Mondadori (MN) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was €704.5 million, nearly flat year-over-year (-0.2%), with adjusted EBITDA at €128.6 million, down 3.5%.

• Net profit declined by 12.8% to €51.7 million, while free cash flow was €34.5 million and ordinary cash flow reached €62.3 million.

• The group maintained market leadership in Trade Books (28.2% share) and Education (32.5% share), with retail outperforming the market and digital media revenues growing 8%.

• Retail division grew revenues by 2.9%, increasing market share to 14%, supported by e-commerce relaunch and strong performance from publishing titles.

• Guidance for 2025 is confirmed, expecting low single-digit growth in revenue and adjusted EBITDA, stable margins, and significant cash generation.

Financial highlights

• EBIT for the first nine months was €78.3 million (down 11.4% year-over-year), with adjusted net profit at €58.1 million.

• Net financial position (IFRS 16) at September 2025 was €-233.3 million, with free cash flow at €34.5 million.

• Adjusted EBITDA margin was 18.3%, EBIT margin 11.1%, and net profit margin 7.3% for 9M 2025.

• Equity increased to €330.0 million (+5.8% YoY) despite €36M in dividends.

• Net working capital remained stable at €91 million.

Outlook and guidance

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

• Ordinary cash flow forecasted at €65–70 million, with significant cash generation expected.

• Net financial debt (IFRS 16) projected at 1.0x adjusted EBITDA by year-end 2025; NFP (no IFRS 16) to improve to 0.5x adjusted EBITDA.

• Guidance for stable or slightly growing performance is on track, with a strong recovery in the second half.

• Anticipation of a positive close to the year, with attention on the final weeks to meet targets.