Inwit Earnings: Strong Start To 2023 With Double-Digit Growth in Revenue and Profits

Narrow-moat Inwit continued its healthy pace of organic growth during first-quarter 2023, with revenue growing 12.8% thanks to new tenants and consumer price index-linked escalators, which resulted in EBITDA after leases growth of 18.9%, a 71% margin, and 360-basis-point expansion year over year. The tenancy ratio is now 2.19 times (2.05 one year ago), the highest among European tower companies. Italy is one of Europe’s healthiest tower markets due to high competition among mobile operators, which keep deploying radio equipment across the country. We maintain our EUR 12.60 fair value estimate, which we increased in March after management raised its guidance.