Business
Rai Way S p A : 2025FY Results Presentation
Rai Way S p A : 2025FY Results
About this update from Rai Way Spa
FY 2025 Results Presentation 23 rd March 2026 Speakers Roberto Cecatto, Chief Executive Officer Adalberto Pellegrino, Chief Financial Officer Giancarlo Benucci, Chief Corporate Development Officer / 3 / Consolidating our upward trajectory 151,0 131,2 136,1 142,9 169,4 174,8 121,8 126,2 132,8 140,4 +72,6% 180,3 185,6 191,8 181,4 115,5 118,3 105,1 109,3 111,3 +13,5pps 66,3% 67,2% 67,8% 59,3% 60,6% 62,2% 61,5% 50,7% 51,5% 51,7% 53,4% 62,3% 63,3% 64,2% 54,3% 55,0% 56,2% 57,8% 57,2% Adj. EBITDA , pre and after leases 1 (€m) Adjusted EBITDA margin, pre and after leases 1 Pre-leases After leases 1 Pre-leases After leases 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Income (€m) 2,6x Net Income Adj. 2 86,7 89,9 88,6 56,3 59,7 63,4 64,0 65,4 73,7 33,6 38,9 41,8 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 90,1 90,5 2024 2025 Recurring Free Cash Flow from Equity FCFE 1,3 (€m) 1,9x 113,9 117,9 117,8 88,8 92,3 93,4 77,5 74,6 77,5 63,4 67,9 69,7 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Leases impact estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts. Leases for 2025 adjusted to include € 1,9m related to a contract temporarily accounted for as opex (under Non-recurring costs) until renewal Net Income Adjusted to exclude the impact of Non-recurring costs. For 2025, Non-recurring costs exclude € 1.9m related to a contract temporarily accounted for as opex (vs IFRS) until renewal Recurring FCFE = Adj. EBITDA - Leases - Net Financial Charges - P&L Taxes - Recurring Maintenance Capex. Figure for 2021 excludes a € 1 mln one-off tax benefit. Figure for 2025 excludes € 1,7m non-recurring maintenance capex / 4 / 2025 confirmed strong business fundamentals Financial Results - 2025 well above initial expectations thanks to a mix of better operating performance and higher non-core benefits Core Revenues up 2,4% vs 2024 , doubling the CPI contribution, supported by DAB roll-out for RAI and acceleration of activity with Third-party clients (underlying growth at +4.4% YoY and +10,0% in 4Q) Adjusted EBITDA up 3,3% vs 2024 (€ +6,2m, with profitability up 60bps at 67,8%), with i) better performance of the traditional business and ii) planned higher absorption from diversification initiatives more than offset through non-core benefits Maintenance Capex at approx. 23m reflecting planned non-recurring activities and cyclicality of certain IT investments; Development Capex at approx. € 29m, mainly on DAB coverage extension, diversification and processes digitalization Recurring Cash generation stable at approx. € 118m despite € 8m temporary swing in maintenance capex 33,00 €/cent dividend proposed to the AGM, equal to ~100% pay-out and 5.7% dividend yield (1) , bringing total distribution since 2014 to almost the entire IPO market cap Operating update: Traditional business Rai DAB network extension on track , with coverage at ~70% as of December 2025 Roll-out of solar panel project started following authorization of the first 12 MW Diversification Hyperscale DC: "Conferenza dei Servizi" successfully completed and concession with Municipality signed Edge DCs: service range extension positively received by the enterprise market Sustainability Carbon neutrality achieved Submission of SBTi target Outlook: Excluding changes in energy prices, Adjusted EBITDA substantially in line with 2025 with further underlying growth offset by lower benefits from non-core items Dividend yield based on market closing price on 20 March 2026 (5.74 €/share) / 5 / FOCUS ON: solar panel project / 6 / Milano 1 5,2 MW Milano 2 6,6 MW Rimini 7,5 MW Terni 1,4 MW Cuneo 2,0 MW Lecce 1,6 MW Roma 1 9,0 MW Roma 2 5,5 MW Authorized projects as of March 2026 Project update: Priority on 8 sites Total capacity at run rate of approx. 40 MW , in line with Industrial Plan expectations 4 sites already authorized (12,5 MW) , currently being rolled-out Full capacity expected in 2028 , due to longer authorization process Total capex: ca. € 32m EBITDA generation at run rate: ca. € 4m Strategic objectives: Profitable utilization of underexploited company assets Extracting synergies with the DC network under deployment , thanks to the proximity of some plants to DCs (i.e. Pomezia) Mitigation of electricity price fluctuation risk Reaching ESG targets FOCUS ON: Hyperscale DC project authorized Project overview: Tier IV Hyperscale Data Center made up of 4 independent buildings 17,500 sqm of total built area 16 data halls totaling 16,000 sqm (excluding office and ancillary spaces) 344 total racks per data hall 35.2 MW of IT power capacity, with a target PUE of 1.3 5.5 MWp photovoltaic plant (under authorization) Flexibility in the fit-out , with possibility to differentiate density and cooling for each module Option to scale density and total IT power up (subject to additional permitting) Achievements and next steps: Conclusion of the authorization process Beginning of 2026 ("Conferenza dei Servizi") and signing of the concession with the Pomezia municipality Next months Marketing, final design & procurement ~18/24 months from completion of the previous phase Construction Attractiveness drivers: Located in Rome , at the center of Italy's digital and economic ecosystem Fully authorized , thus reducing time-to-market Optimal size and modularity , making it compatible with both hyperscale and more enterprise-level use Fit-out flexibility , allowing full AI-compliance / 7 / FY 2025 Financial highlights Core revenues (€m) Adjusted EBITDA (€m) Net Income (€m) Adjusted EBITDA margin 276,1 +2,4% 282,8 +3,3% 67,2% 67,8% 185,6 191,8 Excluding impact from non-recurring costs, Adjusted Net Income +0,4% -1,4% 89,9 88,6 2024FY 2025FY 2024FY 2025FY 2024FY 2025FY Capex 1 (€m) Net Debt (Cash) (€m) Cash Conversion 2 Net Debt/Adjusted EBITDA Maintenance Development - Diversification Development - Trad. business/asset 54,9 52,1 127,6 136,5 91,2% 88,0% 0,69x 0,71x 17,6 22,0 15,4 22,1 6,6 23,4 2024FY 2025FY 2024FY 2025FY 2024FY 2025FY Excluding component related to IFRS-16 leasing; development capex include € 0,7m reported under IFRS-16 financial liabilities in the financial statements Cash conversion = (Adj. EBITDA after Leases - Recurring Maintenance Capex) / Adj. EBITDA after Leases. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts. For 2025, a) leases adjusted to include € 1,9m related to a contract temporarily accounted for as opex (under Non-recurring costs) until renewal and b) Maintenance capex exclude Non-recurring items for € 1,7m / 8 / Core revenues − Digital Infrastructure & Other − Media Distribution 276,1 2024FY +2,4% (1) 244,1 249,5 (1) 31,9 33,3 282,8 2025FY +4,1% +2,2% Media Distribution up 2,2%, mainly driven by: link to inflation New Services to RAI up ~30% at € 9,7m thanks to DAB network coverage extension Rising contribution from CDN Digital Infrastructures underlying performance up 4,8%, reflecting: o +3,0% in Tower hosting, benefitting from CPI and strong volumes with Radio Broadcasters (+35%) Rising contribution from data centers and connectivity Acceleration of business development pushing revenues from Third-party customers up 10% in 4Q In FY 2024, € 0,2m related to connectivity services reallocated from Media Distribution to Digital Infrastructure / 9 / Opex (excluding non-recurring) Personnel costs 46,1 46,3 92,4 +1,0% 93,3 44,7 48,7 +5,2% Personnel costs: Traditional business personnel costs up approx. 4% mainly driven by the renewal of the collective labour agreement Slightly higher headcount devoted to diversification initiatives (+0,3m vs 2024) Other Operating costs o/w Diversification costs 2024FY 2025FY ~2,5 ~4,7 -3,2% Other Operating costs: Excluding the positive impact from the level of non-core items, underlying external cost up approx. 1,6% as a result of: higher diversification-related opex (+1,9m vs 2024) further optimization in the traditional business (approx. -2.5%) across various cost items (satellite rents, energy consumption, real estate, …) / 10 / Change in 2025 Adjusted EBITDA vs 2024 Traditional business - underlying +6,2 +5,7 +4,8 Δ Ricavi Δ Personnel Δ other Δ Adj. EBITDA Underlying cost operating cost Traditional Δ Adj. EBITDA Business Diversification Δ Adj. EBITDA non core items (1) Total Δ Adj. EBITDA +1,1 -2,1 -3,4m in FY25 vs -2,2m in FY24 -1,2 +2,6 Continued healthy growth of traditional business , furtherly supported by efficiencies Lower-than-initially-expected EBITDA absorption from diversification, with more gradual commercial uptake more than offset by tight cost management Benefits from non-core items actively pursued in order to mitigate the ramp-up phase of new initiatives Non-core items Include: change in the level of Other revenues change in the level of prior year adjustments change in the level of capitalized personnel costs impact of Δ energy tariffs / 11 / P&L Eur Mln, % 4Q2024 4Q2025 % YoY 2024FY 2025FY % YoY Core Revenues 69,6 71,6 2,8% 276,1 282,8 2,4% Other Revenues & income 0,2 0,3 1,9 2,3 Adj. EBITDA 43,4 45,7 5,2% 185,6 191,8 3,3% % margin 62,3% 63,8% 67,2% 67,8% Adjustments -0,1 -2,6 -0,3 -4,4 EBITDA 43,3 43,1 -0,5% 185,3 187,3 1,1% % margin 62,2% 60,2% 67,1% 66,3% D&A (1) -15,3 -16,3 7,0% -53,3 -57,2 7,2% Operating Profit (EBIT) 28,1 26,8 -4,6% 131,9 130,2 -1,3% Net financial income (expenses) -1,6 -1,5 -2,0% -6,6 -5,8 -12,0% Profit before Income taxes 26,5 25,2 -4,8% 125,4 124,4 -0,8% Income Taxes -7,1 -7,2 1,5% -35,4 -35,7 0,8% % tax rate 26,9% 28,7% 28,3% 28,7% Net Income 19,4 18,0 -7,1% 89,9 88,6 -1,4% Other Income including capital gain on asset sale and tax credits on development projects EBITDA adjustments related to: M&A a lease agreement temporarily accounted for as opex until renewal voluntary lay-off incentives Higher D&A mainly reflecting the development investments Net financial charges benefitting from 90,1 90,5 lower interest rates Net Income Adj. 0,4% Adjusted Net Income slightly up YoY (2) Including provisions Net Income adjusted to exclude the impact of Non-recurring costs, equal to € 2,5m in 2025 and € 0,3m in 2024. For 2025, Non-recurring costs relevant for Net Income differ from Adjustments to exclude € 1.9m related to a contract temporarily accounted for as opex (vs IFRS) until renewal / 12 / Net Debt bridge X,Xx Net Debt/LTM Adjusted EBITDA 127,6 136,5 Including € 28,7m of development capex 4,8 (0,8) 52,1 35,7 (187,3) 0,71x 14,7 0,69x 89,7 IFRS-16 Debt 33,6m Gross Debt 107,5m Cash&Eq (5) -13,5m IFRS-16 Debt 27,1m Gross Debt 118,7m Cash&Eq (5) -9,3m Net Debt 2024YE EBITDA Capex (1) Taxes (2) Financial charges (3) Δ NWC Funds & Other (4) Dividend payment Net Debt 2025YE FY 2025 recurring FCFE (6) at ca. € 118m despite maintenance capex above average due to non-recurring activities and cyclicality of certain IP network investments 1) Excluding component related to IFRS-16 leasing; 2) P&L taxes; 3) P&L financial charges excluding interests on employee benefit liability and interests on leasing contracts; 4) Including renewal of leasing contracts and interests on leasing contracts; 5) Including current financial assets; 6) Recurring FCFE = Adj. EBITDA - Leases - Net Financial Charges (excl. IFRS-16 component) - P&L Taxes (adjusted to exclude benefits from non-recurring opex) - Recurring Maintenance Capex. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts; For 2025, a) leases adjusted to include € 1,9m related to a contract temporarily accounted for as opex (under Non-recurring costs) until renewal and b) Maintenance capex excluding Non-recurring items for € 1,7m / 13 / 2025 recurring cash generation and dividend proposal 181 89 (5) (37) (22) 118 Proposed dividend payout 29 Dividend proposal of 33,00 €cent/share (pay-out ratio of ~100% of Net Income), with a dividend yield (5) of 5,7% Approx. € 761m distributed to Shareholders since listing (~95% of IPO market cap), when including the proposed dividend for 2025 Dividend per Share (€cent) (6) 33,40 33,0 Adj. EBITDA - Leases 2 Financial charges 3 Taxes Recurring Maint. Capex 4 Recurring FCFE 1 Development Capex 4 12,34 14,32 15,37 20,26 21,96 23,29 23,85 24,36 27,45 32,22 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Recurring FCFE = Adj. EBITDA - Leases - Net Financial Charges - P&L Taxes - Recurring Maintenance Capex. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts. Leases for 2025 adjusted to include € 1,9m related to a contract temporarily accounted for as opex (under Non-recurring costs) until renewal P&L financial charges excluding interests on employee benefit liability and interests on leasing contracts Maintenance capex excluding Non-recurring items for € 1,7m. Development capex including € 0,7m related reported under IFRS-16 financial liabilities in the financial statements Dividend yield based on market closing price on 20 March 2026 (5,74 €/share) Dividend proposal / 14 / Sustainability key targets achieved ENVIRONMENTAL Carbon neutrality achieved across the entire company on Scope 1 & 2 Definition of Rai Way's climate strategy and submission of SBTi targets 146% increase in use of HVO biofuel for the company fleet SOCIAL Training hours increased by 28.6% in 2025 compared to 2024. Women accounting for more than half of the workforce in staff and corporate functions GOVERNANCE Cybersecurity: ISO 22301 and ISO 27001 certifications in relation to Edge Data Center and CDN services ACN (National Cybersecurity Agency) certification for our Edge Data Centers Current ESG Ratings Dic. 2025 Score: A- Previously A- Leadership Feb. 2025 Score: A Previously BBB Dic. 2025 Score: 46/100 63° Previously 46/100 65° Dec. 2024 Score: 12 - Low risk Previously 10.9 - Low risk Jun. 2024 Score: 55/93 - Conscious Previously 57/98 - 41.8/100 / 15 / 2026 Outlook Adjusted EBITDA Substantially in line with the previous year with underlying 1 business growth offset by lower benefits from non-core items, not including changes in energy price vs 2025 ca. +/-0,7 €m impact on Adjusted EBITDA for every -/+10 €/MWh change in wholesale electricity tariff 2 Capex Maintenance capex in line with 2025 , still including extraordinary non-recurring activities and cyclical items Development capex higher than 2025 , mainly reflecting solar project, DAB extension and CDN network expansion Excluding impact from level of non-core items (change in the level of Other revenues, change in the level of prior year adjustments, change in the level of capitalized personnel costs, impact of Δenergy tariffs) Average level of total energy tariff for 2025 at ca. 204 €/MWh (PUN of ~114 €/MWh + other components of ~90 €/MWh) / 16 / Q&A Session Contacts Andrea Moretti, Head of Investor Relations +39 335 530 1205 +39 06 331 70391 [email protected] [email protected] https://www.raiway.it / Investors / 18 / Appendix FY 2025 revenue breakdown by client +2,4% − Third-Parties − New services − Fixed consideration & recurring services +3,7% 276,1 282,8 9,7 224,8 227,7 7,5 43,8 45,4 +2,2% 2024FY 2025FY / 20 / Attention : This is an excerpt of the original content. To continue reading it, access the original document here .