Rai Way (RWAY) Q2 2026 earnings summary

Executive summary

• Core revenues increased by 2.5% year-over-year to €143.9 million in 1H 2026, driven by growth in both media distribution (+1.8% to €126.2 million) and digital infrastructure (+8.2% to €17.7 million) segments.

• Adjusted EBITDA rose by €0.4 million to €96.8 million (margin 67.3%), with underlying growth of €2.5 million when excluding non-core items and energy tariffs.

• Net income declined by 6.7% year-over-year to €44.1 million, mainly due to higher depreciation and amortization from development investments.

• Recurring free cash flow reached approximately €68 million, reflecting strong operational performance and lower maintenance CapEx.

• Sector consolidation discussions with EI Towers ended without agreement, shifting focus to organic growth, diversification, and capital optimization.

Financial highlights

• Core revenues grew to €143.9 million (+2.5% year-over-year), with Media Distribution at €126.2 million (+1.8%) and Digital Infrastructure & Other at €17.7 million (+8.2%).

• Adjusted EBITDA reached €96.8 million (margin 67.3%), up €0.4 million from 1H 2025.

• Net income decreased by 6.7% to €44.1 million, mainly due to higher depreciation and amortization.

• Capex totaled €14.2 million, with €10 million for maintenance and €4.7 million for development.

• Net debt stood at €167.9 million after dividend payments, with leverage ratio at 0.9x.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA guidance was raised, driven by underlying business growth, cost control, and lower negative impact from non-core items.

• Underlying growth of €3.5–4 million anticipated, mainly from traditional business and DAB network expansion.

• Maintenance CapEx forecasted below 2025 levels, while development CapEx will remain above, reflecting ongoing investments in solar, DAB, and CDN projects.

• Energy price volatility remains a risk, with a potential €2 million headwind if current futures persist and a €0.7 million EBITDA impact for every €10/MWh change in tariffs.

• Guidance excludes potential impacts from international geopolitical events on energy prices.