Performance in line with expectations, guidance for the entire financial year confirmed

• Key results f or the quarter ended 31 March 2025 (vs. 31 March 2024):
  • Core revenues of € 70.0m (+1.7%);
  • Adjusted EBITDA of € 46.9m (+0.2%);
  • Operating profit (EBIT) of € 33.1m (-5.1%), due to rising D&A following the investment activity);
  • Net income of a € 22.6m (-5.3%)

• Capex of € 4.0m (€ 5.3m in the first quarter 2024)
• Recurring free cash flow of approx. € 32m
• Net debt € 116.2m (compared to € 127.6m at 31 December 2024)

Rome, 14th May 2025 - The Board of Directors of Rai Way S.p.A. (Rai Way), digital infrastructure operator and provider of services for media content distribution, met today under the chairmanship of Giuseppe Pasciucco, examining and unanimously approving the Company’s Interim Financial Report for the quarter ended 31 March 2025.

The first quarter of the 2025 generated revenues of €70 million, up 1.7% compared to the corresponding period of 2024, once again exceeding the contribution of inflation indexation included in most customer contracts. In line with expectations, Adjusted EBITDA* posted a more limited growth (+0.2%) to €46.9 million, with the usual high profitability and operating leverage of core activities offset by higher energy tariffs and diversification projects’ start-up costs. The deployment of new infrastructure assets continues to drive the increase in depreciation and amortisation, bringing EBIT and net result for the period slightly down. Thanks to the recurring cash generation of about € 32 million, net debt**** decreased to € 116.2 million compared to 31 Decembre 2024. In light of the results, the Management confirmed the guidance for the current financial year.

From an operational perspective, the contract with RAI for the extension of the DAB network was finalised in the quarter, with the roll-out to take place in the coming months. Furthermore, the Company maintained its focus on improving the efficiency of the cost structure, which will also benefit from the relocation of the Rome headquarters, completed in April.

On the diversification front, the Company confirms the commercial effort on data centers and CDN, particularly with the start of negotiations with leading content providers following the successful completion of trials.

Roberto Cecatto, Chief Executive Officer of Rai Way, commented: "The positive start of the 2025 financial year, characterised by an even more marked international geopolitical and macroeconomic instability, confirms the solidity and predictability of Rai Way's business, while the expansion of our portfolio of infrastructure assets takes shape in line with the logic of the Industrial Plan.”

Key Results for the first quarter 2025

In the first three months of 2025, core revenues amounted to € 70,0 million compared to € 68.9 million in the corresponding period of the previous year, registering a 1.7% growth thanks to the contribution of both business segments. In particular:

• media distributions services, which include revenues from RAI, generated a turnover of € 61.9 million, up by 1.6% mainly thanks to the contribution of inflation, to which most underlying contracts are indexed;
• Digital infrastructures, on the other hand, recorded revenues of € 8.1m, still almost entirely generated by tower hosting services, up by +2.5%, mainly thanks to the growing contribution of radio operators, FWA and public administration, as well as the first results from the commercialization of edge data centers.
  

Adjusted EBITDA* was € 46.9 million, registering a 0.2% increase from the level of € 46.8 million recorded in the first quarter 2024. The increase was achieved despite the rising start-up costs of new initiatives and the higher energy tariffs. Adjusted EBITDA* as a percentage of revenues decreased to 67.0% from previous 68.0%, in the light of aforementioned phenomena.

Operating profit (EBIT)* was €33.1 million, down 5.1% from €34.9 million in the corresponding period of 2024, reflecting the acceleration of depreciation and amortisation resulting from investment activity.

Net profit amounted to € 22.6 million, marking a decrease of 5.3% compared to € 23.8 million in the first quarter 2024, in line with operating profitability trend.

During the quarter, historically not relevant in terms of investment seasonality, capex** amounted to € 4.0 million, equally split between maintenance and development capex. In the corresponding period of 2024, investments amounted to € 5.3 million, of which € 4.4 million in development activities.

Net invested capital***** amounted to € 331.2 million, while Net debti,iv stood at € 116.2 million (including the IFRS-16 accounting standard effect for € 41.1 million) compared to € 127.6 million as at 31 December 2024, reflecting the traditional seasonal dynamics of the capex cycle. Recurring cash generation*** remained solid at about € 32 million.

Net invested capital***** amounted to € 331.2 million, while Net debt* stood at € 116.2 million (including the IFRS-16 accounting standard effect for € 41.1 million) compared to € 127.6 million as at 31 December 2024, reflecting the traditional seasonal dynamics of the capex cycle. Recurring cash generation*** remained solid at about € 32 million..

Outlook

In light of the results of the first three months, Rai Way confirms the targets for fiscal year 2025 which were provided during the presentation of the 2024 financial year results. More specifically, the Company expects:

• further growth of the Adjusted EBITDA in the traditional business, substantially offset by the expected increase in energy tariffs and the planned rise in diversification-related costs;
• an increase in maintenance capex compared to 2024 above the average level planned over the Industrial Plan period due to certain non-recurring activities;
• development investments substantially stable, primarily allocated to diversification initiatives and to the development of the DAB network for RAI.

Rai Way announces that today, Wednesday 14 May 2025 at 5:30pm CET, the results for the firs quarter 2025 will be presented to the financial community via conference call.

The presentation supporting the conference call will be made available in advance on the Company’s website www.raiway.it, in the Investor Relations section.

To attend the conference call:

Italy: +39 02 8020911 - UK: +44 1 212818004 - USA: +1 718 7058796

Alternatively, please register here to receive the weblink to the event directly in your inbox and Outlook Calendar.

The replay of the conference call will be available after the end of the event in the Investor Relations – Presentations and Events section of the website www.raiway.it.

The manager in charge of preparing the corporate accounting documents, Adalberto Pellegrino, declares, pursuant to article 154-bis of the Consolidated Finance Law (TUF), that the accounting information in this release corresponds to the underlying accounting documents, books and entries.

Disclaimer

This release contains forward-looking statements on the future events and results of Rai Way that are based on current expectations, estimates and forecasts about the sector in which Rai Way operates and on management’s current opinions. By their nature these items contain an element of risk and uncertainty as they depend on the occurrence of future events. The actual results could differ, even materially, from those stated for a variety of reasons such as: global economic conditions, the effect of competition and political, economic and regulatory developments in Italy.

* The Company assesses performance also on the basis of certain measures not considered by IFRS. Set out below is a description of the components of the indicators that are important for the Company :

• EBITDA (earnings before interest, taxes, depreciation and amortization): this is calculated as profit before income taxes, depreciation, amortization, write-downs and financial income and expenses.
• Adjusted EBITDA: this is calculated as profit before income taxes, depreciation, amortization, write-downs, financial income and expenses and non-recurring expenses/income.
• Operating profit or EBIT (earnings before interest and taxes): this is calculated as profit before income taxes and before financial income and expenses.
• Net Debt: the format for the calculation of Net Debt is the one provided in paragraph 127 of CESR Recommendation 05-054b, which implements Regulation (EC) no. 809/2004.

** Excluding investments related to the application of new IFRS 16 Accounting Standard, equal to € 7.3m in 1Q 2025.

*** Cash generation (Recurring FCFE) defined as Adj. EBITDA net of Leases, Net Financial Charges, P&L Taxes and Recurring Maintenance Capex. Leases are estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts.

**** Net Debt including the effect of the application of the IFRS-16 accounting standard.

***** Net invested capital is calculated as the sum of fixed capital, working capital and non-current financial assets.

For table see attachment