Mondadori (MN) Q4 2024 earnings summary

Executive summary

• Revenue grew 3.3% year-over-year to €934.7 million, with adjusted EBITDA up 3.6% to €157.6 million and profitability stable at 16.9%.

• Net profit was €60.2 million, slightly down from 2023 due to higher tax expenses and increased minority interests.

• Ordinary cash flow rose 3.8% to €71.3 million, supporting acquisitions and higher shareholder returns.

• Dividend proposed at €0.14 per share (+17%), totaling €36.5 million, with a payout ratio of 60% and a yield near 7%.

• Book publishing now represents 85% of revenue and nearly 90% of margins, underscoring the Group’s strategic focus.

Financial highlights

• FY24 revenue: €934.7mn (+3.3%); adjusted EBITDA: €157.6mn (+3.6%); EBIT: €92.0mn (+9.3%).

• Net profit: €60.2mn (-3.5%); adjusted net profit: €68.8mn (-2.8%).

• Ordinary cash flow: €71.3mn (+3.8%).

• Adjusted EBITDA margin: 16.9% (vs 16.8% in 2023); EBIT margin: 9.8% (up from 9.3%).

• Net financial position (IFRS 16): €-173mn, up from €-158.6mn, reflecting investments and acquisitions.

Outlook and guidance

• 2025 targets: low single-digit growth in revenue and adjusted EBITDA, with margins stable at ~17%.

• Ordinary cash flow expected at ~€70mn; NFP/Adj. EBITDA IFRS16 ~1.0x.

• Dividend policy: DPS to increase by at least 10% per year, targeting 50% of ordinary cash flow per share.

• Strategic focus on organic growth, M&A in books and digital media, and digital platform development.