Otello (OTEC) H1 2025 earnings summary

Executive summary

• Main business activity is financial asset management, with a 38.2% stake in Bemobi Mobile Tech S.A., a Brazilian digital payments company.

• Sold patents from the former Skyfire business, receiving $1.95M in the first half.

• Resolved a 2016 tax case, resulting in a $646K refund plus costs and interest.

• Share buybacks totaled 5.86M shares for $5.29M; equity at period end was $132.2M.

Financial highlights

• Net income for 1H25 was $47.5M, up from a loss of $9.06M in 1H24, driven by a $42.9M impairment reversal on Bemobi.

• Adjusted EBITDA improved to $(1.29)M from $(1.62)M year-over-year.

• EBIT was $41.6M, up from $(12.4)M in 1H24.

• EPS was $0.59, compared to $(0.10) in 1H24.

• Cash and cash equivalents at June 30, 2025, were $14.7M.

Outlook and guidance

• Focus remains on maximizing shareholder value through continued share buybacks and active engagement with Bemobi.

• Positive on Bemobi’s fundamentals, especially its pivot to payment solutions.

• No recognized indemnification obligations from the AdColony sale.