Infrastrutture Wireless Italiane (INW) H1 2024 earnings summary

Executive summary

• Achieved 8.2% year-over-year revenue growth in Q2 2024, with margin expansion, strong cash flow, and high volumes of new sites and real estate transactions, supported by new site rollouts and increased PoPs.

• Enhanced shareholder returns through higher dividends and ongoing share buyback, while maintaining a resilient business model amid Italian telecom industry transformation.

• Continued execution of the 2024-2026 business plan, leveraging structural demand for digital infrastructure and 5G densification.

• The business model, focused on shared digital infrastructure, supports 5G network development and addresses the digital divide.

Financial highlights

• Q2 2024 revenues reached €257.1m, up 8.2% year-over-year; recurring revenues up 8.3%.

• EBITDA after lease (EBITDAAL) grew 11.1% to €186.1m, with margin up to 72.4%.

• Net income increased 10.5% year-over-year to €89.3m, with a net income margin of 34.7%.

• Recurring free cash flow was €159m in Q2, with a 68% cash conversion rate.

• Net debt to EBITDA stood at 4.9x, reflecting increased shareholder remuneration but down from 5.0x in Q2 2023.

Outlook and guidance

• 2024 revenue expected in the €1,030–1,060m range, with EBITDA margin projected above 91% and EBITDAAL margin around 73%.

• Recurring free cash flow forecasted at €620–640m.

• Dividend increase and treasury share buyback up to €300m by October 2024 confirmed.

• Full-year target of 2,000 new anchor PoPs is on track, with 1,000 delivered in H1.

• Inflation protection mechanisms in place, with 100% of anchor MSA macro site revenues linked to prior-year CPI.