Board Change • May 20
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 4 experienced directors. 1 highly experienced director. Chairman of the Board of Statutory Auditors Silvia Muzi is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Mar 25
Rai Way S.p.A. announces Annual dividend, payable on May 20, 2026 Rai Way S.p.A. announced Annual dividend of EUR 0.3300 per share payable on May 20, 2026, ex-date on May 18, 2026 and record date on May 19, 2026. Announcement • Mar 21
Rai Way S.p.A. announces Annual dividend, payable on May 21, 2025 Rai Way S.p.A. announced Annual dividend of EUR 0.3340 per share payable on May 21, 2025, ex-date on May 19, 2025 and record date on May 20, 2025. Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: €0.084 (vs €0.093 in 3Q 2023) Third quarter 2024 results: EPS: €0.084 (down from €0.093 in 3Q 2023). Revenue: €70.6m (up 3.5% from 3Q 2023). Net income: €23.4m (down 6.3% from 3Q 2023). Profit margin: 33% (down from 37% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Cash payout ratio: 93% Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. Minor Risk High level of debt (76% net debt to equity). New Risk • Aug 02
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 76% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Cash payout ratio: 93% Minor Risk High level of debt (76% net debt to equity). Reported Earnings • Aug 02
Second quarter 2024 earnings released: EPS: €0.087 (vs €0.08 in 2Q 2023) Second quarter 2024 results: EPS: €0.087 (up from €0.08 in 2Q 2023). Revenue: €68.8m (up 1.0% from 2Q 2023). Net income: €23.4m (up 9.5% from 2Q 2023). Profit margin: 34% (up from 31% in 2Q 2023). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 1.7% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • May 19
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Member of Statutory Auditor Giovanni Caravetta was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • May 13
Upcoming dividend of €0.32 per share Eligible shareholders must have bought the stock before 20 May 2024. Payment date: 22 May 2024. Payout ratio and cash payout ratio are on the higher end at 100% and 81% respectively. Trailing yield: 6.0%. Within top quartile of German dividend payers (4.6%). Higher than average of industry peers (3.2%). Reported Earnings • May 03
Full year 2023 earnings released: EPS: €0.32 (vs €0.28 in FY 2022) Full year 2023 results: EPS: €0.32 (up from €0.28 in FY 2022). Revenue: €272.0m (up 11% from FY 2022). Net income: €86.7m (up 18% from FY 2022). Profit margin: 32% (up from 30% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 27
Full year 2023 earnings released Full year 2023 results: Revenue: €274.0m (up 12% from FY 2022). Net income: €86.7m (up 18% from FY 2022). Profit margin: 32% (up from 30% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Telecom industry in Germany. Buy Or Sell Opportunity • Feb 06
Now 21% undervalued Over the last 90 days, the stock has risen 5.7% to €4.90. The fair value is estimated to be €6.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 9.9%. For the next 3 years, revenue is forecast to grow by 1.7% per annum. Earnings are also forecast to grow by 0.2% per annum over the same time period. Buy Or Sell Opportunity • Jan 21
Now 23% undervalued The stock has been flat over the last 90 days, currently trading at €4.77. The fair value is estimated to be €6.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 9.9%. For the next 3 years, revenue is forecast to grow by 1.7% per annum. Earnings are also forecast to grow by 0.2% per annum over the same time period. Buying Opportunity • Dec 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 3.4%. The fair value is estimated to be €6.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 8.4%. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings is also forecast to grow by 0.6% per annum over the same time period. Reported Earnings • Nov 17
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: €69.8m (up 8.0% from 3Q 2022). Net income: €24.9m (up 30% from 3Q 2022). Profit margin: 36% (up from 30% in 3Q 2022). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Telecom industry in Germany. New Risk • Jul 31
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 69% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 94% Cash payout ratio: 106% Minor Risk High level of debt (69% net debt to equity). Reported Earnings • Jul 30
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: €68.7m (up 12% from 2Q 2022). Net income: €21.4m (up 18% from 2Q 2022). Profit margin: 31% (up from 30% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Telecom industry in Germany. Announcement • Jun 28
Rai Way S.p.A. to Report Q2, 2023 Results on Jul 27, 2023 Rai Way S.p.A. announced that they will report Q2, 2023 results on Jul 27, 2023 Upcoming Dividend • May 22
Upcoming dividend of €0.27 per share at 4.9% yield Eligible shareholders must have bought the stock before 29 May 2023. Payment date: 31 May 2023. Payout ratio is on the higher end at 94%, and the cash payout ratio is above 100%. Trailing yield: 4.9%. Within top quartile of German dividend payers (4.7%). Higher than average of industry peers (3.0%). Announcement • May 10
Rai Way S.p.A. to Report Q1, 2023 Results on May 11, 2023 Rai Way S.p.A. announced that they will report Q1, 2023 results on May 11, 2023 Reported Earnings • Mar 20
Full year 2022 earnings released Full year 2022 results: Revenue: €248.5m (up 7.9% from FY 2021). Net income: €73.7m (up 13% from FY 2021). Profit margin: 30% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Telecom industry in Germany. Reported Earnings • Mar 19
Full year 2022 earnings released Full year 2022 results: Revenue: €248.5m (up 7.9% from FY 2021). Net income: €73.7m (up 13% from FY 2021). Profit margin: 30% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Telecom industry in Germany. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman of the Board Maurizio Rastrello was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Aug 10
EI Towers Pick Banks to Explore M&A EI Towers S.p. A have picked Credit Suisse and Mediobanca as advisers to look into a potential combination with state-controlled rival Rai Way S.p.A. (BIT:RWAY), two sources familiar with the matter said. The move shows how the companies are still looking to work out a long mooted tie-up despite uncertainty created by national elections in Italy next month. A potential deal could create a group worth more than €2 billion ($2.04 billion). EI Towers is 60%-owned by Italian infrastructure fund F2i and Italy’s top commercial broadcaster MediaForEurope (MFE), controlled by the family of former Prime Minister Silvio Berlusconi, holds the remaining 40%. “Things are in the very preliminary stage”, one of the sources said. A second source said other advisers are expected to join Mediobanca and Credit Suisse. A F2i spokesperson said no adviser has been formally appointed yet. MFE declined to comment. Under the decree, RAI can cut its stake in Rai Way as low as 30% but no lower, while keeping control of Rai Way’s infrastructure. A potential deal, whose key details need still to be finalised, could include an extraordinary payout for Rai Way and EI Towers investors, according to a report by Italian daily La Repubblica on August 9, 2022, which sent Rai Way shares up as much as 7% on the day. Reported Earnings • Jul 31
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: €61.4m (up 8.1% from 2Q 2021). Net income: €18.2m (up 11% from 2Q 2021). Profit margin: 30% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 3.4%, compared to a 2.0% growth forecast for the industry in Germany. Board Change • Jun 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman of the Board Maurizio Rastrello was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • May 16
Upcoming dividend of €0.24 per share Eligible shareholders must have bought the stock before 23 May 2022. Payment date: 25 May 2022. Payout ratio is on the higher end at 97%, and the cash payout ratio is above 100%. Trailing yield: 4.3%. Within top quartile of German dividend payers (4.3%). Higher than average of industry peers (3.4%). Board Change • May 04
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman of the Board Maurizio Rastrello was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 31
RaiWay Announces Board Changes RaiWay has announced the appointment of Maurizio Rastrello as the new chairman of its board of directors, replacing Giuseppe Pasciucco, who has stepped down for personal reasons. The tower unit of Italian state broadcaster Rai said Rastrello and Roberta Enni will take over as directors from Pasciucco and Stefano Cicotti, who also stepped down last week. Buying Opportunity • Mar 05
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 5.1%. The fair value is estimated to be €6.32, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 4.0% per annum over the last 3 years. Announcement • Feb 16
Rai Way S.p.A. to Report Fiscal Year 2021 Results on Mar 17, 2022 Rai Way S.p.A. announced that they will report fiscal year 2021 results on Mar 17, 2022 Reported Earnings • Nov 14
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €58.4m (up 2.6% from 3Q 2020). Net income: €19.6m (up 8.4% from 3Q 2020). Profit margin: 34% (up from 32% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • Jul 31
Second quarter 2021 earnings released The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: €57.2m (up 2.9% from 2Q 2020). Net income: €16.3m (down 2.8% from 2Q 2020). Profit margin: 28% (down from 30% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 3% per year. Upcoming Dividend • May 17
Upcoming dividend of €0.24 per share Eligible shareholders must have bought the stock before 24 May 2021. Payment date: 26 May 2021. Trailing yield: 4.7%. Within top quartile of German dividend payers (3.3%). Higher than average of industry peers (4.0%). Reported Earnings • Apr 07
Full year 2020 earnings released: EPS €0.24 (vs €0.23 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: €224.5m (up 1.0% from FY 2019). Net income: €64.0m (up 1.0% from FY 2019). Profit margin: 28% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 2% per year. Reported Earnings • Mar 20
Full year 2020 earnings released The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: €225.0m (up 1.2% from FY 2019). Net income: €64.0m (up 1.0% from FY 2019). Profit margin: 28% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has remained flat. Is New 90 Day High Low • Feb 21
New 90-day low: €4.83 The company is down 12% from its price of €5.51 on 20 November 2020. The German market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.08 per share. Is New 90 Day High Low • Jan 27
New 90-day low: €5.05 The company is down 4.0% from its price of €5.28 on 28 October 2020. The German market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.57 per share. Is New 90 Day High Low • Dec 22
New 90-day high: €5.63 The company is up 7.0% from its price of €5.25 on 23 September 2020. The German market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 27% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.80 per share. Analyst Estimate Surprise Post Earnings • Nov 16
Revenue beats expectations Revenue exceeded analyst estimates by 1.8%. Over the next year, revenue is forecast to grow 2.2%, compared to a 2.2% growth forecast for the Media industry in Germany. Is New 90 Day High Low • Oct 19
New 90-day low: €5.19 The company is down 10.0% from its price of €5.79 on 21 July 2020. The German market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.79 per share. Is New 90 Day High Low • Sep 24
New 90-day low: €5.25 The company is down 9.0% from its price of €5.74 on 26 June 2020. The German market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.68 per share.