Mondadori focuses on comics with Star Shop. Guidance 2023 revised upwards – Corriere.it

Mondadori’s board of directors, in the light of the more favorable evolution with respect to business and price estimates, revised upwards 2023 targets confirming single-digit revenue growth and doubling net profit increase to 20% thanks to the operational improvement and the effects of the sale of Il Giornale. The group chaired by Marina Berlusconi has also signed the contract for thepurchase of 51% of Star Shop Distribuzione, operating in the distribution of third-party publishers in the comic book channel and in the management of points of sale, based on an enterprise value of 9 million.

Mondadori forecasts an adjusted EBITDA in 2023 with a high single-digit/low double-digit increase (compared to the previous single-digit estimate), with an expected margin of between 16% and 17% (from the previous 15%). Ordinary cash flow is expected to be in a range between 65 and 70 million euros, showing an increase of up to 15% compared to the 2022 figure (from the previous estimate of 60-65 million euros, +10%) while the debt Group net financial position confirmed at 1.0x adjusted ebitda at the end of 2023, down from 1.3x at the end of 2022.
Regarding the purchase of Star Shop Distributionthe note issued by Mondadori at the end of the board chaired by Marina Berlusconi which met this morning, explains that would allow the vertically integrated business model to be replicated in the comics sector with which the Mondadori Group already operates in the book segment. The acquisition of 51% of the capital of Star Shop Distribuzione was defined on the basis of an enterprise value, on a cash free/debt free basis (relating to 100%), equal to 9 million euro and the price, which will be paid entirely for cash at closing, will be subject to adjustment based on the net financial position and net working capital at the date of completion of the acquisition.

The execution of the transaction is subject to the suspension by the Antitrust Authority of competition and the market of a provision not to start the investigation or to authorize the transaction which does not impose charges or fulfilments or corrective measures deemed relevant by the to Mondadori or to Star Shop Distribuzione. The defined agreements also provide for the signing of put & call option contracts governing the transfer of the remaining 49% stake in Star Shop Distribuzione. The options will be exercisable in two equal tranches starting respectively from the approval of the 2025 financial statements and the 2028 financial statements, at a price that will be defined on the basis of the company’s results in the three-year periods 2023-2025 and 2026-2028.
In the 2022 financial year, the company recorded revenues of 34.2 million euros, an ebitda of 2 million and a net profit of 1.2 million. The operation envisages that Sergio and Matteo Cavallerin, who have founded and so far successfully managed Star Shop Distribuzione, will maintain management responsibility and continue to cover the role of executive directors.