Egm X-rayed: Casta Diva production value at 94.4 million (+15%)

According to the Plan, ebitda and ebit, both in an adjusted configuration, should amount to EUR 14.6 million and EUR 10.7 million, respectively; at 30/6 they were EUR 5.6 million and EUR 4.5 million (+9.9% and +16.1% compared to the same items at 30/6/2024). It should also be emphasised that, as is usually the case for companies operating in the communication sector, the second half of the year is decidedly more significant than the first in terms of revenues and margins (as is, moreover, already evident from the evolution of the value of production at 30/9/2025, which jumped 47% compared to the same date in 2024).

Considering the reported figures, the group's ebitda increased by 10.5% to EUR 4 million and ebit by 20.6% to EUR 3 million, while net profit rose by only 2.3% to EUR 2.07 million. This was mainly due to net financial expenses that rose from EUR 434,000 to EUR 811,000; on the other hand, at 30/6/2025, net financial debt amounted to EUR 9.9m, compared to EUR 9.5m at the end of 2024, mainly due to the growth in working capital (no acquisitions were made in 1H2024; the remaining EUR 1.4m to be paid for the acquisition of First Class Srl will take place in 2026, while the remaining EUR 1.4m for E-Motion will take place by the end of the year, but this is only EUR 296,000). As of 30/6/2025, the Debt/Equity ratio amounted to approximately 0.84 times, thus at physiological levels.

In the meantime, at the end of June Casta Diva Group issued two minibonds (one for EUR 10 million and one for EUR 5 million) with a duration of six years, the first of which was subscribed for EUR 6 million by Crédit Agricole and for EUR 4 million by Finlombarda, and the second entirely by Casse Depositi e Prestiti; they are assisted by Sace's Archimede Guarantee and are "sustainability-linked", in line with the fact that Casta Diva Group is a benefit company (it does not draw up a sustainability report but only an impact report).

Thus, from the second half of 2025 and for the following years, the group's financial expenses will also include the interest on these minibonds. The Industrial Plan 2023 - 2026 (of which, however, an update is planned) indicates a production value of EUR 153 million, adjusted ebitda and ebit of EUR 17.7 million and EUR 13.6 million, respectively, and net liquidity of EUR 6.4 million for the next financial year. In fact, the group's policy of expansion by external lines (which was also confirmed when the two minibonds were issued) makes it more problematic to achieve the liquidity targets, since a net liquidity of EUR 3.3 million was assumed at the end of 2025.

Then there is the potential outlay for the acquisition of the events branch of Prodea Group, which, however, should not be very high since, as mentioned, the company is in a negotiated settlement of the crisis having unfortunately been involved in the sad events of Sipario Movies (once listed on Euronext Growth Milan); however, the activity in events continues and in 2025 the company realised the stand for the Gestore dei Servizi Energetici at the Anci annual assembly in Bologna and the general convention of Bnp Paribas Leasing Solutions Italia held at the Fabrique in Milan, for which an app was created with Ai.

Having said this, the prospects for further growth for the Casta Diva Group are there and the group is aiming at the following directives: international development in the Gulf countries, entry into the world of 'scripted' content (i.e. having a pre-determined script, screenplay and structure; we would like to remind you that filming has begun on 'Franco Battiato. Il lungo viaggio', a TV film co-produced by Casta Diva Pictures and Rai Fiction), entry into the sector of large ceremonies (through the former Artificio Italiano, the group has already won the closing ceremony of the Paralympics Milan - Cortina 2026 to be held on 15 March 2026) and... 'merger of equals'. In short, more acquisitions. On the other hand, that of communication and events is a very fragmented sector in Italy and, if a certain critical mass is not reached, it is difficult to face competition from the international big boys.

Casta Diva Group has already addressed the potential criticality concerning the disaffection of younger people towards 'traditional' communication and to this end has created, together with the New Media company eGroup, AgenZy, the first communication and events agency created by Gen Z to communicate with Gen Z (9.5 million people in Italy). Among other things, this target group is certainly sensitive to the many ESG-related initiatives launched by the Casta Diva Group in the areas of wellbeing and wellbeing for employees, promotion of a culture of sustainability, reduction of the environmental footprint and collaboration with associations and charities. Particularly significant are the initiatives against gender-based violence (WinLet personal safety device, creation of Punti Viola - safe places for women in difficulty - at company offices, and the introduction of the figure of the Active Listener against gender-based violence).

Does the market appreciate all this? Institutional investors do, and in fact in mid-November Alkemia Capital (on behalf of the Pipe fund, i.e. Private Investments in Public Equity) reached 10.07% of the share capital (5.72% of the voting rights), while the activist investment holding company Hoop Club (established in 2024) acquired 4.82% of the share capital (2.74% of the voting rights) through its subsidiary Astra Srl.

Hoop Club has already published two 'position papers' on I Grandi Viaggi and Fila, in which it is a shareholder and which it considers to be undervalued; the prices of both companies have benefited from its position papers. Will this also be the case for Casta Diva Group despite the lower liquidity of trading on Euronext Growth Milan? One can only hope so. The company is already very active (and could not be otherwise) in terms of communication, and holds several meetings with analysts and investors both in Italy and abroad, but it will always have to keep in mind the Pareto principle (which also applies to marketing): 20% of the causes produce 80% of the effects, and consequently maintaining a base of 'loyal' analysts and investors who follow the stock continuously is probably more productive than seeking out new stakeholders, not least because Casta Diva Group already has a very high free float (47.2% of the share capital), higher even than that of most companies listed on the main stock exchange.