47 million (+44.2% YoY), with an EBIT margin of 18.7%, while Net Income stood at € 11.45 million, up 36.6% compared to € 8.38 million in FY24A and broadly in line with our forecasts. From a balance sheet perspective, net financial position improved significantly, moving from a cash-positive position of € 3.26 million to € 10.04 million. Following the publication of the FY25A annual report, we revise our estimates for both the current year and the medium term. Specifically, we forecast FY26E revenues at € 110.00 million and EBITDA at € 24.10 million, corresponding to a margin of 21.9%. Looking ahead, we expect revenues to increase to € 144.20 million by FY28E (CAGR 25A–28E: 15.5%), with EBITDA reaching € 32.75 million in FY28E (22.7% margin), up from € 20.52 million in FY25A (21.9% margin). From a financial standpoint, we estimate a cash-positive net financial position of € 13.89 million by FY28E. We conducted the valuation of FOPE’s equity value based on the DCF method and the multiples of a sample of comparable companies. The DCF method (which prudentially includes a specific risk of 1.0% in the WACC calculation) results in an equity value of € 279.6 million. The equity value of FOPE based on market multiples is € 263.9 million. The average equity value therefore amounts to approximately € 271.7 million. We set a target price of € 50.00, with a BUY rating and MEDIUM risk profile. |
