In 2024, the Hera Group demonstrated remarkable resilience and growth, reporting a net profit attributable to shareholders that surged over 30%, reaching nearly 500 million euros. This impressive financial performance underscores the company's ability to thrive even in a challenging macroeconomic environment, as noted by Orazio Iacono, the CEO of Hera Group. "The positive operational performances were supported by effective financial management," Iacono stated, highlighting the strategic initiatives that have allowed the company to maintain a solid footing amid market volatility.
One of the key factors contributing to Hera's success is its well-managed debt. The net debt to EBITDA ratio was held steady at 2.5x, a figure that reflects the company's financial strength and flexibility. Iacono emphasized that this economic and financial solidity enables Hera to pursue growth through external lines, in alignment with the objectives outlined in its industrial plan.
Moreover, the company has ramped up its commitment to green transition initiatives, focusing on decarbonization, circular economy, and resource protection. This commitment is further bolstered by funding from the European Investment Bank (EIB), which has facilitated operational investments. In 2024, Hera's gross operating investments reached a significant 860.3 million euros, continuing a multi-year trend aimed at enhancing service quality and asset efficiency. Iacono pointed out that these investments are crucial for making the areas served by Hera more livable, competitive, and resilient.
Meanwhile, Cairo Communication reported mixed results for the year. The company's revenues for 2024 totaled 1.15 billion euros, slightly down from 1.16 billion euros in 2023. However, the EBITDA increased to 186.6 million euros, up from 167.5 million euros the previous year, and the EBIT also saw a rise, reaching 102.6 million euros compared to 86.9 million euros in 2023. This growth in profitability is notable, especially as the net profit attributable to shareholders climbed to a positive 45.2 million euros, up from 38.4 million euros in 2023.
The television publishing sector, which includes La7, performed well, reporting an EBITDA of 21.1 million euros in 2024, a significant improvement from the previous year's 16.6 million euros. The EBIT for this sector also rebounded to 2.9 million euros, recovering from a loss of 0.6 million euros in 2023. Gross revenues from this sector reached 122.9 million euros, with 108.3 million euros generated from advertising on television networks, an increase from 102.2 million euros in 2023.
However, the dealership sector faced challenges, with its gross operating margin (EBITDA) dropping to 1.2 million euros in 2024, down from 2.8 million euros in the previous year. The operational result (EBIT) for this sector was negative, amounting to a loss of 1.5 million euros, compared to a loss of 0.3 million euros in 2023.
In a strategic move, Cairo Communication also announced a partial voluntary takeover bid for its own shares. This operation will not be submitted to the shareholders' meeting scheduled for May 8, 2025, indicating a careful approach to capital management amid fluctuating market conditions.
The contrasting performances of Hera Group and Cairo Communication illustrate the varied landscape of corporate growth and challenges in Italy's economic environment. While Hera continues to expand its footprint through strategic investments and a commitment to sustainability, Cairo faces pressures that require adaptation and strategic maneuvering in its operations.
As companies navigate these complexities, the focus on sustainable growth and financial prudence remains paramount. Both Hera and Cairo are examples of how organizations can respond to market pressures while striving for profitability and long-term viability.
Investors and stakeholders will be closely monitoring these developments as both companies outline their strategies for the future. With Hera's strong financial position and Cairo's efforts to stabilize and grow its revenue streams, the coming months will be crucial in determining their trajectories in an evolving market landscape.
