Iervolino & Lady Bacardi Entertainment S p A: Consolidated Interim Financial Report as of June 30, 2022

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Consolidated half-year financial report acc

as of June 30, 2022

Parent company: IERVOLINO & LADY BACARDI ENTERTAINMENT SPA

Registered office: Via Barberini n. 29 – 00187 – ROMA

Registered in the Trade Register by: ROM

Tax number and VAT number: 11636381003

Registered with the REA of ROM No. RM-1318599

Subscribed capital EUR: 1,410,427.92 fully paid up

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MANAGEMENT REPORT OF THE ILBE GROUP FOR THE CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AS OF JUNE 30, 2022

  1. introduction
  2. The macroeconomic context and the “media & entertainment” reference industry.
  3. The business model of the ILBE Group
  4. The activities carried out in the first half of 2022
  5. Order backlog and projects in development
  6. Summary data and alternative performance indicators (APIs)
  7. Related Party Transactions
  8. human resources
  9. Research and Development
  10. Disclosure of Key Risks and Uncertainties
  11. Significant events occurring after the end of the period
  12. business outlook

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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS ENDED JUNE 30, 2022

Preparation of the consolidated half-yearly balance sheet

Statement of total consolidated profit/(loss) for the half year

Consolidated statement of changes in equity for the half year

Half Year Consolidated Statement of Cash Flows

  1. company information
  2. Principles of preparing and changing the accounting standards for the Group
  3. Fields of activity: politics
  4. business combinations
  5. Explanatory note

AUDIT REPORT EY SPA

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MANAGEMENT REPORT OF THE ILBE GROUP FOR THE CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AS OF JUNE 30, 2022

1 Introduction

The condensed consolidated interim financial statements as of June 30, 2022 of Iervolino

  • Lady Bacardi Entertainment Group (hereinafter also referred to as ILBE Group or Group) comprises the parent company Iervolino & Lady Bacardi Entertainment SpA (formerly Iervolino Entertainment SpA) and the holdings in Arte Video Srl and Arte Video Llc, RED Carpet Srl, Wepost Srl , Iervolino Studios doo e Sobe Sport Srl, which most recently represented a deviation from the scope of the previous financial year.

The consolidated half-year financial statements as of June 30, 2022 are prepared with total revenues of EUR 83,260 thousand and an EBIT, before some non-recurring expenses of EUR 1,511 thousand, of EUR 11,207 thousand. The EBIT margin for the half year was 13.46%.

At the same time, the net financial position (less the net effect of EUR 2,095,000 for the full year 2022 from IFRS 16 related to the new leases) improves to EUR 26,531 compared to December 31, 2021, which corresponds to EUR 29,289.

The results achieved are consistent and in line with the order backlog and the projects in development as well as the guideline of the expected development of the management presented in the group management report of the previous year.

These results are also consistent with the strategic choices made by:

  1. Investing in high quality intellectual property;
  2. Substantially international market selection and primarily aimed at a streaming audience;
  3. Prioritize growth and value creation over time short-term profitability;
  4. Investment and growth in the context of financial balance.

In this context, the recognition successes with international and national audiences on SKY cinema, Apple TV, SKY-Dea Kids and Amazon Prime Video of the collections “Arctic Friends”, “Puffins”, “Waiting for the Barbarians”, “In Dubious”. Battle – Il Courage of the Last, The Bleeder, The Humbling, Shiraz – The City of Roses, Beyond the Edge and others confirm the goodness of the decisions made.

2. The macroeconomic context and the “Media & Entertainment” reference industry.

The global entertainment and media (M&E) industry experienced a strong surge in the past year, significantly outpacing overall global economic growth. After a 2.3% decline in 2020 due to the pandemic, M&E revenues grew 10.4% in 2021 from $2.12 trillion to $2.34 trillion.

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The industry is becoming more digital, mobile and youth-oriented. Virtual reality (VR) and games are strong growth drivers, while digital advertising permeates the entire industry.

Expected outlook results from an industry study by a major international consulting firm include:

  • Global video game and eSports production totaled US$215.6 billion in 2021 and is expected to grow at a CAGR of 8.5% to US$323.5 billion in 2026. Asia-Pacific generated the lion’s share of sales at $109.4 billion in 2021, almost double that of North America second highest region. Games are now the third largest category of M&E content consuming data, after video and communications.
  • VR remains the fastest growing M&E segment, albeit from a relatively small base. Global virtual reality spend up 36% year-on-year to $2.6 billion in 2021, after growing 39% in 2020. Growth of 24% CAGR is expected between 2021 and 2026, taking the segment to $7.6 billion. Gaming content will be the largest contributor to VR revenue at $1.9 billion in 2021. By 2026, that figure is projected to grow to $6.5 billion, accounting for 85% of total virtual reality revenue.
  • The proliferation of advertising in the digital world has made it a dominant industry category. After a nearly 7% decline in 2020, advertising grew an impressive 22.6% in 2021 to $747.2 billion. Driven almost entirely digitally, advertising is expected to grow at a CAGR of 6.6% through 2026. Internet advertising revenue is expected to grow even faster, rising to a CAGR of 9.1%. By 2026, advertising is predicted to be a $1 trillion market and the largest source of M&E revenue after surpassing consumer spending and internet access.
  • After growing 35.4% in 2020 Over-the-top (OTT) video grew another 22.8% in 2021, driving revenue to $79.1 billion. The pace of growth in OTT sales will slow down slightly; It is expected to grow at a CAGR of 7.6% through 2026, boosting sales to $114.1 billion.
  • Traditional television, besieged by competition from OTT streaming services, still generates sizable revenue but its inexorable decline will continue, with global revenue expected to shrink to 1.5 percent -0.8% CAGR from US$231 billion in 2021 to US$222.1 billion in 2026.
  • Global film revenues are rebounding, reversing losses caused by the pandemic, and are expected to hit a new high of $46.4 billion in 2023, up 18.9%. China overtook the United States to become the world’s largest film market in 2020 and is expected to hold that lead through 2026.
  • Live music revenues are expected to be surpassed Pre-pandemic levels in 2024. Digital music streaming subscriptions are driving growth in the recorded music industry, where revenues are expected to grow from $36.1 billion in 2021 to $45.8 billion in 2026 will.
  • Content growth is driving bulk data consumption: 2.6 million petabytes (PB) of data was consumed in 2021 and is expected to grow at a CAGR of 26% to 8.1 million PB by 2026. Gaming is set to be the fastest growing consumer of data over the forecast period, with an expected CAGR of 29.6%. Mobile phones will be the fastest growing device category at a CAGR of 28.8% between 2021 and 2026 and are expected to increase mobile data consumption from 1.1 million PB to 3.8 million PB.

Essentially what is emerging as an M&E market trend is that the decisions billions of consumers are making about where to invest their time are driving industry transformation and driving trends. Essentially, we see the emergence of a global M&E consumer base over the next few years that is younger, more digital, and more streaming and gaming than the current consumer population. That shapes the future of the industry.

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Disclaimer

Iervolino & Lady Bacardi Entertainment SpA published this content on November 08, 2022 and is solely responsible for the information contained therein. Distributed by the public, unedited and unmodified, on 08 November 2022 22:36:52 UTC.

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All the news about IERVOLINO & LADY BACARDI ENTERTAINMENT SPA

Sale 2022 157 million
158 million
158 million
Net Income 2022 11.5 million
11.6 million
11.6 million
Net Debt 2022 28.7 million
28.9 million
28.9 million
P/E 2022 3.87x
Yield 2022
capitalization 44.3 million
44.7 million
44.7 million
EV / Sale 2022 0.47x
EV / Sale 2023 0.46x
number of employees 124
free float 20.7%

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Medium consensus EXCEED
Number of Analysts 1
Last closing price €1.27
Average target price €3.05
Spread / Average Target 140%


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