focuses on diversification and acquisitions

Rai Waythe company that manages public TV broadcasts, closed the 2023 financial year with double-digit growth in economic results and plans to continue a positive development trend, focusing on diversification and growth through external lines (acquisitions).

2023 results up

Rai Way's results as of 31 December 2023 show a growth in core revenues to 271.9 million euros (+10.8%), while the adjusted EBITDA rose to 180.3 million (+19.4% ) and operating profit at 126 million (+21.3%). The year closed with a net profit of 86.7 million euros, an increase of 17.7% compared to 2022.

“The 2023 results fully respected the forecasts, which had been progressively increased during the year,” commented CEO Roberto Cecatto.

In 2023, investments amounted to 62.2m (80.2 million at 31 December 2022), of which 46.3 million linked to development activities (62.8 million in development activities in 2022). Recurring cash generation of 114 million, up by over 20 million compared to 2022. Net financial debt substantially stable at 104.9 million (105 million at 31 December 2022)

A proposed dividend of 32.22 eurocents per share, corresponding to an overall value substantially in line with the 2023 net profit and a dividend yield of 6.7%.

The key points of the 2024-2027 Strategic Plan

Rai Way also presented the four-year strategic plan (2024-2027), tracing a “clear industrial path” which, in addition to seizing further opportunities in traditional businesses, defines an evolution of the company's positioning in highly developed sectors (edge ​​data network centers and other digital infrastructures), acting on the levers of diversification and external growth (M&A).

“The infrastructure we are developing – modern, integrated and interconnected – is attracting the interest of customers involved in the digital transition process”, explained CEO Cecatto, adding “we also believe that this Plan addresses the levers suitable for bringing out the real value of the Company. The benefits will also go beyond the growth estimated for 2027, guaranteeing long-term sustainability and development.”

The targets of the Plan for the 2027 financial year, which do not include any growth from external lines, indicate: core revenues of 316 million, with an annual growth (CAGR) in the period 2023-27 of 3.8%. Adjusted EBITDA is expected at 207 million (CAGR +3.5%), with a margin on revenues exceeding 65% (approximately 68% excluding the dilutive effect of the start-up phase of diversification initiatives). Net profit seen growing to 92 million (CAGR +1.4%). Net debt seen at 286 million.

The dividend policy underlying the plan is stable and consistent with Rai Way's equity story, providing for a pay-out substantially equal to 100% of net profit, for an overall distribution to shareholders of approximately 350 million in the reference period , equivalent to a yield of approximately 6.7% on the current market capitalization.

Euphoric reaction from the stock market

The stock market today is rewarding the Rai Way stock with a growth of 3.89% to 5.07 euros, at the best levels for two months now. driven not only by the indications of the Plan but also by the bets of an aggregation with Ei Towers, the transmission tower company controlled by F2i (60%) and Mfe (40%). News in this sense is expected from the government immediately after Easter.