Infrastrutture Wireless Italiane SpA Q1 2025 Earnings Call Transcript

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

Question: Andrew Lee - Goldman Sachs Group, Inc. - Analyst : Yeah. Good morning. Thanks for taking the question. I'm going to go -- maybe 1.5 and then see whether you are prepared to answer 2. The first question, not sure how much you'll be able to give on this, but just wanted to ask around Swisscom's commentary, which they maintained at their most recent results last week that they are in discussion with you in terms of renegotiating the tower contract in Italy. I appreciate -- you're probably limited on what you can say specifically there but any commentary that can reassure on the solidity of your contracts will be helpful. And then just as a follow-up, a bit better fixed growth in the quarter. Any commentary around the sustainability of that or what you'd need to see to be more confident in the sustainability of that fixed growth would be helpful. Thanks.

Question: Roshan Ranjit - Deutsche Bank AG - Analyst : Great. Morning, everyone. Thanks for the questions. Just a quick follow-up on the previous one around the anchor PoP at 290 in the quarter, and Emilia, I think you said the kind of in line with your expectation. I appreciate there is kind of volatility quarter to quarter, but should we see Q1 '25 as the low quarter in the year for the anchor progression, and should we expect that to kind of accelerate a bit through the year? And second question, just very quickly on the new services, you said that you had 60 new projects in Q1. I think on my calculation in Q4, it was around 40 new projects. So are we seeing the kind of an acceleration in the project step-up, which supports that revenue trend and anything you could say about the price and dynamics of those incremental projects will be very helpful. Thank you. Emilia Trudu - Infrastrutture Wireless Italiane SpA - Chief Financial Officer and Administration, Finance & Control Director Good morning. Roshan. Thanks for the question. For anchor PoPs, let's say, that the rate, our guidance was about 1,250 new PoPs in the year. So the run rate is around 300 PoPs per quarter. And I'd say that the Q1 consistent with the full-year guidance. So that is confirmed. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 8:30AM, INWT.MI - Q1 2025 Infrastrutture Wireless Italiane SpA Earnings Call

Question: Fabio Pavan - Mediobanca - Banca di credito finanziario S.p.A. - Analyst : Yes. Hi. Good morning, and thank you for taking my question. I would like to follow-up on your statement on the opportunities. In particular, I was wondering if given the increasing appetite for infrastructure related to artificial intelligence solutions, we may expect you to look at additional businesses in that part. And also if we may expect some announcement and new opportunities to come this year or rather you think it is something that may come in 2026. Thank you.

Question: Rohit Modi - Citigroup Inc. - Analyst : Hi. Thanks for the opportunity. Some of the questions have been answered, so just one follow-up around the OEO base looking at -- the question is, are you seeing more churn on the [MBNO] side of the OLO base? I know you have a guidance where you have one-third additions coming from OLO and then rest of coming from FWA and IoT. But when you look at the churn, if you can confirm, the churn, how churn is shaping up in terms of -- we are seeing more outflow from the OLO and then how the mix is shaping up overall in terms of the OLO base? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 8:30AM, INWT.MI - Q1 2025 Infrastrutture Wireless Italiane SpA Earnings Call Emilia Trudu - Infrastrutture Wireless Italiane SpA - Chief Financial Officer and Administration, Finance & Control Director Hi, Rohit. Concerning OLOs, PoPs churn is -- there it is no churn. Actually, we see a development of the OLOs before 2025, which is, let's say, absorbed by the non-repetition of non-run rate revenues like works and studies. For 2025, we do expect OLO revenues to remain flat, almost flat, with respect to 2024 and starting again to grow from 2026.

Question: Milo Silvestre - Equita SIM S.p.A. - Analyst : Good morning, everybody. And just follow-up on the new services question. So if you can elaborate here on the trend and say why the trend quarter on quarter is pretty flat, and if you are seeing an acceleration in 20 -- in the second quarter. And then if you can elaborate also in on the RAN as a service opportunity if you see some market opportunity there. Thank you

Question: Milo Silvestre - Equita SIM S.p.A. - Analyst : Yeah, on the RAN as a service, if you see opportunities there.

Question: Giorgio Tavolini - Intermonte SIM S.p.A. - Analyst : Hi, good morning. Thanks for taking my question. The first one is a follow-up on the RAN as a service. In particular, I was wondering if you are assessing what level of returns this opportunity could have when compared to the regional edge data centers. And I was wondering, given a team is open to, let's say, sharing with wintry apparently or with Iliad, I was wondering if this agreement would be in the less populated areas. And what kind of returns do you see in these areas? The second question is on D&A guidance. If you can provide some indication for the year in the Q1, we saw an increasing trend, so I was wondering if it's safe to assume a trend for the full year trending towards 400 million or even above that level. And the net working capital, in the first quarter, we saw a releasing working capital. So what level should we expect for the full year given this is one of the -- one important moving part for your recurring free cash flow.