(Alliance News) - RCS MediaGroup Spa reported Friday that it ended the first nine months with revenues down to EUR606.8 million from EUR620.2 million.

Advertising revenues for the first nine months amounted to EUR239.7 million, up from EUR238 million for the same period in 2022. Total advertising revenues in online media amounted to EUR99.1 million, accounting for about 41.3 percent of total advertising revenues. Publishing and circulation revenues amounted to EUR249.5 million from EUR269.4 million in the first nine months of 2022 and showed a decline attributable to a decline in revenues from collateral works and print circulation revenues, partially offset by growth in digital subscription revenues.

Profits, however, improved, with net income rising to EUR27.8 million from EUR23.7 million in the same period last year.

Good performance also for Ebitda, which rose to EUR82.1 million from EUR71.1 million, for adjusted Ebitda--before nonrecurring charges and income--almost stable at EUR82.7 million from EUR83.0 million, and for operating income, at EUR42.8 million from EUR33.7 million.

As of September 30, net financial debt was EUR45.2 million from EUR31.6 million as of December 31, 2022. The change compared to the end of 2022 is mainly driven by outlays for dividend distribution of about EUR31 million and for technical investments and nonrecurring expenses of about EUR19 million, partially offset by the positive contribution from typical operations of about EUR34 million, which is affected in the nine months by the current timing of the collection of tax credits expected in favor of the publishing sector and the dynamics of working capital. In the third quarter, RCS generated positive cash flows improving NFP by EUR24.2 million compared to EUR69.4 million as of June 30.

Total net debt, which also includes financial debt for leases under IFRS 16, totaling EUR132.3 million as of September 30 from EUR142.8 million as of December 31, 2022, amounted to EUR177.5 million from EUR174.4 million as of December 31, 2022.

"In view of the actions already implemented and those planned, in the absence of a worsening of the consequences attributable to the continuation and developments of the conflicts in Ukraine and the Middle East and the dynamics of costs, the group believes that it is possible to confirm the objective of achieving strongly positive margins in 2023, up from those achieved in 2022, with additional cash generation in the fourth quarter, improving the Net Financial Position at the end of the year compared to the end of 2022," the company said.

RCS MediaGroup's stock is down 0.4 percent at EUR0.70 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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