VALUE OF PRODUCTIONS €33.5M, showing a 35% growth on 2016 (CAGR 2016-2019 + 10%), EBITDA MARGIN 8%, more than three times that of 2016

June 7, 2017

The Board of Directors of Casta Diva Group (CDG:IM), the AIM Italia-quoted multinational operating in the communications sector, has today approved the 2017-2019 Strategy Plan.

President Luca Oddo and CEO Andrea De Micheli have issued the following statement: “The 2017-2019 strategy plan is based on the integration and development of the companies acquired in 2016 and on the resulting return on the group’s performance during the pre-merger, equal to a margin of 8%. The plan foresees a 10% growth, driven by an expansion in the business area of “Spots – Digital Video Content”, where turnover is expected to increase from the current €16 million to €21.5 million, with Casta Diva positioning itself as a production company with major international reach. The area of “Events – Live and Digital Communication” is predicted to increase from €8.9 million to €12 million. The approved strategy plan is based on the organic growth of the business, but we also intend to implement a program of acquisitions of international companies, which will allow us to do even improve further and reach our 2019 target ahead of time.”

The 2017-2019 Strategy Plan is based on the following strategy guidelines:

• SPOTS – Digitial Video Content (production and post production of advertising spots, digital videos and virals, web series, branded content)

In the spots market global spending in advertising continues to show consistent growth, increasing from $480 billion in 2011 to $570 billion in 2015, with a forecast of further growth of up to almost $700 billion in 2018. In the context of this positive trend, the TV sector is holding fast, going from 42% of the total in 2015 to an expected 40.3% in 2017. Additionally, we can see strong growth in digital communication, both web and mobile, going from 24.6% of the total in 2015 to 30.2% expected in 2017 (source: Statista). Compared to its competitors in Italy, Casta Diva Group is in second place in the ranking of major production companies of spots, but is number one in international reach, thanks to its 13 offices in ten countries.

In 2016 the Value of Productions of CDG’s Spots business unit was €16 million, equal to 64% of total turnover. The 2019 Target is €21.5 million. The drivers of growth in the business area are the following:

• Growth in the number of spots with a CAGR 2016/2019 of 7% (in line with the CAGR of the last three years) in the current locations thanks to the consolidation of market share
• Strategic partnerships with multin<ational clients
• Development of own formats in Cinema and TV

• EVENTS – Live & Digitial Communication (organisation of conventions, web events, road shows, exhibition stands, team building, product launches, experiential events both for B2B and B2C)
The events market in Italy in 2015 generated 392,000 events (+11.5%) with 35 million participants (+15%). The budget spent on events came to €819 million. Eighty-one per cent of businesses interviewed by the Astra research institute for Events Monitoring* said they were sure to continue investing in events for the following two years. The respective majority of companies (42.1%) allocates more than 20% of their communication budget to events. Their total budget for events in 2017 is predicted to be €1,014 billion (CAGR +13% over 2015).

In 2016 the Value of Productions of CDG’s Events business unit was €8.9 million (36%) of the total. The 2019 Target is €12 million. The expectations of growth in this business area are tied to the expansion of the group’s commercial division with the taking on of highly qualified individuals.


Casta Diva Group closed 2016 with a consolidated Value of Productions of €24.9 million, of which 46% (€11.4 million) was from foreign markets. The 2019 Target foresees a consolidated Value of Production with 35% growth over 2016, equal to €33.5 million, with a CAGR 2016-2019 of +10%.

The 2016 Gross Operative Margin (EBITDA) was certified at €0.7 million, equal to 3% of the Value of Productions. The 2019 Target foresees the return to the margin of pre-merger CDG, with an EBITDA margin of 8%, three times more than 2016, due to the following factors:
• Positive impact of the use of low cost locations in the production of spots, thanks to a more client-based approach
• Conservative expectations: no change in the size of events budgets
• Significant growth in the general costs of the holding company (CAGR + 15%), finalized to improving management control, general coordination and uniformity of procedures.

The 2016 Net Financial Position was €0.8 million: the 2019 Target foresees a negative NFP of €2.6 million.

The planned objectives could be further accelerated by following a development plan predominantly based on a Mergers & Acquisitions policy, which the Board of Directors has been delegated to fund by the Extraordinary Shareholder’s Meeting of 18th July 2016, according to articles 2443 and 2420 ter of the Civil Code, to increase once or several times and in tranches the capital stock and/or to issue convertible stock, also with exclusion of the right of option, with or without warranty and eventually at the service of warrants. Such policy foresees the acquisition of companies in the events and digital communication (in the Events BU) sectors, as well as the opening of new offices in strategic areas, such as China, United Arab Emirates, Latin-America and Germany (in the Spots BU).