Otello (OTEC) H1 2024 earnings summary

Executive summary

• Otello reported a net loss of $9.1 million in 1H24, down from a net profit of $16.2 million in 1H23, mainly due to a $10.8 million impairment of its Bemobi investment.

• No operating revenue was recognized in 1H24; Otello's main asset is its 37.6% stake in Bemobi.

• Total equity stood at $94.9 million as of June 30, 2024, with cash and cash equivalents of $14.5 million.

• 508,337 shares were repurchased for $382,000 during the half, with a new buyback program announced post-period.

Financial highlights

• Adjusted EBITDA and EBITDA both improved slightly to $(1.6) million in 1H24 from $(1.7) million in 1H23.

• EBIT was $(12.4) million in 1H24, down from $13.1 million in 1H23, reflecting the Bemobi impairment.

• Net financial items contributed a gain of $3.4 million, mainly from Bemobi's profit share.

• EPS was $(0.10) in 1H24, compared to $0.18 in 1H23.

Outlook and guidance

• Otello remains focused on maximizing Bemobi's value and returning cash to shareholders.

• Bemobi's share price rose 16% post-period, supporting a positive outlook for Otello's main investment.

• No new operating segments are planned; Otello will continue opportunistic management of its Bemobi stake.