Rai Way (RWAY) Q1 2025 earnings summary

Executive summary

• Core revenues rose 1.7% year-over-year to €70.0m, driven by both media distribution and digital infrastructure segments, supported by inflation-linked contracts and higher tower hosting volumes.

• Adjusted EBITDA was stable at €46.9m (+0.2% YoY), reflecting high profitability but offset by higher energy costs and diversification start-up expenses.

• Net income declined 5.3% year-over-year to €22.6m, mainly due to increased depreciation and amortization from ongoing investments.

• Free cash flow generation was strong, with recurring FCFE at approximately €32m and net cash flow from operating activities at €24.0m.

• Management confirmed full-year 2025 guidance, citing business resilience amid macroeconomic and geopolitical instability.

Financial highlights

• Core revenue increased by 1.7% year-over-year to €70.0m, with underlying growth at 3.1%.

• Media distribution segment revenue rose 1.6% to €61.9m; digital infrastructure segment up 2.5% to €8.1m.

• Adjusted EBITDA was €46.9m, with a margin at 67.0%.

• Net income was €22.6m, down 5.3% year-over-year.

• Capex for the quarter was €4.0m, split evenly between maintenance and development.

Outlook and guidance

• Full-year 2025 guidance remains unchanged, with healthy underlying growth in traditional business expected.

• Adjusted EBITDA growth to be offset by higher energy tariffs and diversification costs.

• Maintenance CapEx will be slightly above normalized levels due to extraordinary activities; development CapEx in line with last year, focused on diversification and DAB roll-out.