2016 was a truly important year in the history of the Mondadori Group, a year in which we successfully completed our strategic repositioning and laid the structural foundations to address the challenges of our new phase of growth. It marked the passage to a new phase for Mondadori, in which the Group resumed investing to strengthen its competitive position in its strategic business and to support the company’s growth process.
In the space of 3 years, the Group has:
- doubled adjusted EBITDA from 49.1 million euro to 108.5 million euro (approximately 100 million euro pro-forma);
- reduced net debt at end 2016 by approximately 100 million euro versus end 2013 (-363.2 million euro), despite outlays for the acquisitions made in 2016 (approximately 133 million euro), net of disposals.
On the one hand, these positive results were used to reduce consolidated financial debt – which was nearly halved in less than 24 months – and, on the other, to sustain the strategic development plans with adequate resources.
A crucial step was taken with the acquisition of Rizzoli Libri, which has allowed Mondadori to increase the contribution of the Books business, to consolidate its presence in the Italian Trade market, and to gain a leadership position in the school textbooks market and in the international illustrated books business (USA in particular).
The acquisition of Banzai Media operations was a cornerstone in the growth strategy of Mondadori’s magazine brands: the deal has made the Group Italy’s top publisher also in the digital area.
2016 also marked a turning point in the relations with the financial market, following admission to the STAR segment of Borsa Italiana, the start of a path that will shine greater light on the Mondadori Group to enhance the value of the Company and of its activities.
 Consolidation of the companies acquired in 2016 (Rizzoli Libri and Banzai Media) assumed as from 1 January 2016.
Over the 2017-2019 three-year period, the Group will continue efforts to strengthen its competitive position and improve the business and financial performance of its core businesses, through ongoing focus on publishing quality and optimization of operational processes and cost structure, while paying particular attention to the achievement of synergies arising from the integration of Rizzoli Libri, to the development of the Digital Area of Magazines Italy, and to the plan to expand the Franchising channel in the Retail Area.
In light of today’s relevant context, it is reasonable to predict for 2017:
- basically steady pro-forma revenue versus 2016;
- a “high single-digit” growth of adjusted EBITDA, with a resulting improvement in profit margins;
- a net profit for the year expected to rise sharply by approximately 30%;
- Lastly, a net debt at end 2017 estimated to drop versus 31 December 2016, with a debt/adjusted EBITDA ratio at 2.2/2x.
In line with the above strategy, the plan sets operational targets which, based on the current scope, allow the Group to estimate for 2019:
- consolidated revenue above 1.3 billion euro,
- adjusted EBITDA of approximately 115 million euro,
- a net profit of 35 million euro,
- cash generation from ordinary operations close to 60 million euro, and
- a negative net financial position of around 155 million euro, net of the impact of any dividend distribution.