In This Article:
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Revenue Growth: Up 1.1% for the first nine months of 2024.
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Adjusted EBITDA: Reached EUR142.2 million, with a margin of 68.9%.
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Net Income: EUR70.5 million, a growth of 1% over the first nine months.
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CapEx: EUR25.1 million, EUR2 million less than the previous year.
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Net Financial Debt: Increased to EUR148.2 million from EUR105 million at the beginning of the year.
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Cash Conversion: Reached 96.2%, up from 94% last year.
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Media Distribution Revenue: Increased by 1.5% to EUR182.8 million.
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Digital Infrastructure Revenue: Increased by 1.5%, with a 3.9% growth in the third quarter.
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Third-Party Revenue: Increased by 3.3%.
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OpEx: Slight decrease of 0.3% to EUR65.9 million.
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Cash Generation: Over EUR95 million for the first nine months.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rai Way SpA (FRA:4RW) reported a solid performance in its traditional business, with a 5% growth in third-party customer revenues in the media distribution and digital infrastructure areas.
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The company achieved a record high adjusted EBITDA of EUR142.2 million, with a margin of 68.9%, reflecting strong financial performance.
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Recurring cash generation grew significantly, reaching over EUR95 million, surpassing the full-year value recorded in 2022.
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Rai Way SpA (FRA:4RW) is progressing with its diversification projects, with more than 50% of development CapEx allocated to these initiatives.
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The company is set to move to a new headquarters in Rome, expected to result in annual savings of at least EUR200,000 and improve operational efficiency.
Negative Points
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Rai Way SpA (FRA:4RW) faced a significant increase in energy tariffs, which, along with rising start-up costs for new initiatives, added over EUR2 million in expenses compared to the previous year.
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The company's net financial debt increased to EUR148.2 million from EUR105 million at the beginning of the year, impacted by investments and dividend payouts.
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There is uncertainty regarding the consolidation with EI Towers, as regulatory, financial, and legislative limitations are not entirely within the company's control.
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The start-up costs for diversification initiatives more than doubled compared to the previous year, impacting overall expenses.
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The company experienced a significant working capital absorption typical of the third quarter, amounting to EUR34 million, related to tax and CapEx payment cycles.
Q & A Highlights
Q: Do you have any updates on the potential consolidation with EI Towers? A: Roberto Cecatto, CEO: The consolidation with EI Towers is a logical step for the sector, but it's not entirely up to us due to regulatory, financial, and legislative limitations. We must be patient and wait for discussions to progress. Meanwhile, we continue to focus on increasing the company's value for shareholders.