Infrastrutture Wireless Italiane SpA Q4 2023 Earnings Call Transcript

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

Question: Roshan Ranjit - Deutsche Bank - Analyst : Good morning, everyone. Thank you for the question. I guess my one question would be in relation to the raised CapEx and you have presented the picture around derisking given, I guess, the business mix shift to more new services. And you've also changed the guidance to more of a range for total for 26, including Justice arrange for 24. So my question is, how confident are you at the kind of midpoint of the range given the commitments that you've already achieved and should we at this stage already be looking towards the upper end of those ranges? 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. MARCH 08, 2024 / 9:30AM, INWT.MI - Q4 2023 Infrastrutture Wireless Italiane SpA Earnings Call

Question: Roshan Ranjit - Deutsche Bank - Analyst : Thank you.

Question: Andrew Lee - Goldman Sachs - Analyst : Good morning, everyone. I just have a question, simple question on your on the underlying growth in your comments to the group without the potential acceleration in the demand of brain imaging couldn't catch up on the later data cut capacity demand. So bands that we operate, they're trying to work out what's going on in the marketplace. And does it also have been as an industry expectation, towercos across Europe and then ultimately the operators we need to densify more meaningfully than they have been in the 5G world. And it basically came through in a couple of really good second phase of the 5G investments towards the latter half of the decade. So I'm just interested, do you still expect that acceleration in underlying growth to come? And I know you're not necessarily you're not putting it into your guidance right now. Where do you see that the underlying growth not just in terms of phasing into late in 2024, but should we expect that growth to accelerate one day, whether it's declined 26, its economic value, certainly towards the back end of the decade. And just within the context of that question, reflecting on the Cellnex is our own guidance in the midst of the cadence of sales, our underlying service revenue growth, which wishes it had a little bit versus some expectations that you're going to be great to get your thoughts on how you think the industry is progressing on the housing price came back?

Question: Andrew Lee - Goldman Sachs - Analyst : but you do still see the inevitable that we will get that acceleration within this decade. We and obviously, you're not factoring into guidance that's upside to our guidance, but the pension value of Beijing rather rather happens so?

Question: Andrew Lee - Goldman Sachs - Analyst : Thank you.

Question: Jakob Bluestone - BNP Paribas - Analyst : Hi. Thanks for taking the question. I guess it's sort of a follow-up to Andrew's in 2023 you added about 4,000 PoPs. And if I look at your guidance for 24, 26, you're expecting 11,000 over the next three years. So just under 4,000 it doesn't look like your guidance is assuming a big slowdown in PoPs, despite what is, I guess, fairly cautious commentary around the outlook. And so just maybe help us understand the 11,000 forecast. Is that basically assuming that the reacceleration occurs before '26, is that the reason why that doesn't look like there's a big slowdown or am I missing it and if you could maybe just help us sort of reconcile the cautious commentary with the PoP guidance. Thank you.

Question: Jakob Bluestone - BNP Paribas - Analyst : Just to maybe follow up and clarify, I mean, you did 4,200 new PoPs in 23. And on Slide 17, you say, for example, in 24, you're going to do [29 cores in 2011]. And I guess my question is just why is that I'm not seeing a real slowdown in the guided PoPs. Is that the mix change or whether it doesn't actually look like you're your PoP guidance. It's pointing towards a slowdown?

Question: Jakob Bluestone - BNP Paribas - Analyst : Perfect. Thank you.

Question: Fabio Pavan - Mediobanca - Analyst : Yes, hi. Good morning and thank you for taking my question. Reffering to your target leverage, are you winning these new environment within your assumptions in increasing CapEx? You will be less in a period of time with a good degree of financial flexibility. So my better for you, the agreed, are you scouting opportunities for inorganic deal? Or do you think there could be some something materialize in terms of a small portfolio of assets or is it coming from telecom operators or at some point. And you may also try to look to our return discussion? Thank you very much.

Question: Fabio Pavan - Mediobanca - Analyst : Thank you.

Question: Stefano Gamberini - Equita SIM - Analyst : Good morning, everybody, and thanks for taking my question. I am referring mainly to the risks to reach your targets in 2026 in term of revenues and then worried about the auto loss revenues trend because in the first quarter our new hospitality were up 13%, but revenues down 7%. So what is the trend that you expect in the for the coming year regarding the wireless revenues growth? Because if I'm not wrong. The trend will continue in terms of co-location double digit levels, but the risk is that the revenues will continue this decline. And so what are the we can see contingency that you have in order to offset this these trends and the same as the guidance, the anchor tenant revenues trend this outperform. And we saw that these trends should continue but the without the risk related to the contractual commitments of the anchor tenants, what I mean is if I'm not wrong, these contractual commitments and the 2026, do you see some risks in the following years as regard the transfer of new qualifications from the anchor tenance? Many thanks.

Question: Stefano Gamberini - Equita SIM - Analyst : Thank you. Just a if you can spend a few words about the risk you said to be in the upper side of the range. Do you see some signs right now that the situation changed for FWA or frankly speaking, do you see more risk of worsening in the situation?

Question: Stefano Gamberini - Equita SIM - Analyst : Thanks a lot.

Question: Luigi Minerva - HSBC, Research Division - Analyst : Yes, good morning and thank you. If I may a quick follow-up on the share buyback. I just wanted to check if you if there are like technical limitations for you too think of start the share buyback. I'm thinking about the risk of triggering a tender offer for your leading shareholders has as the free float gets reduced through the share buyback. And my question is about in-market consolidation. So we are the official statements on the possible combination between it's faster than Vodafone. I presume the impact on EBIT is limited, but still I wanted to give you the opportunity to elaborate on that. Thank you.

Question: Luigi Minerva - HSBC, Research Division - Analyst : Thank you both.

Question: Usman Ghazi - Berenberg - Analyst : Hello, everyone. Thank you for the opportunity. Diego, I just wanted to go back to kind of this comment that you're making that you wanted to retain flexibility because there could be some industrial opportunities that might arise. I mean what kind of scenarios do you do kind of have in mind? Is it as a result of all these transactions that are happening, you think that there could be a kind of investment that's unlocked and therefore you want to be prepared for that or is it more around the DAS situation? And on DAS, I just wanted to ask I mean, you obviously have a very good competence of deploying this and the solutions and would you consider maybe taking this business outside Italy to some strategic moves? 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. MARCH 08, 2024 / 9:30AM, INWT.MI - Q4 2023 Infrastrutture Wireless Italiane SpA Earnings Call

Question: Usman Ghazi - Berenberg - Analyst : Thank you. Can I ask a follow up. I guess what I'd say your your view on what is available for you to spend through your CapEx is reflected in the guidance that you have, right? So I'm just trying to understand because the headroom, like you said is like EUR1.5 billion. I mean, that means something very material to change for you to, let's say, think about deploying another EUR1 billion suddenly in the next kind of few quarters. So guess I'm just trying to understand whether this is a realistic situation where something of that scale might come up in the timeframe between now and 2026 or I'm not? Thank you. Unidentified Company Representative Yeah, Usman. I briefly mentioned I mentioned before, we are absolutely full execution of the last year of a step-up in dividends and the buyback plan. We aim to retain some flexibility approaching the end of the new year, and we'll be keep on assessing our opportunities, the add-ons and bolt-ons as well as bigger opportunities always with our criteria with this split and financial discipline, industrial that the opportunity to create industrial value, benchmarking the opportunities against the organic returns as well as the return some additional shareholder remuneration.

Question: Fernando Cordero - Banco Santander - Analyst : Hello. Good morning and thanks for taking my question. It is related with and with Jordan, increasing the CapEx envelope and particularly on also willingness to be more active on buying land. In that sense, I would like to understand with just energy have seen an increased risk from land aggregators in the tenant market. And also I would just tell you we'll do half of what we consider to, let's say, to establish a new vehicle like one of REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 08, 2024 / 9:30AM, INWT.MI - Q4 2023 Infrastrutture Wireless Italiane SpA Earnings Call your peers have anounced in order to manage the and the land that you are acquiring in that sense, just to understand your strategy in the front Thank you.

Question: Fernando Cordero - Banco Santander - Analyst : Okay. Fair enough. Thank you.

Question: Antonella Frongillo - Intesasanpaolo - Analyst : Good morning. Thanks for taking my question. Is a follow-up on a previous question on the on risks on the 2026 revenue growth. You said that that that more than 60% is committed. Could you clarify, please on how much of it is? Are we down cost of simply divided between about the finance telecom and the second part of this question is on market consolidation. I appreciate your comment that your previous comment on that matter. Let me ask also if you see any risk from the market, the consolidation on the non contracted that our business or at least the events of potential delay on the contract into one? Thanks.

Question: Antonella Frongillo - Intesasanpaolo - Analyst : Thank you.

Question: Antonella Frongillo - Intesasanpaolo - Analyst : Okay. Is it fair to say that we are 60% committed with the equally divided between Vodafone and Telekom?

Question: Antonella Frongillo - Intesasanpaolo - Analyst : Thank you.

Question: Graham Hunt - Jefferies - Analyst : Yes, thanks very much. And just one question coming back on the CapEx, just would like to know a bit more details. What's changed since the this and the previous guidance was put out around this brought us back up to EUR800 million. And how should we think about are you getting lower returns on this investment. Now given the other guidance points throughout 2023, things haven't changed, but the CapEx has increased. 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. MARCH 08, 2024 / 9:30AM, INWT.MI - Q4 2023 Infrastrutture Wireless Italiane SpA Earnings Call

Question: Graham Hunt - Jefferies - Analyst : Thank you.