INWIT: Board of Directors examined and approved the half-year financial report as of 30 June 2016

07/25/2016 - 10:31 PM

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  • IN THE FIRST SIX MONTHS OF THE YEAR A PROFIT OF 48.6 MILLION EURO WAS POSTED
  • HALF-YEAR REVENUES 164.9 MILLION EURO
  • HALF-YEAR EBITDA 79.7 MILLION EURO
  • NET GROWTH ON tHE SECOND-QUARTER PERFORMANCE,  COMPARED WITH THE SAME PERIOD OF THE PREVIOUS YEAR
  • PROFIT 2Q'16: 25.1 MILLION EURO (+17.6% yOy)
  • REVENUES 2Q’16: 83.2 MILLION EURO (+5.4% yoy)
  • EBITDA 2Q’16: 40.8 MILLION EURO (+16.7% yoy)
  • NET FINANCIAL DEBT: 82.3 MILLION EURO

PASSED A RESOLUTION FOR A BUSINESS ACCELERATION PLAN THAT ENVISAGES APOTENTIAL INVESTMENT INCREASE OF 150 MILLION EURO ALLOWING FOR A DOUBLE-DIGIT GROWTH OF THE 2016-2018 EBITDA, COMPARED WITH THE PREVIOUS PLAN, ENVISAGING SINGLE-DIGIT GROWTH

  • THE NUMBER OF SITES TO BE BUILT BY 2018 DOUBLES TO 500
  • THE MICROCELLS COVERAGE PLAN WILL BE ANTICIPATED BY TWO YEARS: BY 2018, THERE WILL BE MORE THAN 4,000
  • PRODUCT PORTFOLIO ENRICHED: BACKHAULING WAS INCLUDED with the aim of connecting at least 1,000 TOWERS in 3 years

 

The Board of Directors of Infrastrutture Wireless Italiane S.p.A. (INWIT) met today under the chairmanship of Francesco Profumo, and examined and approved the Half-Year Report as of June 30, 2016.

 

Main Consolidated Results as of June 30, 2016

The  2016 first-half results  confirm the progressive increase in both turnover from the main mobile phone operators and in the profitability of the company’s infrastructure, with a further increase in the co-tenancy ratio and an additional reduction of the passive rental fees.

Comparison with the previous financial year only considers the figures for the second quarter as the company has only been operative since1 April 2015.

Revenues for the half year amount to 164.9 million euro (83.2 million euro in 2Q'16, up by 5.4% compared to the same quarter in 2015), of which:

  • 126.5 million euro (63.3 million euro in 2Q’16) from the TIM Master Service Agreement;
  • 37.6 million euro (19.3 million euro in 2Q’16) from other  customers, including mobile operators and other radio network operators;
  • 0.8 million euro(0.6 million euro in 2Q’16) from hosting fees on new sites.

 

EBITDA totalled 79.7 million euro (40.8 million euro in 2Q’16), with a margin on revenues of 48.3%, reflecting, in particular, an increase of tenants on sites and a reduction in  leasing costs. The 2Q'16 EBITDA growth versus 2Q'15 is around 6 million euro, amounting to +16.7%.

The Operating profit (EBIT) is equal to 73.1 million euro (37.4 million euro 2Q’16, thus showing a 15.8% increase compared to the same quarter in 2015).

The net profit of the half year amounts to 48.6 million euro (25.1 million euros in 2Q'16, up by 17.6% compared to the same quarter in 2015).

CAPEX for the half-year totals 11.6 million euro (7.8 million euro in 2Q’16) and includes extraordinary maintenance,  the purchase of land and long-term right of usage, the roll-out of traditional (new sites) as well as  next-generation (small cells) infrastructure.

 

The net financial debt at the end of the six-month period  amounts to 82.3 million euro.

“The half-year positive results confirm the solidity of our business and allow us to speed up our growth plan." - commented Oscar Cicchetti, Chief Executive Officer of INWIT. “In the first half of 2016, the revenues increased as did the number of customers hosted on our sites with co-tenancy reaching the level of 1.67x. The cost reduction plan continued and the EBITDA margin was one of the "best-in-class", at around 48.3%. The results achieved thus far and the prospects of increased demand for wireless infrastructure led us to follow an acceleration path that includes a potential increase of our investments in the three-year period by a further 150 million euro, which  will enable us to enrich our offer, strengthen the  relationship with our customers, fully value our high-quality assets and accelerate the growth of our margins and our value.”

 

Business Plan acceleration

In light of the good results achieved in the first half of 2016 and the industrial outlook, the Board of Directors has approved a business acceleration path that includes a potential investment increase for the 2016-18 period, which will translate into the acceleration of INWIT's growth plan, with a further growth of the EBITDA expected to be double digit.

In particular, about 150 million euro of the potential additional investments are expected over the 2016-2018 period, focused on three areas:

  • Construction of more than 500 new sites to match the expected demand by TIM and other Operators due to the 4G coverage plans;
  • Deployment  of at least 4,000 small cells to improve the quality of coverage in high-density traffic areas and to be ready for  5G requirements. These initiatives translate into an anticipation at 2018 of the 2020 target.
  • Inclusion of  fibre backhauling in the company service portfolio in line with many other Towercos.

 

***

Expected development for FY 2016:

The mobile infrastructure market is affected by a transformation process caused by a growing number of broadband connections, due to the increasingly widespread use of images and videos both for personal and business purposes.   Such an increase in demand requires further expansion of 4G coverage as well as the enhancement of rmobile network architectures, that need a high number of cells and microcells to provide  high speed and low latencies.

Within such a framework, besides enforcing the growth plan included in the agreements already signed,  INWIT wishes to continue its rationalization and asset enhancement process, as well as invest in infrastructure development and in particular in acquisition of lands and long term right of usage, new sites, small cells, fiber backhauling with an investment acceleration for Small Cells, land acquisition and Backhauling.

Within this particular framework and in line with the above-mentioned actions in the 2016-2018 Plan, a gradual improvement of the operating performance due to the above action is expected.

 

***

The consolidated economic and financial results of the Inwit Group as of June  30, 2016 will be illustrated to the financial community during a conference call scheduled for tomorrow 26 July 2016 at 12 pm (CET). Journalists may listen to the conference call, without asking questions, by calling: +39 06 33168.

The presentation to support the conference call will be made available in advance in the Investors section of the company website www.inwit.it.

***

Pursuant to sub-section 2, Article 154-bis of the Consolidated Law on Finance, the Manager responsible for preparing the corporate accounting documents, Rafael Giorgio Perrino, has declared that the accounting disclosures contained in this press release correspond to the data records, accounting books and accounts entries.

 

 

Disclaimer  

This press release contains predictions of events and future results of INWIT that are based on the current expectations, estimates and projections regarding the sector in which INWIT operates and on the current opinions of its management. These elements have by their nature a component of risk and uncertainty, because they depend on future events taking place. It should be noted that the actual results may differ, in some cases significantly, from those announced due to a multiplicity of factors, including: global economic conditions, competition impact, and political, economic and regulatory developments in Italy.  It should be noted that the Company was incorporated on 14 January 2015 and became operative on 1 April 2015 and the data relating to the corresponding period of the previous year (half-year report at 30 June 2015) only includes 3 months of operation, and is therefore not useful for comparative purposes.

 

Milan, 25 July 2016