Rai Way (RWAY) Q2 2025 earnings summary

Executive summary

• Core revenues grew 2.0% year-over-year to €140.3m in the first half of 2025, with growth in both Media Distribution and Digital Infrastructure, supported by DAB coverage extension and increased tower hosting volumes.

• Adjusted EBITDA rose 3.0% to €96.3m, with margin improving to 68.6%, aided by a €1.5m real estate asset disposal and underlying trends in line with expectations.

• Net profit was stable at €47.3m, up 0.2% year-over-year, despite higher depreciation and non-recurring charges.

• Net debt at end of June was €177.8m, up after €89.2m dividend payout, but remains below last 12 months' Adjusted EBITDA.

• CDN framework agreements signed with major live streaming providers; Edge DCs offering expanded to IaaS, with a partnership for geo-distributed cloud storage.

Financial highlights

• Core revenues: €140.3m (+2.0% YoY); Media distribution: €124.0m (+1.8%); Digital infrastructure: €16.4m (+3.6%).

• Adjusted EBITDA: €96.3m (+3.0%), margin improved to 68.6% from 68.0% in 1H 2024.

• Net income: €47.3m (+0.2% YoY).

• Capex: €16.1m, with maintenance at €10.0m and development/diversification at €6.1m.

• Recurring free cash flow to equity: approx. €63.0m for the semester.

Outlook and guidance

• Full-year 2025 Adjusted EBITDA guidance raised, expected above 2024, driven by favorable electricity tariffs and higher non-core benefits.

• Underlying growth in traditional business to continue, partially offset by diversification costs.

• Maintenance CAPEX to remain above normalized levels due to extraordinary activities; development CAPEX expected to decrease 20–25% from 2024, with some activities shifted to 2026.

• Long-term maintenance CAPEX expected to average 6.5% of core revenues, with additional extraordinary CAPEX in 2025–2026.