The Board of Directors of Infrastrutture Wireless Italiane S.p.A. (INWIT), meeting today under the chairmanship of Stefano Siragusa, examined and approved the Interim Report on Operations at March 31, 2018.
Main Results at March 31, 2018
In the first three months of the year, the results confirm the gradual increase in both turnover from the main radio operators and the profitability of the infrastructure. These results stem from a further increase in the co-tenancy ratio, the continued containment of passive leasing costs and the gradual growth in revenue from new services. In particular:
Revenues in the first quarter of 2018 amounted to 95.5 million euro, up 6.0% from the same period of 2017, net of some non-recurring income (+10.5% reported), of which
- 65.2 million euro are from the TIM Group relative to the service contract, the Master Service Agreement, for the sites conferred
- 26.4 million euro derived from third-party revenues on the towers conferred, benefiting from some non-recurring income as well.
- 3.9 million euro from the impact of hosting new sites and new services
EBITDA totalled 55.3 million euro, with a margin on revenues of 56.1%, net of some non-recurring income (57.9% reported), reflecting, in particular, the increase in hosting and the reduction in leasing costs. The value grows by 16% net of non-recurring income (+24.9% reported) compared with the same period of 2017.
Operating profit (EBIT) was 52.1 million euro, with an increase of 16.7% from the first quarter of last year, net of non-recurring income (26.2% reported).
Net profits for the period recorded a new peak, which totalled 36.4 million euro, up 12.8% from the first quarter of 2017, net of non-recurring income (+26.4% reported).
The business investments for the period amount to 10.8 million euro and were directed at acquiring land and building rights and the creation of new Sites and micro-cell coverages.
The Recurring Free Cash Flow stood at 47.5 million euro, up by 94.6% compared with the same period of 2017, net of non-recurring income (+112% reported), benefiting from a strong EBITDA growth.
Net financial debt totalled 8.9 million euro (9.9 million euro less than the debt as of March 31, 2017) and equalled less than 0.1 times annualised EBITDA.
“I am proud to continue growing a company which in recent years has achieved very valuable results – comments Giovanni Ferigo, CEO of INWIT – INWIT will continue to strengthen its leadership in the Italian market, attracting increasing numbers of customers by implementing next generation infrastructure to enable the development of 5G, a fundamental stage of which today lies in small cells. In terms of results, the first quarter of the year confirms growth in all the main indicators, which has allowed two-figure growth to be achieved in EBITDA and cash generation to be doubled compared with the same period of the previous year”.
Outlook for the 2018 financial year
In light of the final results at March 31, 2018, the Company confirms the guidelines, already disclosed to the market.
The wireless infrastructure market continues to undergo a transformation process and a growing demand for services from mobile operators and other radio network players.
Mobile Operators are seeing an increase in their Access Points to expand their 4G coverage and prepare for the evolution from 4G to 5G. Fixed Wireless Access providers are increasing their networks to expand coverage and improve the quality of service offered to customers. Other radio players are already in the market and the entrance of new entities specialized in specific product/market segments is expected thanks to the new use cases enabled by 5G.
These market dynamics, combined with the growing willingness of operators to share infrastructure, have driven INWIT to forecast additional growth in its traditional business and a sharp acceleration in new businesses.
Events after March 31, 2018
The INWIT Shareholders’ Meeting on April 13, 2018, to approve the financial statements of the Company for 2017, resolved to distribute a dividend of 0.19 euro per ordinary share to the shareholders.
Revocation of the convening notice of the Shareholders’ Meeting of May 23, 2018
The Board of Directors
- considering that the Shareholders’ Meeting of INWIT of May 23, 2018 was convened on the assumption that the Shareholders’ Meeting of the parent company TIM S.p.A. of April 24, 2018 would select the Group Auditor for the period 2019-2027;
- noting that the aforesaid Shareholders’ Meeting of TIM did not reach a decision regarding the appointment of the external auditor for the period 2019-2027;
- having received a communication in which the parent company TIM states that TIM is not in a position to make any statements on the matters included in the agenda for the INWIT Shareholders’ Meeting of May 23, given that no decisions were taken on this matter during its own Shareholders’ Meeting;
has determined that it is not possible to hold the Shareholders’ Meeting of INWIT on May 23, and has therefore revoked the convening notice.
Corporate governance issues
The Board of Directors acknowledged the appointment of Director Luca Aurelio Guarna as Chair of the Control and Risk Committee and Director Filomena Passeggio as Chair of the Nomination and Remuneration Committee.
The Board of Directors also appointed Director Enrico Maria Bignami as Lead Independent Director.
Finally, the Board of Directors has received a communication from the Board of Statutory Auditors stating that, during its meeting of April 18, 2018, it verified that its members fulfilled the requirements to hold their posts and ascertained their independence, particularly in relation to the criteria set forth in the Corporate Governance Code for listed companies.
The economic and financial results of INWIT at March 31, 2018 will be illustrated to the financial community during a conference call scheduled for tomorrow, May 11, 2018 at 2 p.m. (CET). Journalists may listen in to the presentation, without asking questions, by calling: +39 06 33168. The presentation supporting the conference call will be made available in advance in the Investors section of the company website www.inwit.it.
Pursuant to subsection 2, Article 154-bis of the Consolidated Law on Finance, the Manager responsible for preparing the company's accounting documents, Mr Rafael Giorgio Perrino, has declared that the accounting disclosures contained in this press release correspond to the documentary evidence and the accounting books and records.
INWIT drafts and voluntarily publishes the Interim Reports on Operations for the first and third quarter of each financial year.
The interim financial statements at March 31, 2018 are not audited.
The accounting criteria adopted for the preparation of the Interim financial statements as at March 31, 2017 are standardised with those used in the financial statements at December 31, 2017, with the exception of the adoption of new accounting standards IFRS 15 and IFRS 9, adopted as from January 1, 2018 and which did not have any effect on the financial statements at March 31, 2018.
In addition to the conventional financial performance indicators contemplated under IFRS, INWIT uses certain alternative performance indicators in order to provide a clearer picture of the trend of operations and the company's financial position. The meaning and content of these indicators are explained in the annexes.
Note that the section "Business Outlook for the 2018 financial year", contains forward-looking statements about the INWIT’s intentions, beliefs and current expectations with regard to its financial results and other aspects of INWIT's operations and strategies. Readers of this press release should not place undue reliance on such forward-looking statements, as final results may differ significantly from those contained in the above-mentioned forecasts owing to a number of factors, the majority of which are beyond the Company’s control.
Rome, May 10, 2018