Mondadori (MN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 1.0% year-over-year to €164.4 million, with adjusted EBITDA down 62.6% to €1.8 million, mainly due to weaker Trade Books performance and the end of key concessions.

• Net loss widened to €13.0 million from €7.1 million in Q1 2024, reflecting higher depreciation, financial expenses, and the absence of prior year one-offs.

• Trade and digital segments showed resilience, with Retail and Media revenue up 3.7% and 5% respectively, offsetting declines in Trade and Education Books.

• Market share in the book trade decreased to 26.2% from 27.2% in Q1 2024.

• Cash generation remained strong, with LTM ordinary cash flow at €68.3 million and free cash flow at €34.2 million.

Financial highlights

• Revenue: €164.4 million (down 1.0% year-over-year); adjusted EBITDA: €1.8 million (down from €4.8 million); EBIT: €-13.9 million.

• Net profit: €-13.0 million (down from €-7.1 million); adjusted net result: €-11.2 million.

• Net financial position (excl. IFRS 16): €-134.1 million; IFRS 16 NFP: €-212.8 million.

• Free cash flow: €34.2 million for the LTM; ordinary cash flow: €68.3 million.

• Gross margin at 37.4% of revenue; group equity increased 7.7% to €301.2 million.

Outlook and guidance

• FY 2025 guidance confirmed: low single-digit revenue and adjusted EBITDA growth, with stable margins around 17%.

• Ordinary cash flow expected at or near €70 million; net financial debt (IFRS 16) targeted at 1.0x adjusted EBITDA by year-end.

• Gradual book market improvement and publishing house recovery expected in H2 2025.

• Cash conversion above 40% and NFP excl. IFRS 16 to improve to 0.5x.