In the period under review, the goal of Mountain Alliance was to further develop the value-add of the investments. Accordingly, the portfolio value of the four segments Technology, Digital Business Services, Digital Retail and Meta-Platforms & Media increased to EUR 44.5 million as of 30 June 2019, compared to EUR 44.3 million as of the balance sheet date 2018.
After deduction of net financial liabilities of EUR 6.3 million, which mainly exist towards the major shareholder Mountain Partners AG, the net asset value (NAV) of Mountain Alliance AG amounted to EUR 38.2 million as of the valuation date (31 December 2018: EUR 39.6 million). Positive highlights are the investments in the online language school Lingoda, the Insure-Tech company Volders and the online people portal Promipool. All investments boast dynamic and flexible business models with a disruptive character, which primarily benefit from the continued strong increase in digitization. However, declining share prices for listed investments in The Native SA and
Bio-Gate AG had a negative impact. As a result, there was a need for write-downs on these two investments, which burdened the NAV development of the portfolio and the consolidated result in the reporting period.
In the first half of 2019, Mountain Alliance generated consolidated revenues from operating activities of EUR 6.2 million compared to EUR 9.7 million in the same period of the previous year. Mostly declining advertising budgets in the TV advertising market also led to a shortfall in revenues in the service operations in the first half of the year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR minus 0.8 million in the reporting period (previous year: EUR minus 0.4 million). Earnings before interest and taxes (EBIT) amounted to EUR minus 1.1 in the first half of 2019, roughly at the previous year's level (EUR minus 1.0 million). The financial result amounted to EUR minus 1.2 million after EUR 0.9 million in the first half of 2018.
With a consolidated result of EUR minus 2.4 million (previous year: EUR minus 0.2 million), a result of EUR minus 2.4 million (previous year: EUR minus 0.1 million) was attributable to the shareholders of Mountain Alliance AG. Earnings per share in the first half of 2019 amounted to EUR minus 0.40 after EUR minus 0.02 in the same period of the previous year.
"Digitalization is progressing faster and more profoundly across a broad front. We are in a good position to benefit from this far-reaching change. Currently, we are observing an increasing interest in our investments on the part of strategic investors. In addition, opportunities arise on the transaction side, either by investing exit proceeds in new investments or by using our shares as attractive acquisition currency for portfolio takeovers. In this way, we are optimistic about the future and convinced that we will achieve a balanced consolidated result for the year as a whole," says Daniel Wild, CEO of Mountain Alliance AG.
In view of the continued moderately positive environment for investment companies, which is bolstered by the positive development of the deal flow in the industry as a whole, the Management Board of Mountain Alliance AG is aiming for a balanced consolidated result for the full year 2019. The company is targeting consolidated revenues from operations in the range of EUR 17 million to EUR 19 million.
Net Asset Value calculation of the MA Group
|NAV Segment||in EUR million|
|Digital Business Services||9.3|
|Meta-Platforms & Media||4.5|
|Net financial liabilities to Mountain Partners AG||6.3|
|Net Asset Value (NAV)||38.2|
|NAV per share (in EUR)||6.32|
The complete Half-Year Report 2019 is available for download in the Investor Reports section at www.mountain-alliance.de.