Rai Way

Earnings Release • Jul 31, 2025

Press Release

RAI WAY APPROVES RESULTS OF THE FIRST HALF 2025

Business performance in line with expectations and further supported by nonrecurring factors

Adjusted EBITDA guidance for the full year raised

• Key results for the semester ended 30 June 2025 (vs. 30 June 2024):
  • Core revenues of € 140.3m (+2.0%)
  • Adjusted EBITDAⁱof € 96.3m (+3.0%) also benefiting from €1.5m reported under Other Income related to the disposal of a real estate asset
  • Operating profit (EBIT)iat € 69.0m (+0.2%)
  • Net income of € 47.3m (+0.2%)
• Capexiiof € 16.1m (€ 15.3m in the first half 2024)
• Recurring free cash flowiiiof approx. € 63.0m
• Net debtivof € 177.8m (compared to € 127.6m at 31 December 2024) after the payment of €89.2m in dividends

Analyses regarding potential sector consolidation progressing

Rome, 31st July 2025 - The Board of Directors of Rai Way S.p.A. (Rai Way) met today under the chairmanship of Giuseppe Pasciucco, examined and unanimously approved the Company's Financial Statements for the half-year ended 30 June 2025.

In the period January–June 2025, Rai Way recorded a 2.0% increase in revenues to €140.3 million, accelerating compared to the first quarter, also thanks to the initial contributions from the extension of the DAB radio network for the client RAI. Despite the expected increase in energy costs and the startup expenses related to diversification initiatives, Adjusted EBITDAⁱ also improved more than proportionally (+3.0% to €96.3 million), – benefitting from the growth of the core business and some non-core benefits, including the proceeds from the disposal of a real estate asset. Net profit rose slightly to €47.3 million, though impacted by higher depreciation linked to investments in new assets and by non-recurring charges. Net financial debti,iv stood at €177.8 million, remaining below the Adjusted EBITDA of the last 12 months, despite the distribution of €89.2 million in dividends.

In light of the results achieved, Management has revised upward the Adjusted EBITDAⁱ guidance for the current year, now expected to increase compared to 2024, in order to reflect more favourable energy tariffs and greater non-core benefits than initial forecasts.

From an operational standpoint, the half-year period saw the contractualization and launch of the DAB network extension project commissioned by RAI, as well as the relocation of company headquarters to the new Rome building, and the continued active management of Rai Way's national footprint, including ordinary and extraordinary maintenance of transmission sites and the valorisation of unused plots.

As for diversification, commercial efforts on the CDN front resulted in the signing of framework agreements with some of the main content providers offering live streaming in Italy. Meanwhile, the fine-tuning of the commercial approach on edge data centers led to the expansion of the infrastructure offer with new IaaS services, like private cloud e cloud storage, aiming to disintermediate the value chain and tap into a broader potential customer base. Regarding the hyperscale data center project in the Rome area, the authorisation process progressed positively and is expected to reach completion shortly.

Roberto Cecatto, Chief Executive Officer of Rai Way, commented: "The first half of fiscal year 2025 confirmed the well-known trends of revenue growth, cost control, and cash generation that characterize Rai Way. Results also allow us to revise upward our Adjusted EBITDA guidance for the year.

From an operating standpoint, the first commercial agreements concerning the CDN confirm the validity of our solution, while in a growing and significantly underserved market such as that of regional data centers, we are developing our offering to enhance the go-to-market.

Furthermore, with regard to possible sector consolidation, we have so far focused mainly on industrial aspects, with analysis progressing also on other relevant elements."

***

Key Results for the first half 2025

In the first half of fiscal year 2025, core revenues amounted to €140.3 million, compared to €137.6 million in the same period of the previous year, marking a 2.0% increase, driven by contributions from both business segments. Specifically:

• Media distribution services, including revenues attributable to RAI, generated €124.0 million, up 1.8%, supported by inflation-linked clauses in the underlying contracts and the initial benefits from the expansion of RAI's DAB radio network;
• Digital infrastructure revenues reached €16.4 million, still largely driven by tower hosting services, with a 3.6% increase, mainly due to the growing contribution of radio broadcasters,

along with the first results from the commercialization of Edge data centers and connectivity services.

Adjusted EBITDAⁱ amounted to €96.3 million, up 3.0% compared to €93.5 million in the first half of the previous year. This growth was achieved despite the increasing launch costs of diversification initiatives and higher energy expenses, thanks to the solid performance of the core business and certain non-recurring benefits — including proceeds of €1.5 million from the disposal of a real estate asset. The Adjusted EBITDA margin improved to 68.6%, from 68.0% last year. Including non-recurring charges of €0.7 million (€0.2 million in first half 2024), EBITDA grew by 2.4%, from €93.4 million to €95.7 million.

Operating profit (EBIT)ⁱ amounted to €69.0 million, a slight increase of 0.2% compared to €68.8 million in the corresponding period of 2024, reflecting higher depreciation linked to ongoing investment activities.

Net income stood at €47.3 million, a slight increase of 0.2% compared to €47.2 million in the first half of 2024.

During the period under review, historically less significant in terms of capex seasonality compared to the second half of the year, Capexii amounted to €16.1 million, mainly allocated to maintenance activities (€10.0 million), which also included extraordinary interventions on sites, as anticipated in the Industrial Plan. Development capex focused on the extension of RAI's radio transmission network, as well as strengthening the Content Delivery Network. In the corresponding period of 2024, investments totalled €15.3 million, of which €3.2 million were for maintenance activities and €12.2 million for development activities

Net invested capitalv amounted to €328.0 million, with Net debti,iv of €177.8 million (including the impact of IFRS 16 accounting standard amounting to €40.0 million), compared to €127.6 million as of 31 December 2024. This confirms - net of dividend payments of €89.2 million and development investments - the positive trend in recurring cash generationiii, which amounted to approximately €63 million during the semester.

Outlook

In light of the first-half results, Rai Way updates the targets for the full-year 2025, particularly regarding the performance of Adjusted EBITDAⁱ , which is now expected to exceed 2024 levels, mainly thanks to more favourable energy tariffs and non-core benefits compared to initial forecasts. As for the underlying trends, the continued growth of the traditional business is confirmed, partially offset by the planned rise in costs related to diversification.

Regarding investments, the Company confirms an increase in maintenance activities compared to 2024, expected to be above the average levels planned over the course of the Industrial Plan due to certain non-recurring interventions already underway. Conversely, it revises downward its expectations for development investments, now forecasted to be lower than in 2024, following a slight shift to 2026 of some activities related to various initiatives.

***

Rai Way announces that today, Thursday 31st July 2025 at 5:30pm CET, the results of the first half 2025 will be presented to the financial community via conference call.

The presentation supporting the conference call will be made available in advance on the Company's website www.raiway.it, in the Investor Relations section.

To attend the conference call:

Italy: +39 02 8020911 - UK: +44 1 212818004 - USA: +1 718 7058796

Alternatively, please register here to receive the weblink to the event directly in your inbox and Outlook Calendar. The replay of the conference call will be available after the end of the event in the Investor Relations – Presentations and Events section of the website www.raiway.it.

The manager in charge of preparing the corporate accounting documents, Adalberto Pellegrino, declares, pursuant to article 154 bis of the Consolidated Finance Law (TUF), that the accounting information in this re lease corresponds to the underlying accounting documents, books and entries.

***

Disclaimer

This release contains forward looking statements on the future events and results of Rai Way that are based on current expectations, estimates and forecasts about the sector in which Rai Way operates and on management's current opinions. By their nature these items contain an element of risk and uncertainty as they depend on the occurrence of future events. The actual results could differ, even materially, from those stated for a variety of reasons such as: global economic conditions,

the effect of competition and political, economic and regulatory developments in Italy.

***

Rai Way is an integrated digital infrastructure operator and service provider for media content distribution.

It is the sole operator of the broadcasting and transmission networks that carry the signals RAI, Italy's public service concessionaire.

Listed since 2014 on Euronext Milan, Rai Way has a widespread presence throughout Italy with about 600 employees between its headquarters in Rome and 21 regional offices, more than 2,300 telecommunications towers, a transmission network in radio links, satellite systems, about 6,000 km of proprietary fiber optics, a network of distributed data centres and 3 control centers.

Its infrastructural assets, excellent technological and engineering know-how, and the high level of professionalism make Rai Way the ideal partner for companies seeking integrated solutions for the development of their network and for the management and the transmission of data and signals.

For more information:

Rai Way S.p.A. Rai Way S.p.a. Andrea Moretti Pietro Grignani investor.relations@raiway.it

Investor Relations Institutional Relations & External Communications Ph. +39 06 33170391 comunicazione.esterna@raiway.it

Image Building - Media Relations Claudia Caracausi Mob. +39 338 447 6613 raiway@imagebuilding.it

1H 2025 Income Statement

(€m; %)	2Q24	2Q25	1H24	1H25
Core revenues	68,7	70,3	137,6	140,3
Other revenues and income	0,1	1,8	0,3	1,9
Purchase of consumables	(0,3)	(0,3)	(0,6)	(0,6)
Cost of services	(9,6)	(9,3)	(19,1)	(18,9)
Personnel costs	(11,8)	(13,1)	(23,5)	(25,7)
Other costs	(0,6)	(0,7)	(1,2)	(1,3)
Opex	(22,2)	(23,4)	(44,5)	(46,6)
Depreciation, amortization and write-downs	(12,7)	(12,9)	(24,6)	(26,7)
Operating profit (EBIT)	33,9	35,9	68,8	69,0
Net financial income (expenses)	(1,5)	(1,3)	(2,9)	(2,6)
Profit before income taxes	32,5	34,6	65,9	66,3
Income taxes	(9,1)	(9,9)	(18,8)	(19,1)
Net Income	23,4	24,7	47,2	47,3
EBITDA	46,6	48,8	93,4	95,7
EBITDA margin	67,9%	69,3%	67,9%	68,2%
Non recurring costs	(0,1)	(0,7)	(0,2)	(0,7)
Adjusted EBITDA	46,7	49,4	93,5	96,3
Adjusted EBITDA margin	68,0%	70,3%	68,0%	68,6%

Balance Sheet at 30 June 2025

(€m)	2024FY	1H2025
Non current assets
Tangible assets	306,0	301,1
Rights of use for leasing	33,6	37,4
Intangible assets	27,0	25,9
Financial assets, holdings and other non-current assets	0,9	0,9
Deferred tax assets	3,1	2,9
Total non-current assets	370,7	368,2
Current assets
Inventories	0,8	0,8
Trade receivables	75,1	74,2
Other current receivables and assets	1,9	3,7
Current financial assets	0,0	0,1
Cash and cash equivalents	13,5	10,3
Current tax receivables	0,1	0,1
Total current assets	91,3	89,2
TOTAL ASSETS	462,0	457,4
Shareholders' Equity
Share capital	70,2	70,2
Legal reserves	14,0	14,0
Other reserves	37,2	37,5
Retained earnings	90,3	47,8
Treasury shares	(19,3)	(19,3)
Total shareholders' equity	192,5	150,2
Non-current liabilities
Non-current financial liabilities	100,6	105,0
Non-current leasing liabilities	17,4	21,5
Employee benefits	8,5	8,1
Provisions for risks and charges	20,0	19,2
Other non-current liabilities	0,3	0,2
Total non-current liabilities	146,7	154,0
Current liabilities
Trade payables	53,5	29,1
Other debt and current liabilities	46,0	61,6
Current financial liabilities	6,9	43,3
Current leasing liabilities	16,2	18,5
Current tax payables	0,3	0,7
Total current liabilities	122,8	153,2
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	462,0	457,4

1H 2025 Cash Flow Statement

(€m)	2Q2024	2Q2025	1H2024	1H2025
Profit before income taxes	32,5	34,6	65,9	66,3
Depreciation, amortization and write-downs	12,7	12,9	24,6	26,7
Provisions and (releases of) personnel and other funds	(0,9)	0,9	0,2	1,9
Net financial (income)/expenses	1,4	1,3	2,8	2,6
Other non-cash items	0,1	(3,8)	0,1	(3,6)
Net operating CF before change in WC	45,8	45,8	93,5	93,8
Change in trade receivables	9,7	11,0	0,1	0,5
Change in trade payables	(3,4)	(5,8)	(23,4)	(23,8)
Change in other assets	(0,3)	(0,2)	(2,3)	(1,8)
Change in other liabilities	(7,2)	(6,9)	0,3	0,0
Use of funds	(0,5)	(1,5)	(1,0)	(1,6)
Payment of employee benefits	(0,3)	(1,0)	(1,2)	(1,6)
Change in tax receivables and payables	(0,0)	(0,9)	(0,0)	(0,9)
Taxes paid	-	(1,9)	-	(1,9)
Net cash flow generated by operating activities	43,8	38,7	66,1	62,7
Investment in tangible assets	(8,2)	(9,3)	(13,2)	(12,7)
Disposals of tangible assets	-	1,5	-	1,5
Investment in intangible assets	(1,8)	(2,7)	(2,0)	(3,3)
Change in other non-current assets	0,0	(0,0)	0,0	(0,0)
Net cash flow generated by investment activities	(10,0)	(10,5)	(15,2)	(14,5)
(Decrease)/increase in medium/long-term loans	-	4,0	-	4,0
(Decrease)/increase in current financial liabilities	19,9	42,1	19,9	36,0
(Decrease)/increase in IFRS 16 financial liabilities	(4,6)	(0,1)	(8,0)	(0,1)
Change in current financial assets	0,0	(0,2)	0,1	(0,2)
Net Interest paid	(1,3)	(1,8)	(1,4)	(1,8)
Dividends paid	(86,4)	(89,2)	(86,4)	(89,2)
Net cash flow generated by financing activities	(72,4)	(45,2)	(75,7)	(51,4)
Change in cash and cash equivalent	(38,5)	(17,0)	(24,9)	(3,1)
Cash and cash equivalent (beginning of period)	47,7	27,4	34,1	13,5
Cash and cash equivalent (end of period)	9,2	10,3	9,2	10,3

Notes

ⁱ The Company assesses performance also on the basis of certain measures not considered by IFRS. Set out below is a description of the components of the indicators that are important for the Company:

• EBITDA (earnings before interest, taxes, depreciation and amortization): this is calculated as profit before income taxes, depreciation, amortization, write-downs and financial income and expenses.
• Adjusted EBITDA: this is calculated as profit before income taxes, depreciation, amortization, write-downs, financial income and expenses and non-recurring expenses/income.
• Operating profit or EBIT (earnings before interest and taxes): this is calculated as profit before income taxes and before financial income and expenses.
• Net Debt: the format for the calculation of Net Debt is the one provided in paragraph 127 of CESR Recommendation 05-054b, which implements Regulation (EC) no. 809/2004.

ii Excluding investments related to the application of new IFRS 16 Accounting Standard, equal to €8.9m in the first six months 2025

iii Cash generation (Recurring FCFE) defined as Adj. EBITDA net of Leases, Net Financial Charges, P&L Taxes and Recurring Maintenance Capex. Leases are estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts.

iv Net Debt including the effect of the application of the IFRS-16 accounting standard.

^v Net invested capital is calculated as the sum of fixed capital, working capital and non-current financial assets