Morning Note – 30 September 2024

Allenby Capital TMT Update - 30.09.24 - MWE.L, CHSS.L, MIRI.L, ENET.L, ELEG.L, MBT.L, PPS.L, ITIM.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

PROGRESSIVE: STV Group - Encouraging update on pensions

STV has reached agreement with pension trustees on its latest triennial valuation and funding plan, including a near halving in the actuarial deficit position, a slight reduction in cash payments and a maintained expectation of full funding by October 2030. As noted by STV, this provides the group with additional flexibility ‘across the full spectrum of capital allocation’.

STV Group+ (STVG, House Stock at 244p) - Pension funding agreement

Eagle Eye+ (EYE, House Stock at 465p) - New alliance to increase market penetration

XLMedia - Interim Results

XLMedia has released interim results in-line with its prior trading update. The Group continues to transition its operations to being right-sized and solely focused on the North American market. H1/24A Adj EBITDA was $0.9m with the year expected to be second half weighted. This is supported by H2 including four months of the NFL season compared to one month in H1, the peak period for betting operator spending. XLM currently has a market cap of c.$35m, a FY24E net cash of $19m (excluding any shar

PANMURE LIBERUM: The Pebble Group: Increasingly a software company

The Pebble Group - Improved operational readiness

Pebble’s H124 results put it on track to meet FY24 EBITDA market forecasts, set against continuing cautious industry sentiment. Management has been strengthening operations, including appointing a chief product officer at Facilisgroup and a global marketing director at Brand Addition. Client retention remains strong and forward indicators are positive at Facilisgroup. At Brand Addition, macro uncertainties mean clients remain circumspect, but financial performance is helped by better gross margi

LBG Media (LBG LN) - Record H1, strong momentum

Record H1 revenue, strong organic growth: Revenue of £42.3m +55.2% YOY (H1 23: £27.2m) driven by organic growth +29% YOY, and contribution from Betches, acquired Oct 23. Significant step-up in profitability delivered, with Adj. EBITDA +240% to £10.2m (H1 23: £3.0m) and adj. PBT +353% to £7.2m (H1 23: £1.6m) due to higher revenue, restructuring of ANZ business and the accretive impact of the Betches acquisition. Highly cash generative H1, with adj. cash conversion of 152% and period end net cash

PROGRESSIVE: STV Group: Further significant commission wins

Despite a continuing tough market for new programme commissioning, STV has announced several further new wins, ranging from a second series of major drama Criminal Record for Apple TV+ to new competition format Game of Wool for More4. We make no changes to forecasts at this point, but see further underpinning for STV’s ambitious target of £140m of revenues from Studios by 2026. We look forward to a more detailed update with interim results due on 3 September.

Bright Mountain Media Inc. (BMTM), an AI-enabled digital media and advertising services platform

Headquartered in Florida, Bright Mountain Media, Inc. (OTC: BMTM) is a holding company providing end-to-end digital media and advertising services. The company acts as a “one stop shop” for all advertising, marketing, technology, and media services. The company via its subsidiaries offers AI-enabled digital media and advertising services platform that links brands with specific consumer demographics. BMTM operates via four brands – Big Village, Deep Focus, Wild Sky media and BrightStream.