Infrastrutture Wireless Italiane (INW) H1 2024 earnings summary

Executive summary

• Achieved 8.2% year-over-year revenue growth in Q2 2024 and 8.6% in H1, with margin expansion, strong cash flow, and robust operational execution driven by new site rollouts, increased PoPs, and new services, especially DAS and indoor coverage.

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

• Continued investment in infrastructure assets, including new sites, indoor coverage, and land ownership, supporting long-term growth and 5G densification.

• Investments grew 30% to €152.1 million in H1 2024, supporting network expansion and technology upgrades.

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

Financial highlights

• Q2 2024 revenues reached €257.1 million, up 8.2% year-over-year; H1 2024 revenues totaled €511.7 million, up 8.6%.

• EBITDA after lease (EBITDAAL) increased 11.1% year-over-year in Q2 and H1, with margin up to 72.4% in Q2 and 72.3% in H1.

• Net income rose 10.5% year-over-year in Q2 to €89.3 million; H1 net profit was €179.1 million (+9.4%).

• Recurring free cash flow was €159 million in Q2 and €309 million in H1, with a 68% cash conversion rate in Q2.

• Net debt to EBITDA stood at 4.9x in Q2, with net financial debt at €4,658 million in H1.

Outlook and guidance

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

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

• Dividend policy confirmed with annual growth (7.5% CAGR) and ongoing share buyback plan up to €300 million by October 2024.

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

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