The Mondadori Group announces that Pierluigi Bernasconi will be proposed at the next meeting of the Board of Directors of Mondadori Retail S.p.A. as the new Chief Executive Officer, effective from 5 June 2017.

Born in Milan in 1954 – after ten years at Hitachi, holding increasing responsibilities until becoming director of the audio-video division – in 1989 Pierluigi Bernasconi founded Mediamarket S.p.A., the consumer electronics chain, which operates in Italy under the Media World, Saturn and Media World Compra On Line brands; appointed CEO, in 1991 he opened the first Media World store in Curno.

From 2013 to 2015, he was CEO of the Mercatone Uno Group, leading distributor in Italy of furniture, accessories, household products and jewellery. In 2016 he was appointed Chairman and director of B-Retail, a strategic advisory firm in the distribution field. Subsequently was appointed vice president of Iper Montebello S.p.A., the company which manages the chain IPER La grande I.

Since 2016, he has been board member of ePRICE.

In 2010, he received the honour of “Cavaliere del Lavoro”.

Mondadori Retail manages the largest network of bookstores in Italy. It operates through more than 600 stores (megastores, bookstores, points and clubs) and four sales channels: directly managed and franchised stores, web and bookclubs.

L’audience dei brand digitali del Gruppo Mondadori cresce sui social network. Con un’offerta d’eccellenza che conta un portafoglio di brand leader nei settori chiave – quali femminili, cucina, salute e benessere – e una strategia che mette al centro contenuti originali e una curation editoriale innovativa, oggi le fan base dei brand del Gruppo Mondadori giungono a quota 13 milioni di fan complessivi attraverso 38 pagine attive su Facebook.

In particolare è il video il contenuto di punta sui canali social, in grado di creare engagement e garantire elevati tassi di reach: nel mese di aprile sono 90 milioni le video views totalizzate dai brand Mondadori su Facebook, specialmente su Giallo Zafferano, Cookaround, Donna Moderna, Nostrofiglio.it, Focus, Pianeta Donna, Pianeta Mamma. Tra i casi di successo quello di GialloZafferano, che raccoglie quasi 3 milioni di visualizzazioni e 30.000 condivisioni con il video tutorial della ricetta dei biscotti girandola e 2 milioni di visualizzazioni e oltre 27.000 condivisioni per quello della cheesecake alla Nutella.

Risultati raggiunti grazie a video brevi e accattivanti girati ad hoc per i canali social, privilegiando tecniche come il jumpcut e lo stop motion, e a un rapporto costante e attento con i propri utenti, che riconoscono e premiano la qualità di GialloZafferano anche nei contenuti video, realizzati con lo stesso criterio di preparazione delle ricette, testate più volte prima di essere girate. Un rapporto confermato dal numero di interazioni: una media di 4.000 per video, tra like, condivisioni e commenti degli utenti che inviano le foto delle loro realizzazioni culinarie.

In quest’ottica è stata siglata una partnership con Wochit, piattaforma internazionale di creazione video, che consente di potenziare la produzione di contenuti video originali. Wochit offre un tool di editing per gestire la personalizzazione grafica delle diverse linee di produzione dei brand: viene utilizzato dal team di content editor di Mondadori, mettendo a frutto l’esperienza nella content curation per la creazione di video efficaci e in linea con il tone of voice del brand.

Durata breve, formato quadrato che si adatta a tutti i tipi di device, immagini selezionate e d’effetto con anteprime a tutto schermo immediatamente visibili nei feed e testi capaci di catturare gli spettatori amplificano l’impatto dei video sui canali social.

I video realizzati dai brand del Gruppo Mondadori con Wotchit hanno ottenuto oltre 30 milioni di visualizzazioni. Tra i più apprezzati, il video di Focus, Come berremo l’acqua nel futuro , con più di 4 milioni di visualizzazioni e 70.000 condivisioni; quello di Donna Moderna, Rapporto tra zia e nipote, con 2,7 milioni di visualizzazioni e 60.000 condivisioni; e quello di Pianeta Mamma, Un papà non è solo un papà, con oltre 2 milioni di visualizzazioni e quasi 60.000 condivisioni.

Mondadori Store is launching “st art. L’arte per tutti” (Art for all), a new calendar of exhibitions featuring pop art and a cycle of encounters between artists, curators and authors, organised by Angelo Crespi, with the aim of making contemporary art and its protagonists even more comprehensible and accessible, starting from the most pop dimension. In fact, today, one of the most interesting areas of contemporary art is street and pop art, an essentially democratic art, with a strong public connotation, able also to face up to and play with the world of media.

The first names on show include, Pao, Felipe Cardeña, Massimo Giacon and Mr. Savethewall.

WIKI COLLAGE & PLOTTER TAKE AWAY

“st art” was inaugurated with a collective public live performance of WIKI COLLAGE & PLOTTER TAKE AWAY, an enormous 8 metre-long collage of cut outs from the pop art of the first four artists featured in the new programme – Pao’s penguins, the flowers and Superman by Felipe Cardeña, Massimo Giacon’s figures and those by Mr. Savethewall.

The collage was produced directly by the public, supervised by a crew of young assistants, with the possibility of logging the posters by the artitists present nad take them home. Produced by the Mondadori Store with Cardeña Crew and Atelier Spazio Xpò, in collaboration with DeodatoArte.

FROM 13 JUNE: A NEW CYCLE OF EXHIBITIONS

13 June – 9 July: Pao / “penguin heroes”

11 July – 10 September: Mr. Savethewall / “stencil mood story”

12 September – 8 October: Giacon / “contemporary comics mix”

10 October – 12 November: Cardeña / “pop up flowers”

The first four artists on show at st art from 13 June, in the events area on the third floor of the Mondadori Megastore in Piazza Duomo in Milan, are among the best exemplars of street or pop art, starting with Pao who is the most recognisable having worked in both an urban context and more widely in the media. This will be followed in succession by Mr. Savethewall, Massimo Giacon, and Felipe Cardeña, each of whom represents this type of contemporary art in their own way. The shows will feature original works and the creation of multiples and gadgets, available to the public. There will also be a series of installations and performances, making the exhibition space also a focal point for shows and communication.

FROM THE BOOK TO THE SPACE

From 16 May, inside the Mondadori Megastore, a work by the Korean artist Jukhee Kwon, entitled Fromthebooktothespace” a word sculpture, will also be on display. The work, which is organised vertically, extending 12 metres from the third floor, reaching the first floor of the Megastore, is made up of “a book that – as the curator of the show Cinzia Chiari says – is a suspended sculpture made of old books, the publications of the kind of great authors who have made the history of literature; volumes, often abandoned and unused, that the Korean artists finds in bookshops across the world among rare editions. Jukhee inscribes each book by hand with the precision and patience that is part of his orentale background. The pages create sculpted scenes that open and fall as if they were a cascade of letters, and suggesting the need for words to come out of the books in order to be read. A eulogy to the printed book that, despite the advent of digital, remains a necessary, fundamental and irreplaceable support. The book opens up and expands, becoming an object that, in its new physical and metaphorical form, sublimates itself in a work of art.”

“UNDERSTANDING CONTEMPORARY ART”

In June a cycle of conferences will begin with the “Understading Contemporay Art”, in which artists, curators and authors will have a chance to discuss, with book and catalogue presentations, the much discussed issue of how to approach contemporary art, alos in its more eccentric and surprising manifestations.

Initially conceived for the two Mondadori Megastores in Milan (Duomo and Marghera), the “st art”, project wants to involve the entire Mondadori Retail area, which now has some 600 outlets across Italy, as well as though online communication and e-commerce, points of excellence for the Group, by creating an new short circuit between books and pop art, physical and online exhibitions, original work and multiple copies, digital and traditional communication, to encourage and stimulate the dissemination and contamination of art and the public.

st art is an artistic project curated by Angelo Crespi.

st art has been made possible by the invaluable contribution of Sergio Pappalettera, visual artist and expert in marketing and communication strategies, who designed the logo and the integrated communications of the entire project.

st art is produced in partnership with Deodato Arte, a brand established in 2001 which, since 2012, has concentrated on communications and the on and offline sale, above all, of pop artists linked to street art.

st art. Art for all
Mondadori Megastore, Piazza Duomo Milan
Open: 9 am – 11 pm | Entrance: Free
www.mondadoristore.it | #StartInStore

Mondadori Store, Italy’s most extensive network of bookshops, today brings its customers Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that’s fast and convenient.

Apple Pay is available at Mondadori Stores in all of Italy’s main cities, which means that Mondadori Store can offer its customers an even more gratifying and innovative shopping experience that simplifies and accelerates the buying process, which takes just a second by holding your iPhone near the reader with your finger on Touch ID.

Security and privacy is at the core of Apple Pay. When you use a credit or debit card with Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorized with a one-time unique dynamic security code.

Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by credit and debit cards. In stores, Apple Pay works with iPhone SE, iPhone 6 and later, and Apple Watch.

Online shopping in apps and on websites accepting Apple Pay is as simple as the touch of a finger with Touch ID, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. When paying for goods and services on the go in apps or Safari, Apple Pay works with iPhone 6 and later, iPhone SE, iPad Pro, iPad Air 2, and iPad mini 3 and later. You can also use Apple Pay in Safari on any Mac introduced in or after 2012 running macOS Sierra and confirm the payment with iPhone 6 or later or Apple Watch, or with Touch ID on the new MacBook Pro.

For more information on Apple Pay, visit: https://www.apple.com/it/apple-pay/.

Mondadori Store is Italy’s most extensive chain of bookstores in Italy. With more than 600 outlets across the country and the e-commerce website Mondadoristore.it serving over 20 million customers a year.

Chi, Italy’s most popular people magazine – with 2.2 million readers (source: Audipress 2016/III) – will appear on newsstands this week in a renewed and enhanced form. The Mondadori Group magazine edited by Alfonso Signorini, had reinforced the fashion & beauty and introduced  new columns that are accessible using the augmented reality app, “Gruppo Mondadori AR+”, available for both iOS and Android, the provides access to videos and other additional content and enables users to interact with other active users.

“With this operation we want to consolidate and reinforce an already highly successful formula,” Gianluigi Piccinali, brand manager for entertainment. “Chi has long been a point of reference when it comes to celebrities and scoops and, from today, it will be an even more complete women’s title, rich in content, useful, amusing and able to meet the all-round needs of readers. Plus, thanks to augmented reality, it will be the first magazine in Italy to “expand” the experience from the page to a smartphone, or similar device, thanks to exclusive multimedia content,” Piccinali concluded.

The new section “In Stile Chi” will be a fixed appointment for readers, a fantastic window on all that’s new in the world of fashion (looks, collections, accessories, catwalks) and beauty (make-up, treatments, hair, trends). Lots of pages to get a feel for the glamour inspired by celebrities and breakthrough stars.

The columns of the magazine – the most widely-read in Italy by those who make buying decisions (1.4 million, source: Audipress 2016/III) – have been expanded and, alongside the most popular, a number of new columns have been added, such as “Wellness”, with exercises and advice on how to keep in shape and the best wellbeing products. There is also a new Food section, with a recipes by a famous chef and lost of tips on preparing vegetarian and traditional dishes, as well as surprising cocktails.

An entire section is also dedicated to culture and leisure, with indications about which exhibitions to see, the ideal books for a trip or a relaxing weekend, as well as newly released music, museums, food fairs, openings and much more.

In rotation, there will also be columns on Travel, Animals and Must Haves, featuring all the current season’s trends.

On the strength of a range of consolidated brands, covering all segments in the food area and reaching varied and loyal targets, over the years the Mondadori Group has been able to innovate and enrich the offer of its food system, while reinforcing its leadership in both magazines and digital.

Among the brands in the portfolio are thee historic titles that this year are celebrating important anniversaries: Sale&Pepe, for 30 years a refined, gourmet; Cucina Moderna, the market leader that for 20 years has offered useful and practical recipes; and Cucina no problem, for 15 years a simple, but never banal ally in the kitchen.

The offer is completed by Guida cucina, a source of everyday recipes for the family, and two recent arrivals: the web site Cookaround, a point of entry into the world of cooking and everything that surrounds it, and Giallo Zafferano, a young and “social” crossover brand, Italy’s leading cooking site, now also available on newsstands.

A continuously growing system of brands that, in addition to print and digital, also promotes events and courses led by professional chefs at the Scuola di cucina di Sale&Pepe, launched in the heart of  Milan from the experience of the upscale monthly.

The launch of the new magazine Giallo Zafferano – an operation that for the first time has seen the creation of a print magazine from an already leading web brand – will also strengthen the market share of the Mondadori Group in the food area, taking it from 54% to around 70% in terms of circulation.

The first issue of Giallo Zafferano, with a launch campaign that can count on an initial fan-base that is already strong on social media , sold around 450,000 copies separately or in combinations with some of the Mondadori Group’s other magazines.

A multi-brand e multi-channel offer that enables the food system to reach a combined total audience of almost 9 million contacts every month between readers and users (source: Audipress 2016-III and Audiweb, February 2017).

This success with the public has also been accompanied by an excellent response from advertisers, allowing the food system managed by Mediamond to record, in the first 4 months of 2017, an increase of 30% in sales compared with the same period of 2016, thanks also to the launch of Giallo Zafferano.

With the success of the exhibition event MATERIAL IMMATERIAL, INTERNI confirms its role as a strategic communication vehicle in the world of international contemporary design by organising in New York on the occasion of  NYCxDESIGN, the important design event organised every May in the city – with the Italian Consulate General in New York, a meeting to celebrate the relationship and synergies between the Italian design system and design in the United States.

A talk, entitles New York Architects Star in Material Immaterial, will take place on Friday 19 May, at 6 pm, in the historic consulate building at 690 Park Avenue.

The protagonists of the meeting will be two partners from two of the world’s most interesting New York-based architecture studios: BIG – Bjarke Ingels Group and SHoP Architects, both present this year at the INTERNI exhibition event with two projects, the lighting installation Quick brown fox jumps over the lazy dog (created by Artemide) and the pavilion in terracotta extrusions Wave / Cave (created by Metalsigma Tunesi, NBK Keramik). After an introduction by Francesco Genuardi, the Italian Consul General in New York, and Gilda Bojardi, editor of INTERNI, the two studios will talk about their experience during the Milan Design Week, focusing on the personal and professional dynamics during their installations and the increasingly growing value of the FuoriSalone phenomenon, an urban fringe event conceived and developed by INTERNI in 1990 that, together with the ‘official’ Salone del Mobile, has helped to make Milan the unchallenged capital of international design.

The two studios will be supported by Carlotta de Bevilacqua, vice-president and CEO of the Artemide Group and Carlo Geddo, CEO of Metalsigma USA, who will talk about the synergic relationship between designers and industrialists that underlies the projects put on show by INTERNI. Talking parts in the talk as a special guest will be Mauro Porcini, SVP and Chief Design Officer of the American multinational PepsiCo, who will talk about the current scenario of Italian creativity in the United States, how Italian design is perceived in the US and current prospects for collaboration between the two countries.

For more information, please go to: www.internimagazine.it

Arnoldo Mondadori Editore S.p.A. hereby informs that the minutes of the Ordinary and Extraordinary Shareholders’ Meeting of 27 April 2017, together with the amended version of the Company by-laws, are available at the Company’s registered office, on the authorized storage mechanism (www.1info.it) and in the Governance section of the Company’s website www.mondadorigroup.com.

Also made available on www.mondadorigroup.com (Governance section) are the Rules on increased voting rights adopted by the Board of Directors of Arnoldo Mondadori Editore S.p.A. in execution of the Shareholders’ resolution, and containing the procedures for the inclusion, keeping and updating of the Special List of Shareholders who wish to make use of increased voting rights, as well as the application form for inclusion in the above Special List.

Today, the meeting of the Board of Directors of Arnoldo Mondadori Editore S.p.A., chaired by Marina Berlusconi, reviewed and approved the Interim Report on Operations at 31 March 2017 presented by CEO Ernesto Mauri.

GROUP PERFORMANCE IN 1Q17

In 1Q17, the Mondadori Group continued, excluding the effects of the acquisition of Rizzoli Libri, on the path of operational improvement that had started in prior years, reporting an 8.3% increase in adjusted EBITDA and a further progress in LTM cash flow from ordinary operations, which reached 51 million euro.

The consolidation of Rizzoli Libri drove revenue up by 2.5% versus the prior year; EBITDA of the overall scope has little bearing on the performance of the entire year since the negative contribution of Rizzoli Libri (outside the scope in 1Q16) is attributable to the seasonal nature of the Education business, which includes in the first quarter costs for the creation of editorial content, as well as expenses to promote the campaign on school textbooks adoption, while revenue is typically recorded in the second and third quarters of the year.

The Mondadori Group consolidated revenue in 1Q17 amounted to 261.1 million euro, up by 2.5% versus 254.8 million euro in 1Q16; excluding the contribution of Rizzoli Libri, Group revenue dropped by 5.8%, due mainly to the performance of all the business areas.

On a comparable basis[1], adjusted EBITDA grew by 8.3% – with a percentage on revenue increasing from 4% to 4.6% – especially in the Books (+8.2%) and Magazines Italy areas (from 6.4 million euro to 6.6 million euro). Consolidated performance followed the pattern of the past 2 years.

Including the result of Rizzoli Libri, EBITDA amounted to 3.5 million euro, as a result, as mentioned, of the negative contribution of -7.4 million euro, attributable to the typical seasonal nature of the Education business in the first quarter of the year.

Consolidated EBITDA, On a comparable basis, improved by approximately 9% (from 8.5 million euro to 9.3 million euro) confirming the Group’s continued efficiency recovery. Consolidated EBITDA came to 1.8 million euro.

Consolidated EBIT in 1Q17 amounted to -6.1 million euro and includes amortization, depreciation and impairment of 8 million euro, up versus 5.5 million euro in 1Q16; the item includes the amortization of Banzai Media goodwill (0.5 million euro) and the amortization of capitalized expenses of the Rizzoli Libri school business (1.1 million euro).

On a comparable basis, EBIT amounted to a positive 2.7 million euro.

The consolidated result before taxes came to -9.5 million euro and includes financial costs of 3.4 million euro, down versus the prior year – despite an increase in average net debt of approximately 50 million euro following the outlays for the acquisition of Rizzoli Libri – for a more efficient use of the Group’s credit lines.

Accordingly, the net result came to -9.2 million euro.

Excluding Rizzoli Libri, financial costs dropped by 31% (from 3.6 million euro to 2.5 million euro), producing a net result of -1.6 million euro, improving versus -1.8 million euro at 31 March 2016.

The Group’s net financial position at 31 March 2017 came to -286.2 million euro versus -224.9 million euro at 31 March 2016 (-263.6 million euro in 2016).

At 31 March 2017, cash flow from operations in the last twelve months came to a positive 96 million euro (76.6 million euro excluding Rizzoli Libri); cash flow from ordinary operations (after outlays for financial charges and taxes for the period) came to 64.8 million euro; excluding Rizzoli Libri, cash flow from ordinary operations amounted to 51 million euro, improving versus 48.4 million euro at 31 December 2016.

Cash flow from extraordinary operations came to 126.1 million euro, as a result of capital expenditure net of disposals (130.4 million euro), restructuring costs (approximately 17 million euro), and cash-ins from prior-years’ taxes (21 million euro).

At 31 March 2017, Group employees amounted to 3,214 units, up (+7.1%) following the extraordinary transactions made over the last 12 months; net of these transactions, Group employees would be down by -5%.

BUSINESS OUTLOOK

In light of the current relevant context and the Group’s performance in the first quarter, it is reasonable to confirm the previously disclosed estimates for 2017 versus the 2016 pro-forma figures[2] that indicate steady revenue and a “high single-digit” growth of adjusted EBITDA, with a resulting improvement in profit margins. Likewise, net profit for the year is confirmed to rise sharply by approximately 30%.

Net debt at end 2017 is estimated to drop versus 31 December 2016, with a debt/adjusted EBITDA ratio at 2.2/2x.

BUSINESS AREAS

• BOOKS

The Trade Books Area of Mondadori Libri was once again market leader in the first quarter, increasing its overall share to 28% following the acquisition of the Rizzoli Libri brands (Rizzoli, BUR and Fabbri Editori)[3].

In the period under review, the Group held the first two positions in the ranking of the best-selling titles in terms of value (Storie della buonanotte per bambine ribelli. 100 vite di donne straordinarie by F. Cavallo and E. Favilli, and L’arte di essere fragili. Come Leopardi può salvarti la vita by A. D’Avenia), and put 4 titles in the first ten (Il labirinto degli spiriti by C. R. Zafòn in sixth place and La ragazza del treno by P. Hawkins in seventh).

In 1Q17, the Area’s revenue amounted to 80.3 million euro, up by an overall 26.6% versus 63.4 million euro in 1Q16, as a result of the consolidation of Rizzoli Libri:

• Trade revenue grew by 15.9% versus 1Q16 (Rizzoli Libri contributed 8.6 million euro);
• Educational revenue was marked, as mentioned, by the seasonal factors of the school textbooks business; despite that, the segment’s revenue, on a like-for-like basis, increased by 12.2% versus 1Q16; doubling, including Rizzoli Libri;
• revenue generated by circulation activities and other services provided in favour of third publishers, amounting to 10.7 million euro, was up by 13% versus 1Q16, as a result of the consolidation of Rizzoli Libri.

On a like-for-like basis, Mondadori Libri’s adjusted EBITDA increased by 8.2% to 4.5 million euro versus 1Q16 (4.1 million euro), driven also by the good performance of Electa. Rizzoli Libri had a negative impact of -7.4 million euro in the quarter on the Books Area’s EBITDA, as a result of the mentioned typical seasonality factors of the school textbooks business. EBITDA, including the effects of the consolidation of Rizzoli Libri, amounted to -3.3 million euro (4.2 million euro on a like-for-like basis versus 4 million euro at 31 March 2016).

• RETAIL

In 1Q17, the Retail Area achieved revenue of 42.9 million euro, down by 3.5% versus 44.4 million euro in 1Q16.

The analysis by channel in the reporting period shows the following: a 1.6% drop by Megastores, due mainly to the shrinking sales in Consumer Electronics; an 8% drop by direct bookstores; a negative performance of Franchised Bookstores down by 8.8%; an approximately 43% increase in the online segment, driven by the sales from the government’s “Culture Bonus” for 18 year olds (“18app”).

In 1Q17, Mondadori Retail’s adjusted EBITDA came to -2.1 million euro, deteriorating versus

-1.8 million euro reported in 1Q16, due also to the negative contribution of the Rizzoli bookstore.

EBITDA came to -2.9 million euro (-1.8 million euro in 1Q16), as a result of restructuring costs (0.8 million euro).

• MAGAZINES ITALY

In 1Q17, the Mondadori Group retained its leadership position in the magazine market, with a 32.7% circulation share in terms of value[4].

Revenue from Magazines Italy amounted to 72.2 million euro[5], down by 8% versus 78.4 million euro in 1Q16. Specifically:

• circulation revenue fell (-10.7%), basically in line with the relevant market trend[6] in both the newsstand and subscription channels;
• advertising revenue (print+web) increased by 4%, driven by the contribution of the consolidation of Banzai Media activities, bringing the percentage of digital revenue in Italy to approximately 26% of the total; considering print advertising sales in Italy alone (on a like-for-like basis of titles and barter deals for goods), the performance (-5.6%) is in line with the market trend at February[7];
• revenue from add-on products fell sharply, in line with the segment’s trend, versus 1Q16, which had benefited from the strong performance of a number of Home-Video and CD products;
• distribution and revenue towards third publishers managed by Press-Di dropped at a more moderate pace (-4.1%) than the market[8], thanks to the ongoing commitment to developing third-publisher portfolios.

In 1Q17, the Mondadori Group reached a unique audience of 16.6 million users/month[9] versus 8.9 million/month in February 2016 (up by 4% versus end 2016), also retaining its position as Italy’s leading digital publisher. A position corroborated by comScore surveys, which reported a Group audience of 24.3 million unique users/month at February 2017.

As part of the integration and development projects regarding Group brands, March saw the start of the first brand extension initiative with the launch of the monthly magazine Giallo Zafferano.

Adjusted EBITDA improved by approximately 3%, rising from 6.4 million euro to 6.6 million euro, driven mainly by the benefits from the integration of the teams and digital products acquired from Banzai Media. The Area’s EBITDA confirmed the growth trend (increasing from 6.3 million euro to 6.5 million euro).

• MAGAZINES FRANCE

In 1Q17, revenue from Mondadori France amounted to 72.4 million euro, down by 6.2% versus 77.1 million euro in 1Q16:

• circulation revenue (76% of the total) lost 3.7% versus 1Q16: specifically, the subscription channel (54% of circulation revenue) dropped by 2.5%; the newsstand channel (-3.9%) outperformed the relevant market trend[10]. In 1Q17, Mondadori France launched Mellow, a new women’s lifestyle monthly.
• advertising revenue (print+digital) was down by 12.7% versus 1Q16, due mainly to the digital business (making for 17% of total advertising revenue).

In the reporting period, Mondadori France’s market share stood at 10.2%[11], making it the third top player on the magazine advertising market.

The digital readers (web, mobile & tablet) of Mondadori France magazines reached 11.9 million unique users[12], up by approximately +3% versus 1Q16.

Adjusted EBITDA came to 3.6 million euro, down versus 4.3 million euro in 1Q16. The drop is mainly attributable to the downturn in advertising revenue generated by the Digital Area.

EBITDA, amounting to 3 million euro, was down by 20.3% versus 3.7 million euro in 1Q16.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

On 28 April 2017, the Mondadori Group concluded an agreement on the disposal of the business units involved in the logistics activities of Mondadori Libri and Mondadori Retail to CEVA Logistics Italia S.r.l. for the amount of 0.5 million euro. Additionally, the agreement envisages the disposal of the Verona-based site used for these activities to AKNO Trading S.r.l. (property company part of the AKNO Group, industrial partner of the CEVA Group) for a consideration of 6 million euro; and the conclusion of an exclusive agreement for the supply by CEVA Logistics Italia of logistics services to the Mondadori Group’s Books and Retail areas for a period of 9 years.

The disposal of the site produced a gain before taxes of 4.2 million euro, already included in the guidance for 2017 (with no impact on estimated adjusted EBITDA which, by definition, excludes non-recurring income).

On 2 May 2017, the Mondadori Group announced that its subsidiary Mondadori France, following the purchase of the 20% minority interest in the share capital, had completed the disposal of 100% of NaturaBuy SAS; the marketplace of small ads and the purchase/sale of hunting, fishing and outdoor items was acquired by NextStage, a private equity fund based in Paris. The disposal of 100% of NaturaBuy amounts to 12.2 million euro, based on an enterprise value of 10.5 million euro. The disposal of this asset produced a gain before taxes of 4.3 million euro, strongly contributing to the achievement of the net profit and net financial position targets set in the guidance previously disclosed to the market, which could be revised in the current year (with no impact on estimated adjusted EBITDA which, by definition, excludes non-recurring income)

The documentation relating to the presentation of the results at 31 March 2017, is made available through the authorized storage mechanism 1Info (www.1info.it) and in the Investors section of the Company’s website www.gruppomondadori.it.

The Interim Report on Operations at 31 March 2017 will be made available at the Company’s registered office, on the authorized storage mechanism (www.1Info.it) and in the Investors section of the Company’s website www.gruppomondadori.it by the end of today

The Executive Manager responsible for the drafting of the corporate accounting documentation, Oddone Pozzi, hereby declares, pursuant to Art. 154 bis, par. 2, of the Finance Consolidation Act, that the accounting documentation contained in this press release corresponds to the Company’s accounting entries, books and results.

Annexes (see attached pdf):

1. Consolidated balance sheet
2. Consolidated income statement
3. Group cash flow
4. Glossary of terms and alternative performance measures used

[1] On a comparable basis excludes the contribution of Rizzoli Libri, which was outside the scope of consolidation in 1Q16. This scope includes, instead, the contribution of Banzai Media, merged by incorporation in the parent Arnoldo Mondadori Editore S.p.A., with accounting effects as from 1 January 2017.

[2] Pro-forma figures: consolidation of Rizzoli Libri and Banzai Media assumed as from 1 January 2016; revenue of approximately 1,280 million euro and adjusted EBITDA of approximately 100 million euro.

[3] Source: GFK, March 2017 (sell-out figures in terms of market value)

[4] Internal source: Press-di, cumulative figures at February 2017 (newsstands + subscriptions in terms of cover price)

[5] Following the merger by incorporation of Banzai Media S.r.l. in Arnoldo Mondadori Editore S.p.A. – concluded on 10 January 2017 and with accounting and tax effects as from 1 January 2017 – and the integration of its digital activities, the scope acquired in 2016 is no longer recognized in 2017.

[6] -12.2%. Internal source: Press-di, cumulative figures at February 2017 (newsstands + subscriptions in terms of cover price)

[7] -6.4% Source: Nielsen, cumulative figures at February 2017

[8] Source: ADS, figures in terms of copies, February 2017

[9] Source: Audiweb, at February 2017

[10] -8.1%: Internal source Mondadori France, figure at March 2017

[11] Source: Kantar Media, figures in terms of volume at January 2017

[12] Source: Mediametrie Netratings – Nielsen, January-February 2017 average figure