Infrastrutture Wireless Italiane (INW) Q3 2024 earnings summary

Executive summary

• Q3 2024 results showed continued growth in key financial and operational metrics, with revenues up 7.6% year-over-year and EBITDAAL up 9.0%, supported by expansion in sites, PoPs, and indoor coverage.

• Over 900 new towers/sites to be added in 2024, driven by 5G coverage and densification needs, reinforcing market leadership.

• Industrial execution remains strong, with high delivery volumes and a focus on digital infrastructure and smart city projects in Italy.

• Investments totaled €216.8 million (+12.0%) in the first nine months, supporting network expansion and technology upgrades.

• INWIT published its first Climate Transition Plan, targeting Net Zero by 2040, validated by SBTI.

Financial highlights

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

• EBITDA after lease (EBITDAAL) was €189.5M in Q3 (+9.0% YoY, 72.8% margin); nine-month EBITDAAL at €559.6M (+10.4%, 72.5% margin).

• Net income in Q3 was €87.0M (+2.2% YoY); nine-month net profit at €266.0M (+6.9%).

• Recurring free cash flow in Q3 was €159.1M (+3.1% YoY); nine-month free cash flow at €468.1M, down 2.0% due to higher taxes and financial expenses.

• 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 range; 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 assumes cumulative CPI of 3% and improvement in OLO performance.

• Long-term growth visibility supported by CPI, MSA commitments to 2030, and operational plans.