Rai Way confirms guidance
November 14, 2024
The Board of Directors of Rai Way have approved the Company’s Interim Financial Report for the nine months ended September 30th 2024.
Consistently with the first half of the year, in the first nine months Rai Way recorded core revenue growth of +1.1 per cent to €206.5 million, higher than the contribution alone of inflation indexation clauses included in most customer contracts. Adjusted EBITDAi stood at € 142.2 million, an improvement of 2.7 per cent also thanks to the strict cost control, with net income growing to €70.5 million (+1 per cent) reflecting higher depreciation and amortization and financial expenses related to the progression of investments. Net debti,iv stood at €148.2 million, and – although impacted by investments and dividend distribution – remained below Adjusted EBITDAi calculated over the last 12 months.
Given the results achieved, the Company confirms the guidance for the current year, as most recently reformulated at the time of the publication of the half-year figures.
Roberto Cecatto, Chief Executive Officer of Rai Way, commented: “The solid results achieved by Rai Way in the first nine months of 2024, consistent with our expectations, allow us to look forward to the last quarter of the year with confidence and to continue to focus on the execution of the strategy. The strong fundamentals of the traditional business ensures we can confidently plan and pursue our diversification path”.
Key Results for the first nine months 2024
The Company’s core revenues amount to €137.6 million, up by 1.2 per cent compared to €136 million in the first six months of 2023, thus exceeding the reference inflation rate. Media distribution services, which include revenues from RAI, generated a turnover of €121.8 million, posting a 1.2 per cent increase driven by the inflation indexing of underlying contracts, as well as by the full effect of new regional DTT networks. Digital infrastructure recorded revenues of €15.7 million, currently fully generated by tower hosting services, which increased by 1.1 per cent also thanks to the positive trend of business with fixed-wireless-access and radio operators.
Adjusted EBITDA amounted to €142.2 million, an increase of 2.7 per cent compared to €138.4 million recorded in the first nine months of 2023. The improvement was driven by the increase in core revenues, careful cost control and certain non-core benefits (higher level of capitalisation of personnel costs and other income), which more than offset the lack of the incentives on energy tariffs recorded in 2023 and the rising start-up costs of new initiatives. Adjusted EBITDAi margin stood at 68.9 per cent (it was 67.8 per cent in the first nine months of 2023). Considering the impact of nonrecurring charges (€0.2 million in the first nine months of 2024 and €3.6 million in the corresponding period of 2023), EBITDAi was €141.9 million, up 5.3 per cent.