Rai Way (RWAY) Q1 2025 earnings summary

Executive summary

• Core revenues rose 1.7% year-over-year to €70.0 million, driven by media distribution, digital infrastructure, inflation-indexed contracts, and higher tower hosting volumes.

• Adjusted EBITDA was stable at €46.9 million (margin 67%), reflecting strong operating leverage but offset by higher energy and diversification costs.

• Net income declined 5.3% year-over-year to €22.6 million, mainly due to higher personnel costs and increased depreciation.

• Net debt decreased to €116.2 million from €127.6 million at year-end 2024, supported by recurring free cash flow of approximately €32 million.

• Full-year 2025 guidance is confirmed, with management citing business resilience amid macroeconomic and geopolitical instability.

Financial highlights

• Core revenues: €70.0 million (+1.7% YoY); media distribution €61.9 million (+1.6%), digital infrastructure €8.1 million (+2.5%).

• Adjusted EBITDA: €46.9 million (margin 67.0%, +0.2% YoY); net income: €22.6 million (-5.3% YoY).

• Capex for the quarter was €4.0 million, split between maintenance and development.

• Net debt/Adjusted EBITDA ratio improved due to lower net debt and stable EBITDA.

• Cash and cash equivalents increased to €27.4 million at quarter-end.

Outlook and guidance

• Full-year 2025 guidance remains unchanged, expecting further Adjusted EBITDA growth in core business, offset by higher energy tariffs and diversification costs.

• Maintenance capex will be slightly above normalized levels due to extraordinary activities; development investments to remain stable, focused on diversification and DAB network expansion.