2020

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 8 to 12 June 2020, of no. 85,000 ordinary shares (equal to 0.033% of the share capital) at an average unit price of Euro 1.1689 for a total amount of Euro 99,356.50.
These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 22 April 2020 (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. 1,838,326 treasury shares, equal to 0.703% of the share capital and to 0.459% of the total amount of voting rights.
As a result of the operations described above, the treasury share buy back program launched on 1st June 2020, ended on June 8th 2020. During the plan have been bought a total nr. 550,000 Arnoldo Mondadori Editore own shares at an average price of € 1.0984 per share and for a total amount of €
604,146.49.
See detalis in pdf completo of the press release.

Chi, the people magazine edited by Alfonso Signorini, is reinforcing its formula and, on newsstands from tomorrow, will appear to readers with a new look with the most beautiful love stories, exclusive scoops, leading personalities, news investigations and background.

The feelings and emotions that everyone can identify with will be even more at the heart of Chi; a narrative dimension that starts in the magazine and extends across all of its digital platforms. In line with the new formula, from 10 June, the Mondadori Group weekly will launch #storiedamore (love stories): a new editorial project that celebrates love in all its forms, with the exclusive participation of personalities from television and the world of entertainment. Every week, a different story will be covered, not only on the pages of  Chi but also on the brand’s Instagram and Facebook profiles, with interviews with the most popular celebrities and, for the first time, in a podcast series, in which it will be the voices of the protagonists themselves that will talk about previously unpublished aspects of their emotional lives that will engage and move the audience.

“Even more feelings: this is the principal guideline of the new magazine, and what readers of Chi most frequently ask us for. Emotions will run alongside accounts of personalities most in view, with their stories, experience and a rediscovery of the pleasure of more detailed and authentic storytelling,” announced the editor of Chi, Alfonso Signorini.

The first subject of #storiedamore and the cover story of the revamped Chi will be the editor himself, Alfonso Signorini: the first to step up to the plate and reveal an intimate part of his life, in this case his special relationship with and great love for his mother.

Chi also takes a look beyond the jet set and the entertainment world, with much more attention to features and news investigations.

There are also five new thematic supplements that will accompany the publication of upcoming issues, starting this week with the free Chi Weddings Special: a much-anticipated collectors issue now in its fifth edition, with pages dedicated to the weddings of Italian and international celebrities who have pronounced a romantic “I do” in the last year. This will be followed by specials dedicated to Cooking, with recipes from starred-chefs (on newsstands from 17 June), the Animals of the stars and their offspring (on newsstands from 24 June), Travel and holiday destinations with exceptional guides (on newsstands from 1 July),  Beauty with loads of secret tips and suggestions to make the best of yourself (on newsstands from 15 July).

The re-launch of Chi will be supported by a communication campaign planned across various channels: TV and radio commercials, on air from 10 June of Mediaset channels and RadioMediaset stations, press, digital, social media and large-scale retail.

The planned total print run for the next 4 issues of Chi will be 1 million copies.

A further push will be given to the social media strategy of Chi: on Instagram, which has now reached 400,000 followers and is the people publishing brand with the highest level of engagement in Italy (Source: Storyclash). The profile offers real-time accounts of the world of Italian and international celebrities, with a special focus on those most popular with millennials, who make up 70% of the followers (Source: Iconosquare).

“The greatest satisfaction comes from having reached a new audience, completely different from the magazine’s traditional target, of the magazine and to have brought them closer to the Chi brand,” declared Massimo Borgnis, executive deputy editor of Chi.

The double live interview format, #CasaChi, during the months of lockdown, has been a regular daily appointment, with an average audience of over 50,000 users for each live feed (Source: Instagram Insight).

Arnoldo Mondadori Editore S.p.A. (LEI Code 815600049A1F9AFE6666) announces the purchase on the MTA (Electronic Stock Market), in the period from 1 to 5 June 2020, of no. 465,000 ordinary shares (equal to 0.178% of the share capital) at an average unit price of Euro 1.0856 for a total amount of Euro 504,789.99.

These transactions were made under the authorization to purchase treasury shares approved by the Shareholders’ Meeting on 22 April 2020 (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. 1,753,326 treasury shares, equal to 0.671% of the share capital and to 0.437% of the total amount of voting rights.

Purchases in detail in the complete pdf.

Donna Moderna, the Mondadori Group magazine edited by Annalisa Monfreda, has chosen as this week’s cover face Cristina Fogazzi, the digital businesswoman, better known as the Estetista Cinica (the cynical beautician).

With her engaging, empathetic and honest style and sincere professionalism, in less than five years she has managed to become a point of reference for women for beauty matters.
Cristina Fogazzi has revolutionised the way we talk about beauty to women and in the pages of Donna Moderna she talks authentically and even becomes an exclusive protagonist of a fashion shoot and for the first time is the face on the cover of an Italian women’s magazine.

Her story, her beauty tips and her wonderful sincerity will also feature in an unmissable appointment with the editor of  Donna Moderna, Annalisa Monfreda: a multicast live streaming event on the magazine’s Instagram profile and Facebook page, scheduled for Thursday 4 June at 3 pm. The live show with the Estetista Cinica will also be available on demand on social networks and the magazine’s web site.

“With this issue we’re back, after the lockdown, to shooting cover photos for the magazine. And we have chosen Cristina Fogazzi, a businesswoman who represents and symbolises the re-start, thanks to her ability to continuously renew her business. And because she has demonstrated that it is possible to do business in the world of beauty by telling women the truth, and without making them feel inadequate. And, more generally, because her story shows us that if you really have the wellbeing of your staff at heart, you can go anywhere,” said Annalisa Monfreda, editor of Donna Moderna.

As she explains to Donna Moderna, Cristina Fogazzi declared herself a “cynic” when she started to do what no one in the beauty business had dared to do, precisely, to tell the truth about creams and treatments: “We did the opposite of what the beauty business does. We gathered our customers by not making them feel inadequate or to blame for their flaws. At the same time, we told them the truth about the effectiveness of treatments. And it worked. Then I put this way of communicating online: with the creation of the Estetista Cinica blog.”

In 2016 she began to give beauty advice also to the readers of Donna Moderna in a column of beauty tips.
She also published, in collaboration with Dr Enrico Motta, the book Guida cinica alla cellulite (A cynical guide to cellulite), which has just been re-published with a new cover in an updated edition by Oscar Bestsellers (Mondadori).

In her interview with Donna Moderna, Cristina Fogazzi also talks about the future of her company and the value of the territory, form a business perspective: In fact, she produces her products in the Brescia area, where she was born and still lives. “My friends are here. And this is where we have the production side.” And, she underlines, “This is not just my company, it’s my story.”

She showed great attention and a sense of responsibility to this area also during the lockdown when, as she tells the magazine edited by Annalisa Monfreda, she started promoting small local businesses simply and spontaneously.
Her way of doing business reflects her personality and goes against the grain of traditional business, and not without criticism. “Or so it seems. But if being a certain type of businesswoman means that I have to betray the kind of person I chose to be, I won’t do it. I will remain a small businesswoman. However, in the meantime, I have been on the cover of Donna Moderna,” she concludes.

Donna Moderna, the brand of reference in the women’s segment, is an ecosystem that, thanks to a unique mix of practical advice, first-hand testimony, stories and live daily coverage, is always at the side of its readers and their needs. Through the magazine and its web channels, it reaches a total net audience of 14 million users every month (media impact data fusion December 2019 based on Audiweb and Audipress figures), to which should be added over 2 million fans on social media with 1.4 million monthly interactions (Source: Sensemakers Maggio 2020).

Arnoldo Mondadori Editore S.p.A. announces the launch today of a treasury share buyback plan under Article 5 of Regulation (EU) no. 596/2014, in execution of the resolution adopted by the Ordinary Shareholders’ Meeting held on 22 April 2020, authorizing:

• the purchase and disposal of treasury shares for a maximum amount of up to 0.21% of the share capital, which is intended to provide the Company with the no. 543,232 shares required over the three-year period to meet the obligations under the 2020-2022 Performance Share Plan approved by the same Shareholders’ Meeting;
• the continuation of the buyback plan for the purchase of the treasury shares required to service the 2018-2020 Performance Share Plan and the 2019-2021 Performance Share Plan in the manners and within the limits set out in the relevant Regulations.

Pursuant to Delegated Regulation (EU) 2016/1052, details of the treasury share buyback plan are shown below.

• Purpose of the plan

The purpose of the plan is the buyback of Arnoldo Mondadori Editore S.p.A. treasury shares to service the 2020-2022 Performance Share Plan approved by the Shareholders’ Meeting held on 22 April 2020, the 2019-2021 Performance Share Plan and the 2018-2020 Performance Share Plan.

• Maximum amount in cash allocated to the plan

Buybacks will be made at a minimum unit price not lower than the official Stock Exchange price on the day before the purchase transaction, reduced by 20%, and at a maximum unit price not higher than the official Stock Exchange price on the day before the purchase transaction, increased by 10%. The definition of volumes and unit purchase prices will be made in accordance with the conditions set out in Article 3 of Delegated Regulation (EU) 2016/1052; specifically, no shares will be purchased at a price higher than the higher between the price of the last independent trade and the price of the highest current independent bid on the trading venue where the purchase is carried out.

• Maximum number of shares to purchase

Purchases will regard a maximum of 550,000 ordinary shares (equal to 0.2104%) for the 2020-2022 Performance Share Plan, the 2019-2021 Performance Share Plan and the 2018-2020 Performance Share Plan, in the manners and within the limits set out in the relevant Regulations.

The maximum total amount of shares under the plan is therefore within the limits of law, taking account of the treasury shares already held by the Company.

To date, Arnoldo Mondadori Editore S.p.A. holds no. 1,288,326 treasury shares, equal to 0.4927% of the share capital.

• Duration of the plan

The current authorization runs until the Shareholders’ Meeting called to approve the financial statements for the year ending 31.12.2020 and is renewable prior to the Shareholders’ authorization.

• Buyback procedures

The treasury share buyback plan will be coordinated by an authorized intermediary who will make the purchases independently, with no influence from Arnoldo Mondadori Editore S.p.A. as far as the time of purchase is concerned.
Buybacks will be made pursuant to the combined provisions of Article 132 of Legislative Decree no. 58/1998 and of Article 5 of Regulation (EU) 596/2014, Article 144-bis of the Issuer Regulation, and the EU and national legislation on market abuse (including Delegated Regulation (EU) 2016/1052), in accordance with the resolutions of the above Shareholders’ Meeting of 22 April 2020, in the terms previously disclosed to the market and in accordance with applicable law. Daily purchase volumes will not exceed 25% of the daily average volume of Arnoldo Mondadori Editore S.p.A. shares traded over the 20 trading days before the dates of purchase.

Any subsequent changes to the above buyback plan will be promptly disclosed to the public by the Company in the manners and within the time limits of applicable law.

The transactions made will be disclosed to the market in the manners and within the time limits of applicable law.

Electa is pleased to present #puntoeacapo, a collection of short digital stories –for the moment “filmed” from home – by writers, curators, creatives, editors and those working with the publisher, all sharing their different perspectives and activities. They will talk about books, exhibitions and the languages of art, from publishing to architecture, passing via museum bookshops.

The #puntoeacapo social feature of stories and accounts continuesthe Art and illustrated publishing experience through the faces and voices of curators, museum directors, archaeologists, art critics, artists, architects and designers. Born during the “lockdown” weeks, #puntoeacapo starts with Electa pondering its journey as a publisher and its role flanking museums. As we mark 75 years in publishing, we have started thinking about the Electa of today and of the future with many questions and some constants (old and new).

The first series of videos responds to a desire to revisit the#patrimonioitalia and rethink our cultural identity and past by conducting a Grand Tour through books, exhibitions, memories and emotions as we look to the future.

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 31 March 2020 presented by CEO Ernesto Mauri.

HIGHLIGHTS OF FIRST QUARTER 2020
In 2020, after the first two months of activity aligned with Group forecasts, the performance in March was inevitably marked by the adverse effects of the health emergency brought by the spread of COVID-19.

Starting from the first ten days of March, in fact, the gradual and increasingly widespread application of restrictive measures to social and economic activities has significantly curtailed part of the activities in the businesses where the Group operates as a leader.

Specifically, as from 12 March, the application of government measures has led to the closure of the physical channel of bookstores across the Country, with immediate direct effects on the performance of the Group’s Retail business.

At the same time, Trade book sales have fallen sharply, limited as they are to the e-commerce channel alone (which in turn is restricted to the above products) and, to a much lesser extent, to the large retailers channel.

The emergency measures have concurrently led to the closure of museums, archaeological parks and bookstores across all Italian regions, with a resulting reduction in activities, therefore in revenue, of the Group companies operating in these areas.

Lastly, the Media^[1] business too has recorded declines following closure of part of the newsstands in Italy and the decrease in advertising sales.

The Mondadori Group has set up and implemented a series of activities to mitigate the effects of the economic juncture, through actions to contain operating and personnel costs.

In order to reduce the impacts on the business areas, the Company has:

• taken steps to contain and cut operating costs also by renegotiating contracts and reviewing rates;
• promoted the use of outstanding holidays and the procedures for social safety nets;
• resolved on the reduction of the variable remuneration of Group Management for 2020;
• placed particular emphasis on the management of the Group’s working capital (with specific actions on customers and suppliers).

More specifically, for the different business activities:

• in the Trade Area, the editorial programmes have been reshaped and rescheduled, with a plan to phase out “minor” titles;
• in the Education Area, actions have been taken to curb or eliminate the costs related to the stoppage and canceling of museum and archaeological park activities;
• in the Media Area, a strict policy has been adopted to reduce the production costs of the various titles;
• in the Retail Area, during the lockdown period, a plan has been implemented to reduce overheads relating to the points of sale.

PERFORMANCE AT 31 MARCH 2020
In light of the extraordinary emergency situation that materialized in March, the Mondadori Group performed as follows in first quarter 2020:

• consolidated revenue amounted to € 135.3 million, down by 18.9% versus € 166.8 million in the same period of 2019 (-17.1% on a like-for-like basis, net of the change in the scope of consolidation from the disposal of the five titles in December 2019). The downturn is attributable mainly to the effects of COVID-19;

• adjusted EBITDA in the period under review amounted to € -3.1 million, down by € -4.8 million versus € 1.7 million in 1° quarter 2019. The decline is due mainly to the effects of COVID-19, obviously also considering the first positive effects of the actions taken;

• EBITDA amounted to € -4.2 million, down versus € 1.1 million in the first quarter of the prior year;

• EBIT amounted to € -14 million, down versus € -7.2 million at 31 March 2019, due to the dynamics of the above components and to higher amortization, depreciation and write-downs, which rose to € 9.8 million from € 8.4 million in 1° quarter 2019.

• the consolidated result before tax amounted to € -23.8 million versus € -9.2 million in first quarter 2019;

• the result from continuing operations amounted to € -19.1 million versus € -7.9 million in first quarter 2019, due to the net impact of € 5.2 million from the adjustment to market value of the Reworld Media shares held;

• the Group’s net result amounted to € -19.1 million versus € -3.5 million in 1° quarter 2019 (which had also included the temporarily positive result of € 4.9 million from discontinued operations, in addition to the above net impact of € 5.2 million relating to Reworld Media shares);
• the net financial position before IFRS 16 stood at € -96.9 million, improving sharply by approximately 46% versus € -179.3 million at 31 March 2019, as a result of the disposal of Mondadori France (€ 62.8 million) and of the cash generation from ordinary operations in the context of continuing operations in the last 12 months, equal to € 45.8 million versus € 48.5 million at 31 December 2019;

• the IFRS 16 net financial position stood at € -193.9 million and includes the IFRS 16 impact of € -97 million.

The Group’s financial situation and medium-term prospects, despite the significant stress put on the entire global economic system in this specific historical juncture, allow it to maintain a positive attitude towards future developments, albeit in a partly and inevitably affected economic scenario for 2020.

At 31 March 2020, Group employees in the context of continuing operations totaled 1,942 units, down by 8% versus 2,111 units at March 2019 (excluding the employees of Mondadori France at 31 March 2019), as a result of the disposal of the five titles and efficiency gains in the individual business areas.

Update on COVID-19 measures
Since 23 February 2020, the Group has taken immediate action to implement all the preventive measures required to protect the health of its employees and associates, in accordance with the provisions of the Ministry of Health and in conjunction with the company health officer, and to reduce the impact of the health emergency on the performance of the business areas.
Additionally, the Group is constantly monitoring the situation and providing updates on developments, also in order to guarantee the entire company population real-time access to information that is essential for the safe performance of work activities.

For such reason, the Mondadori Group has:

• set up a cross-functional Crisis Committee with workers’ representatives to indicate the urgent measures needed and coordinate actions taking account of the specific nature of each company area;
• from the onset further encouraged smart working, enabling almost all workers to do so, with a physical presence only of staff tasked with monitoring the sites;
• published and made available to the entire company population a Company Anti-Contagion Protocol, containing the principles and rules adopted and to adopt;
• fitted itself with the necessary personal and corporate protective equipment, distributed sanitizers to the company population, and installed spray dispensers inside the premises;
• arranged for workplace sanitation in coordination with the company health officer, the relevant authorities, the Safety Managers and the Workers’ Trade Union Representatives;
• carried out training on how to behave in order to perform remote activities safely, through online workshops and webinars;
• introduced new services for employees and associates, including a website that is permanently accessible with all the necessary information, a dedicated email address to submit specific questions and requests, and psychological counselling desks both online and within the company;
• assessed the adequacy of the measures taken to comply with the principles of privacy

Disclosure on this activity has been provided to the corporate control bodies and Internal Committees, also in order to receive guidance on the strategies to adopt, both in the initial phase of the health emergency and in preparing the gradual return of workers to the sites.

BUSINESS OUTLOOK
Given the poor visibility of the possible range of scenarios produced by the effects of COVID-19, macroeconomic and sector estimates predict downturns in the Group’s relevant markets that are clearly unmeasurable at this time.
For this reason, as things stand, the elements that contribute to the development of forecasts for the year remain highly uncertain: in particular, how the pandemic evolves and how demand reacts amid the potential materialization of a severe recession.

This highly unstable backdrop does not allow for the development of a new and reliable guidance.

In order to alleviate the effects of the current economic juncture, the Group has implemented measures to reduce costs and select investments and has prepared for recovery, providing adequate safety standards consistent with regulatory guidance.

The Group has also started an analysis of the organization models and processes to make the most of the current experiences and use them to gain ongoing benefits in terms of efficiency of a number of adopted and planned solutions (e.g. digitization, computerization and smart working most of all).

PERFORMANCE OF BUSINESS AREAS

• BOOKS

In Italy until February, the trade book market had decreased by -1.1% versus the same period of 2019; in March, the decline grew to -29.3%, reaching -9.6%^[2] at the end of the first quarter.

This abnormal downturn in demand over the last month of the quarter is linked to the COVID-19 emergency and the related health measures, which led, among other things, to the total closure of independent bookstores and book chains from the second ten days of March.

Despite the sharp increase of the e-commerce channel, the only channel actually operating in the second half of March, sell-out figures obviously witnessed a slump.

Against this backdrop, the Mondadori Group retained its leadership position, with a total market share of 23.4% in the trade area and 4 titles appearing in the top ten bestselling books in terms of value in the first three months of the year: La misura del tempo by Gianrico Carofiglio (Einaudi); Le fantafiabe di Luì e Sofi by Me contro Te (Mondadori Electa); In cucina con voi! by Benedetta Rossi (Mondadori Electa); Una gran voglia di vivere by Fabio Volo (Mondadori).

In the first three months of 2020, the Area’s revenue amounted to € 58.2 million, down by 17.1% versus
€ 70.2 million in first quarter 2019. Specifically:

• in the Trade Area, revenue amounted to € 39.1 million (€ 48.2 million in 2019), down by 19.1%, due to the abovementioned effects of the COVID-19 health emergency. The closure of the Bookstores and Chains channels in the second half of March made it clearly impossible to supply a significant part of the market (approximately 65% of the total). Despite the increases recorded in the e-commerce channel, the impact on revenue was heavy.

The Group set aside the planned launch of new titles, rescheduling them by pushing back the planned publications. The editorial programmes remain, however, basically confirmed, albeit with a different timing and the phase out of a number of minor titles.

• in the Educational segment, marked in the first quarter by the seasonal nature of the school textbooks business (with most of revenue generated from June to October), revenue amounted to € 16.7 million on a like-for-like basis, down by -10.2% versus € 18.6 million in the same period of 2019. The downturn in revenue, amounted approximately to € 2 million, is due largely to the museum business, which was impacted by the adverse effects of the COVID-19 health emergency, with urgent measures that led to the gradual closure from the beginning of March of the museums, archaeological parks and bookstores in which Electa operates.

Revenue from the sale of e‐books and audiobooks increased by +26% versus the same period of 2019, accounting for almost 10% of total revenue for the period (6% in 2019). The audiobook component accounted for approximately 13% of total digital revenue, up from 7% in 2019.

These increases in revenue are attributable to the situation generated by COVID-19 and the previously mentioned constraints on the distribution and marketing of physical books.

In the first quarter of the year, adjusted EBITDA amounted to € -4.5 million versus € -0.2 million in 2019.

EBITDA amounted to € -5.2 million versus € -0.3 million in 2019.

In the period under review, the Area recorded an EBIT of € -8.3 million versus € -2.8 million in 2019.

• RETAIL

In first quarter 2020, the book market (which accounts for over 80% of revenue^[3] in the Retail Area) suffered, as mentioned, a decline (-9.6%^[4]) versus the same period of the prior year, due to the COVID-19 emergency.

Specifically, the quarter was negatively impacted by the urgent measures to contain the COVID-19 contagion, which led to the closure of physical bookstores throughout the country from 12 March 2020.

Against this backdrop, the market share of Mondadori Retail stood at 10.9%, operating in the final part of the quarter through the online channel alone.

In the first three months of the year, revenue in the Retail Area amounted to € 31.1 million, down by 24.8% versus € 41.3 million in the same period of the prior year, due to the abovementioned government COVID-19 measures. Specifically, considering March alone, sales were -65.8% lower than in 2019; the online channel bucked the trend (+13.5%) and grew by approximately +130% in March.

In the first quarter of the year, adjusted EBITDA amounted to € -1.2 million versus € -0.5 million in the same period of 2019, due to the mentioned drop in revenue.

At 29 February, the business unit’s adjusted EBITDA improved by € +0.3 million versus the same period of the prior year, thanks to careful cost management and the deep organizational and process review implemented in the second half of 2019.

At the end of the quarter, EBITDA amounted to € -1.3 million (versus € -0.6 million in the first three months of 2019).

In the period under review, the Area recorded an EBIT of € -3.8 million (versus € -3.2 million in first quarter 2019).

• MEDIA^[5]

In the first two months of 2020, the Group’s relevant markets, still unscathed by the COVID-19 emergency, showed the following trends[6]:

• in terms of advertising, a growth in digital channels (+4.8%) and a decline in magazines (-12.2%);
• in terms of circulation, a drop in magazines of -8.8%.

Against this backdrop, the Group retained its leadership position with a 23.3% market share in terms of value[7].

The market, especially advertising, inevitably suffered in March from the ripple effects of the COVID-19 health emergency.

In first quarter 2020, the Media Area recorded revenue of € 50.6 million, down by 19.6% versus
€ 63 million in 2019 (-14.8% net of the disposal of the five titles). In the first two months of the year, the drop in revenue in the Media Area on a like-for-like basis was in line with the guidance and the performance of the relevant market, amounting to approximately -10%.[8]

Specifically, in the period under review, the Area performed as follows:

• circulation revenue was down by 23%, a performance affected both by the disposal of the five titles and by the COVID-19 impact; net of these discontinuities, the estimated decline was around -10%.
• advertising revenue decreased by 24% in total and -20% on a like-for-like basis. Approximately 60% of the drop is attributable to COVID-19 and can be estimated at € 1.8 million, including the decline in revenue from proximity marketing solutions (AdKaora) virtually halted by the lockdown.

Digital revenue as a percentage of total advertising revenue was approximately 48% (up from 42% in 2019).

• distribution activities and other revenue fell by 10% versus the prior year (-9.9% net of discontinuities in 2019).

The Mondadori Group retained its position as the leading multimedia publisher in Italy: on the web, with an 84% reach and approximately 33 million unique users in March[9]; in social media, with an aggregate fan base of 32 million[10]; in magazines, with 16 million readers per month.

Adjusted EBITDA amounted to € 2 million in the first quarter of the year, down slightly versus 1° quarter 2019 (€ 2.6 million), due to the effective measures to contain operating costs.

EBITDA amounted to € 1.8 million versus € 2.3 million in 2019.

In the period under review, the Area recorded an EBIT of € -0.1 million versus € 1 million.

NEW EXECUTIVE DIRECTOR CO-OPTED
The Board of Directors, which met today, resolved to co-opt Alessandro Franzosi as executive director, in view of the position to hold as Chief Financial Officer of the Mondadori Group as from 4 June, as announced on 23 March.

The new executive director was co-opted following the resignation of Oddone Pozzi from the role of director, effective as from 22 April.

Additionally, as from June 4, Alessandro Franzosi will concurrently hold the position of Financial Reporting Manager, pursuant to Article 24 of the Bylaws and Article 154 bis of Legislative Decree 568/1998. The appointment will be effective until expiry of the term of office of the Board of Directors or until a different resolution is passed.

Based on the information available to the Company, to date Alessandro Franzosi holds no shares of the Company.

His professional profile is available on the website www.gruppomondadori.it, Governance section.

The documentation relating to the presentation of the results at 31 March 2020, 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 Management Statement at 31 March 2020 will be made available on the authorized storage mechanism (www.1Info.it) and in the Investors section of the Company’s website www.gruppomondadori.it by today’s date.

PUBLICATION OF THE MINUTES OF THE SHAREHOLDERS’ MEETING
Arnoldo Mondadori Editore S.p.A. informs that the minutes of the Ordinary Shareholders’ Meeting held on 22 April 2020 are available on the authorized storage mechanism (www.1info.it) and in the Governance section of the Company’s website www.gruppomondadori.it.

The Financial Reporting Manager – Oddone Pozzi – hereby declares, pursuant to Article 154 bis, paragraph 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 complete pdf):

• Consolidated balance sheet;
• Consolidated income statement;
• Group cash flow;
• Glossary of terms and alternative performance measures used.

^[1] As from 1 January 2020, the activities referring to Mondadori Group magazines and websites, as well as the equity investments in the Magazines Italy Area, were transferred to the wholly-owned subsidiary Mondadori Media S.p.A.

^[2] GFK, March 2020 (figures in terms of market value). As a result of the COVID-19 health emergency and closure of the physical channel of Bookstores and Chains, GFK has temporarily suspended the presentation of sell-out figures by channel.  The relating breakdown is, therefore, unavailable at this time.

^[3] Product revenue excluding Club revenue

^[4]GFK (in terms of value)

^[5] As from 1 January 2020, all the activities referring to Mondadori Group magazines and websites, as well as the investments in the Magazines Italy Area, were transferred to Mondadori Media S.p.A. (100% owned by Arnoldo Mondadori Editore S.p.A.).

^[6]Nielsen, cumulative figures at February 2020

^[7] Internal source: Press-di, figures at February 2020 (newsstands + subscriptions channel) in terms of value

^[8] Management Reporting

^[9] Comscore (March 2020)

^[10] Storyclash (March 2020)

Italian high school students will this year face quite different final year exams starting from 17 June. The health emergency means there will be extraordinary rules for the much-anticipated exams: the traditional written tests will not take place and all students will face an oral exam in a new format, in front of a commission on internal members, while respecting the social distancing rules foreseen by the MIUR.

And once again, supporting Italian students as they prepare the maturità will be Studenti.it, the Mondadori Group brand, leader in Italy in the digital area in the world of Education with over 4.3 million users per month according to Audiweb and a Facebook page with around 500,000 fans, and which, for more than 20 years, has been helping high school students to get through this important exam.

In recent months Studenti.it has continued to support students who have been kept away from school. With a wide offer of content on its web site and on social media, this has allowed students to have material available for distance learning and to continue their preparation for the final year exam, known in Italy as the maturità. Fundamental teaching resources in this time of virtual lessons, as is confirmed by an online survey made by the brand on a sample of some 3 thousand young people at the end of March. According to both the interviewees and teachers, all of the material available online and on the most common audio and video platforms and useful tools to facilitate distance learning.

Podcasts: new tools for students
The offer of resources and material on Studenti.it has been expanded with a new, practical and easy to use teaching tool: Te Lo Spiega Studenti.it, (Let Studenti.it explain) the brand’s exclusive podcasts for final year students. Every week, four tips focusing on the syllabus of Italian and History, to help students form all streams to revise ahead of the oral exam or an assignment with the main points of a topic or mini biographies of leading figures who have left their mark on history. In just five minutes you can revise an author like Cesare Pavese, a work like Il fu Mattia Pascal or a literary movement, such as the Decadent Movement. But you can also learn what was discovered by Marie Curie, who Charles Darwin was or what happened on 9 November 1989, when the Berlin Wall came down. To these can be added those dedicated to the guides for preparing the maturità, where, for example, students can listen again to how to analyse a text or the techniques for improving your memory of what you are studying.
The technology partner of Studenti.it in the creation of this new content is Spreaker, Italy’s leading platform for the creation, distribution and monetisation of podcasts, conceived for beginner and professional podcasters, and for publishers and companies who want to include podcasts as a tool in their communication strategy.
The Te Lo Spiega Studenti.it podcasts have already been reached 100,000 downloads per month 100 across all of the most popular platforms used by kids and are among the content recommended by Spotify and Google. A result that confirms that listening to audio series is now a fast-growing trend, even among the younger generations: in fact, according to Spreaker the average monthly listener figures for podcasts in Italy  has grown by 50% between December 2019 and March 2020, and podcasts linked to “Education” are always the most popular.

Growing numbers
With its material in support of the world of school, from background materials produced by teachers to conceptual maps, summaries of dissertations and exam guides to podcasts, Studenti.it was able to respond immediately to the need for distance learning in recent months and provide support for students facing the final exam.  The figures for April demonstrate this success and once again confirm the brand’s success, with an increase in traffic of 50% compared with the same period last year. In this period of virtual lessons it has been the teachers themselves that have suggested to their students the resources of Studenti.it and the boom in traffic shows that users recognise the reliability and authoritativeness of the available content.
Studenti.it has also again confirmed its position as leader in search engines for the most important keywords related to the maturità including, maturità 2020, maturità oral exam, paths to maturità and dissertations.

The community on social media
But the Studenti.it team is also supporting final year students on social media, providing information and news about the new form of the exam and helping them to measure up and find solutions to problems related to organisation and teaching. The Facebook page has reached almost 500,000 fans with a group dedicated to the Maturità 2020, to which has been added a new group on Telegram.
To support students in the weeks immediately before the exam and in June during the exam period, the team has developed a format called TG Maturità. This is a programme of live Facebook events to give examinees updates and news about the exams and replies to their most frequent questions. There will also be contributions from a number of guests who will help the candidates with last-minute doubts so that they can calmly face their exam preparation.

The success of the YouTube channel
There has also been a great success for the Youtube channel which has doubled the number of views, thanks to the development of new formats, which join the more traditional video notes. From StudentTalk to StudentTea and tutorials for the oral exam: a series of videos offering useful suggestions and advice for students beyond the didactic content. And then, of course, there is also the participation of authentic stars of digital education, such as Elia Bombardelli with her lessons in mathematics.

After the exams
Studenti.it accompanies students also after the exams, supporting them as they decide on their next steps, with content and targeted tests to orientate their choices and the creation of ad hoc Facebook groups such as Orientamento Università and Test medicina a numero chiuso, which to date have 27,000 and 40,000 members respectively. This is where students can exchange ideas on the best choices for their future, as well as a place to find information about universities, entry tests and receive the latest news on other issues of interest.

As the end of a more complex school year than ever comes closer, teachers at all levels and in all schools, are facing another big challenge: how to assess and grade students at a distance. A key moment in the teaching-learning process. Always a complex activity, in the current situation it is particularly difficult.

In fact, in distance learning, the grading process takes on a different aspect compared with what happens in the classroom. The moments for learning assessment (for example, individual or group activities, digital presentations prepared by pupils with feedback from teachers, the level of participation in lessons) go hand in hand and often replace traditional grading methods (tests and oral exams). The new context has heightened the need for support for the more fragile students and requires inclusive teaching tools and strategies.

Valid support for teachers about to engage in this delicate process is available from Mondadori Education that provides specific content, materials and tools for the certification of skills and the assessment of levels of learning, also remotely: a variety of tests on a range of topics and subjects, maps useful for revision, digital services for each subject and all levels, from primary to first and second level secondary schools. All, even in this emergency period, freely downloadable from the publisher’s web site.

The support path that the publisher offers to teachers will continue in the coming weeks also with a programme dedicated to preparation for the final year exams, as it will be structured this year and, from September, with a practical project for recovery activities in preparation for the new school year.

Of special relevance, regarding assessments, in the HUB Test platform, that is both intuitive and easy to use e semplice and allows teachers to easily manage tests: on the one hand with the possibility of accessing a complete and varied database, and, on the other, to create new personalised tests that can be easily shared with the class.

And then there are activities that focus on teacher training via webinars, with free participation, organised by experts from the publishing house, with explanations and ideas on how to assess, as well as the techniques for assessing both synchronous and asynchronous activities.

On the basis of what has already been done since the beginning of March, as an immediate response to the emergency, to make freely available the entire range digital content for distance learning – over 40 gigabytes of content and more than 12,000 gigabytes of video, audio, customisable maps, playlists, and facilitated texts for inclusion –  the commitment of Mondadori Education continues with the proposal of a complete path to support teachers in the three crucial phases of their work: revision and testing, final year state exams and September recovery programmes.

“The emergency that we have faced, and continue to live with,” underlined Aaron Buttarelli, editorial director of Mondadori Education, “has all of a sudden obliged Italian schools to reconsider, in a very short period of time and often without adequate tools, the entire teaching-learning process. We have always been on the side of teachers and students in the pursuit of innovation and the digitalisation of schools, with a range of services for day-to-day teaching which has now taken on enormous relevance. Including the evolution of the textbook, which is no longer a static printed support but thanks to digital has become both live and dynamic, for more personalised learning, with language and formats able to inform and stimulate interest in learning.”

A commitment that is rewarded by the success among teachers and demonstrated by the data traffic metrics on the platform which has recorded a user base of some 1.5 million active users,  to which have been added, in the last two months,  more than 400,000 new registered users, with an increase of 30 times in the use of  Virtual Classes, more than 15 times for Tests and 6 times for the use of reading Apps and traffic on the site that has grown by 8 times on a daily basis.

The HUB Test offer, is part of the services offered by HUB Scuola, Italy’s most extensive database for digital teaching, and which features a number of other tools, including: the Virtual Class, an environment for the management of teaching activities and courses, exchanging comments, setting assignments and homework and monitoring progress; reading Apps to use digital books; HUB Campus for more detail on different subjects; and the HUB Scuola channel on YouTube with over 1,700 videos, organised in playlists.

The Mondadori Group confirms its position as Italy’s leading digital publisher: Comscore data for March shows that the Group’s brands are in first place, with a total audience of almost 33 million unique users per month. The reach rises to 84% of the online population, with a peak of 91% among women, corresponding to almost 18 women across Italy.

The figures show that it is not only news that has been rewarded in this period of emergency, but also content related to the passions and interests of Italians, and for which the brands of the Mondadori Group are a point of reference, both in print and in digital.

This success is also confirmed by continuously growing results of social networks. In the months of March and April the combined fanbase of Mondadori’s media brands grew more than 1.7 million people overall, with more than 700,000 new fans on Facebook, over 500,000 new followers on Instagram and 200,000 users on Youtube. Today, the combination of all the communities of the Group’s brands across the various social media platforms totals some 33 million people.

This breakthrough has been achieved, in particular, thanks to the results of certain brands who are now established as authentic protagonists in the lives of Italians and leaders in the vertical segments of food, women and wellness.
A leading role that is confirmed by Comscore data and also supported by the results of the Scenario Media 2020 research, recently elaborated by Mondadori Lab on 3,000 representative Italian users. The rich and varied offer of content in the magazines, live events on social media and other web initiatives and projects, has enables the Mondadori Group to remain lose to its readers and users and be rewarded with significantly rising numbers. In fact, these are results that, once again, underscore the strong links between the brands and their communities and a capacity to continue to put people and their interest at the centre.

The biggest success has been achieved by GialloZafferano which has recorded an absolute all-time record in terms of audience of 22.9 million unique users per month and a 59% reach di (Source: Comscore March 2020), a 40% increase in monthly users compared with the previous record in December 2019.
This outstanding result by GialloZafferano is also confirmed in the weekly data of Audiweb which, in March recorded an average of over 12.5 million weekly unique users, an increase of 100% compared with the pre-lockdown period. Plus, on the day before Easter, GialloZafferano recorded another new daily record, with over 4.5 million daily unique users.
According to the Food Media Brand analysis, produced by Mondadori Lab, GialloZafferano is the undisputed leader among media brands on the media web, TV and print, in the kitchen and the hearts of Italians. In fact, more than one in two people consider it an unmissable point of reference in the kitchen. Moreover, for more than 90% of interviewees it is the top brand for assisted knowledge, reaching 55% in top of mind recognition, being cited spontaneously first among cooking brands by more than one in two of the sample. All of these metrics show that GialloZafferano is the leading brand, further confirmation of its role as the point of reference.

Another important result has been recorded by Donna Moderna which, thanks to a winning mix of stories, live events on social media and practical advice, is once again the brand leader in the women’s segment, with 14.4 million unique users per month (Source: Comscore March 2020). In addition, the Scenario Media survey shows that for 47% of the sample Donna Moderna is the top of mind brand in the women’s segment and the number one brand for assisted knowledge both in print (94%) and online (78%). Donna Moderna is described as useful, complete and a product that the sample trusts and which is able to meet their needs

In the health and wellness segment, Mypersonaltrainer is shown to be a point of reference for Italians in terms of health and wellness, reaching an audience of 14.4 unique users per month (Source: Comscore March 2020).