Mondo TV profile pic

Mondo TV

MI: MTVI

€45m market cap

€1.31 last close

Mondo TV is a global media group focused on the production, acquisition and exploitation of animated children’s television series. It owns the rights to >1,600 TV episodes and films, which it distributes across 75 markets. 83% of revenues are generated in Asia, with the remainder from Europe and South America.

Investment summary

Mondo TV has returned to profit in the first half of FY19, on its rebased business model with a more concentrated portfolio. Financial performance is tracking to management’s plan and our only forecast changes reflect IFRS 16 adoption. Visibility through H219 and into FY20 on the production pipeline is improving. The streaming of YooHoo & Friends on Netflix raises the group’s profile and the Toon2Tango partnership opens more European opportunities. The shares are valued well below global content peers.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 32.0 23.7 15.4 43.0 3.0 N/A
2018A 18.9 11.2 (30.1) (56.3) N/A N/A
2019E 20.8 14.4 6.0 10.3 12.7 N/A
2020E 27.8 19.1 7.8 12.8 10.2 N/A
Last updated on 21/10/2019
Industry outlook

The upcoming Mipcom at Cannes (12–17 October) will set the mood for the global content market. The disruption from new streaming platforms (Disney+, Apple TV+, WarnerMedia, NBCUniversal etc.) drives competition for quality content, but much of the additional spend is focused on ‘tent pole’ properties. Children’s content is valued to attract household subscriptions and traditional broadcasters have been less open to commission new series for some time. Licensing and merchandising markets have been lacklustre in recent months, on poorer economic conditions and the impact of (and threat of further) US Chinese trade sanctions also weighing on advertising revenues.

Last updated on 21/10/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 12.7 11.9 (64.1)
Relative* 11.0 7.9 (69.1)
52-week high/low €3.7/€0.9
*% relative to local index
Key management
Matteo Corradi CEO
Carlo Marchetti FD