Mondo TV profile pic

Mondo TV

MI: MTVI

€66.1m market cap

€1.52 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.

Investment summary

Mondo TV produced good FY20 results, with production value up by 14% to €30.4m and an uptick in EBITDA margin (on production value) from 61.4% to 61.8%. The strengthening of the balance sheet through Atlas’s capital injection (the €10.5m bond conversion is now complete) has given the group the resource to invest in its Toon2Tango JV and in the development of its own 3D CGI animation studio in Gran Canaria. The dispute with the tax authorities is now resolved. With robust global content demand and continuing deal flow, the valuation discount looks overdone.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 23.1 16.4 6.2 11.3 13.4 10.4
2020A 24.7 18.8 6.4 13.2 11.5 4.8
2021E 29.2 24.6 10.5 15.0 10.1 5.0
2022E 30.6 26.9 12.3 16.5 9.2 3.0
Industry outlook

Global appetite for children’s TV content remains good – if anything strengthened by the impact of COVID-19, with animation benefiting from the reduced filming of live action. Additional launches of new advertising and streaming video-on-demand platforms ensure that the appetite for quality content remains high, with children’s content particularly valued in order to attract household subscriptions. Licensing and merchandising markets have been more difficult.

Last updated on 13/04/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 0.9
Forecast gearing ratio (%) 1
Price performance
%
1m
3m
12m
Actual 13.8 12.0 (7.8)
Relative* 11.9 3.5 (33.6)
52-week high/low €2.3/€1.2
*% relative to local index
Key management
Matteo Corradi CEO
Carlo Marchetti FD