(Alliance News) - Arnoldo Mondadori Editore Spa reported Wednesday that net income for the first nine months rose to EUR66.3 million from EUR58.3 million in the same period last year.

Consolidated revenues for the first nine months stood at EUR679.9 million compared to EUR678.2 million in the first nine months of 2022, showing growth of 0.3 percent. Net of the changes in the scope of consolidation that occurred between the two periods under review, organic revenue growth was 1.1 percent.

Adjusted EBITDA for the first nine months was EUR129.3 million, showing an increase of about EUR14 million compared to EUR115.5 million for the same period in 2022. If the results are adjusted out of the refreshments and contributions booked in the respective periods under review, the growth shown by the group's Ebitda would be more than EUR17 million.

Thanks to the positive performance of all business areas, the Mondadori group's Ebitda in the first nine months, which was positive by EUR90.5 million, showed an improvement of EUR12.5 million compared to 2022. The result was achieved despite the recognition of higher depreciation and amortization charges of approximately EUR4 million resulting from the higher investments made in the last 12 months, the consolidation of new companies as well as the accounting effects of the PPA - Purchase Price Allocation process.

Neutralizing extraordinary items and impacts from the PPA process related to the companies acquired in the last 24 months, adjusted EBIT would stand at EUR92.1 million, up by more than EUR10 million compared to the same period of the previous year.

Pre-tax profit was EUR87.1 million, up from EUR75.8 million in the same period last year.

The group's capital structure shows further strengthening as the Net Financial Position excluding IFRS 16 as of September 30 is negative EUR152.3 million and improving by more than EUR20 million from September 30, 2022, due to the significant cash generation of the business and despite the cash-out related to the acquisitions made in the last 12 months and the dividend distribution made in May for about EUR29 million.

IFRS 16 NFP stood at minus EUR223.9 million from minus EUR235.7 million as of September 30, 2022, including an IFRS 16 component of minus EUR71.6 million.

As of September 30, cash flow for the past 12 months from ordinary activities was EUR64.6 million while extraordinary cash flow was negative EUR13.2 million.

For year-end, the company expects single-digit revenue growth and adjusted Ebitda up double digits, with margins expected between 16% and 17%. Net income is expected to rise 20%.

Ordinary cash flow is expected to be in the range of EUR65 million to EUR70 million, showing an increase of up to 15 percent over the 2022 figure. Group net debt is confirmed to be placed at 1.0 times adjusted Ebitda at the end of the year, down from 1.3 times at the end of 2022.

Mondadori's stock is up 0.2 percent at EUR2.08 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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