Samba Digital, Inc announces the launch of a €4 million capital increase to revolutionize content production in sports through generative AI.

Samba Digital announces the launch of a €4 million capital increase to revolutionize content production in sports through generative AI

Lisbon, February 3, 2025 – Samba Digital (ISIN: PTDGL0AM003, Ticker: ALSMB), a leader in digital marketing for the sports industry, announces the launch of a €4 million capital increase, with the removal of shareholders' preemptive subscription rights (“PSR”). This operation involves the issuance of 500,000 new shares at a unit price of €8.00, reflecting a nominal discount of 38% compared to the closing price on January 31, 2025, the day before the launch of the capital increase.

Frédéric Fausser, CEO and Co-Founder of Samba Digital, states:
"Imagine a sports club or a sponsor receiving a detailed analysis of their international digital campaigns' performance in real time—no more waiting days to compile scattered data… Imagine launching a personalized marketing activation within hours, powered by AI-driven insights and tools… This is the transformation promised by the digital revolution.

At Samba Digital, we are at the heart of this revolution. Since 2018, we have built unique expertise in connecting sports rights holders, brands, and fans worldwide. Through our AI-based solutions and data analytics, we are transforming how our clients analyze and optimize their digital campaigns in real time. We enable them to measure every interaction, every engagement, and every euro spent with unmatched precision. This digital revolution is redefining industry standards and unlocking immense opportunities.

Today, Samba Digital is reshaping the traditional marketing agency model. To accelerate our growth, strengthen our presence in key markets such as the U.S., Latin America, and India, and continue investing in cutting-edge technologies, we are launching a capital increase that we hope will gain strong investor support. This initiative aligns with our ambition to become a major player not only in sports but also in other industries where our solutions can drive transformation. We are excited to embark on this journey with you!"

A Key International Player in Sports Digital Marketing

Founded in 2018 in Miami and now headquartered in Lisbon, Portugal, Samba Digital has quickly established itself as a key player in digital marketing for the sports industry. In just six years, the company has built unique expertise, collaborating with iconic brands such as Ligue 1, Bundesliga, and leading franchises like the Kansas City Chiefs and Paris Saint-Germain.

With a strategy built on creativity, responsiveness, and technological expertise, we meet the specific needs of sports rights holders and sponsors while ensuring adaptability to the sector’s constraints.

Innovative Technological Solutions for Sports

Since its inception, Samba Digital has heavily invested in innovation, developing proprietary technological solutions that redefine industry standards:

• Sports Translate: An online platform dedicated to translating and adapting sports content into more than 50 languages and dialects. It also offers subtitling and video dubbing services, enabling sports organizations to effectively communicate with global audiences.
• Talentisi: Launched in January 2023, this is the first collaborative platform designed for sports organizations. It connects clients, employees, and a network of over 3,000 international talents, facilitating project management and large-scale campaign execution.

In addition, our Força creative studio is exploring new frontiers with a Proof of Concept (POC) developed in partnership with Orange Business. This ambitious project uses artificial intelligence, based on the Stable Diffusion environment, to automate and accelerate the production of creative designs and content, paving the way for a new era of innovation in our services.

Finally, Samba Digital is also developing AI-based solutions to automate content creation, reducing costs and increasing production speed, meeting the needs of sports brands to maximize their engagement with fans.

Sustained Growth and High Profitability

Samba Digital has experienced strong growth since its founding, with revenue increasing from €3.9 million in 2022 to €5.6 million in 2023 (+44%). In 2024, the company expects revenue to reach €8 million (+43% growth), supported by a global presence in over 50 countries and multilingual service offerings.

With a business model built on a global network of freelancers and consultants, Samba Digital maintains operational flexibility and cost control while ensuring high service quality. The company aims for an EBITDA margin of 25% in 2024, amounting to approximately €2 million.

Operating through a mix of recurring contracts, one-off projects, and a rapidly expanding SaaS model, Samba Digital boasts a client retention rate exceeding 95%, demonstrating high customer satisfaction and loyalty.

Key Strategic Priorities to Accelerate

Samba Digital’s ambition is clear: to become a global leader in digital services for sports by 2030.

To achieve this, the company is focused on key strategic priorities:

• Expanding AI-based services to revolutionize sports content management
• Establishing an R&D center in Brazil
• Targeting high-growth markets such as the U.S. and Latin America

2030 objective: Reaching €40 Million in Revenue

With favorable market conditions and major international sporting events on the horizon—such as the Club World Cup (2025), FIFA World Cup (2026), and Los Angeles Olympics (2028)—as well as regulatory changes in the Brazilian sports betting sector (expected from 2025), Samba Digital has set an ambitious target of reaching €40 million in revenue by 2030.

A Capital Increase to Revolutionize Sports Content Production Through AI

The capital increase aims to provide Samba Digital with the necessary financial resources to execute its strategic growth plan and achieve its objectives.

Proceeds from the capital increase will be allocated as follows:

• c. 70%: Accelerate the development of our AI-driven platform, the cornerstone of our future growth strategy. Investments will focus on finalizing advanced functionalities, integrating innovative solutions, and enhancing technological capabilities.
• c. 10%: Strengthen commercial presence and marketing efforts, particularly in key markets (U.S., Latin America, and Europe), taking advantage of upcoming global sports events (World Cup 2026, Olympics 2028). A specific opportunity has also been identified in India, supported by the arrival of Nilesh Deshmukh, a former Engage Digital executive.
• c. 20%: Improve financial structure by reducing reliance on factoring, thus enhancing cash flow and financial stability.

The capital increase, executed without preemptive subscription rights, will involve the issuance of 500,000 new shares at €8.00 per share, representing a 38% discount compared to Samba Digital’s closing stock price on January 31, 2025 (€12.90).

Interested investors must place their subscription orders with an authorized financial intermediary from February 3 at 8:30 AM to February 17, 2025, at 4:00 PM (Paris time) / 3:00 PM (Lisbon time).

Following the transaction, the company’s share capital will increase from €23.3 million to €24.5 million, with the total number of shares rising from 10,000,000 to 10,500,000.

A listing request for the new shares will be submitted to Euronext Growth® Lisbon on February 18, 2025.

Investors are advised to review the risk factors outlined in Chapter 3 of the Information Document, approved by Euronext on December 18, 2024, available at https://sambadigital.com/financial-communication-samba.

Find all information related to
Samba Digital's capital increase project at: 
https://invest.sambadigital.com

ABOUT SAMBA DIGITAL

Founded in 2018 in the United States, Samba Digital supports sports clubs and stakeholders in the sports and eGaming industries with their international expansion strategies by growing their digital audiences worldwide.

The company operates across four continents: the Americas (United States and LATAM), Europe, Africa, and Asia. Samba Digital collaborates with top football clubs and organizations, including leading teams from English football (Liverpool, Tottenham, Manchester United, Chelsea…), French football (Ligue 1, PSG, OM, OL, AS Monaco…), Italian football (Serie A, Juventus, Napoli…), German football (Bundesliga, Eintracht Frankfurt, Bayern Munich…), and, since 2022, Portugal’s Primeira Liga.

The company has also extended its expertise to other sports, such as basketball (Orlando Magic in the NBA and FIBA), rugby (World Rugby), golf (Ryder Cup), Formula 1, and tennis (Roland-Garros, US Open, etc.).

Headquartered in Portugal, Samba Digital also manages two dedicated platforms for the sports industry  Sports Translate, which provides translation and content adaptation services in 50 languages and dialects, including subtitling and video dubbing solutions. And Sport Influencers, which connects brands with more than 5,000 influencers worldwide.

Samba Digital is the first sports marketing company globally to offer these diverse services under a flexible business model, operating without bank debt and maintaining a healthy cash flow that enables self-financed investments.

Samba Digital is listed on Euronext Lisbon (PTDGL0AM0003 - MLSMB).

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