Mondadori (MN) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 3.8% year-over-year to €705.8 million, with like-for-like growth of 1.1% excluding acquisitions.

• Adjusted EBITDA increased 3.1% to €133.3 million, maintaining a margin near 19%, driven by Trade Books, Retail, and Media.

• Net profit was €59.3 million, down from €66.3 million, mainly due to the absence of prior-year non-recurring gains and higher tax expense; adjusted net profit was stable at €63.2 million.

• All business areas contributed to EBITDA growth, with digital and retail segments showing strong performance.

• Group profitability improved from about 14% in 2021 to almost 19% in 2024.

Financial highlights

• Trade Books revenue increased by 7.5% to €281.9 million, with like-for-like growth at nearly 1%.

• Retail revenue rose by 7.8% to €143.8 million, with organic growth at 2.6%.

• Education Books revenue decreased by 0.7% to €213.9 million, with growth in secondary schools offset by a decline in primary.

• Media revenue grew by about 5% to €106.4 million, with digital up 24.5% and print declining.

• Adjusted EBIT was €93.8 million, up €1.2 million year-over-year; reported EBIT was €88.3 million, down €2.2 million due to higher amortization.

Outlook and guidance

• Full-year 2024 guidance confirmed: low single-digit revenue growth, mid single-digit adjusted EBITDA growth, and stable group profitability at around 17%.

• Ordinary cash flow for FY 2024 expected to reach about €70 million, despite higher CapEx for plant renovation.