Mondo TV - Tax settlement agreed
Mondo TV has settled its outstanding tax disputes in respect of FY12 and FY14. While it maintains that the conversion of deferred tax assets into tax credits was implemented correctly, the potential for further disputes with respect to similar procedures carried out in other years makes this a sensible and pragmatic resolution. The potential risk from the claims in full in respect of 2012–19 was up to €30.8m, plus legal costs. With penalties and interest, the total payment now agreed for 2012–19 is €2.8m, to be paid over four years from FY21. Our last published model derived an expected end-FY21 net cash figure of €4.7m, so this settlement is unlikely to materially compromise the group’s ability to fund its growth programme.Mondo TV is an Italian-based television company engaged in the production and distribution of animated TV series and full-length feature films for TV and cinema. Co. is involved in the entire production process which includes pre-production, production and post-production. The full production cycle calls for a period of time that generally falls between eight and 16 months. Co.'s distribution activities revolve around the distribution of cartoon series and animated features. TV distribution rights for Co.'s cartoon series are sold to public and private networks including Free TV, Pay TV, Pay for View, Cable TV, and satellite TV.
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