Mondadori (MN) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 grew 0.6% year-over-year to €389.5 million, with adjusted EBITDA nearly flat at €40.5 million and net profit down 50.8% to €3.5 million, reflecting lower EBIT and higher financial charges.

• Book market value declined 5% in H1 2025 due to policy changes and fewer new releases, but recent weeks showed a reversal with a 2% growth and group publishing outperforming the market.

• Retail and education segments grew, offsetting trade book and digital declines, with retail outperforming the market and education books up 14.2%.

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

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

Financial highlights

• Adjusted EBITDA was €40.5 million, down €0.4 million year-over-year; EBIT fell to €8 million from €12.7 million.

• Net profit for H1 2025 was €3.5 million, down from €7.1 million in H1 2024; adjusted net profit was €7.6 million.

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

• Free cash flow at June 2025 was €33.8 million, supporting increased dividends without compromising financial strength.

• Net financial position (IFRS 16) was €-300.1 million, up from €-293.3 million at June 2024.

Outlook and guidance

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

• Ordinary cash flow expected at or below €70 million, with lower cash-in anticipated in H2 2025 shifting to 1H 2026.

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

• Anticipates a progressive improvement in market and group performance in H2 2025, supported by recent positive book market trends.