(Alliance News) - Fenix Entertainment Spa reported Friday that it closed the six-month period with production value up 36 percent to EUR18.5 million from EUR13.6 million in the first half of 2022. However, the company reported a loss of EUR2.3 million from a profit of EUR463,000 in the same period of 2022, mainly attributable to the recognition of depreciation and amortization for the period of EUR6.3 million.

The increase in production value is largely due to the parent company Fenix, which in turn recorded an increase of EUR4.2 million to EUR12.6 million as of June 30 from EUR8.4 million as of June 30, 2022. These increases are the result of the film productions "Here After" in collaboration with ClaRo Production and "Garbage Man" in collaboration with GiKa Production, which are currently being finalized and post-produced, the company explained in a note.

Operating costs increased to EUR14.0 million from EUR10.2 million, mainly attributable to the production of the films Here After and Garbage Man.

Ebitda improved by 33 percent to EUR4.5 million from EUR3.4 million at 24.5 percent of production value from 25 percent in the first half of 2022.

Ebit is negative EUR1.7 million from EUR12,000 in H1 2022 due to amortization of works included in the library and goodwill of investees, totaling EUR6.2 million.

Net financial position is EUR18.1 million and remains stable compared to December 31, 2022.

Currently, "these results represent a deviation from the Group Business Plan approved on June 9, which will therefore be subject to a complete review by the new governance," the company specified in a note.

In addition, the company let it be known that Simone Manfredi has resigned as chairman of the board of directors, effective immediately, due to unexpected academic and professional commitments that would prevent him from performing his role with due diligence. In his place, Carlo Angelini, already a director, was appointed as chairman of the board of directors, and Giuseppe Nicolò was co-opted to restore the minimum number of five directors as required by the bylaws.

As for the future, "there remains uncertainty on the financial front related to the possibility for the company to continue to use the POC signed with Negma in March 2023 and to renegotiate with credit institutions new amortization plans aligned with the company's real repayment capacity," the statement reads. The company is carrying out all the relevant economic-financial analyses, also with the support of specially appointed consultants, in order to prepare the most appropriate financial maneuver to overcome the current phase of financial tension, if necessary making use of the tools of the Business Crisis Code."

Fenix Entertainment gives up 7.7 percent to EUR0.01 per share.

By Chiara Bruschi, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.