Mondo TV

MI: MTVI

€44.2m market cap

€1.28 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 >1,500 TV episodes and films and distributes across 75 markets. 83% of FY17 revenues were generated in Asia, with the remainder from Europe and South America.

Investment summary

Mondo TV is now focusing its efforts on a smaller number of more profitable properties, following a difficult H218. The group’s geographic spread is also readjusting – partly as a result of existing Asian clients scaling back their purchasing – giving a better balance between destination markets. The global market appetite for quality content remains strong with channel proliferation. On reduced forecast revenues, Mondo TV remains comfortably profitable, with net cash on the balance sheet, and should return to being cash flow positive in FY20 in our modelled scenario. Our view is that the attrition of the share price has been overdone.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 27.4 18.1 12.7 31.1 4.1 N/A
2017A 32.0 25.0 15.4 43.0 3.0 N/A
2018E 23.7 17.9 8.0 18.1 7.1 N/A
2019E 23.9 13.9 6.1 6.0 21.4 N/A
Last updated on 21/03/2019
Industry outlook

The market for children’s entertainment has been reinvigorated with the growth of VOD platforms looking for multi-territory content. Animations travel well and, as seen from the success of eOne’s Peppa Pig, brands that travel have the potential to yield significant returns. Smaller players can also be very profitable, particularly when, like Mondo, they have a flexible cost base and high share of revenues from licensing and merchandising sales.

Last updated on 21/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 10.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.5) (8.3) (74.8)
Relative* (13.3) (20.9) (73.0)
52-week high/low €5.1/€0.9
*% relative to local index
Key management
Orlandi Corradi Chairman
Matteo Corradi CEO
Carlo Marchetti FD