(Alliance News) - Digital Magics Spa reported Wednesday that it made a loss of EUR1.7 million in the first half of the year, worsening from a loss of EUR900,000 in the same period of 2022.

Value of production was EUR2.7 million, up 19 percent from EUR2.3 million in the first half of 2022.

Ebitda amounted to EUR37,000 down from EUR200,000 in H1 2022. The lower margin corresponds to lower increases in fixed assets for internal work compared to the same period last year, the company points out.

Ebit is negative EUR400,000 compared to a negative EUR32,000 in the first half of the previous year, partly due to higher depreciation and amortization and other adjusting provisions in the first half.

Net cash amounted to EUR2.0 million from EUR3.0 million as of December 31, 2022, with cash and cash equivalents of EUR5.0 million.

Fair value of the portfolio is EUR42 million compared to a carrying value of EUR14.3 million and compared to a fair value of EUR55 million as of Dec. 31, 2022.

As of June 30, there were 145 operating companies in the Digital Magics portfolio, including 75 Innovative Startups and 22 Innovative SMEs.

As for the future, "all the preparatory activities for the completion of the merger between Digital Magics and LVenture Group, scheduled for the end of 2023, continue intensively: in addition to the regulatory and legal procedures that need to be fulfilled, the teams of the companies involved are jointly committed to building the new unified corporate identity and motivated to factor in the value components brought by each company, to outline the profile of a project that is much more ambitious than the sum of its parts."

Digital Magics' stock closed Wednesday down 1.1 percent at EUR2.76 per share.

By Chiara Bruschi, Alliance News reporter

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