Inwit's third quarter 2020 accounts and industrial plan are liked by the Stock Exchange: le actions of the mobile network tower company, controlled for a third by Tim and for a third by Vodafone, are at the top of the Ftse Mib after a debut at +6% and a positioning at +4,7% around 10 on Friday morning .
The enthusiasm of investors on a sluggish day for the Milanese index (-0,6%) is reflected both in the quarterly performance and in the 2021-2023 plan which provides for a sharp increase in investments in 5G development and an increase in dividends for shareholders.
INWIT, THIRD QUARTER ON GROWTH
In third quarter of the year the Inwit transmission tower group achieved revenues of 186,1 million (+0,9% compared to the second quarter), ebitda of 172,8 million (+0,7%) and profit of 40,3 million euros (+5,7%). Compared to the pro-forma values for the same period of the previous year (which includes the pro-forma value relating to Vodafone Towers and allows for comparison on a like-for-like basis), revenues grew by 1,9%.
in nine months of 2020 revenues amounted to 473,5 million euros, ebitda to 432,4 million, profit to 111,9 million.
From the point of view of industrial results, the data highlight the growth of hospitality on the sites (+510) by the main mobile operators and FWA, and the creation of over 600 new units relating to Das systems (distributed antenna systems) for micro-coverage indoors. The 2020 guidance, also thanks to the results for the quarter, has been updated and improved, with revenues close to the upper limit of the 'range' communicated in July 2020, and Ebitda, recurring free cash flow slightly above the communicated values.
INWIT, INDUSTRIAL PLAN FOR IMPLEMENTATION ON 5G
"We achieved acceleration in the third quarter as promised in July." These are the words with which Giovanni Ferigo, CEO of Inwit, presented the quarterly accounts and the 2021-23 business plan to analysts. “We have – he continued – a strong position to capture the opportunities of digitization led by 5G”. Furthermore, “we are committed to a plan that will have an attractive return for shareholders”.
In terms of numbers, the company expects an average annual growth of 8% in revenues distribution of 900 million in dividends, maintaining “one billion of financial flexibility”.
The recurring free cash flow is expected to increase on average by 23% per year with a progressive reduction of the financial leverage to a ratio of 4,6x by 2023. From an industrial point of view, strong growth is expected with over ten thousand new accommodations over the three-year period to support development of 5G by Tim and Vodafone. The plan includes "a significant increase" in hospitality for all mobile and FWA market operators.
The dividend policy was approved within the industrial plan: €0,30 per share starting from the dividend for 2020 payable in 2021 e increase in subsequent years of the plan equal to 7,5% per annum, substantially in line with the growth of the business.
“The 2021-23 business plan – said Giovanni Ferigo – envisages strong growth for the company over the next three years: we will invest around 600 million euros to support our business. We are ready to play a leading role in the digital transformation in support of operators” in the development of 5G, FCA and micro-coverage with Das and small cells. Just a few days ago a first agreement on small cells in cities was announced by Tim and Inwit. Finally, the plan includes tools for sustainability and a carbon neutrality target for 2025.
Inwit is not the only one in the world to invest and attract investors. It is precisely the development of new networks and the objectives of digitizing communications that are pushing the operators of the towers to favor the growth of not only national level "champions". This is the case of the Spanish Cellnex which on Wednesday 4 November presented its accounts for the first nine months with boom in revenues and Ebitda.
