At the time it took place we welcomed the listing process as a profound strategic and operational discontinuity for the Company. And today we are able to say that 2015 has been a year of confirmation for Rai Way.
A confirmation of being able to manage change, of knowing how to open up to the market and - even more importantly - of knowing how to work within it, affirming the infrastructural, technological and innovation leadership developed within the RAI Group to the outside world. A complicated challenge, a genetic mutation that has required us to combine our value as civil servants dedicating attention to the customer RAI with our new role as an independent Company, suitable structured and highly focused. Commercial commitment, organizational readiness and strategic clarity are the ingredients that have enabled us to keep the promises we made to our new shareholders on listing, together with economic and financial results that mirror our strong orientation to growth in an economic situation that is only gradually beginning to recover.
Activity on the commercial front was especially intense.
Our main customer, RAI, has long been undergoing a transformation process that has led to the emergence of new demands and different priorities. I am speaking here of multi-channel distribution, digitalization, content and image quality. Our role, therefore, cannot simply be restricted to ensuring that we discharge our public service obligations. Rai Way must act as the technical driver for innovation, also enhancing the exclusivity on new services contained in the Service Agreement. In 2015 agreements were finalized for providing new services worth over €10 million in terms of capital expenditure. Among these the LTE broadband technology broadcasting service launched as part of the EXPO fair acts as a confirmation of excellence for Rai Way. The year also saw the start of negotiations with several TV, radio and telecommunications operators and the renewal of the fourth and last long-term hosting agreement with mobile telephone operators; fundamental steps for the stability and future growth of our work with third party customers. From an operating standpoint, several initiatives were introduced that are designed to improve the productivity of our resources: from energy to spaces, from equipment to personnel.
On the management front the organizational changes continue in line with our competitive positioning and approach to the enhancement of human capital. Industrial relations were strengthened, with these being directed towards the development of a participation model, and change management initiatives were introduced together with those involving development and training. In addition, Rai Way's new Business Plan was approved and presented in September containing details of scenarios, guidelines and objectives through 2019. A Plan which apart from its numerical aspects following the listing represents a strong signal of long-term strategic vision and commitment towards the financial markets. In 2015 Rai Way posted revenues of €212.3 million, a rise of 2.4% over the previous year on a pro-forma basis1. In addition to the effect of the step-up in the fixed fee provided by the New Service Agreement, revenues also include the first contribution arriving from the innovative services for RAI and the consolidation of activities for third party customers despite the fact that the benefit from the inflation-indexing adjustment, typical of our agreements, is still negligible.
Adjusted EBITDA of €109.4 million, which rose by 4.1% over pro-forma 2014, and profit for the year of €38.9 million, representing an increase of 16.0% on a pro-forma basis, benefited from operating leverage and the effect of steps taken to improve efficiency.
Capital expenditure on the one hand highlights the effort being made to rationalize maintenance capital, at the same time preserving the quality of the infrastructure and the level of service provided, and on the other the contribution of development activities, which represent the driver of future growth. The net financial position, with a fall to 0.38 in the ratio with adjusted EBITDA, confirms the high level of cash generation and reinforces the flexibility available for remunerating shareholders and taking advantage of future market opportunities. We set out by saying that 2015 was the year of confirmation. A confirmation that is looking two different ways: the promises we made in the past and our commitment for the future of Rai Way.
- 1.Further information on the pro-forma figures can be found in the section "Summarized economic and financial data".