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1. Company Snapshot

1.a. Company Description

Rai Way S.p.A. owns and manages television and radio transmission and broadcasting networks in Italy.The company provides terrestrial and satellite transmission of television and radio signals through the network infrastructure, as well as through radio links, satellite, and fiber optic networks.It also offers tower rental services, which include hosting of third party transmission and broadcasting equipment; management and maintenance services; and other complementary services.


In addition, the company provides network services that include heterogeneous services; digital broadcasting networks; transmission networks and management systems; DTT, multimedia communications, and value added services; project management, organization, and processes; and maintenance of transmission network services.It primarily serves broadcasters, telecommunications operators, public administrations, and corporates.The company was incorporated in 1999 and is based in Rome, Italy.


Rai Way S.p.A. is a subsidiary of Rai Radiotelevisione italiana S.p.A.

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1.b. Last Insights on RWAY

Rai Way S.p.A.'s recent performance was driven by a decade of growth, as highlighted in its Q4 2024 earnings call. The company's impressive financial gains are a testament to its strategic navigation of the market. Notably, Rai Way has successfully diversified its operations, mitigating risks associated with energy costs. Furthermore, the company's commitment to innovation and expansion has yielded significant returns, underscoring its position as a leader in the industry. Additionally, Rai Way's ability to adapt to changing market conditions has enabled it to maintain a strong financial footing, positioning the company for continued success.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Does Rai Way’s Strong 26% Rally Still Offer Opportunity in 2025?

Sep -09

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Rai Way SpA (FRA:4RW) (H1 2025) Earnings Call Highlights: Navigating Growth Amidst Challenges

Aug -01

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Rai Way SpA (FRA:4RW) Q1 2025 Earnings Call Highlights: Revenue Growth Amidst Cost Challenges

May -15

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Rai Way SpA (FRA:4RW) Q4 2024 Earnings Call Highlights: A Decade of Growth and Strategic ...

Mar -21

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Rai Way SpA (FRA:4RW) Q3 2024 Earnings Call Highlights: Strong EBITDA and Revenue Growth Amid ...

Nov -20

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.66%)

6. Segments

RAI Group

Expected Growth: 5%

RAI Group's 5% growth is driven by increasing demand for digital infrastructure, expansion of 5G networks, and rising investments in fiber-optic cables. Additionally, the Italian government's push for digitalization and the growing need for high-speed internet connectivity are contributing to the growth. Furthermore, Rai Way's strategic partnerships and cost optimization efforts are also supporting the segment's growth.

Hospitality Fees for Equipment and Apparatus

Expected Growth: 3%

Rai Way S.p.A.'s 3% growth in Hospitality Fees for Equipment and Apparatus is driven by increasing demand for high-quality broadcasting infrastructure, rising adoption of digital technologies, and growing need for reliable equipment maintenance services. Additionally, strategic partnerships and investments in 5G infrastructure are expected to boost revenue.

Other

Expected Growth: 2%

Rai Way S.p.A.'s 'Other' segment growth is driven by increasing demand for digital infrastructure, expansion of 5G networks, and rising investments in smart city projects. Additionally, growing need for fiber-optic cables and data centers, as well as increasing adoption of IoT devices, contribute to this growth.

7. Detailed Products

DAS (Distributed Antenna System)

A network of antennas and fiber optic cables that provide wireless coverage in large areas such as stadiums, arenas, and convention centers.

Small Cells

Compact, low-power base stations that provide high-speed wireless connectivity in urban areas.

Wi-Fi

Wireless networking technology that provides internet access in public hotspots.

Fiber to the Antenna (FTTA)

A technology that uses fiber optic cables to connect cell towers to the core network.

Tower Management

Services that manage and maintain cell towers, including site acquisition, construction, and maintenance.

Network Services

Services that design, build, and operate wireless networks, including network planning, deployment, and maintenance.

8. Rai Way S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Rai Way S.p.A. is medium due to the presence of alternative advertising platforms and the increasing popularity of digital media.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the advertising market and the lack of concentration among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large media companies that supply advertising space to Rai Way S.p.A.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the outdoor advertising market, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the outdoor advertising market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.21%
Debt Cost 5.46%
Equity Weight 60.79%
Equity Cost 6.55%
WACC 6.12%
Leverage 64.50%

11. Quality Control: Rai Way S.p.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rai Way

A-Score: 7.2/10

Value: 3.1

Growth: 5.7

Quality: 8.5

Yield: 8.8

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
San José

A-Score: 6.4/10

Value: 7.8

Growth: 7.2

Quality: 5.4

Yield: 3.1

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
PORR

A-Score: 6.0/10

Value: 8.7

Growth: 4.4

Quality: 4.5

Yield: 5.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Peab

A-Score: 5.7/10

Value: 7.1

Growth: 5.2

Quality: 3.5

Yield: 7.5

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Hill & Smith

A-Score: 5.5/10

Value: 3.8

Growth: 6.7

Quality: 7.0

Yield: 3.8

Momentum: 5.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Severfield

A-Score: 4.3/10

Value: 10.0

Growth: 2.8

Quality: 4.6

Yield: 7.5

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.48$

Current Price

5.48$

Potential

-0.00%

Expected Cash-Flows