Infrastrutture Wireless Italiane (INW) Q3 2024 earnings summary

Executive summary

• Q3 2024 and the first nine months saw continued growth, with revenues up 7.6% in Q3 and 8.3% year-over-year, driven by hosting contracts, new services, and expansion in sites and indoor coverage.

• EBITDAAL margin expanded to 72.8% in Q3, with EBITDA margin at 91.1%; net profit for Q3 was €87.0M, up 2.2%, and nine-month net profit reached €266.0M, up 6.9%.

• Over 900 new towers/sites delivered in 2024, with strong demand from 5G coverage, densification, and indoor DAS projects.

• Investments totaled €216.8M in the first nine months, supporting network expansion, technology upgrades, and smart city projects.

• Dividend policy and share buyback program confirmed, with €0.48 per share paid for 2023 and €300M buyback completed.

Financial highlights

• Q3 2024 revenues: €260.3M, up 7.6% year-over-year; nine-month revenues at €772.1M, up 8.3%.

• EBITDA: €237.2M in Q3 (91.1% margin), up 6.4%; EBITDAAL: €189.5M (72.8% margin), up 9.0%.

• Net profit in Q3 was €87.0M, up 2.2%; nine-month net profit at €266.0M, up 6.9%.

• Recurring free cash flow in Q3 was €159.1M, up 3.1%; nine-month free cash flow at €468.1M, down 2.0%.

• Net financial debt at €4,581M, leverage stable at 4.8x–4.9x EBITDA.

Outlook and guidance

• 2024 revenues expected at the lower end of €1,030–1,060M; EBITDA margin above 91%, EBITDAAL margin around 73%.

• Recurring free cash flow forecasted in the lower part of €620–640M.

• Dividend growth and share buyback policy confirmed through 2026, with DPS to grow at 7.5% CAGR, reaching ~€0.60 by 2026.

• 2026 guidance and business plan targets confirmed, with continued investment in digital infrastructure.

• 2024 CPI expected at ~1%, with each 1% CPI change impacting EBITDAAL by over €5M.