Investment summary

Mondo TV made good progress in 2011, operationally and financially, but economic headwinds have prompted management to revise its business plan for 2012-13. We have consequently reduced our estimates, particularly for 2012. As we have previously written, the timeline of deliveries still points to a big payback in 2013. The proposed capital increase of €11.3m, partially guaranteed by the major shareholder, will strengthen the balance sheet but overhangs the shares until resolved.

Last updated on 03/02/2012

Industry outlook

The traditional animation business model based on TV sales has become extremely difficult due to pressure on broadcaster budgets, and this also affects high-margin library sales. Successful cartoons have enormous global licensing appeal although the present retail environment is very tough. Mondo TV is partnering large and successful toy companies, such as Giochi Preziosi and MEG, who are keen to promote new toys and characters with cartoons.

Last updated on 09/12/2011