Record revenues of 17.5 million for Adelphi books. 'Now new investments'

(Il Sole 24 Ore Radiocor) - The challenge between Feltrinelli and Mondadori for the future of Adelphi is only in its early stages but could decide the fate (and perhaps the control) of one of Italy's most prestigious publishing houses, led until its demise a few years ago by Roberto Calasso. While we wait to see what role the two publishing groups will play in this complex shareholding interlock, Adelphi closed 2023 with record revenues of EUR 17.5 million (+4.5%) and almost EUR 2 million in net profit (stable result). And for the immediate future, thanks to the available cash, the company will be able to 'sustain important new investments on new authors and for contract renewals', according to the report attached to the annual report, consulted by Radiocor.

And this is where the match between the shareholders and the Calasso heirs comes in, who in recent weeks have confirmed Teresa Cremisi as president of Adelphi and Roberto Colajanni as managing director, also recording the new entry of Paolo Mieli on the board. The first move was made by Carlo Feltrinelli by taking over 10% from the Pellizzi family (to whom 3.5% will remain). Next came the surprise reaction of Mondadori, which signed an agreement with Josephine Calasso (who has 23.8%) for a share, again of 10%, in Adelphi (but from May 2027, the heirs' pact not to sell before that date), at a price reflecting an 'equity value' for the publishing house of 50 million euros. The question, among others, is therefore what will happen in three years, when the go-ahead will be given.

The reasons for Segrate's move have also been questioned in recent days by leading brokers. Analysts at Equita point out that Adelphi is "a historic publishing house with an important catalogue of non-fiction, fiction and philosophy", but today has a "fragmented" shareholding structure consisting of the children Franco and Josephine Calasso at 23.8% (before exercise of the put/call option), and his wife Fleur Jaeggy at 14.3%, who "are united by a shareholders' agreement that commits them not to sell before 2027". They are followed by ceo Colajanni at 9.5%, the Zevi family at 15%, Feltrinelli with 10% and the Pellizzi family at 3.5%. "From a strategic point of view we believe that this is a defensive transaction from Feltrinelli, and we believe it represents an optionality for Mondadori in the event of a deal with the majority shareholders when the shareholders' agreement expires." Also according to the experts of Intermonte, "despite the fact that it is a minority stake (and for this reason should not create Antitrust problems), it allows the Mondadori group to become part of the shareholding structure of Adelphi, one of the most important independent publishing houses in Italy".

The 2023 budget report, meanwhile, testifies to the health of the publishing house. The goal for 2024, it says, is to 'confirm the operating results achieved in 2022, in view of a 2023 result that is difficult to repeat and strongly influenced by the publication of two extraordinary and unrepeatable titles in terms of circulation'. The reference is to 'Buchi Bianchi' by Carlo Rovelli and 'V13' by Emmanuel Carrère, among the most valuable authors in the stable (not counting the rights to the works for Italy by Philip Roth, recently passed from Einaudi to Adelphi). And already in the period between January and February, the 20% discount promotional initiative on the entire catalogue 'improved the already excellent sales results of 2023'.

In detail, 2023 closed with a net profit of over 1.98 million, a turnover of 17.5 million (+4.5%), "by far the highest turnover value ever achieved by the publishing house", and an ebitda of 3.17 million (18.7% of revenues). The last few years have also seen a steady increase in turnover with +19.5% from 2020 to 2023: from 14.6 million in 2020, an increase of 9.5% compared to 2019, to 15.6 million in 2021, 16.7 million in 2022 and finally 17.5 million in 2023. In book publishing, Adelphi has a market position of seventh place with a share of 2% of total publishers in quantity and 1.9% in value.