The three-year period 2018-2020 will be dedicated to strengthening the Mondadori Group in the markets in which it operates, to improving the performance of its core businesses and to tackling the challenges linked to the new phase of growth of the company.
With regard to the book business, which operates in a stable market in Italy, the strengthening of the business should be based on its distinctive positioning, on the potential offered by the Group’s synergistic retail activities, also through the expansion of the franchising channel, and, where possible, on growth opportunities also through acquisitions.
The magazine business, on the other hand, in view of the continuing decline in the markets in which we operate (in Italy and France), will have to focus on the development of digital in strategic areas, on the quality of content and brands, on the optimisation of operating processes, in particular on the structural reduction of costs.
For financial year 2018, it is reasonable to estimate, on a like-for-like basis with respect to 2017:
- consolidated revenues down slightly
- adjusted EBITDA substantially stable
- net profit down, for non-recurring positive items in 2017 (€ 7 million)
- ordinary cash flow between 55 and 60 million euro.
Between 2013 and 2017, thanks to the actions taken to improve the Group’s economic and financial position and the strategic repositioning achieved by focusing on the core business of books and magazines, we have:
- more than doubled the adjusted Ebitda, going from 49.1 million euros (FY2013) to 106 million euros (FY2017)
- brought all businesses to positive margins
- exceeded 60 million euros of ordinary annual cash flow
- reduced the ratio of debt to adjusted EBITDA from >7x to <2x
These positive results were also aimed at supporting the Group’s strategic development lines with adequate resources: the fundamental acquisitions of Rizzoli Libri, which allowed us to grow in the book business by consolidating our position in the trade sector and achieving leadership in the school textbook sector, and the activities of the former Banzai Media, a key element in the development strategy of our brands in the magazine sector that has enabled us to become the leading Italian publisher also in the digital sector.