Month: November 2019

From this month all new eBooks from the publishing houses of the Mondadori Group– Mondadori, Rizzoli, Einaudi, Piemme, Sperling & Kupfer e Mondadori Electa – will be published in the new ePub3 format.

The Mondadori Group is the first Italian publisher to adopt the most recent international standard for all new digital publications, confirming its commitment to the development of digital publishing and the innovations demanded by the market.

The updating project was completed after a detailed analysis of the new format aimed at further improving the reading experience to make it more inclusive. In fact, the technical specifications of ePub3 make it possible to produce eBook with improved accessibility and graphics.

The new format facilitates the publication of digital text with a higher level of accessibility thanks to more precise metadata, content marking and image description, giving the visually impaired a much wider range of books that can be used with adaptive technologies, such as special keyboards and voice-overs.

This is a continuation of the Mondadori Group’s commitment to extend access to reading for people with sight impairments, to which the company has always paid special attention, also through collaboration with institutions such as the Fondazione LIA and the Fondazione Paideia on ambitious inclusion projects, such as the catalogue of accessible Italian books (https://catalogo.fondazionelia.org) and the digital books in AAC (Augmentative and Alternative Communication ) project ILIBRIPERTUTTI (https://www.ilibripertutti.it).

Entirely retro-compatible with all reading devices and apps, the ePub3 format will also make it possible to more easily produce books with complex graphics and augmented features, such as multi-media, interactivity and animations.

The Mondadori Group is the market leader in trade books with a total market share of 25.7%. Since 2010 Group has published the majority of its editorial products also as eBooks, with a catalogue of around 20,000 titles.

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 18 to 22 November 2019, of no. 50,000 ordinary shares (equal to 0.019% of the share capital) at an average unit price of Euro 2.0305 for a total amount of Euro 101,526.00.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,742,203 treasury shares, equal to 1.049% of the share capital and to 0.684% of the total amount of voting rights.

Purchases in detail in the complete pdf.:

Sensual, ironic, and incredibly popular on social media: Ludovica Pagani, a star with over 2 million followers on Instagram, is the protagonist of the 2020 calendar that will hit newsstands with the magazines Chi and Tv Sorrisi e Canzoni.

Available from Wednesday 27 November, 12 new and exclusive shots inspired by a range of musical genres, from rap to disco, rock to country, and grunge to the blues, will surprise readers and fans of this young and talented web influencer, TV face and radio voice who is gaining a bigger and bigger audience.

The choice of a musical theme is not coincidental: in fact, music embraces the audience that follows Ludovica and the enthusiastic readers of the two magazines of the Mondadori Group; as a feature of TV Sorrisi e Canzoni and a topic widely appreciated and extensively covered by the magazine Chi.

“Work on this calendar was both intense and gratifying, and I will remember forever working in a team in perfect harmony,” declared Ludovica Pagani.  Each photo is inspired by a different musical genre: so we tried to cover the history of music. I am happy and proud of the result, and I hope that it will transmit the same emotions that only music can sometimes give,” she concluded.

Since 2016 Ludovica has presented a web series, a sports programme, taken part as a correspondent in ‘Quelli che il calcio’, written her first book ‘Semplicemente Ludovica’ published by Mondadori Electa, been in the cast of two Rai TV drama series, and a new TV series “Involontaria” out on MTV at the beginning of December,  as well as being a radio presenter on RDS NEXT.

The creative idea and photographic production has been entirely conducted by the Mondadori Portfolio team, the Mondadori Group’s photo agency, which for this occasion selected Cosimo Buccolieri.

Partner of the event, and of the entire project, is the hair-beauty brand COTRIL which for Ludovica developed a series of iconic looks, recreated ad hoc for her, able to enhance her natural beauty and charisma. COTRIL has always paid great attention to its social communication, which was why it began to work with Ludovica during the last International Film Festival in Venice and will continue for the whole of 2020 with a series of new and ambitious projects.

For fans who want to meet Ludovica and have their calendar autographed, the appointment is for 4 December , from 7 pm at the Terrazza Aperol in Milan (Piazza Duomo, 25): a unique opportunity to meet Ludovica and enjoy a delicious aperitif with a view of the Duomo from the most beautiful terrace in Milan.

The 2020 Ludovica Pagani calendar is on sale at €9.99, excluding the price of the two magazines, and will remain on newsstands for over a month from 27 November.

During the Salone del Mobile.Milano Shanghai  (20 – 22 November 2019), INTERNI will present the design talk The new frontiers of entrepreneurship.

The event, organised together with INTERNI China, will examine the strategic and productive directions of Italian design and the ways in which it is perceived in Asian markets, especially in China which is now the seventh biggest market for Italian furniture exports (Source: Assarredo). The protagonists of the conversation, which will take place on Thursday 21 November at 3.3 pm at the Shanghai Exhibition Center (Dome Hall – Piazza Italiana), will be Yang Dongjiang (Editor-in-chief INTERNI China and professor at the Academy Art and Design Tsinghua University) Gilda Bojardi (editor-in-chief of INTERNI), Renato Minotti (Co-CEO, Minotti), Giulia Molteni (Head of Marketing and Communication, Molteni&C|Dada), Antony Margiasso (Head of Industrial Design, Pininfarina Shanghai), Maria Porro (Head of Marketing and Communication, Porro), Eleonore Cavalli (Visionnaire Art Director), Sammy Ren and Cathy Zhang (Founders, Domus Tiandi).

Italian Design Factories, the fifth volume in the INTERNI Serie Oro, dedicated to Italian companies,  will receive its first presentation in Shanghai. The book ideally develops the narrative begun in 2014 with the celebratory volume marking the magazine’s 60^th anniversary, followed, in 2016, by a collectors’ edition 500 Italian Design Icons Still in Production, and in 2017 by Icon Makers and in 2018 by Icon Architects.

“In a certain sense, this volume summarises and constitutes a global overview of the themes examined earlier,” explained Gilda Bojardi, editor-in-chief of INTERNI. “In fact, it is in the factories that we find the skills and the main players of the design system. And it is in the factories, in the sense of the locations of technical and cultural production, that the magic takes place that leads to ideas taking shape and being transformed into an object that has the power to move. Our focus is on all those situations in which the great tradition of Italian craftsmanship is renewed focus in a way that can be integrated into today’s most advanced industrial processes and seize the opportunities offered by digital technologies,” Bojardi concluded.

A total of 57 companies are presented by Italian Design Factories: each of them described through their specific distinctive characteristics, linked to history, architecture technological know-how, artisanal content and research. The volume will be completed in 2020, with the presentation of a selection of design excellence which, added to the first, will take us to 100 Italian Design Factories, in other words, the best of our furniture production, as well as accessories,  coverings and materials for the domestic space. In 2021, by combining the two volumes, a final volume will be published, dedicated to the most representative companies from the world of Made in Italy, a book for collectors that aims to be a valuable resource for information for Italian and foreign operators who want to know all about the world’s best manufacturing industry. For this reason, a number of international presentations have been planned to talk about Italian know-how and its ability to continuously renew itself. After Shanghai the volume will also be presented in Miami – during Design Miami for which INTERNI is a media partner – on Wednesday 4 December at the Wolsfsonian Museum whit the collaboration of Italian Consulate General, and then in Dubai during Expo 2020.

Italian Design Factories, for which an extra print has been planned, will be available in three editions (Italian/English, English/Italian and Chinese/English) and will be distributed through major design showrooms in Miami, New York, London and Milan.

With 282 pages,  Italian Design Factories will be available from 28 November on newsstands together with the December issue of the magazine at the price of €10 (including the magazine).

For more information, please go to: www.internimagazine.it

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 11 to 15 November 2019, of no. 51,000 ordinary shares (equal to 0.020% of the share capital) at an average unit price of Euro 2.0428 for a total amount of Euro 104,183.90.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,692,203 treasury shares, equal to 1.030% of the share capital and to 0,672% of the total amount of voting rights.

Purchases in detail in the complete pdf.

What will the world be like in 10 years? “How do we want to live in 2029”? This is the theme of the 2019 edition of Focus Live, the popular science festival of the magazine Focus, which, from 21 to 24 November brings to a conclusion at the Museo Nazionale Scienza e Tecnologia Leonardo da Vinci in Milan, an extraordinary journey that has taken in the most fascinating and decisive issues for the future of mankind and the planet, and discussed the great challenges the humanity must face and the tools it needs to win.

Over 15,000 visitors (of which over 1,800 students), 117 laboratories for children and adults, 182 speakers on the main stage and in speakers’ corners, 44 interactive and multimedia installations: these are the numbers of Focus Live’s debut in Milan last years, with great public success for the event and the digital content. This year over 11,000 people have already taken part in the first two stages, held, respectively, on 1 – 2 June at the Porto Antico in Genoa, and on 18, 19 and 20 October in Trento at MUSE, Museo delle Scienze.

At the Museo Nazionale della Scienza e della Tecnologia Leonardo da Vinci the discussion will focus on the environment, climate, ecosystems, but also on genetics, artificial intelligence, migration, space travel, robots and much more. A great celebration of science, open to everyone, where adults and children can let themselves be amazed by installations and scientific experiments, take part in interactive laboratories and get their hands on the most advanced technologies, as well as meeting some of the biggest experts and scholars in a range of disciplines and personalities well-known to the public. Leading international experts will be the protagonists of unique encounters that will outline the state-of-the art of recent discoveries in a manner tat is accessible for the general public, as well as for fans and enthusiasts. They include the plant neurobiologist Stefano Mancuso, the physicist and popular scientist Guido Emilio Tonelli, the climatologist Luca Mercalli, the diver Umberto Pellizzari, the scientific YouTubers Adrian Fartade and Luca Perri and many more.

In line with the style of Focus, a Mondadori Group brand, science comes to life in unusual and fascinating ways. From “space conquests” with astronaut Umberto Guidoni to some of the most surreal scenarios with laughs and semi-serious reflections with Saverio Raimondo, but also an ability to distinguish the true from the false, between information and propaganda with Selvaggia Lucarelli, the role of the youngest generations with Sofia Viscardi and with the TikToker with more than 2.5 million followers Rosalba Andolfi, the economic outlook that we can expect with Carlo Cottarelli, or the secret life of a rebellious genius like Leonardo Da Vinci together with Massimo Polidoro and the future of music with Saturnino.

And you can even take “a walk” on Mars with 3D visors, and without gravity, or experience the sensation of surviving in high water, watch the robot surgeon “Da Vinci” at work (able, for example, to peel a grape and then sew it back on perfectly), create a perfect avatar of oneself to interact with a virtual world, for example, trying on clothes online, testing your skills on an incredibly realistic driving or flight simulator, experience the sensation – using a special visor – of living with reduced senses in order to understand the difficulties of people with hearing or sight impairments, discover the kitchen of the future, cooking with artificial intelligence and the infinite number of recipes of GialloZafferano, in the company of the starred chef Alessandro Negrini and his interactive showcooking with Alexa and Google Home.

And there are protagonists also for the little ones, with the kids’ area laboratories to try interacting with robots, discover the wonders of water, virtually re-live the moon landing experience and play with the Science show of the scientific apprentice Giuseppe Spitaleri and the crew from the House of Talent.

Everything will be useful in attempting to answer the greatest question of them all: will we be able to deal with the emergencies facing the planet? The most important of which are the climate and the environment, demography and migration, and the fourth industrial revolution: the enormous climatic changes that are transforming the world we have always known forever; the aging populations of parts of the world and the increase in the inhabitants of others, with the associated imbalances and social tensions; the widespread use of artificial intelligence systems, with the potential to disrupt the job market and, if not managed well, risk concentrating wealth even more in the hands of the few, and increasing inequality between populations.

For tickets and a complete programme, please go to: www.focuslive.it

Opening times:

Thursday 21 November 9:30-18.00

Friday 22 November 9:30-19.00

Saturday 23 November 9.30-21.00

Sunday 24 November 9:30-19.00

Focus is Italy’s most widely read magazine, with 5.8 million readers and digital users (Source: NIELSEN MEDIA IMPACT DATA FUSION audipress 2019.1e audiweb 2.0 Feb 19), and 2 million fans on social networks.

Focus Live has been developed with the patronage of: Agenzia spaziale Italiana ASI, Agenziale Spaziale Europea ESA, Consiglio Nazionale delle Ricerche CNR, Istituto Italiano di Tecnologia IIT, Enea, Inaf, Virtual Space Systems.

The organisation of Focus Live has been made possible thanks to the support of:

Main Partners: ab medica, Essilor, IBM

Partners: Aiteca, Celgene, Commissione Europea, e-distribuzione, Gilead, Grimaldi Group, Novartis, Oppo, Osservatorio Terapie Avanzate, Pfizer, Parmigiano Reggiano, Pegaso, Roche, Toyota

In collaboration with: Opera San Francesco

Partner Area Focus Junior: Candia

Supporter: Università San Raffaele

Charity Partner: Lega del Filo d’Oro

Media Partner: Focus, Mediaset, Focus Junior, Meteo.it, Smartworld

Radio Ufficiale: Radio Monte Carlo

In collaboration with Istituto Oikos

Mondadori Store has launched a new campaign for the promotion of books and reading entitled “C’è vita, in un libro. La tua” (There’s life, in a book, yours) and giving a voice to younger readers.

The initiative by the Mondadori Group bookshop chain, now in its second edition, aims to enhance the reading experience through authentic testimonies from readers.

“Through its bookshops, Mondadori Store contributes to an important social mission that encourages the spread of books across the whole country and actively promotes the importance of reading,”  declared Francesco Riganti, marketing director of Mondadori Retail. “For us, readers are the best witnesses of the message. This year we have chosen today’s younger readers as the protagonists of the initiative in the hope that they will become the big readers of tomorrow.”

Based on an idea by the artist Mr. SaveTheWall, the project will involve over 40 children of between 4 and 11 years old, who will be interviewed in two special sessions of Bookshot, short video and photo shootings by the artist with the support of the psychologist and psychotherapist Stefania Andreoli.

Each of the children will talk about their favourite book, bringing to life, in their own words and imaginations, to the emotions evoked by reading it. An intimate moment, also a family relations, and the fruit of discovery, joy, amusement, dreams: resulting in precious testimony to the importance of reading from early childhood.

“Despite the efforts of my parents, I was late in discovering the pleasure and importance of reading. Over the years I have reflected on the fact that it reading recommendations had come from a child of my own age, perhaps it would have been more credible and convincing and I would have gained valuable time. Today, thanks to Mondadori Store, I have had the privilege of confirming this feeling, with an artistic project based on the engaging spontaneity of “young readers”. They are truly amazing,” commented Mr. SaveTheWall.

“It was astonishing to hear the account of a favourite book in the words of the little ones. In fact, we have always encouraged children to read, encouraging parents to get them started early in the most appropriate and effective ways. In this case, however, we are witnessing a first time: the spectacle of those who become, how they think, and the rich and intense internal world that our children develop when we give them the opportunity to be readers,” added Stefania Andreoli.

All of the content will be available on www.mondadoristore.it/condividiunlibro, that will bring together also the testimony of readers invited to participate in the initiative by sharing on social media networks their favourite book using the hashtag #condividiunlibro.

The campaign, which will run from 15 November, will be arranged across four print and video subjects of 30’’ and 60’’, and can be seen on newspapers and magazines, the web and on the social networks Facebook, Instagram and Youtube, in all of the bookshops of the Mondadori Store chain and on Mondadoristore.it as well as on digital screens in railway and metro stations, in shopping malls and in urban centres. The creative proposal has been developed by the agency Action & Branding.

“This is a very ambitious project which has brought to life a wonderful experience. Combining the creative idea of an agency with art was a complex challenge that has generated content that we really love. I am sure that tis project represents an innovative form of communication of considerable interest to the public and with an excellent impact on the brand,” concluded, Alessandro Pedrazzini, CEO of Action&Branding.

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 30 September 2019 presented by CEO Ernesto Mauri.

HIGHLIGHTS OF FIRST NINE MONTHS OF 2019
In the first nine months of 2019, the Mondadori Group recorded basically steady revenue and an approximately 13% increase in adjusted EBITDA from continuing operations before IFRS 16 to
€ 71.3 million, overshooting the planned targets.

Actions continued, in fact, to be taken to improve operations in the Books Area and to reduce costs, as well as to strengthen the Digital component of Magazines Italy; additionally, the reporting period saw the disposal of Mondadori France.

The first nine months of the year recorded significantly lower restructuring and reorganization costs than in the same period of 2018, due to the planned reduction and different timing of the divestment of non-strategic businesses and the reorganization of Group activities.

This performance (marked also by temporary benefits), together with the extended positive cash generation from ordinary operations, paves the way to the achievement of the targets set and disclosed for the entire financial year 2019.

GROUP PERFORMANCE AT 30.09.2019
Consolidated revenue came to € 658.9 million versus € 658.5 million in the prior year, despite the change in the consolidation scope of the Magazines Italy Area following the disposal of Inthera S.p.A. and Panorama (+1.5% on a like-for-like basis).

As mentioned above, adjusted EBITDA before IFRS 16 amounted to € 71.3 million, up by € 8.6 million (+13% approximately) versus the prior year (€ 62.8 million), with a percentage on revenue increasing from 9.5% to 10.8%.

IFRS 16 adjusted EBITDA amounted to € 83.4 million (IFRS 16 impact of € +12 million).

Consolidated EBITDA before IFRS 16, amounting to € 66.3 million versus € 53 million at 30.09.2018, was up sharply (+25%) versus the prior year. The result includes the increase in adjusted EBITDA and strong reductions in restructuring costs recorded in the period.

IFRS 16 EBITDA amounted to € 78.4 million (IFRS 16 impact of € +12 million).

EBIT before IFRS 16 improved significantly to € 49.2 million versus € 37.5 million at 30.09.2018, as a result of the dynamics of the above components (includes amortization, depreciation and write-downs of € 17.1 million). IFRS 16 amortization and depreciation amounted to € 11.1 million.

IFRS 16 EBIT amounted to € 50.2 million (includes the IFRS 16 impact of € +1 million).

Consolidated profit before tax was € 41.5 million, increasing sharply versus € 25.6 million in the first nine months of 2018. It includes:

• the significant reduction in financial expense, as a result of lower average net debt;
• improved performance by associates (consolidated at equity), from € -9.9 million to € -5.3 million in the same period of 2018.

The adjusted net result from continuing operations amounted to € 25.4 million, up more than 60% versus € 15.8 million at 30 September 2018.

Considering the net result of discontinued operations, the Group’s net result came to € 23.1 million versus € -181.5 million in 2018, which had included the impact from the fair value adjustment of Mondadori France of approximately € -200 million.

The Group’s net financial position before IFRS 16 stood at € -110.4 million, improving by approximately € 99 million versus € 209.3 million at 30 September 2018, as a result of the ongoing generation of cash flow from ordinary operations of continuing operations of € 52.5 million. The IFRS 16 Group net financial position stood at € -209.5 million.

At 30 September 2019, with regard to continuing operations, Group employees amounted to 2,092 units, down by -5% versus 2,203 units at 30 September 2018, as a result of the disposal of Panorama, of efficiency gains in the individual corporate areas, and excluding the employees of Mondadori France.

CONSOLIDATED FINANCIAL HIGHLIGHTS IN THIRD QUARTER 2019
Consolidated revenue came to € 279 million, up by 4.2% versus € 267.7 million at 30.09.2018, despite the effect of the change in the consolidation scope of Magazines Italy resulting from the disposal of Panorama.

Specifically, in the period revenue from Books increased by approximately +13% (partly temporary), while the Retail Area dropped by approximately -2%; the Magazines Italy Area fell by 7.3%, on a like-for-like basis, as a result of the dynamics of the relevant markets.

Adjusted EBITDA before IFRS 16 amounted to € 57.6 million, improving by 14% versus the prior year (€ 50.7 million), with different trends reported by the various businesses:

• in line with the revenue trend, the Books Area grew as a result of the positive performance of both the Trade and Education areas;
• the Retail Area fell versus 3° quarter 2018;
• the Magazines Italy Area grew despite the declining market trend, as a result of the disposals that took place, of the ongoing improvement of the digital area and of the actions aimed at reducing operating and structural costs.

IFRS 16 adjusted EBITDA amounted to € 61.6 million (IFRS 16 impact of approximately € 4 million). Consolidated EBITDA before IFRS 16 was up sharply, amounting to € 53.7 million versus € 49.5 million of the prior year.

BUSINESS OUTLOOK
In the first nine months of 2019, the Mondadori Group continued on the path of strategic repositioning and focus on its core businesses of Books and Retail and on Magazines with greater potential for multimedia development, completing the disposal of Mondadori France and moving ahead with the finalization of the disposal of five magazines.

In line with the outlined strategy and in light of the relevant context, including the performance in the first nine months, the operating targets for 2019, based on the current scope, allow the Group to confirm, at a consolidated level, a slight decrease in revenue (steady on a like-for-like basis following years of decline) and a single-digit growth of adjusted EBITDA no IFRS 16 versus 2018.

The net result from continuing operations in 2019 is expected to be significantly higher than last year (in the range of € 30-35 million).

Cash flow from ordinary operations in 2019 is forecast at around € 45 million, paving the way for the distribution of a dividend in 2020.

PERFORMANCE OF BUSINESS AREAS

• BOOKS

In the first nine months of the year, the Trade Books market grew by 4.6% versus the first nine months of the prior year[1]. The Mondadori Group retains its leadership position with a total 25.7% market share and places seven titles in the ranking of the twenty best-selling books in terms of value.

In the period under review, revenue from the Books Area amounted to € 366 million, up by 7.5% versus € 340.3 million in the first nine months of 2018, as a result of the good performance of both Trade (+9.3%) and Educational (+7.7%).

Adjusted EBITDA before IFRS 16 amounted to € 77.6 million, up versus € 68 million in the same period of the prior year, as a result of the increase in revenue and the ongoing improvement of operations. IFRS 16 adjusted EBITDA amounted to € 78.6 million (the impact of IFRS 16 was € 1 million).

Reported EBITDA before IFRS 16 amounted to € 77.1 million, improving versus € 66.8 million reported at 30 September 2018. IFRS 16 reported EBITDA amounted to € 78.1 million and includes an impact of € +1 million.

• RETAIL

In the first nine months of 2019, Mondadori Retail generated revenue of € 126.6 million, down by 2.1% versus € 129.3 million of the same period of the prior year.

In the Books segment, the relevant market for the Area (approximately 82% of revenue^[2]) with a 13.2% market share, Mondadori Retail recorded a performance of -0.7% (on a like-for-like basis -1.1%).

The analysis by channel shows the following:

• a basic stability of direct bookstores (on a like-for-like basis -1.6%);
• in the Megastores, an approximately 12.7% drop (on a like-for-like basis -10.7%), due mainly to the decline in sales of consumer electronics;
• in franchised bookstores, a performance in line with the prior year (on a like-for-like basis -1.2%);
• in e-commerce a +2% growth;
• in the bookclub, a decrease of approximately 4% versus the prior year.

Adjusted EBITDA before IFRS 16 amounted to € -5.2 million versus € -3.4 million at 30 September 2018: the deterioration is due mainly to the decrease in revenue on a like-for-like basis and to the higher inventory write-down of consumer electronics products.

IFRS 16 adjusted EBITDA came to € +0.8 million and includes the IFRS 16 impact of € +6 million.

Reported EBITDA before IFRS 16 amounted to € -5.5 million, down versus
€ -3.7 million at 30 September 2018. IFRS 16 reported EBITDA amounted to € +0.5 million and includes an impact of € +6 million.

• MAGAZINES ITALY

In the first nine months of 2019, the Italian advertising market reported a growth in the digital channel (+2.1%) and a fall in magazines (-15.2%)[3]. Circulation also declined (-12.3%), with a slowdown in both the newsstands and subscriptions channels.

In this context, the Mondadori Group‘s market share stood at 28.6%, steady on a like-for-like basis (excluding the disposal of Panorama)[4]. The Group also retained its position as Italy’s leading digital publisher, with a 73% reach and 28.2 million unique users in the month[5].

In the first nine months of 2019, revenue in the Magazines Italy Area came to € 191.2 million versus
€ 216.1 million at 30.09.2018 (-5% net of the disposals of Inthera and Panorama). Specifically:

• revenue from circulation and related to add-on products was down by
  -14.1% versus the same period of the prior year, affected also by the disposal of Panorama
  (-8.5% on a like-for-like basis);
• advertising revenue (print + digital) recorded an overall drop of -7.7% versus the first nine months of 2018 (-2% net of the disposal of Panorama): the digital component grew by approximately +18%, thanks also to the contribution of AdKaora, an agency specializing in proximity marketing solutions; print advertising sales fell by -19.5% (approximately -13% excluding Panorama in the nine months of 2018, in line with the market trend). The percentage of digital revenue on the total rose to approximately 41% (from 32% in the first nine months of 2018);
• distribution activities and other revenue in the nine months fell by -8.7% versus the prior year, due to the disposal of Inthera S.p.A. (+2.6% excluding Inthera in the nine months 2018).

Adjusted EBITDA before IFRS 16 amounted to € 5.4 million, up versus the same period of the prior year (€ 4.1 million), as a result of the actions aimed at reducing operating and structural costs, of the ongoing improvement in the digital area, and the positive effects of the sale of Inthera S.p.A. and Panorama. IFRS 16 adjusted EBITDA amounted to € 5.5 million.

Reported EBITDA before IFRS 16 amounted to € 2.5 million, improving sharply versus € -3 million at 30 September 2018, as a result of lower restructuring costs. IFRS 16 reported EBITDA amounted to € 2.6 million.

TRANSFER TO A SINGLE COMPANY OF ALL THE ACTIVITIES INVOLVING THE MAGAZINES ITALY AREA
Today’s meeting of the Board of Directors also approved the transfer – effective from 1 January 2020 – of the Magazines business unit to a wholly-owned single company, where all the activities regarding magazine titles and the websites of Arnoldo Mondadori Editore S.p.A., as well as the investments in the Magazines Area, will be transferred.

The transaction brings no change to the overall profile of the Group’s activities or basic operating features, but completes an organization that is focused more on the peculiarities of the individual businesses, as was the case for the Retail and Books areas.

The setup is also more functional to the achievement of strategic opportunities and partnerships.

The transfer will be made on the basis of book values, with no impact on the consolidated financial statements.

The transaction is excluded from the application of the “Regulations containing provisions on transactions with related parties”, adopted by CONSOB with resolution no. 17221 of 12 March 2010, as well as the procedures adopted by Arnoldo Mondadori Editore S.p.A. on the matter, as it is a transaction with a subsidiary in respect of which the interests of other related parties of the Company cannot be considered significant (according to the criteria set out in the abovementioned procedures).

Significant events after the reporting period
On 23 October, the Group announced that it had received a binding offer for the acquisition of magazines Confidenze, Cucina Moderna, Sale&Pepe, Starbene and Tustyle by La Verità S.r.l.. The Board of Directors has resolved to authorize CEO Ernesto Mauri to implement all the actions aimed at reviewing and finalizing the transaction, in line with the announced strategy of focusing on the core businesses of Books, Retail and Magazines with greater potential for multimedia development. The offer is valid until 31 December 2019 and envisages the creation of a NewCo, whose interest will be 75% held by La Verità S.r.l. and 25% by Arnoldo Mondadori Editore S.p.A.; the offer also includes an earn-out in favour of the shareholder Arnoldo Mondadori Editore S.p.A. and put/call mechanisms in favour of shareholders. The activities relating to the 5 titles in question recorded revenue of € 22.4 million in 2018.

In accordance with the provisions of law, the procedure with the trade unions has been put into effect.

Following the authorization given by the Shareholders’ Meeting of 17 April 2019, on 10 June Arnoldo Mondadori Editore S.p.A. launched a share buyback programme. Following the transactions carried out so far and disclosed to the market in accordance with current legislation, the Company holds, to date, no. 2,641,203 treasury shares, equal to 1.010% of the share capital and 0.659% of the total voting rights.

The documentation relating to the presentation of the results at 30 September 2019, is made available through the authorized storage mechanism 1Info (www.1info.it) and in the Investors section of the Company website www.gruppomondadori.it.

The Interim Management Statement at 30 September 2019 approved by the Board will be available at the Company’s registered office, on the authorized storage mechanism 1Info (www.1info.it) and on www.gruppomondadori.it (Investors section) by today’s date.

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. Consolidated income statement – III quarter;
4. Group cash flow;
5. Glossary of terms and alternative performance measures used.

[1] Source: GFK, September 2019 (figures in terms of market value). As of May 2019, GFK has expanded its coverage panel by increasing the survey of e-commerce players; as a result, the overall market value and the YoY deviations have been restated pro-forma and the details by channel have been reviewed by merging book chains and e-commerce.
[2] Product revenue excluding the bookclub
[3] Source: Nielsen, cumulative figures at September 2019
[4] Internal source: Press-Di, cumulative figures at August 2019 (newsstands + subscriptions) in terms of value
[5] Source: comScore survey, August

Il valore dello spazio. Le fabbriche di design come pratica del buon progetto (The value of space. The design factory as a practice of good design) is the title of an encounter organised by INTERNI as part of BookCity Milano 2019. For this eighth edition of the event, the Mondadori Group magazine, edited by Gilda Bojardi  will focus of the contribution of women in business and design.

This encounter, specially conceived by INTERNI, will feature three female protagonists with decision-making powers in their family companies  – with regard to production, management and communication – all of which are brands that have strongly conditioned the location and style of design at an international level. Three women who, with passion and competence and passion also in the area of publishing and communications, have directly contributed to the creation of publications dedicated to their companies. On stage, moderated by Patrizia Catalano, a journalist at INTERNI, will be Rossella Bisazza (Director of Communications at Bisazza, Vice-President of the Bisazza Foundation) who will talk about the book on the Bisazza Foundation’s art collection; Emiliana Martinelli (President of Martinelli Luce) with a story dedicated to her father Elio, a pioneer of lighting design; and Monica Mazzei (Vice-President of Edra) with a book that brings together the innovative solutions developed by Edra, one of the most creative and innovative Italian Design brands.

The encounter will take place on Friday 15 November at 6.30 pm, in the Sala Blu of Palazzo Mezzanotte – Borsa Italiana (Piazza Affari 6, Milano). Entry is free, subject to available space.

For more information: www.internimagazine.it

CasaFacile, the Mondadori Group magazine edited by Francesca Magni, has a number of surprises in store for its readers: a décor box and many events in Milan.

In fact, from this week CasaFacile is offering a limited edition box of wonders with everything needed to given free rein to your creativity. As a gift for others or yourself, the contents will enable you to illuminate holiday season parties, wrap Christmas presents, and make special decorations and  greetings cards, as well as a kit per for the creation of a metal ‘himmeli’ (a typically Nordic  hanging good luck charm for the house). The CasaFacile Décor Box can be bought online at casafacileclub.it at the price of €19.90 (or in Milan at the Nap Atelier from 14 November to 12 December 2019).

Also in Milan, from 14 November, the stylist Elisabetta Viganò will dress the windows of the Nap Atelier, (in Viale Piave 19), a space dedicated to interior design and the sale of fabrics, wallpaper and furnishing accessories founded by the designer Stefania Passera. It is here that her taste for a decorative style is expressed, with a “sweet” colour palette and mix of patterns, a place with a soul that is closely aligned with that of CasaFacile. The Atelier, that will be decorated with the participation of LondonArt for wallpapers, Ligne Roset for sofas, and Rossini Illuminazione for lighting, will also host until 12 December a number of events. Starting with the inauguration with aperitifs (on Thursday 14 November at 6 pm) to an open editorial meeting (on 28 November). Also, every Saturday will feature artisans on display and workshops (how to make a lampshade, notebooks with wallpaper, ‘pop’ embroidery); while every Tuesday there will be an architect or stylist from Studio Pisk for private and personalised advice; and, finally, every Thursday a creative laboratory for creations in paper and much more. Visitors will also have the chance to enjoy a nice cup of coffee by Caffè Vergnano. Book your experience and buy your box on casafacileclub.it

But that’s not all. CasaFacile, a point of reference for home and design enthusiasts in search of a refined but accessible aesthetic, will end the year with a special December issue. The magazine on newsstands from 4 December features: three Italian homes with Christmas decoration by top stylists Cristina Gigli, Vanessa Pisk and Elisabetta Viganò; two Christmas tables  laid out by mise en place expert Marta Mariani at the home of A Gipsy in the Kitchen; ten original do-it-yourself solutions specially created for readers by the magazines Bloggers; and a before & after in a one-room apartment full of space-saving ideas and charm.

 For more information: www.casafacile.it