(88.37% of share capital)




The following information refers to the key consolidated figures of GEDI for the first half of 2020.

For a correct interpretation of the data, it should be noted that the income statement data prepared for EXOR consolidated reporting purpose reflect the period 1 May 2020 to 30 June 2020, considering that the acquisition date is 30 April 2020.

  I Half  
€ million 2020 2019 Change
Net revenues 249 303 (54)
Gross operating profit (12) 20 (32)
Adjusted operating profit (20) 8 (28)
Net loss from continuing operations (121) (2) (119)
Net loss (including discontinued operations) (121) (19) (102)
€ million 06/30/2020 12/31/2019 Change
Shareholders' equity 274 394 120
Net financial debt 112 99 13


Results in the first half of 2020 have been significantly affected by the spread of the Covid-19 virus and the consequent restrictions needed for its containment introduced by national and local authorities. All Group brands have further consolidated their central position and authority in providing accurate information to readers, recording particularly significant increases in digital traffic.

In this context, GEDI prioritized actions to guarantee the health and safety of its workforce and swiftly adopted a series of measures for further rationalization and reduction of costs, aimed at containing the economic and financial effects deriving from the sudden drop in advertising revenue, whilst continuing investment according to the strategic guidelines identified.

To contain the economic repercussions, GEDI also introduced and put in place a series of containment and reduction measures regarding all the main cost items, intervening more specifically on the structure of publications, existing contracts with suppliers and freelance workers, by renegotiating tariffs and fees, on labour costs by seeking recourse to the social safety nets made available by the Government, as well as with the voluntary reduction of managers’ fixed remuneration from May - December 2020.

€ million I Half 2020 I Half 2019 Change
Circulation 126 135 (9)
Advertising 102 147 (45)
Add-ons and others 21 21 0
Total 249 303 (54)

Consolidated revenues totaled €249 million, down by 17.8% compared to the first half of 2019. Revenues from digital activities accounted for 14.2% of consolidated revenues (18.4% on the Repubblica brand). Circulation revenues, for €126 million decreased by 6.6% compared to the corresponding period the previous year. The effects of Covid-19 and restrictive measures introduced at regional and national level affected negatively on the performance of sales at newsstands.

Meanwhile, sales of digital subscriptions confirmed their positive trend, supported both by continued actions to maximize consumer-base and increased new activations following growing attention of readers to news regarding the spread of Covid-19. In this context, a promotional policy was introduced for premium products and on annual dual-copy subscriptions.

All these measures increased the customer base, which at the end of June had reached 231 thousand subscriptions across all the GEDI publications, almost double the amount at the end of the same month in 2019, and higher by about 104 thousand subscriptions compared to the end of December 2019.

Advertising revenues at €102 million, were down by 30.8% compared to the first half of 2019. The drop can essentially be attributed to Covid-19.

With reference to the Group’s different platforms, over the six-month period, print advertising was down 31.9% and radio 41.6%. The drop in internet advertising revenues was slightly less marked, at -8.1%

Net loss

Net loss for the first half of 2020 was €121 million, including the impairment losses on goodwill of publications of €74 million net of taxes, restructuring expenses in addition to the extraordinary components impacting on net profit for €6 million. Over the six-month period, impairment losses of €6 million were also recorded on the investment held in Editoriale Libertà and Editoriale Corriere di Romagna and €9 million for adjustments on deferred tax assets due to the worsening forecasts for the recovery of previous tax losses due to Covid-19.

Net loss for the first half of 2019 included the impairment loss of €17 million on the investment held in Persidera (discontinued operation).

2020 Outlook

In a context of visibility that remains poor, certain leading operators in the sector forecast that the advertising revenue market may experience a drop of between 15% and 20% in 2020 based on the various scenarios for predicted Covid-19 effects. A drop of these proportions has only been seen during the 2012 financial crisis, where the market fell -14.3%. With the current situation, all elements feeding into forecasts for the year remain significantly uncertain, given that these depend, inter alia, on the development of the pandemic and the effects in coming months of the public measures that have already been and are still to be implemented. The circumstances listed render any forecast that the company can formulate extremely uncertain. GEDI is focused on doing everything within its power to manage the crisis: it has implemented further measures to reduce costs and contain expenditure on investments that are not strictly necessary. It is regularly reassessing liquidity positions, through dialogue with its financial partners, and continues to adopt all health and safety measures required to safeguard its employees, as defined and requested by the various local authorities. GEDI believes that it has adequate leverage to guarantee a positive outlook over the medium-long term, even in a macroeconomic context that has inevitably been compromised for 2020.

Commercial Register No.64236277 Legal notes | Credits