Mondadori (MN) Q1 2025 earnings summary

Executive summary

• Q1 2025 results and April signals are in line with guidance, with consolidated revenue at €164.4M, down 1% year-over-year, and adjusted EBITDA at €1.8M, down from €4.8M.

• Net loss widened to €13M from €7.1M in Q1 2024, with free cash flow positive at €34.2M.

• The first four months were impacted by the end of public funding for 18-year-olds (UP18) and the loss of the Roman/Colosseum concession, leading to a weaker start compared to last year.

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

• Trade and digital segments showed resilience, with retail revenue up 3.7% and digital media revenue up 19%.

Financial highlights

• Revenue declined 1% year-over-year to €164.4M, mainly due to a weak book market and timing of publishing plans.

• Adjusted EBITDA fell to €1.8M, with EBIT negative at €-13.9M, and adjusted net result at €-11.2M.

• Group net financial position (NFP) increased to €212.8M (IFRS 16) and €134.1M (excl. IFRS 16).

• Ordinary cash flow for the last twelve months was €68.3M, with free cash flow at €34.2M.

• Gross margin at 37.4% of revenue; group equity increased to €302.1M.

Outlook and guidance

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

• Cash flow guidance for 2025 remains at or below €70M, with cash conversion above 40%.

• Anticipated catch-up in H2 2025, supported by a strong publishing program and potential restoration of government library funds.

• Net financial debt (IFRS 16) expected at 1.0x adjusted EBITDA by year-end.