Rai Way (RWAY) Q4 2024 earnings summary

Executive summary

• Celebrated 10 years as a listed company, achieving record net profit and dividend in 2024, with adjusted EBITDA up 2.9% to €185.6m and net income up 3.7% to €89.9m, supported by strong traditional and digital infrastructure businesses.

• Core revenues grew 1.5% year-over-year to €276.1m, with acceleration in Q4 and first revenues from new diversified assets such as edge data centers and CDN.

• Launched a new four-year industrial plan (2024-27) focused on media distribution, digital infrastructures, diversification, and external growth opportunities.

• Proposed dividend of €0.3340 per share, representing a 99.8% payout and 5.7% yield, with over €672m distributed to shareholders since IPO.

• Shareholders' meeting scheduled for 30 April 2025 to approve financial statements and dividend proposal.

Financial highlights

• Adjusted EBITDA: €185.6m (+2.9% YoY), margin 67.2% (up from 66.3%).

• Net income: €89.9m (+3.7% YoY), recurring free cash flow to equity of nearly €120m.

• Core revenues: €276.1m (+1.5% YoY); media distribution up 1.4%, digital infrastructure up 2.4% (3.9% underlying growth).

• Capex: €54.9m, with €39.5m-€39.6m for development/diversification; net debt increased to €127.6m.

• Dividend payout: 99.8% of net income; dividend yield: 5.7%.

Outlook and guidance

• 2025 adjusted EBITDA expected to be similar to 2024, with growth in traditional business offset by lower non-core items, higher energy costs, and increased diversification start-up impact.

• Maintenance CapEx to rise above normalized levels for extraordinary activities; development CapEx stable and focused on DAB rollout and diversification.

• Ongoing industrial analysis for potential sector aggregation and consolidation.