Rai Way SpA (RWAY.MI), a Rome-based company that owns and operates television and radio transmission networks in Italy, has announced that it intends to invest €240m ($260m) by 2027 as part of its industrial plan.
Rai Way Planning to Invest €240m by 2027
According to information from Reuters, the company foresees core profit growth (EBITDA) of roughly €207m (3.5%) and revenue increases of about €316m (3.8%).
The organisation indicated that these increases include its traditional activities and diversified enterprises. Reuters cited Rai Way’s CEO, Roberto Cecatto, who said:
We are striving for a Rai Way that … is bigger, more diversified, with better growth outlooks and more efficient.”
To achieve this, the firm is considering a merger with competitor EI Towers to create a broader local footprint. Investors have reportedly been suggesting such a move for almost 10 years. According to a national media report, Rai Way has appointed Citigroup Inc. (C) to investigate a deal with EI Towers.
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F2i, an Italian infrastructure fund, owns approximately 60% of EI Towers, while leading local commercial broadcaster MediaForEurope (MFE) holds the remaining 40%. Sources envisage that the agreement will conclude by the end of 2024. According to Reuters, the newspaper Il Sole 24 Ore has reported that Rai Way may divest up to 15% of its government-owned stake to seal the deal.
On Monday, 25 March 2024, Rai Way reported a year-on-year increase of 11%, giving it a Q4 gain of €67.8m. The company also recorded an adjusted EBITDA of €41.9m, a jump of 18.4%. Investors will get a dividend of €0.3222 per share.
