Month: May 2018

Donna Moderna, the magazine edited by Annalisa Monfreda, presents a project called Atlete: stories of female sports professionals who – despite many sporting successes – are relegated by Italian regulations to amateur roles with a marginal image, also among the general public. From winter to team sports, and from swimming to disciplines generally considered more male, such as football, car racing and boxing, their stories stand out for their strength and determination and a capacity to enter the collective imagination and bring honour and acclaim to the country.

“In the great chorus with which in 2018 we are giving voice to “Donne come noi” (Women Like Us), which looks at women who are making headway gaining space in society, we felt that athletes deserved a special mention,” explained Annalisa Monfreda, editor of Donna Moderna. “They are the pioneers of female empowerment, as they continuously challenge the limits of their bodies and the society in which they live. And yet, despite this, they still face disparity with the other half of the sky, a disparity that is even written into the rules!”

Atlete (www.donnamoderna.com/atlete/) is an online long-form response in 25 chapters, that will be published weekly, each of which – with video, photos and text – will tell the story of an outstanding sportswoman or group of sportswomen – that are representative of a universe, a specificity or a particular battle. Some examples: Eleonora Piacezzi, 23, is one of the brightest hopes of Italian women’s football. She plays for the national team and the Cuneo women’s team but she is still obliged to work part-time in her family’s greenhouse business in Liguria, and to train twice a week on her own and another twice a week in the evenings, after driving many kilometres by car to join her team-mates. Or Nataliya Shudruk and her team-mates of the Lobsters Pescara (a female American football team, a sport that in Italy has fewer then 100 participants) who in order to find the resources they need to participate in the championship had to organise a crowdfunding initiative and a self-produced calendar.

Atlete is also a series of 6 reportage article, published once a month in print, with outstanding photographs by Ugo Zamborlini and written by Gianluca Ferraris and Barbara Rachetti. And, from 15 June, an 8-part podcast, produced by Piano P, each of which telling a story in the voices of journalists, the protagonist and background sounds, along with audio extracts from the competitions.

The story continues also on social channels, using the hashtag #Atlete to share the project with the entire community of the Donna Moderna brand: the video interviews of Atlete will be available on YouTube and posted natively on Facebook and Instagram.

A record number of visitors for the INTERNI HOUSE IN MOTION exhibition at the 2018 FuoriSalone. From 16 to 28 April, in the courtyards of the Università degli Studi di Milano, at the Orto Botanico di Brera and the Audi City Lab in Corso Venezia 11 (the former Seminario Arcivescovile), where, for the second year in a row, the magazine extended the reach of its urban animation, there was a more than 60% increase in visitors compared with the 2017 edition, reaching close to 400,000 at the three locations.

Marking the 20^th year of the exhibition, 32 projects were presented, of which 18 installations and 14 design islands, with the contribution of 2 co-producers (Audi and Eni gas e luce), 32 partner companies, 4 institutions (Regione Umbria, Regione Puglia, Apex Brasil, Orticola di Lombardia), and 40 designers (including architectural studios, architects, designer, artists, as well as a specialist school). The installations, along with numerous conferences and talk shows, two concerts and two theatre shows, a workshop and design prize, created a varied mosaic of styles and visions and opportunities for exchange that attracted hundreds of thousands of people.

At the Università degli Studi di Milano attracted some 220,000 visitors, the Orto Botanico di Brera 80,000 and 80,000 also visited the Audi City Lab in Corso Venezia 11, a total of 380,000 people. Among these, over 750 were Italian and foreign journalists who gave to INTERNI HOUSE IN MOTION an exceptional level of media coverage, in national newspapers, and on radio and television, as well as specialist and mass market titles, and guaranteeing a continuous presence on leading social media channels and the web.

As a result, the INTERNI exhibition confirms it position as the  representative event of the FuoriSalone thanks to the high design and cultural level of the installations, the brands involved – all of which recognised at the Italian and international level – and the inclusion of smaller players that likewise demonstrated an remarkable capacity to present content of the highest level.

This extraordinary response, both in terms of audience and media visibility, is a clear demonstration of the absolute leadership of the magazine edited by Gilda Bojardi in the professional living segment and design system communication.

Credits ph: Saverio Lombardi Vallauri

Today, the meeting of the Board of Directors of Arnoldo Mondadori Editore S.p.A., chaired by Marina Berlusconi, reviewed and approved the Interim Management Statement at 31 March 2018[1] presented by CEO Ernesto Mauri.

GROUP PERFORMANCE IN FIRST QUARTER 2018

The Group’s performance in first quarter 2018 was affected by the trends of the relevant markets: growth of books on the one hand, a continuing decline in magazines on the other.

Consolidated revenue amounted to approximately € 253.4 million, down by 6.7% versus € 271.6 million in the prior year, due mainly to the performance of the Magazines areas, affected by the acceleration of the negative trends of the relevant markets, in terms of both circulation and advertising, and by a different timing of a number of initiatives. Revenue from the Books Area grew by 1%, driven in particular by the positive performance of the Educational area.

Adjusted EBITDA in first quarter 2018 amounted to € 0.5 million (versus € 4 million in first quarter 2017) – the drop referring to Magazines Italy (down by € 4.4 million) where the ongoing actions to cut operating and structural costs only partly mitigated the decline in revenue triggered by the trend of the traditional markets.

Additionally, the different timing of a number of initiatives (related mainly to events) versus the prior year increased the decline even further. The Books Area, instead, reported a sharp rise, thanks to further operating efficiencies arising from the integration of Rizzoli Libri, and to lower logistics costs following the outsourcing process completed in 2017.

Consolidated EBITDA (down from € 2.3 million to € -3 million) reflects the operating drop, amplified by higher restructuring costs in the quarter versus the same period of 2017, attributable again to the performance of Magazines Italy.

Consolidated EBIT at 31 March 2018 came to € -10.7 million versus € -5.6 million at 31 March 2017, and includes amortization, depreciation and impairment losses of € 7.7 million, down versus € 8 million in the prior year.

The consolidated result before taxes came to € -14.9 million versus € -9.5 million at 31 March 2017, and included:

• the sharp drop in financial charges (from € 3.4 million to € 1.5 million), as a result of an average interest rate that has more than halved versus the prior year (from 4.86% to 2.19%), and of a lower average net debt;
• a negative performance by associates (consolidated at equity), down from
  € -0.5 million to € -2.8 million, due in particular to Mach2 Libri, active in the distribution of books in the Large Retailers channel and put into liquidation on 15 March 2018.

The net result came to € -13.6 million versus € -9.2 million at 31 March 2017.

The Group’s net financial position at 31 March 2018 stood at € -221.9 million, improving by 22.5% versus € -286.2 million at 31 March 2017, as a result of the Group’s positive cash generation from ordinary operations of € 64.9 million.

At 31 March 2018, cash flow from operations in the last twelve months came to a positive
€ 85.3 million; cash flow from ordinary operations (after outlays for financial charges, management of investments and taxes for the period) came to € 64.9 million, confirming the path of improvement of the Group’s business and financial performance.

The cash flow from extraordinary operations came to € -0.7 million.

At 31 March 2018, Group employees amounted to 3,035 units, down by 5.6% versus 3,214 units at 31 March 2017, as a result of the disposal of the logistics activities in May 2017, and of the ongoing restructuring and efficiency improvement measures involving each of the Group’s business areas. Net of the outsourcing of logistics, the drop would amount to 2.6%.

BUSINESS OUTLOOK

In light of the current relevant context and the results achieved in the first months of the year, the forecasts on 2018, on a like-for-like basis, previously disclosed to the market, can be reasonably confirmed: a slight drop in consolidated revenue; adjusted EBITDA basically steady; profit down versus 2017, which had included positive non-recurring items, and cash flow from ordinary operations forecast in a range between € 55-60 million, improving from the previous forecast of € 50 million.

BUSINESS AREAS

• BOOKS

The Trade Books market in the first three months of the year grew by +4.1%[2], due also to the time gap of the Easter holidays from the corresponding period of 2017. At April, the market grew by approximately 1%.

Against this backdrop, Mondadori Libri retained its market leadership position with an overall 27.7% share in Trade[3].

In the period under review, the Group holds the top three positions in the ten bestselling books in terms of value, and has placed a total of eight titles in the ranking: Quando tutto inizia by Fabio Volo (Mondadori); Storie della buonanotte per bambine ribelli 2 by Francesca Cavallo and Elena Favilli (Mondadori); Origin by Dan Brown (Mondadori); Il morso della reclusa by Fred Vargas (Einaudi); Storie della buonanotte per bambine ribelli by Francesca Cavallo and Elena Favilli (Mondadori); Darker. Cinquanta sfumature di nero raccontate da Christian by E. L. James (Mondadori); Sono sempre io by Jojo Mojes (Mondadori) and La grande truffa by John Grisham (Mondadori).

Revenue in first quarter 2018 amounted to € 73.4 million, up by 1% versus € 72.6 million in the same period of 2017, driven by the positive performance of school textbooks in the Educational Area and by the management and organization of Mondadori Electa exhibitions.

In Trade, revenue in the first three months fell by 7% versus the same period last year, due mainly to the continued strategy of selective production of new titles, aimed at increasing profitability, and to the drop affecting the Large Retailers channel where the Group holds a significant market share.

Adjusted EBITDA of the Books Area came to € -0.8 million, improving significantly versus      € -2.9 million in the same period last year, as a result of further operating efficiencies arising from the integration of Rizzoli Libri, of the management streamlining process undertaken in recent years, relating in particular to the reduction in published titles and relating average number of copies, and of lower logistics costs following the outsourcing process completed in 2017.

EBITDA amounted to € -1 million, confirming the above growth versus the prior year (€ -3.1 million at 31 March 2017).

• RETAIL

In the first three months of the year, the Retail Area posted revenue of € 43.2 million, up by 0.9% versus the same quarter of the prior year (€ 42.9 million), with Books growing by 3.6% (approximately 82% of total revenue), thanks also to the friendly schedule which in 2018 included sales made during the Easter holidays.

The analysis by channel shows the following:

• a 4% increase by directly-managed bookstores, driven by the positive performance of Books (+2.5% on a like-for-like basis in terms of stores);
• a 7% drop by Megastores, due not only to the shrinking sales in Consumer Electronics, but also to the closure of the Palermo and San Pietro all’Orto stores (+5%, considering the sale of books alone, on a like-for-like basis in terms of stores);
• a 5% increase by Franchised bookstores;
• a 10% growth by the online channel;
• a drop by the book clubs, in line with last year’s trend.

In the first three months of the current year, Mondadori Retail improved its adjusted EBITDA to reach € -1.9 million versus € -2.1 million at 31 March 2017, driven by the first results of the rationalization project regarding directly-managed stores, despite the targeted reduction in consumer electronics product sales.

EBITDA came to € -2.1 million, rebounding sharply versus the three months of 2017 (€ -2.9 million), as a result of lower restructuring costs.

• MAGAZINES ITALY

In the first quarter of the year, the magazine market in Italy fell sharply both in terms of circulation[4], with particular regard to the sale of add-on products, and of advertising[5].

Against this backdrop, revenue from Magazines Italy amounted to € 70.2 million, down by 13.6% versus € 81.2 million in the same period of 2017. Specifically:

• circulation revenue lost 8.4%, performing slightly better than the relevant market (newsstands and subscriptions);
• advertising revenue (print + web) fell by 11.6%; web advertising sales were steady versus first quarter 2017, while print sales also reflect the different timing of a number of initiatives linked to local-based events (the Panorama d’Italia tour in particular);
• revenue from add-on products dropped sharply (approximately -30%) versus the same period of 2017;
• Press-Di distribution and revenue towards third parties was basically steady versus the prior year (-0.8%).

The Mondadori Group retains its market leadership position in the period, with a 30.8% share in terms of value^[6]. The unique audience reached 17.6 million users/month^[7], up by 7% versus first quarter 2017, making the Mondadori Group, once again, Italy’s top traditional publisher also in the digital business.

Adjusted EBITDA in the Magazines Italy Area closed with a negative trend at € 2.1 million versus € 6.6 million in first quarter 2017, due mainly to the drop in revenue triggered by the trend of the relevant markets, only partly alleviated by the ongoing cost actions, and to the different planning of a number of initiatives. The digital area continued to improve and confirmed the increase in adjusted EBITDA also in the reporting period.

The Area’s reported EBITDA (€ -0.8 million from € 6.5 million) deteriorated further, due to the higher restructuring costs in the period from the necessary accelerated structural reduction process.

• MAGAZINES FRANCE

In first quarter 2018, revenue from Mondadori France amounted to € 75.6 million, down by 6.3% versus € 80.7 million in the same period of 2017.

Specifically:

• circulation revenue (75% of the total) posted a –6% drop versus the previous year;
• advertising revenue was down by an overall -9.2% versus the same period of 2017: print (86% of total advertising revenue), fell by 2%, less than the relevant market trend[8].

Adjusted EBITDA came to € 3.3 million, down from € 3.6 million in the first three months last year. Net of the contribution in first quarter 2017 of NaturaBuy (sold in May 2017), the result was basically steady, thanks to the effective actions launched in 2017 to contain industrial costs, and to the reorganization of the advertising and digital teams that started to produce benefits, fully offsetting the decline in revenue triggered by the trend of the markets.

Reported EBITDA amounted to € 3.2 million, up by approximately 7% versus first quarter 2017, as a result of lower restructuring costs incurred.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

As announced on 24 April 2018, the Ordinary Shareholders’ Meeting appointed the Board of Directors, composed of 14 members, and the Board of Statutory Auditors, who will remain in office for three years until the approval of the financial statements for the year ending 31 December 2020.

On 2 May 2018, an agreement was concluded on the transfer to HCI Holding of 100% of the share capital of Inthera S.p.A., specialized in strategy, planning and development of content & data driven marketing solutions, CRM, database analysis and management.

The Board of Directors of Arnoldo Mondadori Editore meeting today also reviewed the binding offers received from European Network on the acquisition of the weeklies Tustyle and Confidenze.
The Board concurrently resolved to authorize the CEO to carry out the activities for completing the transaction, which falls into the repeatedly announced strategy of focusing the product portfolio on core brands with greater profitability and multi-channel development potential.

The documentation relating to the presentation of the results at 31 March 2018, is made available through the authorized storage mechanism 1Info (www.1info.it) and in the Investors section of the Company’s website www.gruppomondadori.it.

The Interim Management Statement at 31 March 2018 will be made available at the Company’s registered office, on the authorized storage mechanism (www.1Info.it) and in the Investors section of the Company’s website www.gruppomondadori.it by the end of today.

PUBLICATION OF THE MINUTES OF THE SHAREHOLDERS’ MEETING

Arnoldo Mondadori Editore S.p.A. informs that the minutes of the Ordinary Shareholders’ Meeting held on 24 April 2018 are available at the Company’s registered office, on the authorized storage mechanism (www.1info.it) and in the Governance section of the Company’s website www.gruppomondadori.it.

The Financial Reporting Manager – Oddone Pozzi – hereby declares, pursuant to art. 154 bis, par. 2, of the Consolidated Finance Law, that the accounting information contained herein corresponds to the Company’s records, books and accounting entries.

Annexes (in the pdf file):

1. Consolidated balance sheet;
2. Consolidated income statement;
3. Group cash flow;
4. Glossary of terms and alternative performance measures used.

[1] Beginning from 1 January 2018 (and to provide a consistent presentation, also for 2017), the Group has adopted the new IFRS 15 – Revenue from Contracts with Customers – revenue recognition standard, which applies to all contracts stipulated with customers, with the exception of those that fall within the scope of application of other IAS/IFRS standards such as leases, insurance contracts and financial instruments. The new IFRS 15 presents revenue and costs differently, with no effect on EBITDA. Beginning from 2018, the result generated by associates (consolidated at equity), previously classified in adjusted EBITDA, is shown under EBIT; for consistency, 2017 has been reclassified accordingly

[2] Source: GFK, March 2018, figures in terms of value

[3] Source: GFK, March 2018, figures in terms of value

^[4] -9.3% in terms of value (Internal source: Press-Di, cumulative figures at February 2018 newsstands + subscriptions)

^[5] -11% (Source: Nielsen, cumulative figures at March 2018)

^[6] Internal source: Press-Di, cumulative figures at March 2018 newsstands + subscriptions

^[7] Source: Audiweb, January-February 2018 average figure

^[8] (-9.9%. Kantar Media, cumulative figures in terms of value at February)

Camilla Boneschi, Francesco Bozzi, Susanna Ciucci, Valerio Fidenzi, Giulia Masci Ametta, Linda Poncetta, Luca Scolari and Anna Spinelli: these are the young talents selected by the publishing houses of the Mondadori Group as part of the Millennial Editors project.

Launched in February, the project offered a unique opportunity to 8 recent graduates  under-30 in order to gain work experience in the publishing world, after being chosen on the basis of an outstanding curriculum and a deep passion for books and reading.

All of the aspiring editor were subjected to a rigorous recruitment process and selected from over 4,200 applications, received by the Mondadori Group during the month the project was launched with an announcement on the Monster Italia web site.

Following an initial selection phase based on qualifications and experience, 81 candidates were given the possibility to participate in an Edithon: a full day at the Palazzo Mondadori, in which the candidates met the leading figures from each of the Group’s publishing houses and could demonstrate their skills through individual and group tests.

8 Millennial Editors stood out among them and, starting from this month, will start a two-year apprenticeship at Mondadori, Einaudi, Rizzoli, BUR, Sperling & Kupfer, Mondadori Education and Rizzoli Education.

This will give them the chance to make their dream come true and to learn how to become an editor, by interacting and cooperating with all of the colleagues and other protagonists in the book production chain, starting from the authors.

The #MillennialEditors project has also offered an opportunity to discuss and share with young people on social media some of the fundamental aspects of what it means to be a professional editor: videos, photos, “stories” and special content that have recorded a total of over 280,000 views on the Facebook, Instagram, Twitter and LinkedIn profiles of the Mondadori Group.