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MM Spa’s 2023 Budget approved: revenues, margins and investments grow

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The Shareholders’ Meeting of MM Spa approved the financial statements as at December 31, 2023. In the year ended, MM Spa generated total revenues of 308 million euros (+3.2% compared to 2022) and a positive net result of 20 million euros, despite the unfavorable conditions of the energy and financial markets that affected the company’s cost structure.

Also positive for EBITDA, which grew compared to last year (+39%), reaching 74.1 million euros. Investments amount to 62.2 million euros. Finally, the net financial position was reduced from 240 million euros at the end of 2022 to 209.5 at the end of 2023. Net equity stands at 266.5 million euros.

During 2023, Moody’s agency kept its rating on MM at Baa3 (with an update of the outlook from negative to stable, following the change of outlook assigned to Italy’s sovereign debt), continuing to position the company in the Investment Grade area.

MM Spa, a company wholly owned by the Municipality of Milan, has 1,337 employees and in 2023 confirmed its commitment to providing support to institutions and companies, in Milan and beyond, from the conception to the realization of projects, to offer quality public services, putting the needs of citizens at the center. MM designs and supervises the construction of infrastructure for more sustainable mobility and urban spaces for the community, is a qualified contracting station and supports public bodies in the procurement of goods and services. It takes care of houses, schools, sports facilities and ensures that Milan’s water is good and safe because it is controlled.

“We are satisfied with the results that emerge from the 2023 budget,” said Simone Dragone, president of MM Spa, “and for this I want to thank the commitment of colleagues who work every day for the care of the city. From the budget data I underline the increase in gross operating margin that will allow a greater and more effective investment capacity with an eye to innovative projects in the various MM divisions. It is a data that looks to the future and pushes us to renew our commitment in strategic sectors for citizens.”

“We have approved a very positive budget,” added Francesco Mascolo, CEO of MM Spa. “The skills and passion of MM’s teams contribute to these results, which also confirm the effectiveness of an action plan implemented in a time of global crisis that has seen the increase in the costs of energy carriers, raw materials and interest rates.”

Last year, MM’s integrated water service achieved an EBITDA of 65.7 million euros and investments of 56.2, in line with the amount envisaged by the area planning. Not only that, ARERA rewarded MM for achieving technical quality objectives: zero grams of sewage sludge sent to landfill, 100% treated and reused. The trend of improving performance also continued for the reduction of network losses and the commitment to the development of innovative projects, with an increasingly strong use of digital tools for better efficiency in the management of infrastructure and service to 2 million users.

The Engineering Division welcomed the entry into operation of the M4 section that connects Linate airport to the city center. In addition, it won the tender for the M1, the first metro line in Tel Aviv (85 km long with 62 stations) and is also engaged in the development of metro and metrotram lines throughout Italy (Naples, Genoa, Padua, Bergamo, etc.). 2023 saw the completion of the Seveso basin to protect the city from flooding.

The Casa Division in 2023 continued to manage the 28,000 apartments owned by the Municipality of Milan in which over 45,000 people live, also promoting social initiatives for tenants. MM has reduced the number of squatters occupying the city’s public residential building stock by 70% in almost ten years. In addition, collaboration with the Municipality of Bergamo was initiated, taking over the management of the ERP property (988 dwellings and 288 parking spaces, with a user base of 1,620 tenants).

MM’s contribution in 2023 progressively extended to the maintenance of the Municipality of Milan’s assets, starting with schools and sports facilities, and consolidated in the care of greenery in ERP complexes. Significant was the company’s commitment to addressing the problems resulting from the extreme weather events of last July, with interventions on trees and heavily damaged schools.

The budget can be downloaded at this page