Half Year 2020 Infrastrutture Wireless Italiane SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : A few questions, if I may. First of all, regarding the 1,000 additional tenants. What is the share of Vodafone and TIM of this 1,000 share that you -- 1,000 tenants that you expect? The second, regarding the EBITDA IFRS 16 margin on pro forma basis for the full year. You reached a level of 93% in the first -- second quarter, sorry, could we project the same level also for the full year? The third regarding the 10,500 additional tenants from Vodafone and TIM during the plan. If I'm not wrong, these figures was 13,000, including also the new sites. Do you confirm this figure? And when we could expect the coming from new sites? Very final question, sorry for that. The target you spend during the business plan was an increase of revenues and EBITDA in the region of 5%, 7% up to 2027. Could we expect that this range could be already reached in '21, considering that you are accelerating and you expect a strong acceleration now in 2020? 1,000 tenants means a 2% growth, more or less, of tenants. Do you expect an acceleration in forthcoming year going this range or not? Diego Galli - Infrastrutture Wireless Italiane S.p.A. - CFO, Head of Administration, Finance and Control & Business Support So let me start from the first. The mix -- as we said, the 1,000 will be a mix of Vodafone and TIM, will be other operators, will be fixed wireless access. The current mix is around 40% Vodafone and TIM, and 60% the rest. But let me say that we will see on the results based on the final split based on speed of execution. So we are running fast on both. And so we'll be really depending upon the -- a little bit the, as I said, the speed of execution. Sorry, about your number. Yes, we are absolutely confirming the numbers that we shared there in the July business plan, and we are confirming them all. So there is no change to the total volume that we have already communicated. In terms of growth rate, clearly, how can I say? We will provide plenty of details in November when we will share the new 3-year plan. And the -- I think that your approach on the exit is the right one. You're talking about volume. There is a value component. But we do expect the tangible step-up in terms of volume to accumulate across the next fiscal year. So quarter after quarter, as we said, there will be the growth impact of a 4-digit growth in terms of number of tenants. So can I say, I'm not in the condition now to share a number, but clearly, it is a significant change and a tangible growth. You mentioned the EBITDA margin on -- we -- for sure, we expect an EBITDA margin above 90% for the full year. There is a little bit of timing in phasing across the quarter. So yes, above 90% is our expectation. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2020 / 9:00AM, INWT.MI - Half Year 2020 Infrastrutture Wireless Italiane SpA Earnings Call