Rai Way (RWAY) Q4 2023 earnings summary

Executive summary

• FY23 marked a ninth consecutive year of growth: Core Revenues rose 10.8%, Adjusted EBITDA increased 19.4% to €180.3m, and recurring cash generation reached €114m.

• The 2024–27 plan targets growth in traditional media distribution and diversification into digital infrastructure, supported by organic investment, potential external growth and high shareholder distributions.

Financial highlights

• FY23 Core Revenues were €271.9m, up 10.8% YoY; growth was 11.7% excluding a €2.0m one-off benefit in 2022.

• Adjusted EBITDA was €180.3m, up 19.4%; reported EBITDA was €174.9m, including €5.3m of non-recurring expenses.

• EBIT rose 21.3% to €126.0m and net income increased 17.7% to €86.7m.

• FY23 capex was €80.2m, including €62.2m development capex; development spending was €46.3m in 2022.

• Net debt was €104.9m, versus €105.0m in 2022; recurring cash generation rose to €114m from €93m.

Outlook and guidance

• FY24 Adjusted EBITDA is expected to grow despite diversification start-up and infrastructure costs and the absence of energy-tariff incentives; development capex is expected broadly in line with FY23.

• FY27 targets include Core Revenues of €316m, Adjusted EBITDA of €207m, net income of €92m and recurring cash generation of €130m.

• FY27 Adjusted EBITDA margin is targeted at 68.1%; diversification is expected to contribute over €10m of revenue, with run-rate EBITDA above €15m beyond the plan horizon.

• FY24–27 development capex is planned at €246m for traditional businesses and assets and €138m for diversification; recurring maintenance capex averages ~6.5% of sales.

• Planned dividends total ~€350m over 2024–27, with payout near 100% of net income; organic FY27 net debt/Adjusted EBITDA is targeted at ~1.4x post-dividend.