Investing.com – Rai Way (BIT:) goes up on the stock exchange after revealing the 2023 accounts and the industrial plan for 2027. At 11.30 the stock of the company that manages the Rai network gained 3.89% compared to 4.88 euros the day before.
The company closed 2023 with core revenues of 271.9 million euros (+10.8% compared to 2022), adjusted ebitda of 180.3 million (+19.4%) and net profit of 86.7 million (+17.7%).
Investments in the past year amounted to 62.2 million euros (down from 80.2 million in 2022), with an acceleration in the development component in the fourth quarter.
Recurring cash generation in 2023 stood at 114 million euros, up by more than 20 million compared to the previous year.
Based on these results, Rai Way proposed a dividend of 32.22 euros per share, corresponding to an overall value substantially in line with the 2023 net profit and a dividend yield of 6.7%.
The merger with Ei Towers is approaching
As regards the future, with the new industrial plan the company aims to strengthen its role in media distribution and digital infrastructures.
In particular, Rai Way explains in a note, “in addition to the organic investment plan, the company’s financial flexibility will allow it not only to continue to guarantee adequate shareholder remuneration but to pursue growth along external lines as a pillar of strategy, both as a tool to obtain industrial synergies, increasing the efficiency and cash generation of the traditional business, and as an accelerator of the time-to-market of new initiatives (also in light, in the data center segment, of separation dynamics between service providers and infrastructure operators already occurred in the tower segment)”.
A desire strengthened by rumors according to which the government would be ready to give the green light to the marriage between the company controlled by Rai at 65% and Ei Towers, another company active in the tower business and which is owned by F2i (60%) and Mfe (40%). Looking deeper into the issue, according to reports Republica new ad hoc Prime Ministerial Decree could arrive as early as next week which would allow Rai to reduce its shareholding in the capital of Rai Way and carry forward the merger with Ei Towers.
The industrial plan to 2027
Returning to the new industrial plan, overall, Rai Way expects core revenues of 316 million euros by 2027, with a CAGR of 3.8% in the 2023-27 period.
The adjusted EBITDA at the end of the plan is estimated at 207 million euros (cagr 2023-27 equal to +3.5%), with a margin on revenues exceeding 65% (approximately 68% excluding the dilutive effect of the start-up phase of diversification initiatives).
Net profit at 92 million (2023-27 CAGR of +1.4%), with the increase in EBITDA partially balanced by higher depreciation and amortization linked to development investments and higher financial charges.
Net debt by 2027 is expected to be 286 million, as a result of the recurring cash generation, the development investment plan and the hypothesized distribution of dividends to shareholders, with financial leverage estimated to increase on an organic basis up to approximately 1.4x in terms of net debt / adjusted ebitda.
The dividend policy underlying the plan provides for a pay-out substantially equal to 100% of net profit, for an overall distribution to shareholders of approximately 350 million in the reference period, equivalent to a yield of approximately 6.7% on current market capitalization.
Cecatto’s comment
“The 2023 results fully respected the forecasts, which had been progressively increased over the course of the year,” commented Roberto Cecatto, CEO of Rai Way.
“And even more importantly, today we approved the Plan for the next 4 years. A clear industrial path which, in addition to seizing further opportunities in traditional businesses, defines an evolution of the positioning of Rai Way in synergy with corporate assets and skills”, underlined Cecatto before concluding: “At the end of the Plan we want a Rai Way that – while maintaining its own prerogatives – both larger, more diversified, with better growth prospects and more efficient”.
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