Mondo TV's (MI:MTV) H1 trading update points to revenues up 39% and with a strong contribution from higher-margin library, licensing and merchandise sales, EBIT up 68%. Much of the pipeline is committed moving into the second half, and we believe the group is on track to deliver on its budget for FY17, which management confirms is expected to be Mondo’s best ever year.
A strong H1 points to delivery of full year plan
Mondo’s 25 July trading update reports H117 revenues of €14.7m (up 39% y-o-y), EBITDA of €11.1m (up 46%), EBIT of €6.8m (up 68%) and net profit of €5.9m (up 77%). This good start to the year was a result of strong high-margin library sales as well as licensing and merchandising revenues from new international projects. The EBITDA margin at 76% is considerably higher than our forecast for the year, reflecting the work the group has done in reorganising the production process as well as the mix of revenues, although we expect margins to come down in the second half, which should have a greater share of production sales (Heidi S2, Invention Story, Sissi and the first episodes of YooHoo). H1 revenues represent approximately 39% of our full year forecast, which given that H1 is typically the seasonally weaker half, puts the group on track to deliver its full year guidance.
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