(Alliance News) - Class Editori Spa reported that it has returned to profit in 2022 and that revenues have risen despite a decline in the advertising market in the second half of the year.

Net income returns EUR17.3 million from the EUR13.0 million loss a year earlier, and pre-tax profit is EUR22.8 million and compares with the pre-tax liability of EUR13.3 million a year earlier.

Revenues grew 13 percent year-on-year, to EUR79.7 million from EUR70.4 million in 2021, with costs up 14 percent, to EUR70.3 million from EUR61.6 million.

Ebitda increased to EUR9.4 million from EUR8.8 million, up 6.4 percent from 2021, and operating income improved to EUR26.4 million from the previous year's negative figure of EUR3.2 million.

The net financial position of the publishing house shown in the statement of financial position shows total debt of EUR37.5 million as of December 31, 2022, compared to EUR98.5 million as of December 31, 2021. In this regard, approximately EUR13.5 million relates to the recognition of financial liabilities resulting from the introduction of the international accounting standard IFRS 16, particularly related to the recognition of lease payments for the entire term of the contracts. Taking this accounting effect into account, the actual net financial debt was EUR24.0 million compared to EUR83.1 million as of December 31, 2021. Group shareholders' equity as of December 31, 2022, net of minority interests, was a positive EUR10.9 million compared to EUR23.4 million as of December 31, 2021.

The results of the Class Editori group as of December 31, 2022 do not fully achieve what was envisaged in the 2022-2027 business plan, almost exclusively due to the economic performance in the final part of the year.

"The main causes are the changed conditions of the economic scenario attributable to the continuation of the conflict in Ukraine and the economic sanctions applied to Russia, which have had impacts not initially foreseeable on the economy and energy, production and logistics exchanges, leading to a situation of general significant uncertainty that has also had impacts on the propensity of companies to invest in advertising, although growth for Class Editori has been equally significant," the company's note reads.

In addition, the recovery plan implementation agreement signed with lenders in 2022 requires compliance with covenants in relation to the Ebitda and NFP achieved by Class Editori group companies, excluding Gambero Rosso and Telesia, which are not participants in that agreement. These covenants relate to the annual performance recorded since FY2023 and will be monitored when approving next year's financial statements.

In relation to other covenants under the agreement against Class Editori or the group, mainly of a disclosure nature, there are no violations as of the current date.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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