Average return on equity (ROE) of leading book publishers in Italy 2016-2018

Mondadori Libri S.P.A. was the company generating the highest return on equity between 2016 and 2018 in the book publishing sector in Italy, according to the data provided by Prometeia. The return on equity is obtained by dividing the net income of a company by the shareholders’ equity. The ROE measures how successfully a company manages its equity. Together with the return on investment (ROI), it is the most important financial indicator to assess a business profitability.

Mondadori book publishing

The book publishing house Mondadori Libri S.P.A. belongs to the bigger Gruppo Mondadori, operating in the media publishing sector. Since 2017, the book publishing business of the group experienced decreasing revenues. Additionally, Mondadori’s share in the Italian book publishing market shrank from 27 percent in 2013 to 25.3 percent in 2019. However, the publishing house remained the major player in the Italian market.

A market in deep crisis?

With its 24 bookstores and seven mega stores, Mondadori operates nationwide in a very challenging sector, where only big chains and e-commerce perform well. In 2020, the lockdown and the following economic crisis induced by the coronavirus (COVID-19) disrupted the book market even more. The pandemic changed the scheduling of book releases and therefore their promotion, while influencing individuals’ reading habits. As a result, COVID-19 impacted heavily on the value of Italian bookstores’ sales.