Rai Way (RWAY) Q2 2025 earnings summary

Executive summary

• Core revenues grew 2.0% year-over-year to €140.3 million in H1 2025, driven by media distribution, digital infrastructure, and new digital services, with growth supported by RAI DAB network extension and increased tower hosting volumes.

• Adjusted EBITDA rose 3.0% to €96.3 million, with margin improving to 68.6%, aided by asset disposals and in line with expectations.

• Net profit was stable at €47.3 million, up 0.2% year-over-year, despite higher depreciation and non-recurring charges.

• Net debt rose to €177.8 million after €89.2 million dividend payout and investments, but remains below last 12 months' Adjusted EBITDA.

• Management raised full-year 2025 Adjusted EBITDA guidance, citing favorable energy tariffs and higher non-core benefits.

Financial highlights

• Core revenues: €140.3 million (+2.0% YoY); Media distribution: €124.0 million (+1.8%); Digital infrastructure: €16.4 million (+3.6%).

• Adjusted EBITDA: €96.3 million (+3.0%), margin at 68.6% (up from 68.0%).

• Net income: €47.3 million (+0.2% YoY); recurring free cash flow to equity: approx. €63 million.

• Capex totaled €16.1 million, with maintenance at €10.0 million and development/diversification at €6.1 million.

• Net debt/Adjusted EBITDA: less than 1x or 0.69x, including IFRS 16 impact.

Outlook and guidance

• Adjusted EBITDA for 2025 is expected to exceed 2024, driven by lower energy costs and higher non-core benefits.

• Maintenance capex will remain elevated due to extraordinary activities, while development capex is expected to decrease and some activities shift to 2026.

• Underlying growth in traditional business is expected to continue, partially offset by higher costs from diversification.

• Long-term maintenance capex is expected to average 6.5%–7.1% of core revenues, with additional extraordinary capex in 2025–2026.