Mondo TV is a global media group focused on the production, acquisition and exploitation of animated children’s television series. It owns the rights to >1,600 TV episodes and films, which it distributes across 75 markets. 83% of revenues are generated in Asia, with the remainder from Europe and South America.
Mondo TV has announced a JV with Ulli Stoef, a well-known figure in European animation. It aims to develop, co-produce and distribute at least eight 3D CGI new animated TV series over the next four years. This accelerates group ambitions to broaden geographic revenue spread, already helped by YooHoo to the Rescue, now airing globally on Netflix. Our numbers do not yet reflect this new deal. Mondo TV has settled with three of the four Asian customers that withdrew in H218, but remains in dispute with one. It also disclosed that it is subject to a further tax investigation, to the value of €1.1m (plus any penalties plus interest), well below the figure of €13.5m indicated earlier. Previous tax enquiries found in Mondo’s favour and no provision has been made.
The children’s entertainment market has been reinvigorated with the growth of VOD platforms looking for multi-territory content. With Disney withdrawing its content from Netflix for its own streaming service, Netflix is looking to the market to fill the gap. Animations travel well and have the potential to yield significant returns. Smaller players can also be very profitable, particularly when, like Mondo, they have a flexible cost base and high share of revenues from licensing and merchandising sales.