Italy's Rai Way to invest $260 million by 2027

Rai Way SpA

26/03/2024 07:35

March 26 (Reuters) - Italian broadcasting towers company
Rai Way  RWAY.MI  plans to invest 240 million euros (about $260
million) on an organic basis as part of its industrial plan to
2027, it said late on Monday.
    The group sees adjusted core profit (EBITDA) up to 207
million euros, core revenues up to 316 million euros and net
profit up to 92 million euros in 2027, with compound annual
growth rates of 3.5%, 3.8% and 1.4%, respectively.
    That includes its traditional business and diversification
initiatives aimed at further development in the medium to long
term, the firm said.
    "We are striving for a Rai Way that... is bigger, more
diversified, with better growth outlooks and more efficient,"
the group's chief executive Roberto Cecatto said in a statement.
    The group is assessing a potential merger with rival EI
Towers to create a national broadcasting towers champion, a plan
that has been on investors' radar for nearly a decade but has
failed to materialise so far.
    Some local media reported on Tuesday that Rai Way has
mandated Citigroup to evaluate a deal with the company, which is
60%-owned by Italian infrastructure fund F2i, with the remaining
40% held by Italy's top commercial broadcaster MediaForEurope
(MFE)  MFEB.MI .
    The deal should be completed by year end and should include
the disposal of up to 15% of Rai Way held by the Italian
government, daily Il Sole 24 Ore said.
    Rai Way on Monday reported core revenues up by 11%
year-on-year to 67.8 million euros in the fourth quarter of
2023, and adjusted EBITDA up 18.4% to 41.9 million euros. 
    It pledged to return to investors a dividend of 0.3222 euro
per share on its 2023 results.
    
($1 = 0.9217 euros)

 (Reporting by Alessandro Parodi; Editing by Mrigank Dhaniwala)
 ((Alessandro.Parodi@thomsonreuters.com;))