Mondadori (MN) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €389.5M, up 0.6% year-over-year, with adjusted EBITDA nearly flat at €40.5M and net profit down 50.8% to €3.5M due to higher amortization and financial charges.

• The Italian book market declined 5% in H1 2025, but recent weeks showed a reversal with nearly 2% growth and group publishing outperforming at over 5% growth.

• Retail and education segments grew, offsetting trade book declines, and the group maintained national leadership with a 27.4% market share and three titles in the top 10.

• Solid cash generation continued, with LTM ordinary cash flow at €64M and free cash flow at €33.8M.

• FY 2025 guidance for low single-digit growth and stable profitability was confirmed.

Financial highlights

• Adjusted EBITDA was €40.5M, nearly flat year-over-year; EBIT fell to €8M from €12.7M due to higher amortization and lower non-recurring benefits.

• Net profit was €3.5M, down from €7.1M in H1 2024; adjusted net profit was €7.6M.

• Adjusted EBITDA margin was 10.4% in H1 2025, compared to 10.6% in H1 2024.

• Free cash flow at June 2025 was €33.8M, supporting increased dividends.

• Net financial position (excluding IFRS 16) was €-218.8M; IFRS 16 NFP: €-300.1M.

Outlook and guidance

• Full-year 2025 guidance confirmed: low single-digit growth in revenues and adjusted EBITDA, with profitability stable at 17%.

• Ordinary cash flow expected around €70M, slightly lower due to trade book receivable timing.

• Net financial debt (IFRS 16) expected at 1.0x adjusted EBITDA by year-end 2025, improving from 1.1x at end-2024.

• Anticipates a progressive improvement in market and group performance in H2 2025.