Arnoldo Mondadori Editore S.p.A. reported consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported revenue from sales and services of EUR 371.8 million, adjusted EBITDA of EUR 53.6 million, EBITDA of EUR 52.0 million, EBIT of EUR 43.9 million, results before tax of EUR 40.8 million, result from continuing operations of EUR 26.9 million and net results of EUR 26.9 million against revenue from sales and services of EUR 372.7 million, adjusted EBITDA of EUR 49.5 million, EBITDA of EUR 47.8 million, EBIT of EUR 39.5 million, results before tax of EUR 34.8 million, result from continuing operations of EUR 20.9 million and net results of EUR 21.6 million for the same period a year ago. Adjusted EBITDA grew by 8.3% in the quarter, driven by the revenue trend of the Books Area (+6.5%) and by the implementation of ongoing cost-cutting measures in other business areas, confirming the Group's continued efficiency recovery.

For the nine months, consolidated revenue amounted to EUR 924.7 million, down slightly (-1.1%) versus the prior year, due mainly to the performance of the Magazines areas, affected by the acceleration of the negative trends of the markets, and to the targeted reduction in revenue from consumer electronics products in the Retail Area. Consolidated EBITDA improved by 12.9% from EUR 70.3 million to EUR 79.3 million, driven by the gains from the disposal of certain assets in the second quarter of the year. Consolidated profit before tax came to EUR 44.9 million and includes financial costs of EUR 10.2 million, down versus EUR 12.7 million the prior year, as a result of a lower average net debt and an average interest rate reduced by approximately 50 bps. The company reported adjusted EBITDA of EUR 75.2 million, EBIT of EUR 55.1 million, results from continuing operations of EUR 31.2 million, net results of EUR 31.2 million against adjusted EBITDA of EUR 76.1 million, EBIT of EUR 48.0 million, results from continuing operations of EUR 17.2 million and net results of EUR 17.9 million for the same period a year ago. The company also reported cash flow from operations of EUR 16.0 million and capex of EUR 11.5 million against cash flow from operations of EUR 38.6 million and capex of EUR 8.8 million for the same period a year ago.

The company provides earnings guidance for full year 2017. In light of the trend of the markets and the Group's performance in the first nine months, it is reasonable to estimate for 2017 - versus the 2016 pro-forma figures - a slight drop in revenue and a "high single-digit" growth of adjusted EBITDA, with a resulting improvement in profit margins and a sharp increase of approximately 30% in net profit.