Half Year 2026 Rai Way SpA Earnings Call Transcript
Key Points
- Rai Way SpA (FRA:4RW) reported a 2.5% increase in core revenues, driven by both business segments and outperforming the CPI contribution.
- The underlying adjusted EBITDA grew by EUR2.5 million in the first half, excluding noncore items, reflecting strong cost control and operational leverage in the traditional business.
- The company raised its full-year adjusted EBITDA guidance to be a couple of million euros above 2025 levels, supported by lower noncore headwinds and better cost management.
- Diversification initiatives are gaining traction, with revenues tripling to EUR0.6 million and positive early interest from hyperscalers for the Rome data center project, including high-voltage power availability by 2029.
- Recurring free cash flow to equity increased to EUR68 million from EUR63 million, driven by lower maintenance CapEx, while leverage remains low at 0.9 times net debt to EBITDA.
- The traditional business remains resilient with long-term contracts, stable DTT audience, and expansion of the DAB network, reinforcing revenue predictability and sustainability.
- The failure to consolidate with EI Towers represents a missed opportunity for industrial synergies and value creation, leaving the company to rely on other growth levers.
- Net income decreased by 6.7% in the first half due to higher depreciation and amortization from development investments, pressuring profitability.
- Energy price volatility remains a headwind, with an expected negative impact of approximately EUR2 million in the second half based on current futures, not included in guidance.
- Diversification progress has been slower than initially assumed, partly due to bureaucratic delays, and contributions remain limited in the near term.
- Development CapEx is expected to rise significantly, with full-year development spending around EUR40 million, potentially straining cash flow and requiring careful capital allocation.
- The pending renewal of the lease agreement with Rai for regional offices is causing accounting adjustments, adding EUR1.2 million in OpEx in the first half.
(audio in progress) first half 2026 results conference call. The call will be hosted by Mr. Roberto Cecatto, CEO; Mr. Adalberto Pellegrino, CFO; Mr. Giancarlo Benucci, Chief Corporate Development Officer; as well as Mr. Andrea Moretti, Head of IR.
I will now leave the floor to Mr. Cecatto. Please go ahead, sir.
Thank you, and good evening to everybody. Without holding back, I would like to begin with a few observations on the outcome of the discussion regarding the consolidation of Italian broadcasting infrastructure sector. It's well known that this discussion were deeply explored and we spanned a period of about here and there. They primarily involved the key shareholders of both Rai Way and El Towers with Rai Way directly involved in the analysis of industrial synergies and in the last part, in the support of Rai in the negotiation phase.
Let me say that this is certainly not the appropriate forum nor is our role to elaborate on the reason and differing
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