Advanced Television

Rai Way net profit grows 24%

November 15, 2023

From Branislav Pekic in Rome

Italian TV tower company Rai Way has reported a 24 per cent increase in net profit for the first nine months of 2023, to €69.8 million, as a result of higher revenue and lower costs.

Core revenues were up 10.7 per cent on an annual basis to €204.1 million, of which €172.6 million attributable to Italian public broadcaster RAI, which owns 65 per cent of the company. Revenues from third-party customers grew 23.3 per cent to €31.5 million.

These trends include indexation to inflation, the development of new regional DTT networks, and the positive performance of the hospitality business with fixed wireless and radio operators.

Adjusted EBITDA amounts to €138.4 million (+19.6 per cent), while EBIT reached €100.5 million (+25.9 per cent), benefiting from the full depreciation of DVB-T transmission equipment, which more than offset the effects of sustained investment, amounting to €27.5 million.

Net debt increased to €133.6 million, compared to €105 million at December 31st 2022.

Last month, Rai Way finalised a three-year loan agreement with a pool of financial institutions for a maximum amount of €185 million, which will allow for the full repayment of the pre-existing financial debt.

The agreement will also provide the necessary financial stability for new investments, mainly for the construction of an edge data centres network and the creation of a national CDN.

Rai Way operates over 2,300 transmission sites across Italy, providing 99 per cent DTT coverage of the population.

Meanwhile, Italian daily La Stampa has reported that the Italian government is considering reviving the merger between Rai Way and Ei Towers, a tower company owned by F2i and Mfe (Mediaset). The merger would create a significant player in the Italian TV tower infrastructure market and could generate up to €150 million in revenue for Rai.

The government is supportive of the deal and believes that it could help to improve public radio and TV service.

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