SEIF S.p.A.: The Board of Directors approves the Half Year Financial Report at June 30, 2021

PRESS RELEASE

SOCIETÀ EDITORIALE IL FATTO S.P.A.:

The Board of Directors approves the Half Year Financial Report at June 30, 2021

Significant increase in revenues from the sale of editorial products,

particularly in the digital version

Significant increase in margins, thanks to streamlining of production activities

Full operations guaranteed, even in lockdown periods, without the use of social shock absorbers

• Revenues of €20,222 thousand (€19,778 thousand at 30 June 2020), up 2%.
• EBITDA of €3,450 thousand (€2,509 thousand at 30 June 2020, an increase of 37.5%)
• EBIT of €862 thousand (€228 thousand at 30 June 2020)
• Net financial position negative €3,040 thousand (€557 thousand at 30 June 2020)
• Net equity of €4,946 thousand (€4,207 thousand at 30 June 2020)
• Net profit of €504 thousand (€73 thousand at 30 June 2020)

Rome, 29 September 2021 -SEIF S.p.A. (the "Company" or "SEIF") media content provider and publisher of several editorial and multimedial products, announces that, today, the Board of Directors has approved the half financial report at June 30, 2021.

Cinzia Monteverdi, Chairman and CEO of SEIF, commented: "SEIF closes the first half of 2021 with an excellent result. All indicators are growing, first and foremost the operating result. The final result recorded in the first half of 2021 demonstrates that the investments made have been appropriately directed and that the strategies aimed at diversification, digital drive and technological innovation together with the quality of the content produced are the right path in compliance with the business plan".

Key Economic Data:

(Euro thousand)
	30.06.2021	% (variation)	30.06.2020	% (variation).
Production value	20,222	100.00%	19,778	100.00%
EBITDA (*)	3,450	17.06%	2,509	12.69%
EBIT (**)	862	4.26%	228	1.15%
EBT (***)	843	4.17%	229	1.16%
Net income	504	2.49%	73	0.37%

(*) Please note that EBITDA is defined as: result for the year, adjusted for the following components: (i) income taxes for the year, (ii) financial components and (iii) depreciation and amortization of tangible and intangible assets, impairment losses and other provisions.

(**) EBIT is defined as: profit or loss for the period, adjusted for the following components: (i) income taxes for the year, (ii) financial components.

(***) EBT is defined as: result for the year, adjusted for the following components: (i) income taxes for the year.

Net profit was €504 thousand at 30 June 2021, a significant increase over the €73 thousand at 30 June 2020; the value of production was €20,222 thousand, an increase of 2.2% over the comparison period; EBITDA was €3,450 thousand compared to €2,509 thousand, giving a margin of 17% on the value of production compared to 12.6% at 30 June 2020; EBIT was €862 thousand compared to €228 thousand, equivalent to 4.2% and 1.2% of EBITDA respectively.

Income statements

					ESERCIZIO
					30.06.21	% V.d.P.	30.06.20	% V.d.P.
Revenues from sales and services					16,980,396	83.97%	15,616,400	78.96%
Change in stocks of finished goods and work in progress					(43.503)	-0.22%	12,166	0.06%
internal production of fixed assets					3,161,386	15,63%	3,843,300	19.43%
other revenues					123,662	0.61%	305,785	1.55%
Production value					20,221,941	100.00%	19,777,651	100.00%

Revenues from sales and services	Value at 30.06.21	% on revenues	Value at 30.06.20	% on revenues	variation	var %
Publishing sector	12,744	75.05%	11,531	73.84%	1,213	10.52%
Media content sector	2,009	11.83%	2,201	14.09%	-191	-8.70%
Advertising sector	2,227	13.11%	1,884	12.07%	343	18.18%
Total	16,980	10.,00%	15,616	100.00%	1,364	8.73%

Analyzing the change in revenues from sales and services, the following should be noted that there was an increase of 8.73% in revenues from sales and services for an amount of Euro 1,364 thousand, while the increase in Production value (Euro 444 thousand) was more limited, essentially due to lower capitalisation for investments related to the production of television content. Overall, revenues in the publishing sector increased by 10.5%, mainly due to the growth in digital revenues; revenues in the media content sector decreased by 8.70%, showing that they had almost fully recovered the lack of revenues from the format "Sono Le Venti" produced in Milan for the entire first half of 2020. However, it should be noted that television content productions recorded an increase in margins as a result of efficiency gains in production processes; advertising segment revenues grew by 18.1% due to the growth in website sales in a period in which the reference market partially recovered the contraction resulting from the effects of the covid-19 pandemic.

Net financial position	30.06.2021	31.12.2020
Current financial receivablesi
Liquidity - cash and cash equivalents	(5,531,282)	(3,862,715)
Current financial payables
Current financial payables	603,886	298,415
Net current financial debt	(4,927,396)	(3,564,300)
Non-current financial payables
Non-current debt	1,887,764	2,191,255
Net financial debt - NFP	(3,039,632)	(1,373,045)
Average collection days (DSO)	40	56
Average days to pay (DPO)	67	61

The Net Current Financial Position, of euro (4,927) thousand, is composed exclusively of cash and cash equivalents, net of the "within one year" portion of the Unicredit loan. For the purposes of calculating the NFP, the Repurchase Agreements of €500 thousand allocated to financial fixed assets in the balance sheet were reclassified under "current financial receivables". The Company still holds its own shares substantially unchanged, even though, during the half-year under review, the value of the stock has appreciated significantly, showing stability in the values reached. Given the positive financial situation of the company, it is considered useful not to allocate the package on the market until it fully expresses the company value.

The total net financial position is equal to euro (3,040) thousand and takes into account the "over the year" portion of euro 1,888 thousand of the Unicredit loan of euro 2,500 thousand, taken out in June 2020 and intended for investments, with repayment in 48 months plus 12 months of pre-amortisation.

Below an analysis of the cash flows for the first half of 2021, compared to those of the same period of the previous year.

Cash flows:

(in Euro thousands)
	30.06.2021	30.06.2020
Profit (loss) for the year before income tax, interest, dividends	862	228
Adjustments for non-monetary items	2,991	2,592
Changes in net working capital	1,833	1335
Other adjustments	-662	-355
Cash flow from operating activities (A)	5,025	3,800
Cash flow from investing activities (B)	-3,879	-4,364
Cash flow from financing activities (C)	23	2,677
Increase (decrease) in cash and cash equivalents (A±B±C)	1,169	2,113
Cash and cash equivalents at the beginning of the year	3,264	541
Cash and cash equivalents at the end of the year	4,433	2,654
Change in cash and cash equivalents	1,169	2,113

Key consolidated balance sheet and financial results as at 30 June 2021:

The following information is provided regarding the main balance sheet indicators for the period ending 30 June 2021, compared with 31 December 2020.

Statement of Financial Position
Investments			30.06.2021	31.12.2020	Fonti		30.06.2021	31.12.2020
Intangible fixed assets			9,193,145	8,263,277	capitale sociale		2,500,000	2,500,000
Tangible fixed assets			186,178	201,916	riserve		3,097,803	3,076,103
Finanzial fixes assets			712,903	215,478	utili (perdite) a nuovo		- 1,156,051	- 1,456,976
					utili (perdite) d'esercizio		503,852	300,925
	Fixed assets		10.092.226	8.680.671	Patrimonio Netto		4,945,604	4,420,052
non-liquid assets			86,128	160,038	Passività consolidate		5,090,291	5,175,472
deferred liquidity			6,300,068	7,570,677
immediate liquidity			4,432,954	3,264,387	Passività correnti		10,875,481	10,080,249
	Current assets		10,819,150	10,995,102	Passività		15,965,772	15,255,721
	Invested capital		20,911,376	19,675,773	Financing capital		20,911,376	19,675,773

	30 . 06 . 2021	31 . 12 . 2020
Intangible fixed assets	9,193	8,263
Tangible fixed assets	186	202
Financial assets (adjusted)	213	215
Fixed assets	9 , 592	8 , 681
Inventories	86	160
Trade receivables	3,986	5,051
Trade payables	-4,269	-3,727
Net operating working capital	-197	1 , 483
Other current assets	1,716	1,922
Other current liabilities	-6,003	-6,055
Net working capital	-4 , 484	-2 , 649
Provisions for risks	-686	-664
Employee severance indemnities	-2,517	-2,320
Net invested capital	1 , 906	3 , 047
Shareholders' equity	4,946	4,420
Bank deposits, cash and cash equivalents	4,433	3,264
Other securities and financial receivables	1,098	598
Payables to banks	-2,492	-2,490
Other financial liabilities	-	-
Net financial position	3,040	1,373
Shareholders' equity - net financial position	1 , 906	3 , 047

Shareholders' equity increased by euro 526 thousand, mainly due to the profit for the first half of 2021 and the change in the negative reserve for treasury shares. Shareholders' Equity Reserves amounted to Euro 3,098 thousand and consisted of the Extraordinary Reserve of Euro 3,695 thousand, the Legal Reserve of Euro 500 thousand, the Negative Reserve for treasury shares in portfolio of Euro 1,099 thousand and the Reserve for expected cash flow hedging transactions of Euro 2 thousand.

Gross investments in intangible assets amounted to Euro 4,158 thousand, essentially due to the production of television content and investments in technological innovation.

Moreover, the Company made gross investments in tangible assets amounting to Euro 30 thousand.

Amortisation of intangible assets for the year amounted to Euro 2,423 thousand, while depreciation of tangible assets amounted to Euro 46 thousand.

As regards financial assets, the table shows an increase in financial receivables due to the investment of part of the liquidity in short-term repurchase agreements.

For the purposes of calculating the NFP, the Repurchase Agreements of € 500 thousand recorded under financial fixed assets in the balance sheet were reclassified under "current financial receivables".

Significant events during the six-month period ended at June, 30 2021

Subsequent to 30 June 2021 and until the date of approval of the half-yearly report as of 30 June 2021, no business events occurred that would have an impact on the reported financial and economic results. As of the date of preparation of the half-yearly report as of 30 June 2021, the Company has not recorded any reduction in operating activities or in the related volumes of revenues and cash flows. The Company continues to implement its business plan despite the peculiar economic situation following the spread of the Covid-19 pandemic. The reference market is one of the markets least affected by the restrictions issued by the Government and this has allowed the Company to keep its production facilities operational.

Significant events occurring after the end of the six-months period ended on 30 June 2021

During the six-month period ended June 30, 2021, the Company began the process of admission to trading of its own ordinary shares on the Euronext Growth market, managed by Euronext Paris S.A., which ended on July, 18 2021.

Foreseeable evolution of operations

The general economic situation and that of the sector in particular could affect performance in the second half of 2021. However, the Company is taking all possible actions to maintain current business volumes in line with operating forecasts and consequent production programmes. The management trend suggests that it will be able to ensure levels of cash flows that allow it to manage normal production activities and planned investments on a regular basis.

Documentation

Attached at the end of this press release are the Balance Sheet, Income Statement and Cash Flow Statement for the interim period from 1 January 2021 to 30 June 2021.

Other information

The Half-Yearly Financial Report as at 30 June 2021 is available to the public at the Company's registered office and on the website www.seif-spa.it, in the investor relations/corporate documents section. The report of the auditing firm KPMG S.p.A. will be made available to the public as soon as it is released.

***

SOCIETA? EDITORIALE IL FATTO S.P.A. (SEIF) is an independent media company, founded in Rome in 2009 and led by Cinzia Monteverdi, President and CEO. The company publishes several editorial and multimedia products, including Il Fatto Quotidiano, founded by Antonio Padellaro and edited by Marco Travaglio, the news website ilfattoquotidiano.it and the monthly magazine FQ Millennium, edited by Peter Gomez, and the publishing house Paper First, edited by Marco Lillo. SEIF has recently embarked on a process of diversification to become more and more of an all-round media content provider, launching a strategy to develop its products in a digital and data-driven key and to produce TV with the LOFT business unit.

For further information: Press Office Close to Media - Company founded by Elisabetta Neuhoff Via Caradosso 8 - 20123 Milano Tel: [phone] Fax: [phone] www.closetomedia.it Luca Manzato: [e-mail] Sofia Crosta: [e-mail],

Nomad Alantra Capital Markets Via Borgonuovo, 16 - 20121 Milano tel. [phone] mail: [e-mail]

Attached to this press release are the Statement of Assets and Liabilities, Income Statement and Cash Flow Statement of the Company.

1.Statement of Assets and Liabilities

	30/06/2021	31/12/2020
Assets
B) Fixed assets
I - Intangible fixed assets
1) start-up and capital costs	696,490	829,554
4) concessions, licenses, trademarks and similar rights	82,335	98,830
6) assets under construction and payments on account	909,504	1,044,596
7) other	7,504,816	6,290,297
Total intangible fixed assets	9,193,145	8,263,277
II - Tangible fixed assets	-	-
4) other assets	186,178	201,916
Total tangible fixed assets	186,178	201,916
III - Financial fixed assets	-	-
2) receivables	-	-
d-bis) other receivables	709,860	212,960
due within the next year	626,111	129,211
due after the next year	83,749	83,749
Total receivables	709,860	212,960
4) active derivative financial instruments	3,043	2,518
Total financial fixed assets	712,903	215,478
Total fixed assets (B)	10,092,226	8,680,671
C) Current asset
I - Inventories	-	-
1) raw, subsidiary and consumable materials	19,041	49,448
4) finished products and goods	67,087	110,590
Total inventories	86,128	160,038
II - Receivables	-	-
1) trade receivables	3,985,989	5,050,536
due within the next year	3,985,989	5,050,536
5-bis) tax receivables	322,978	499,375
due within the next one year	322,978	499,375
5-ter) pre-paid taxes	574,110	777,529
5-I) from third parties	506,266	421,364
due within the next one year	506,266	421,364
Total receivables	5,389,343	6,748,804
III - Financial assets not of a fixed nature	-	-
6) other assets	598,328	598,328
Total financial assets not of a fixed nature	598,328	598,328
IV - Cash and cash equivalents	-	-
1) bank and postal deposit	4,428,095	3,260,371
3) cash at bank and in hand	4,859	4,016
Total cash and cash equivalents	4,432,954	3,264,387
Total current assets I	10,506,753	10,771,557
D) Accrual and deferred income	312,397	223,545
Total assets	20,911,376	19,675,773
Liabilities
A) Net asset	4,777,579	2,722,067
I - Share capital	2,500,000	2,500,000
IV - Legal reserve	500,000	500,000
VI - Other reserves, indicated separately		-
Extraordinary reserve	3,694,856	3,694,856
Total other reserve	3,694,856	3,694,856
VII - Reserve for expected cash flow hedging transactions	2,313	1,914
VIII - Profit (loss) carried forward	(1,156,051)	(1,456,976)
IX - Profit (loss) of the year	503,852	300,925
X - Negative reserve for purchase of own shares	(1,099,366)	(1,120,667)
Total shareholders' equity	4,945,604	4,420,052
B) Provisions for risks and charges
2) for taxes, including deferred taxes	730	604
4) other	685,289	663,289
Total for risks and charges	686,019	663,893
C) Employee severance indemnity	2,516,508	2,320,324
D) Payables
4) payables to banks	2,491,650	2,489,670
due within the next financial year	603,886	298,415
due beyond the next financial year	1,887,764	2,191,255
7) trade payables	4,268,705	3,727,114
due within the next year	4,268,705	3,727,114
12) tax payables	552,380	551,583
due after the next year	552,380	551,583
13) amounts payable to social security institutions	977,798	1,021,870
due within the next year	977,798	1,021,870
14) other receivables	2,787,937	2,836,588
due within the next year	2,787,937	2,836,588
Total receivables	11,078,470	10,626,825
E) Accrual and deferred income	1,684,775	1,644,679
Total liabilities	20,911,376	19,675,773

2.Income statement

	30/06/2021	30/06/2020
A) Production value
1) revenues from sales and services	16,980,396	15,616,400
2) variations of inventory of raw and auxiliary materials, consumables and supplies	(43,503)	12,166
4) increases in fixed assets for internal works	3,161,386	3,843,300
5) other revenues and income
other	123,662	305,785
Total other revenues and income	123,662	305,785
Total production value	20,221,941	19,777,651
B) Cost of production
6) for raw and auxiliary materials, consumables and supplies	16,980,396	15,616,400
7) for services	(43,503)	12,166
8) for use of assets owned by others	3,161,386	3,843,300
9) for personnel
a) salaries and wages	123,662	305,785
b) social security	123,662	305,785
c) employee severance indemnity	20,221,941	19,777,651
e) other costs	16,980,396	15,616,400
Total personnel costs	6,046,723	6,477,453
10) amortization, depreciation and impairment
a) depreciation of intangible fixed assets	2,423,288	2,208,360
b) depreciation of tangible fixed assets	45,420	43,081
d) depreciation of receivable in the fixed assets circulating assets and cash and cash equivalents	40,000
Total amortization, depreciation and impairment	2,508,708	2,251,441
11) variations of inventory of raw and auxiliary materials, consumables and supplies	30,407	(3,653)
12) provisions for risks	79,319	30,218
14) other operating costs	254,926	262,140
Total costs of the productions	19,359,493	19,550,044
Difference between value and cost of production (A - B)	862,448	227,607
C) Financial income and expenses
16) other financial income	-	-
a) from receivables entered as fixed assets	-	-
From others	900	-
Total finanzial income from accounts receivalbe included in fixed assets from other financial income	-	-
c) from securities included in current assets other than equity investments	7,286	6,043
d) income other than the above	-
other		14
Total income other than the above	7,286	6,057
T o tal other financial income	8,186	6,057
17) interest and other financial charges
others	27,125	5,328
Total interest and other financial charges
17-bis) foreign exchange gains and losses	218	(701)
Total financial income and expenses (15+16-17+-17-bis)	(19,157)	1,430
D) Value adjustment on financial assets
18) revaluations
c) of securities included under assets forming part of working capital which are not investments
Total revaluations
Total value adjustments to financial assets (18-19)
Result before taxes (A-B+-C+-D)	843,291	229,037
20) Current, deferred and prepaid taxes on the income of the year
current taxes	136,021	100,052
deferred and prepaid taxes	203,418	55,837
Total current, deferred and prepaid taxes on the income of the year	339,439	155,889
21) Profit (loss) for the year	503,852	73,148

1.Cash flow statement indirect method

	Importo al 30/06/2021	Importo al 30/06/2020
A) Cash flows from operating activities (indirect method)
Profit (loss) for the period	503,852	73,148
Income taxes	339,439	155,889
Interest expense/(income)	19,157	(1,430)
1) Profit (loss) for the year before income taxes, interest, dividends and gains/losses on disposal	862,448	227,607
Adjustments for non-monetary items that did not have a counterpart in net working capital
Provisions to funds	522,438	340,665
Depreciation of fixed assets	2,468,708	2,251,441
Total adjustments for non-monetary items not recorded as part of net working capital	2,991,146	2,592,106
2) Cash flow before changes in net working capital	3,853,594	2,819,713
Changes in net working capital
Decrease/(Increase) in inventories	73,910	(15,819)
Decrease/(Increase) in receivables from customers	1,064,547	(111,185)
Increase/(Decrease) in trade payables	541,591	723,057
Decrease/(Increase) in accrued income and prepaid expenses	(88,852)	(121,856)
Increase/(Decrease) in accrued expenses and deferred income	40,096	238,920
Other decreases/(Other increases) in net working capital	202,193	622,174
Total changes in net working capital	1,833,845	1,335,291
3) Cash flow after changes in net working capital	5,687,079	4,155,004
Other adjustments
Interest received/(paid)	(19,157)	1,430
(Income taxes paid)	(338,642)	(155,889)
(Use of funds)	(324,254)	(200,928)
Total other adjustments	(662,053)	(355,387)
Cash flow from operating activities (A)	5,025,026	3,799,617
B) Cash flow from investing activities
Tangible fixed assets
(Investments)	(29,683)	(30,471)
Intangible assets
(Investments)	(3,353,157)	(4,326,677)
Financial assets
(Investments)	(496,900)	(6,508)
Cash flow from investing activities (B)	(3,879,740)	(4,363,656)
C) Cash flow from financing activities
Third-party funds
Financing	1,980	2,694,683
Equity
Sale/(purchase) of treasury shares	21,301	(17,920)
Cash flow from financing activities (C)	23,281	2,676,763
Increase (decrease) in cash and cash equivalents (A ± B ± C)	1,168,567	2,112,724
Cash and cash equivalents at the beginning of the period
Bank and post office deposits	3,260,371	538,023
Cash and cash equivalents	4,016	2,412
Total cash and cash equivalents at beginning of period	3,264,387	540,435
Cash and cash equivalents at the end of the period
Bank and post office deposits	4,428,095	2,648,029
Cash and cash equivalents	4,859	5,130
Total cash and cash equivalents at end of period	4,432,954	2,653,159

------------------------This publication embed "Actusnews SECURITY MASTER".
- SECURITY MASTER Key: mphvlcVuZmbIy3Bwk5VnbpSZaWxhw5SdbGrLx5aeaZmaa26RxpxjZpXIZnBil2ps
- Check this key: https://www.security-master-key.com.------------------------Full and original release in PDF format:
https://www.actusnews.com/documents_communiques/ACTUS-0-71256-seif_cos_eng_29-9-21.pdf
© Copyright Actusnews Wire
Receive by email the next press releases of the company by registering on www.actusnews.com, it's free