The BoD approved the 2024 consolidated Half year financial report, convening of the shareholders’ meeting pursuant to art. 2447 civil code, 2025 Corporate Calendar

January 21, 2025

Rome, 21 January 2025 – The Board of Directors of Sipario Movies S.p.A. – a company active in the production of film and television content (Euronext Growth Milan – IT0005380602 – SMO and Euronext Growth Paris – IT0005380602 – ALIE) – met today and approved the Consolidated Half-Year Financial Report as at 30 June 2024 prepared in accordance with IAS/IFRS international accounting standards. The approval was deliberated by a majority of three councilors in favor, one abstention and one against.

The period ended with total revenues of euro 63.7 million. Consolidated EBIT reached euro 740 thousand, equal to 1% of total revenues (euro 2.7 million in the first half of 2023, with a margin of 4%). EBIT is defined as the operating result attributable solely to recurring core operations, excluding any non-recurring items.

The decrease in EBIT reflects the period of difficulty that began during the spring with the consolidation of the reconversion of the business of the related party Tatatu S.p.A. in film and television production, decided and operated by the former managing directors of Sipario Movies
S.p.A. Andrea Iervolino and Giorgio Paglioni, Managing Directors also in Tatatu S.p.A. and with the slowdown in production activities and the related financial support deriving from the decrease in the processing of “tax credit” files by the MIC.

During the half-year, some productions started in past years and in the period, and which should have generated revenues in the first half of 2024, were abandoned or suspended by decision of the former Director, Chairman of the Board of Directors and CEO of Sipario Movies S.p.A., Mr. Andrea Iervolino.

During the period, net non-recurring expenses of the related non-recurring income amounted to euro 96,115 thousand, which refer to: accelerated write-downs and/or depreciation of capitalized projects net of the related tax credit revenues (euro 32,950 thousand); allocation to the provision for risks and charges (i) following the analysis carried out on the film production tax credits requested during the period 2020-2024 (euro 20,980 thousand), and for (ii) tax issues mainly related to PVC received from the Italian Revenue Agency on September 16, 2024 (euro 7,613 thousand); write-down of the item Assets deriving from contracts with customers relating to the activities of the subsidiary ILBES d.o.o. (euro 27,746 thousand); costs incurred during the period for interrupted or suspended production (euro 2,988 thousand); charges for lower tax credits for which the Group has waived (euro 1,711 thousand); other non-recurring expenses (euro 87 thousand). In addition, during the period, receivables for euro 2,041 thousand relating to a bankrupt non-EU customer were written down.

The first half of 2024 closed with a net loss of euro 107 million compared to a net profit of euro 608 thousand in the first half of 2023.

As a result, consolidated shareholders’ equity went from a positive value of euro 93,624 thousand as of December 31, 2023 to a negative value of euro 12,884 thousand as of June 30, 2024. The adjusted net debt financial position (net of the net effect of euro 2.6 million relating to the application of IFRS 16 for property rental contracts) increased to euro 44.5 million compared to December 31, 2023 (euro 39.3 million).

Net invested capital amounted to euro 34.2 million, down from euro 135.3 million as of December 31, 2023 and is financed by the adjusted net debt financial position of euro 44.5 million, other financial payables (from IFRS 16) of euro 2.6 million and negative equity of euro 12.8 million. With reference to the Consolidated Half-Year Financial Report as at 30 June 2024, which was voluntarily audited, the Company has not yet received the Statutory Auditor’s report.