2019

The Mondadori Group is exporting to China  in franchising the Focus Junior Play Lab format, the educational and play space for children aged from 3 to 11, developed  by the magazine that is a reference point in the world of kids.

The initiative is the result of an agreement signed with Chic Investment Group and a Memorandum of Understanding with Xi’an International Community Fashion Town Construction & Development Co.

For the first time Focus Junior will deliver, also at an international level, its educational offer and all of the know-how of the Italian brand that is the leader in its sector, in line with the philosophy that characterises the title: an “edutainment” approach, that aims to engage kids and stimulate their skills and capacities through the development of labs and activities to accompany them as they grow up.

The first three Focus Junior Play Labs will open up in China in 2020 in Xi’an, within the High Tech district of the Sino Italian Fashion Town, a new international complex that is being built around the ancient city of Xi’an, and in the cities of Nanjing, in the Kingmo shopping mall and Chongqing, in the Chic World Together shopping centre.

Through the Chic Investment Group, the management and investment company that is working to bring European brands of outstanding excellence to the entire country in the coming years, Focus Junior Play Lab will expand also to other cities in China, with the opening of 12 play labs in franchising within 3 years.

Focus Junior Play Lab will enhance the Asian market for services aimed at families: children and kids will be able to spend their time alternating between recreational activities and educational and learning projects aimed at stimulating manual dexterity, creativity and scientific thinking through numerous labs that will introduce them to topics related to science, art, mathematics and engineering in a fun, engaging and innovative way.

A result preceded by a series of institutional stages that took place in recent months: firstly, a meeting in China in November 2018, an event organised by the Italy-China Foundation at Palazzo Clerici in Milan and the visit of a delegation from the government of Xi’an to Palazzo Mondadori in Segrate in March this year. Cooperation activities in China will continue in the coming years with the introduction of new initiatives currently under development.

The new project is consistent with the objective of the Mondadori Group to  concentrate on its brand leaders with the best multi-platform development potential.

Focus Junior is a magazine dedicated to curious kids that is a brand extension of di Focus, the Mondadori Group magazine that is a point of reference in popular science and entertainment and is the nucleus of a multimedia system able to transform readers into authentic “inhabitants” of the world of Focus, right from the pre-school years. In print and on the web and social networks, and from a TV channels to events like Focus Live, organised around the country, the overall audience of the Focus system is around 6 million (Source: Nielsen MI assessment based on AW Mag 2019 figures, Audipress 2019.1).

Even today 120 million children around the world do not receive a basic education, and more than half of them are girls. Without the chance to study it is impossible to imagine a future, without adequate quality education there are no opportunities to build a better and more secure life.

The right to an education is even more at risk in countries like Ethiopia, where almost 30 million people live below the poverty line and 30.4% of children under the age of 5 suffer from malnutrition. Too many boys and girls (70%) are obliged to leave education after primary school in order to help their families by working in the fields and because of a lack of the right kind of support.

This is why, for Christmas, ActionAid together with Mondadori, Einaudi, Rizzoli, Piemme, Sperling&Kupfer, Mondadori Electa and Fabbri Editori have come together to face an important challenge: to guarantee the right to education for 1,800 boys and girls in the Raya Azebo of Ethiopia, one of the places in the world where the provision of primary education is most urgent, and an area that is frequently without access to drinking water and adequate sanitation.

“Going to school in Ethiopia and being able to complete studies with quality education is a right that is denied to too many children especially girls. To able to work alongside a partner like Mondadori is to receive the kind of fundamental support that will make it possible to realise the dreams of 1,800 children who have neither classrooms, nor books or materials. Thanks to the contribution of the publishing houses of the Group we will be able to build two new schools, provide electricity, drinking water and sanitation, support teacher training and build awareness in the local community of the importance of educating girls, in one of the poorest regions of the country,” declared Marco De Ponte, Secretary General of ActionAid.

The importance of an education worthy of the name – that is equal, inclusive and accessible to everyone – is an absolute priority for the Mondadori Group: indeed, it is part of a profound sense among the people who work in the company that it is a natural and fundamental element of our traditions and history as a company” declared Enrico Selva Coddè, Chief Executive of the Trade Area of Mondadori Books. “This initiative allows our publishing houses to go further and engage in a concrete and inclusive solidarity project that will benefit one of the areas of the world in which the need is most urgent. Being able to work alongside a partner like ActionAid is a guarantee for us of the seriousness of our joint commitment” concluded Enrico Selva Coddè.

The project

Most of the schools in the Raya Azebo district have wooden frames and mud walls. And due to the lack of separate toilet facilities for boys and girls, it is impossible for girls to go to school during their menstrual cycle. Such frequent absence from lessons consequently leads to poor results and even abandoning school altogether.

With the “Insieme per l’istruzione” (Together for Education) project, ActionAid and the publishing houses of the Mondadori Group will create a safe school environment for 1,800 children, half of them girls, in the primary schools of the Barie Woyane and Hawulti communities. During 2020 two school buildings, each with four classrooms, a library and separate toilet facilities for girls, will be completed. Also teaching materials and classroom furniture will be provided, along with support for girls and initiatives to improve school governance, with the increased involvement of the local communities.

The progress of the project in Ethiopia can be followed on the web site: insiemeperlistruzione.it.

With this initiative, ActionAid and the publishing houses of the Mondadori Group are committed to the shared support of the fourth of the Sustainable Objectives set by the United Nations for 2030.

ActionAid for schools

Over the last year we have ensured and improved access to free, safe and quality education for boys and girls in around 5,000 schools in 25 countries. We have also involved over 400,000 parents, teachers and students in activities aimed at preventing and combatting the early abandonment of school.

The Mondadori Group for education

We are a publishing house with over 100 years of history. Thanks to our strong links with authors and readers we are acutely aware of our responsibilities, also to civil society. There is no doubt that the right to quality education and information is an essential prerequisite for the development and growth of a country. Consequently, the active promotion, in Italy and around the world, of a culture that is accessible to all, is a central part of our mission and one of the principles of the Group’s sustainability policy.

What ActionAid does

ActionAid is an independent international organisation operating in Italy and in 44 other countries. It collaborates with more than 10,000 partners, alliances, NGOs and social movements to combat poverty and social injustice. For over 40 years ActionAid has been working alongside the poorest and most marginalised people and communities, supporting them in the knowledge that it is only through collective efforts in support of solidarity and justice that real social change can be generated. A fair and equal world for all: this is the vision that inspires ActionAid and provides its strength. In order to transform this vision of the world into concrete reality, ActionAid has adopted a specific mission for the next 10 years: to work for the promotion and adoption of democratic participation and to involve people and communities in the protection of their rights, and to collaborate, at a local, national and international level, for the realisation of change and the spread of social equality, improving the quality of democracy and consequently supporting those who live in situations of poverty and marginalisation.

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 25 to 29 November 2019, of no. 49,500 ordinary shares (equal to 0.019% of the share capital) at an average unit price of Euro 2.1175 for a total amount of Euro 104,815.95.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,791,703 treasury shares, equal to 1.068% of the share capital and to 0.696% of the total amount of voting rights.

Purchases in detail in the complete pdf.

From this month all new eBooks from the publishing houses of the Mondadori Group– Mondadori, Rizzoli, Einaudi, Piemme, Sperling & Kupfer e Mondadori Electa – will be published in the new ePub3 format.

The Mondadori Group is the first Italian publisher to adopt the most recent international standard for all new digital publications, confirming its commitment to the development of digital publishing and the innovations demanded by the market.

The updating project was completed after a detailed analysis of the new format aimed at further improving the reading experience to make it more inclusive. In fact, the technical specifications of ePub3 make it possible to produce eBook with improved accessibility and graphics.

The new format facilitates the publication of digital text with a higher level of accessibility thanks to more precise metadata, content marking and image description, giving the visually impaired a much wider range of books that can be used with adaptive technologies, such as special keyboards and voice-overs.

This is a continuation of the Mondadori Group’s commitment to extend access to reading for people with sight impairments, to which the company has always paid special attention, also through collaboration with institutions such as the Fondazione LIA and the Fondazione Paideia on ambitious inclusion projects, such as the catalogue of accessible Italian books (https://catalogo.fondazionelia.org) and the digital books in AAC (Augmentative and Alternative Communication ) project ILIBRIPERTUTTI (https://www.ilibripertutti.it).

Entirely retro-compatible with all reading devices and apps, the ePub3 format will also make it possible to more easily produce books with complex graphics and augmented features, such as multi-media, interactivity and animations.

The Mondadori Group is the market leader in trade books with a total market share of 25.7%. Since 2010 Group has published the majority of its editorial products also as eBooks, with a catalogue of around 20,000 titles.

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 18 to 22 November 2019, of no. 50,000 ordinary shares (equal to 0.019% of the share capital) at an average unit price of Euro 2.0305 for a total amount of Euro 101,526.00.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,742,203 treasury shares, equal to 1.049% of the share capital and to 0.684% of the total amount of voting rights.

Purchases in detail in the complete pdf.:

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 11 to 15 November 2019, of no. 51,000 ordinary shares (equal to 0.020% of the share capital) at an average unit price of Euro 2.0428 for a total amount of Euro 104,183.90.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,692,203 treasury shares, equal to 1.030% of the share capital and to 0,672% of the total amount of voting rights.

Purchases in detail in the complete pdf.

Mondadori Store has launched a new campaign for the promotion of books and reading entitled “C’è vita, in un libro. La tua” (There’s life, in a book, yours) and giving a voice to younger readers.

The initiative by the Mondadori Group bookshop chain, now in its second edition, aims to enhance the reading experience through authentic testimonies from readers.

“Through its bookshops, Mondadori Store contributes to an important social mission that encourages the spread of books across the whole country and actively promotes the importance of reading,”  declared Francesco Riganti, marketing director of Mondadori Retail. “For us, readers are the best witnesses of the message. This year we have chosen today’s younger readers as the protagonists of the initiative in the hope that they will become the big readers of tomorrow.”

Based on an idea by the artist Mr. SaveTheWall, the project will involve over 40 children of between 4 and 11 years old, who will be interviewed in two special sessions of Bookshot, short video and photo shootings by the artist with the support of the psychologist and psychotherapist Stefania Andreoli.

Each of the children will talk about their favourite book, bringing to life, in their own words and imaginations, to the emotions evoked by reading it. An intimate moment, also a family relations, and the fruit of discovery, joy, amusement, dreams: resulting in precious testimony to the importance of reading from early childhood.

“Despite the efforts of my parents, I was late in discovering the pleasure and importance of reading. Over the years I have reflected on the fact that it reading recommendations had come from a child of my own age, perhaps it would have been more credible and convincing and I would have gained valuable time. Today, thanks to Mondadori Store, I have had the privilege of confirming this feeling, with an artistic project based on the engaging spontaneity of “young readers”. They are truly amazing,” commented Mr. SaveTheWall.

“It was astonishing to hear the account of a favourite book in the words of the little ones. In fact, we have always encouraged children to read, encouraging parents to get them started early in the most appropriate and effective ways. In this case, however, we are witnessing a first time: the spectacle of those who become, how they think, and the rich and intense internal world that our children develop when we give them the opportunity to be readers,” added Stefania Andreoli.

All of the content will be available on www.mondadoristore.it/condividiunlibro, that will bring together also the testimony of readers invited to participate in the initiative by sharing on social media networks their favourite book using the hashtag #condividiunlibro.

The campaign, which will run from 15 November, will be arranged across four print and video subjects of 30’’ and 60’’, and can be seen on newspapers and magazines, the web and on the social networks Facebook, Instagram and Youtube, in all of the bookshops of the Mondadori Store chain and on Mondadoristore.it as well as on digital screens in railway and metro stations, in shopping malls and in urban centres. The creative proposal has been developed by the agency Action & Branding.

“This is a very ambitious project which has brought to life a wonderful experience. Combining the creative idea of an agency with art was a complex challenge that has generated content that we really love. I am sure that tis project represents an innovative form of communication of considerable interest to the public and with an excellent impact on the brand,” concluded, Alessandro Pedrazzini, CEO of Action&Branding.

Today, the meeting of the Board of Directors of Arnoldo Mondadori Editore S.p.A., chaired by Marina Berlusconi, reviewed and approved the Interim Management Statement at 30 September 2019 presented by CEO Ernesto Mauri.

HIGHLIGHTS OF FIRST NINE MONTHS OF 2019
In the first nine months of 2019, the Mondadori Group recorded basically steady revenue and an approximately 13% increase in adjusted EBITDA from continuing operations before IFRS 16 to
€ 71.3 million, overshooting the planned targets.

Actions continued, in fact, to be taken to improve operations in the Books Area and to reduce costs, as well as to strengthen the Digital component of Magazines Italy; additionally, the reporting period saw the disposal of Mondadori France.

The first nine months of the year recorded significantly lower restructuring and reorganization costs than in the same period of 2018, due to the planned reduction and different timing of the divestment of non-strategic businesses and the reorganization of Group activities.

This performance (marked also by temporary benefits), together with the extended positive cash generation from ordinary operations, paves the way to the achievement of the targets set and disclosed for the entire financial year 2019.

GROUP PERFORMANCE AT 30.09.2019
Consolidated revenue came to € 658.9 million versus € 658.5 million in the prior year, despite the change in the consolidation scope of the Magazines Italy Area following the disposal of Inthera S.p.A. and Panorama (+1.5% on a like-for-like basis).

As mentioned above, adjusted EBITDA before IFRS 16 amounted to € 71.3 million, up by € 8.6 million (+13% approximately) versus the prior year (€ 62.8 million), with a percentage on revenue increasing from 9.5% to 10.8%.

IFRS 16 adjusted EBITDA amounted to € 83.4 million (IFRS 16 impact of € +12 million).

Consolidated EBITDA before IFRS 16, amounting to € 66.3 million versus € 53 million at 30.09.2018, was up sharply (+25%) versus the prior year. The result includes the increase in adjusted EBITDA and strong reductions in restructuring costs recorded in the period.

IFRS 16 EBITDA amounted to € 78.4 million (IFRS 16 impact of € +12 million).

EBIT before IFRS 16 improved significantly to € 49.2 million versus € 37.5 million at 30.09.2018, as a result of the dynamics of the above components (includes amortization, depreciation and write-downs of € 17.1 million). IFRS 16 amortization and depreciation amounted to € 11.1 million.

IFRS 16 EBIT amounted to € 50.2 million (includes the IFRS 16 impact of € +1 million).

Consolidated profit before tax was € 41.5 million, increasing sharply versus € 25.6 million in the first nine months of 2018. It includes:

• the significant reduction in financial expense, as a result of lower average net debt;
• improved performance by associates (consolidated at equity), from € -9.9 million to € -5.3 million in the same period of 2018.

The adjusted net result from continuing operations amounted to € 25.4 million, up more than 60% versus € 15.8 million at 30 September 2018.

Considering the net result of discontinued operations, the Group’s net result came to € 23.1 million versus € -181.5 million in 2018, which had included the impact from the fair value adjustment of Mondadori France of approximately € -200 million.

The Group’s net financial position before IFRS 16 stood at € -110.4 million, improving by approximately € 99 million versus € 209.3 million at 30 September 2018, as a result of the ongoing generation of cash flow from ordinary operations of continuing operations of € 52.5 million. The IFRS 16 Group net financial position stood at € -209.5 million.

At 30 September 2019, with regard to continuing operations, Group employees amounted to 2,092 units, down by -5% versus 2,203 units at 30 September 2018, as a result of the disposal of Panorama, of efficiency gains in the individual corporate areas, and excluding the employees of Mondadori France.

CONSOLIDATED FINANCIAL HIGHLIGHTS IN THIRD QUARTER 2019
Consolidated revenue came to € 279 million, up by 4.2% versus € 267.7 million at 30.09.2018, despite the effect of the change in the consolidation scope of Magazines Italy resulting from the disposal of Panorama.

Specifically, in the period revenue from Books increased by approximately +13% (partly temporary), while the Retail Area dropped by approximately -2%; the Magazines Italy Area fell by 7.3%, on a like-for-like basis, as a result of the dynamics of the relevant markets.

Adjusted EBITDA before IFRS 16 amounted to € 57.6 million, improving by 14% versus the prior year (€ 50.7 million), with different trends reported by the various businesses:

• in line with the revenue trend, the Books Area grew as a result of the positive performance of both the Trade and Education areas;
• the Retail Area fell versus 3° quarter 2018;
• the Magazines Italy Area grew despite the declining market trend, as a result of the disposals that took place, of the ongoing improvement of the digital area and of the actions aimed at reducing operating and structural costs.

IFRS 16 adjusted EBITDA amounted to € 61.6 million (IFRS 16 impact of approximately € 4 million). Consolidated EBITDA before IFRS 16 was up sharply, amounting to € 53.7 million versus € 49.5 million of the prior year.

BUSINESS OUTLOOK
In the first nine months of 2019, the Mondadori Group continued on the path of strategic repositioning and focus on its core businesses of Books and Retail and on Magazines with greater potential for multimedia development, completing the disposal of Mondadori France and moving ahead with the finalization of the disposal of five magazines.

In line with the outlined strategy and in light of the relevant context, including the performance in the first nine months, the operating targets for 2019, based on the current scope, allow the Group to confirm, at a consolidated level, a slight decrease in revenue (steady on a like-for-like basis following years of decline) and a single-digit growth of adjusted EBITDA no IFRS 16 versus 2018.

The net result from continuing operations in 2019 is expected to be significantly higher than last year (in the range of € 30-35 million).

Cash flow from ordinary operations in 2019 is forecast at around € 45 million, paving the way for the distribution of a dividend in 2020.

PERFORMANCE OF BUSINESS AREAS

• BOOKS

In the first nine months of the year, the Trade Books market grew by 4.6% versus the first nine months of the prior year[1]. The Mondadori Group retains its leadership position with a total 25.7% market share and places seven titles in the ranking of the twenty best-selling books in terms of value.

In the period under review, revenue from the Books Area amounted to € 366 million, up by 7.5% versus € 340.3 million in the first nine months of 2018, as a result of the good performance of both Trade (+9.3%) and Educational (+7.7%).

Adjusted EBITDA before IFRS 16 amounted to € 77.6 million, up versus € 68 million in the same period of the prior year, as a result of the increase in revenue and the ongoing improvement of operations. IFRS 16 adjusted EBITDA amounted to € 78.6 million (the impact of IFRS 16 was € 1 million).

Reported EBITDA before IFRS 16 amounted to € 77.1 million, improving versus € 66.8 million reported at 30 September 2018. IFRS 16 reported EBITDA amounted to € 78.1 million and includes an impact of € +1 million.

• RETAIL

In the first nine months of 2019, Mondadori Retail generated revenue of € 126.6 million, down by 2.1% versus € 129.3 million of the same period of the prior year.

In the Books segment, the relevant market for the Area (approximately 82% of revenue^[2]) with a 13.2% market share, Mondadori Retail recorded a performance of -0.7% (on a like-for-like basis -1.1%).

The analysis by channel shows the following:

• a basic stability of direct bookstores (on a like-for-like basis -1.6%);
• in the Megastores, an approximately 12.7% drop (on a like-for-like basis -10.7%), due mainly to the decline in sales of consumer electronics;
• in franchised bookstores, a performance in line with the prior year (on a like-for-like basis -1.2%);
• in e-commerce a +2% growth;
• in the bookclub, a decrease of approximately 4% versus the prior year.

Adjusted EBITDA before IFRS 16 amounted to € -5.2 million versus € -3.4 million at 30 September 2018: the deterioration is due mainly to the decrease in revenue on a like-for-like basis and to the higher inventory write-down of consumer electronics products.

IFRS 16 adjusted EBITDA came to € +0.8 million and includes the IFRS 16 impact of € +6 million.

Reported EBITDA before IFRS 16 amounted to € -5.5 million, down versus
€ -3.7 million at 30 September 2018. IFRS 16 reported EBITDA amounted to € +0.5 million and includes an impact of € +6 million.

• MAGAZINES ITALY

In the first nine months of 2019, the Italian advertising market reported a growth in the digital channel (+2.1%) and a fall in magazines (-15.2%)[3]. Circulation also declined (-12.3%), with a slowdown in both the newsstands and subscriptions channels.

In this context, the Mondadori Group‘s market share stood at 28.6%, steady on a like-for-like basis (excluding the disposal of Panorama)[4]. The Group also retained its position as Italy’s leading digital publisher, with a 73% reach and 28.2 million unique users in the month[5].

In the first nine months of 2019, revenue in the Magazines Italy Area came to € 191.2 million versus
€ 216.1 million at 30.09.2018 (-5% net of the disposals of Inthera and Panorama). Specifically:

• revenue from circulation and related to add-on products was down by
  -14.1% versus the same period of the prior year, affected also by the disposal of Panorama
  (-8.5% on a like-for-like basis);
• advertising revenue (print + digital) recorded an overall drop of -7.7% versus the first nine months of 2018 (-2% net of the disposal of Panorama): the digital component grew by approximately +18%, thanks also to the contribution of AdKaora, an agency specializing in proximity marketing solutions; print advertising sales fell by -19.5% (approximately -13% excluding Panorama in the nine months of 2018, in line with the market trend). The percentage of digital revenue on the total rose to approximately 41% (from 32% in the first nine months of 2018);
• distribution activities and other revenue in the nine months fell by -8.7% versus the prior year, due to the disposal of Inthera S.p.A. (+2.6% excluding Inthera in the nine months 2018).

Adjusted EBITDA before IFRS 16 amounted to € 5.4 million, up versus the same period of the prior year (€ 4.1 million), as a result of the actions aimed at reducing operating and structural costs, of the ongoing improvement in the digital area, and the positive effects of the sale of Inthera S.p.A. and Panorama. IFRS 16 adjusted EBITDA amounted to € 5.5 million.

Reported EBITDA before IFRS 16 amounted to € 2.5 million, improving sharply versus € -3 million at 30 September 2018, as a result of lower restructuring costs. IFRS 16 reported EBITDA amounted to € 2.6 million.

TRANSFER TO A SINGLE COMPANY OF ALL THE ACTIVITIES INVOLVING THE MAGAZINES ITALY AREA
Today’s meeting of the Board of Directors also approved the transfer – effective from 1 January 2020 – of the Magazines business unit to a wholly-owned single company, where all the activities regarding magazine titles and the websites of Arnoldo Mondadori Editore S.p.A., as well as the investments in the Magazines Area, will be transferred.

The transaction brings no change to the overall profile of the Group’s activities or basic operating features, but completes an organization that is focused more on the peculiarities of the individual businesses, as was the case for the Retail and Books areas.

The setup is also more functional to the achievement of strategic opportunities and partnerships.

The transfer will be made on the basis of book values, with no impact on the consolidated financial statements.

The transaction is excluded from the application of the “Regulations containing provisions on transactions with related parties”, adopted by CONSOB with resolution no. 17221 of 12 March 2010, as well as the procedures adopted by Arnoldo Mondadori Editore S.p.A. on the matter, as it is a transaction with a subsidiary in respect of which the interests of other related parties of the Company cannot be considered significant (according to the criteria set out in the abovementioned procedures).

Significant events after the reporting period
On 23 October, the Group announced that it had received a binding offer for the acquisition of magazines Confidenze, Cucina Moderna, Sale&Pepe, Starbene and Tustyle by La Verità S.r.l.. The Board of Directors has resolved to authorize CEO Ernesto Mauri to implement all the actions aimed at reviewing and finalizing the transaction, in line with the announced strategy of focusing on the core businesses of Books, Retail and Magazines with greater potential for multimedia development. The offer is valid until 31 December 2019 and envisages the creation of a NewCo, whose interest will be 75% held by La Verità S.r.l. and 25% by Arnoldo Mondadori Editore S.p.A.; the offer also includes an earn-out in favour of the shareholder Arnoldo Mondadori Editore S.p.A. and put/call mechanisms in favour of shareholders. The activities relating to the 5 titles in question recorded revenue of € 22.4 million in 2018.

In accordance with the provisions of law, the procedure with the trade unions has been put into effect.

Following the authorization given by the Shareholders’ Meeting of 17 April 2019, on 10 June Arnoldo Mondadori Editore S.p.A. launched a share buyback programme. Following the transactions carried out so far and disclosed to the market in accordance with current legislation, the Company holds, to date, no. 2,641,203 treasury shares, equal to 1.010% of the share capital and 0.659% of the total voting rights.

The documentation relating to the presentation of the results at 30 September 2019, is made available through the authorized storage mechanism 1Info (www.1info.it) and in the Investors section of the Company website www.gruppomondadori.it.

The Interim Management Statement at 30 September 2019 approved by the Board will be available at the Company’s registered office, on the authorized storage mechanism 1Info (www.1info.it) and on www.gruppomondadori.it (Investors section) by today’s date.

The Financial Reporting Manager – Oddone Pozzi – hereby declares, pursuant to art. 154 bis, par. 2, of the Consolidated Finance Law, that the accounting information contained herein corresponds to the Company’s records, books and accounting entries.

Annexes (in the pdf file):

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

[1] Source: GFK, September 2019 (figures in terms of market value). As of May 2019, GFK has expanded its coverage panel by increasing the survey of e-commerce players; as a result, the overall market value and the YoY deviations have been restated pro-forma and the details by channel have been reviewed by merging book chains and e-commerce.
[2] Product revenue excluding the bookclub
[3] Source: Nielsen, cumulative figures at September 2019
[4] Internal source: Press-Di, cumulative figures at August 2019 (newsstands + subscriptions) in terms of value
[5] Source: comScore survey, August

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 4 to 8 November 2019, of no. 55,000 ordinary shares (equal to 0.021% of the share capital) at an average unit price of Euro 2.0439 for a total amount of Euro 112,416.70.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,641,203 treasury shares, equal to 1.010% of the share capital and to 0.659% of the total amount of voting rights.

Purchases in detail in the complete pdf.

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 28 October to 1 November 2019, of no. 55,000 ordinary shares (equal to 0.021% of the share capital) at an average unit price of Euro 1.0103 for a total amount of Euro 110,567.50.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 17 April 2019 (previously disclosed pursuant also to art. 144 bis of Consob Regulation 11971/99, to art. 5 of Regulation (EU) 596/2014 and to art. 132 of Legislative Decree 58/98).

The following table details the purchases made per day in the above period of Arnoldo Mondadori Editore S.p.A. ordinary shares, ISIN IT0001469383:

The purchases were made through the authorized intermediary Equita Sim S.p.A. (LEI Code 815600E3E9BFBC8FAA85).

Following the purchases made so far, Arnoldo Mondadori Editore S.p.A. holds no. 2,586,203 treasury shares, equal to 0.989% of the share capital and to 0.645% of the total amount of voting rights.

Purchases in detail in the complete pdf.