Mondo TV (MTV) Q4 2022 earnings summary

Executive summary

• 2022 closed with a consolidated net loss of €69.3 million, mainly due to a €73.4 million impairment on the library after the loss of the main Asian client, compared to a net profit of €5.5 million in 2021.

• Revenues increased by 12% year-over-year to €35.0 million, driven by new productions and sales, especially in Western markets.

• The company adopted a new business plan in March 2023, focusing on Western markets, cost reduction, and lower investments, with a return to profitability expected from 2023.

Financial highlights

• Consolidated EBITDA rose 4% year-over-year to €25.4 million, while EBIT dropped to -€70.1 million due to the impairment.

• Net financial debt increased to €12.2 million from €8.5 million at year-end 2021, mainly due to investments in new animated series.

• Group equity fell sharply to €14.1 million from €80.5 million at the end of 2021.

• Cash and equivalents at year-end 2022 were €3.1 million, down from €6.1 million a year earlier.

• Excluding the impairment, adjusted net profit would have been €4.1 million.

Outlook and guidance

• 2023 budget targets: consolidated production value of €17 million, EBITDA of €7 million, and net profit of €1 million.

• The 2023–2027 plan projects production value rising to €22 million, net profit of €3 million, annual capex below €5 million, and a positive net financial position by the end of the plan.

• Sales forecasts exclude China and Russia.