The BoD examined the financial statements as of June 30, 2024

September 27, 2024

EXAMINED THE CONSOLIDATED FINANCIAL STATEMENT FOR THE FIRST HALF OF 2024:
– Consolidated revenues at Euro 59 million, Euro 60 million in the first half of 2023
– EBIT at Euro 0.5 milion, Euro 2.7 milion in the first half of 2023, EBIT margin equal to 1%
– Non-recurring charges for project abandonment amounting to Euro 13.3 million
– Loss for the period amounting to Euro 17.2 million, profit of Euro 0.6 million in the first half of 2023

Rome, 27 September 2024 – The Board of Directors of ILBE (Iervolino and Lady Bacardi Entertainment) – a company active in the production of film and television content (Euronext Growth Milan – IT0005380602 – IE and Euronext Growth Paris – IT0005380602 – ALIE) – met today, examined the financial statements as of June 30, 2024, prepared in accordance with the International Accounting Standards IAS/IFRS, applied consistently with the previous financial year.

The period closed with total revenues of Euro 59.1 million, a 1% decrease compared to Euro 60.0 million in 1H 2023. Consolidated EBIT reached Euro 471 thousand, equal to 1% of total revenues (Euro 2.7 million in the first half of 2023, with a margin of 4.5%). EBIT is defined as the operating result attributable solely to recurring core business operations, excluding any non-recurring items.

The Group’s EBIT shows a decrease compared to the same period in 2023, due to the slowdown in activities mainly caused by the effects of the decision-making stalemate regarding industrial strategic lines, with the resulting managerial impacts, which culminated in the resignation of the previous president.

During the period, non-recurring charges amounting to Euro 13.3 million were recorded, mainly related to the abandonment of projects, mostly initiated in the financial year and no longer aligned with the industrial strategy and financial flows. Furthermore, for the ongoing productions in the second half of 2024, a stable trend in EBIT and margins is expected compared to the performance in the first half of 2024. The first half of 2024 closes with a net loss of Euro 17.2 million, compared to a net profit of Euro 608 thousand in the first half of 2023.

The adjusted net financial debt position (net of the Euro 2.6 million impact related to the application of IFRS 16 for property lease contracts) increased to Euro 44.5 million as of December 31, 2023, compared to Euro 39.3 million at the end of the previous financial year, mainly due to a significant slowdown in the processing of tax credit applications, which has only recently resumed.

Net invested capitalreached Euro 123.5 million, down from Euro 135.3 million as of December 31, 2023, and is financed by the adjusted net financial debt position of Euro 44.5 million, other financial liabilities (from IFRS 16) of Euro 2.6 million, and shareholders’ equity of Euro 76.4 million (Euro 93.6 million as of December 31, 2023)