Mondo TV profile pic

Mondo TV

MI: MTVI

€42.6m market cap

€1.23 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’s Q3 results continued in the more positive vein established in H1, with the flow of new content and licensing agreements carrying through into Q4 across a good range of properties, including new titles in the German JV with Toon2Tango. In October, the group announced new licensing deals in Russia with Gazprom Media and PJSC MegaFon for the streaming of Mondo TV library content. These deals help rebalance group revenues, historically heavily biased to Asia. Management’s business plan for FY19–FY23 (to which we have built in a degree of contingency) is unchanged, as are our forecasts.

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 2.9 N/A
2018A 18.9 11.2 (30.1) (56.3) N/A N/A
2019E 20.8 14.4 6.0 10.3 12.0 N/A
2020E 27.8 19.1 7.8 12.8 9.7 N/A
Industry outlook

This year’s Mipcom was dominated by the disruption from new streaming platforms (Disney+, Apple TV+, HBO, NBCUniversal etc), which is driving competition for quality content. Much of the interest, though, was from new AVOD platforms. 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 10/12/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (5.8) 4.3 (23.1)
Relative* (5.0) (1.9) (38.0)
52-week high/low €1.6/€0.9
*% relative to local index
Key management
Matteo Corradi CEO
Carlo Marchetti FD