He raised the upa Rcs after years of losses, but now that defeat in the arbitration award on the building in via Solferino which contrasts it with Blackstone, is likely to turn into a deadly boomerang for the group that edits the Corriere della Sera. Per Urban Cairo, who strongly wanted the clash with the US fund on the sale price of the headquarters of the first Italian newspaper, the verdict of the arbitration announces big trouble.
Nothing will forbid a Blackstone to go ahead with his head down in the lawsuit a New York for the claims for more than $ 300 million in damages to Rcs for the failure to sell the property of via Solferino ad Allianz. A bargain faded from 250 million after that Cairo opened the dispute on the price by speaking explicitly of usury. Wear that according to the arbitration board there wasn’t.
And now the joke is served. The figures involved are such as to knock out his RCS. Lui Urbano Cairo, the managing director, as well as the controlling shareholder, took care of not suffer any personal damage. The Rcs Board of Directors voted the indemnity for Cairo in the event of losing with the related multi-million dollar compensation claim. Self Blackstone will win the case in New York then i damage will all end up on the company. Which is likely to turn back the clock for years, the years of millionaire losses under the management of the so-called Good lounge.
THE YEARS OF THE RCS RELAUNCH
After the first few years of strong revival, now also Rcs pays duty to the crisis. When the Alexandrian businessman conquered Rcs in the summer of 2016, a group that it invoiced a billion but lost 175 million. And salt costs matched revenues. Already in 2016, here is the turning point: first small profit of 3.5 million. And then a long ride to the upside with profits climbed to the peak of 85 million in 2018.
The cure worked, thanks to one meticulous cost cutting work. I revenues in fact continued to decline. Four years later in late 2020, Rcs he finds himself with only 750 million in revenues, losing 250 million in revenue along the way. But really the care of costs has done the miracle of profits.
RCS WITH CAIRO LOST REVENUES OF 250 MILLION, COMPENSATED BY CUTS OF 350 MILLION COSTS
Cairo in the course of its management has cut total costs for the beauty of 350 million. Here is the miracle. With declining revenues even for the first Italian publisher, the strong acceptance on the cost front allowed to regain margins and profits. But more than that, the cost cure has a limit. You can scrape the barrel as much as you can but eventually the cuts hit the bottom too. And indeed in the last 2 years, profits have taken a downward path. Give it 85 million in 2018 at the end of 2020, profits thinned to just over 30. And with the first quarter of 2021 here is the loss of 3.2 million. In fact the publishing crisis does not let go and the crest of revenues is gradually decreasing. Cairo “scissorhands” has been very skilled in the early years to restore profitability and efficiency acting on costs of which he has control, less, much less can do on revenues. And so RCS presents itself weakened today in the face of a possible claim for damages by Blackrock.
(Continued: the heritage is in danger of being affected. Then, there is not only Blackstone, but also the crisis of Unidad Editorial and the worry La7)