Q2 2026 Arnoldo Mondadori Editore SpA Earnings Call Transcript
Key Points
- Revenue growth of nearly 7% in H1 2026, driven by strong book market momentum and contributions from recent acquisitions like Edilportale and Earpley Education.
- Adjusted EBITDA increased by 12.5% to EUR45.6 million, supported by improved profitability in trade books, retail, and digital segments.
- Trade books market share reached 27%, with five titles in the TOP10 bestsellers and a Strega Prize win, reinforcing leadership in the Italian publishing market.
- Retail operations delivered strong performance with a 4.6% increase in book sellout and a 7.7% rise in physical store sales, boosting market share to 13.3%.
- Digital area revenues grew 29% year-over-year, driven by Edilportale consolidation and strong martech performance, with like-for-like growth of 3.3%.
- Education books market share is expected to reach nearly 35% on a pro-forma basis, with a slight increase in the secondary school segment.
- Confirmed full-year 2026 guidance for low single-digit revenue and EBITDA growth, with ordinary cash flow expected between EUR65-70 million.
- Net profit declined to EUR1.5 million from EUR3.5 million in H1 2025, impacted by higher financial costs, increased IFRS-16 debt, and revaluation of earn-out liabilities.
- EBIT decreased by approximately EUR2 million year-on-year due to higher non-recurrent charges, including M&A transaction costs and logistic migration expenses.
- E-commerce book sales declined by about 1% in H1 2026, reflecting a structural shift toward physical retail channels, which may pressure online revenue streams.
- Net financial position before IFRS-16 increased to EUR262 million, up EUR43 million year-on-year, due to M&A cash outflows and shareholder remuneration.
- Professional publishing segment continued to decline, albeit at a softer rate of -2.0%, indicating ongoing challenges in this business area.
- Media area adjusted EBITDA remained flat despite lower government grants of EUR0.6 million, highlighting reliance on non-recurring initiatives to offset structural circulation declines.
- Free cash flow was negative at EUR3.4 million in the last 12 months, reflecting significant M&A spending and higher capital expenditures.
Good afternoon to you all and thank you for your attention. Let's start this overview from the key takeaways that have characterized the first months of the current year. Our first half 2026 results confirming the strength of our business model and validate the ongoing growth strategy we are pursuing driven also by inorganic growth.
I remind the key transaction of the current year, the acquisition of a majority stake in Edilportale, reinforcing Mondadori Digital's leadership in the Italian digital and social media publishing arena, and the acquisition of Earpley's textbook business unit, now Earpley Education, further consolidating the education books leadership in the secondary school segment.
These deals further expanded the revenues and profitability growth driven by the strong momentum of the book market during the period under review. In fact, the first six months of 2026 showed a positive start to the year, thanks in particular to the resources backed by the Library Fund.
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