Inwit Welcomes Inflation; Company Progresses Well Through 2022; Maintain Our FVE

Narrow-moat Inwit's first-quarter results were in line with our and market expectations. Revenue grew organically by 9.1% as Telecom Italia and Vodafone deployed 620 new points-of-presence, or POPs, jointly, as they continued to expand their networks in Italy. Growth from other tenants was slower this quarter, at 230 new POPs (450 last quarter), but management expects an acceleration to 400 in the second quarter. All this resulted in EBITDA (after leases) growing by 12.4% with margins expanding by 200 basis points to 67.1%. Although we might fine-tune our forecasts, we don’t plan any material changes to our EUR 10.70 fair value estimate, which represents 6% upside compared with the current share price.