Mondadori (MN) H1 2024 earnings summary

Executive summary

• Revenue grew 6.8% year-over-year to €387.2 million in H1 2024, with organic growth of 3.8% after adjusting for acquisitions.

• Adjusted EBITDA increased 7% to €40.9 million, driven by Trade Books, Retail, and Media segments.

• Strategic focus included acquisitions of Chelsea Green Publishing and Star Shop, and a partnership with Benedetta Rossi, consolidating leadership in core markets.

• Launch of PLAI, a generative AI-based accelerator, to foster editorial and business innovation.

• Net profit declined 42.1% to €7.1 million due to higher amortization, lower extraordinary gains, and increased tax expense.

Significant events and developments

• Acquisitions of 51% of Star Shop (comics) and 100% of Chelsea Green Publishing (sustainability books) finalized, expanding presence in Italy, US, and UK.

• Launched PLAI, an AI-focused start-up accelerator, with €6 million investment planned over 2024-2026.

• Signed binding offer to acquire 51% of Waimea, managing IP and image rights of Benedetta Rossi, Italy's top food creator.

• Combined GialloZafferano and Benedetta Rossi brands to create a leading multimedia food sector player with 87M+ followers.

• Waimea's 2023 revenues and EBITDA were €4.5 million and €2.7 million, respectively; initial 51% stake acquired for €6.9 million cash.

Financial highlights

• H1 2024 revenues: €387.2 million (+6.8% YoY); adjusted EBITDA: €40.9 million (+7.0% YoY); EBITDA: €42.4 million (+5.1% YoY).

• EBIT: €12.7 million (-8.9% YoY); adjusted EBIT: €15.4 million (+4.8% YoY).

• Net profit: €7.1 million (-42.1% YoY); adjusted net profit: €9.0 million (+5.7% YoY).

• LTM ordinary cash flow at €67 million; LTM free cash flow at €39 million.

• Group equity increased 8.8% to €260.9 million.