Infrastrutture Wireless Italiane (Milan:INW) Q3 2026 Earnings Call

0:00 Good morning, this is the Coral School Conference operator. Welcome and thank you for joining the INWIT third quarter 2026 results conference call. As a reminder, all participants are in listen-only mode, and after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Luigi Minerva, Strategy M&A and Investor Relations Director of Inuit. Please go ahead, sir.

0:37 Good morning, everyone, and thank you for joining us today. Here with me, I have Diego Galli, InWits General Manager, and Emilia Trudu, CFO. Before we begin, please allow me to draw your attention to the safe harbor statement on page two of the presentation. Following a presentation of the Q3 2026 results, we will open the floor for Q&A. Over to you, Diego.

1:09 Thank you, Luigi, and good morning, everyone. Q3 2026 results are in line with our full year 2026 guidance, which reflects the current market context. The telco sector in Italy continues to go through a challenging phase with low returns and minimum investments. Such market conditions are reflected in our mid-term baseline outlook. But the market cannot be stuck forever. 5G network densification is needed, even more so in the context of the ongoing frequencies renewal process. We continue to believe that our ANCORS MSA early termination notices are instrumental and fall outside the legal framework of the MSAs and that both MSAs are valid until 2038.

2:09 Inuit runs very efficiently the best, quality and largely unique network. There are no rational alternatives to Inuit network from a strategic, operational and financial perspective. Inuit remains committed to invest while collaborating with customers to identify shared value-for-value solutions on a fair and rational basis. Moving to Q3 results, new sites and new POPs reflect the current market context. We continue to make progress on real estate transactions. As we anticipated, revenues on a reported basis are declining year on year by around 1%.

2:59 Revenues are negatively impacted by the absence of uncommitted revenues linked to discretionary projects from ANCORS as well as from ONOS. If we were to remove such discretionary project-based revenues from the Q3 2025 numbers, Q3 2026 revenues would show normalized annual growth of around 3%. EBIT after leases margins are at around 72%, confirming the efficiency of our business model. Our leverage ratio improves from 5.7 times in Q2 to 5.5 times, the midpoint of our guided 5 to 6 times leverage corridor.

3:52 At current share price, INWIT offers a dividend yield of 7.5%. I hand it over to Emilia now for a review of KPIs and financials.

4:03 Thank you, Diego, and good morning, everyone. Operational KPIs in the quarter reflect the current challenging market context. The deployment of 50 new towers in this quarter keeps us on track to reach our target of around 200 new towers in 2026. 310 new POPs were added in the quarter, and we continue to aim for more than 1,500 new POPs in 2026, targeting a year-over-year continuous growth in tenancy ratio. IoT POPs are in relative terms increasing and come with incremental lower-than-average ARPO.

4:49 We delivered 290 real estate transactions in Q3, slightly below down compared to previous quarters, reflecting our continued disciplined approach. Year-to-date, we have built 70 new dedicated DAS. We are increasing tenancies on existing locations, while growth in new locations is limited, given the low level of uncommitted activity by MNOs. The normalized 2025 total revenue base takes into account the lack of project-based, non-committed revenue components, which we have developed over time with operators capturing their discretionary spending.

5:35 Such discretionary budgets have been put on hold at this stage, given the current context of subdued operator investment and stagnant commercial relationships. Adjusting for these one-off step-downs, we delivered approximately 3% normalized revenues growth in Q3 2026, driven by the following components. Inflation link, based on a 2025 average index of 1.4%. Anchor commitment, new towers, new pubs, and DAS deployment in line with MSA commitments. Stediolo's growth across other MNOs and IoT, and smart infra growth, particularly in indoor dust across premium locations and projects in the smart city vertical.

6:28 Normalized growth is structural, and we expect the business to go back to growth in 2027 in line with the mid-term baseline outlook. Moving on to our financial highlights for the quarter, Q3 revenues reached $268.6 million, up 0.6% quarter-on-quarter, and down 0.9% year-on-year, representing around 3% normalized revenue growth year-on-year, as we just discussed. The revenue components included Tower Anchors revenues and the rest of the world. In the last two years, we have seen a decline of 2.8%, supported by inflation and MSA commitment. Conversely, OLOs and smart infra revenues were down as a result of the lack of project-based revenues, such as work and studies, installation, upgrades and DAS, more than offsetting the underlying growing number of POPs and DAS locations covered.

7:35 EBITDA was up 0.5% quarter-on-quarter and down 2% year-on-year to $241.9 million with an EBITDA margin of over 90%. EBITDA after releases came at around $192.3 billion, up 0.7% quarter-on-quarter, down 2.8% year-on-year with a 71.6% margin Reflecting the structural operational efficiency of our business model, which allows us to support substantial investments with long-term returns. And as a reminder, we close 2025 with a return on capital employed of 8.4%.

8:23 Year-to-date, recurring free cash flow reached €486 million, about stable year-on-year, with 67% cash conversion. This was driven by structurally low recurring capex, efficient tax thanks to the goodwill tax scheme, positive networking capital, and financial charges profile that reflect phasing of interest payments. Looking at the recurring free cash flow components in Q4, we expect it to be in line with the full year recurring free cash flow guidance range. We expect a usual seasonality with cash tax payment, financial charges reflecting the coupon payment schedule, and we also expect a networking capital reversal in Q4.

9:15 Below the recurring free cash flow line, growth capex was just above €40 million in Q3 and €200 million year-to-date. Full year total capex are expected to be in line with our previous indication of €270 million. The cash flow to equity year-to-date is about €287 million. Moving to our financial structure, leverage ratio declined to 5.5 times the midpoint of our guided leverage range of 5 to 6%. We have an efficient debt profile, 80% fixed, 20% closing, with a current average cost of debt of approximately 3%, and average bond maturity above 4 years. The first relevant maturity is the 750 million euro bond due in 2028.

10:20 Both Standard & Poor and Fitch have reaffirmed their credit rating. We have investment rate with Fitch with credit watch negative and BB Plus with Standard & Poor with stable outlook. I now hand it back to Diego for the guidance and the closing section.

10:43 Thank you, Emilia. We reiterate our 2026 targets and medium-term baseline outlook reflecting the current market environment. Even in the unrealistic scenario in which the market remains stuck over the medium term, we would still be able to have a decent organic growth at around 3% for revenue and 4% for EBITDA, an attractive stable dividend and a solid balance sheet. The baseline outlook does not include the following potential upsides. Normalization of industry dynamics, densification for both outdoor and indoor, opportunities to expand across digital infrastructure.

11:33 At the same time, the baseline outlook does not include the downside risks of MSA's actual termination, as we don't believe this is a likely or realistic outcome. Moving on to the MSA and the relationship with our armed force. First, an update on the legal process, which in itself remains long and complex. The judges reviewing the injunctions have concluded that the case lacks the required level of urgency. The next legal step is the ordinary trial, initiated by FastWeb in March, where the focus will be purely on the merit of the case, in particular on the events that led to a change of control of the unit.

12:30 Change of control did happen in August 2022, when the shareholder agreement between Telecom Italia and Vodafone Group was terminated. At the time it would properly trigger the change of control clause with the contractual extension by 16 years to 2038. FASTWAD instrumentally states that the change of control happened in 2020 when the Inuit stake was transferred between fully owned Vodafone entities. However, in 2020, there was only an internal reorganization within the Vodafone Group without any impact on Inuit's joint control.

13:21 This has been also confirmed by recent statements from the Italian Financial Market Regulator Consul and Vodafone Group. and a different interpretation would have triggered mandatory tender offer in 2020, which clearly didn't happen. The MSA termination case is under the attention of the relevant authorities, including the financial market regulators and the competition authority. In particular, the Italian financial market regulator with regards to the assessment of transparency and completeness of information provided by Fast Urban Team in relation to the MSA termination and the Competition Authority with regards to the Tower Jump Venture as a potential agreement with anti-competitive effects extended to the Tower Market.

14:19 Finally, about the Lawyers Assisted Negotiation with Team, it has been a useful process even if did not lead to an agreement as we stand. On this matter, also on the back of our engagement, the sector regulator AGICOM has initiated a conciliation process to facilitate the parties to voluntarily reach an agreement. From an industrial standpoint, the MSA dispute creates a deadlock, putting the industry fundamental at risk. This slide is a summary of how the different layers overlap.

15:06 I will make three observations. According to the MSA, the site's repatriation should be completed in its entirety no less than three years after the termination date. This is also required so that INWIT can assess the best industrial and commercial opportunities available on the market for its network as a matter of priority. At present, for instance in case of FastWeb, there is no contractual arrangement in place that ensures FastWeb the access to INWIT's network after March 2031.

15:54 This timing is not consistent with any foreseeable scenario of migration and build-up of a new network, which may last from 12 years, in the optimistic case, to 30 years, in our realistic view. 2029 Frequency Renewal Process AGICOM proposal for frequency renewal in exchange for investments leading to material network improvement with tight quality of service milestone. This is not compatible with the termination of in-width contract as level of service could not be even maintained while repatriating the best network.

16:43 Duplication will last decades, will delay densification and cost billions. Lastly, FastWeb Ordinary Trial will last several years, overlapping with the Repatriation Plan, adding additional uncertainty on the development of any plan alternative to InWheels Network. The ongoing spectrum renewal process can unlock a new cycle of investments. We support AGICOM proposal to link the spectrum renewal to the current holders with the future CAPEX commitments to support network quality improvement and the country digitalization.

17:34 Factoring in AGICOM new proposed quality of service KPIs and milestones, we estimate that the Italian market may need more than 15,000 new sites by 2035. In the current industry structure, where there is separation between tower calls and service companies, we believe that MNOs should undeniably prove guaranteed access to the passive towers infrastructure for the full length of the license. Furthermore, the Spectrum Renewal Framework should discourage duplication of infrastructure and support stability and predictability.

18:19 to the benefit of the entire industry. Our network of about 26,000 sites is our key strategic asset, is the result of 40 years of work from team Vodafone Inuit, where we could take the benefits of first mover advantage to build top quality sites in the best available location. Our network is the result of the consolidation of multiple networks, best quality location, connected with fiber, close to 20% of land owned, optimized risk-cost-best tenancy ratio.

19:05 About 75% of the network is made of unique locations that will be hard to replicate. INWIT is a strategic infrastructure critical to national security and economy. and as standard in the industry, our network is available to our anchor tenants on all or nothing basis. The tech industry in Italy continues to go through a challenging moment. The MSAs are structured in a way that creates value for both Inuit and its anchors. thanks to the consolidation of the infrastructure and the unlocking of sharing synergies to the benefits of all parties.

19:55 Neutral host players such as Inuit can help, leveraging on sharing economics to deliver investments in digitalization in the most efficient way. And we overlay our network with strong industrial capabilities. with the proven record to build and deliver new sites at scale, an experienced real estate team to optimize lease cost, project management and engineering capabilities for complex network rollout. Our pure infrastructure business model allows access to longer capital with the benefit of an efficient cost of capital These are the foundations that allow us to be the best partner for M&Os and for their investments in network densification.

20:52 And we continue to be open to constructive conversation with our clients. From our perspective, it's key to respect the integrity of the MSA as a long-term contract, and we are open to optimize further the terms within the current perimeter in conjunction with new investment commitments aiming to a win-win outcome in terms of positive net present value for all parties. Concluding, Q3 results are consistent with our 2026 guidance. We reiterate both 2026 and midterm guidance. There is no rational case for duplicating in with superior infrastructure, which represents the best-in-class market assets.

21:44 to address Italy's critical need for network densification and enhanced resilience in which stands out as the best option. And we remain committed to ongoing investments and open to collaborate with ANCORS on fair, value-driven solutions for all parties. With this, we thank you for your attention and we open to point A. Thank you. This is the Chorus Call Conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions.

22:31 Anyone who has a question may press star and 1 at this time. The first question is from Andrew Lee, Goldman Sachs.

22:40 Good morning, everyone. Wanted to ask some questions around the contract disputes and just recognizing that the situation certainly isn't lacking in complexity. So I'm just going to have a go at some big picture questions. First one, just We've now got AGCM, AGCOM, CONSOB, three senior authorities all getting involved in those contract disputes. So the big picture question is how likely in your view are these efforts to accelerate a resolution of the disputes? And do you see the net inference of their involvement as positive for you? Second question, Which of the three efforts amongst the AGCM, AgCom and Consob is the most important, do you think, in potentially driving a resolution?

23:33 And then thirdly, AgCom acting as an arbitrator or facilitator of a meeting between you and Tim, I think that can come as early as the 26th of November, maybe wrong on the date there, but just wondered if you've all agreed to attend the meeting on that day yet, and when we'd find out if you do. Thank you.

23:58 Thank you, thank you, Andrew. Yeah, I think that the perspective is that with this critical and strategic infrastructure, the MSA dispute actually goes beyond, let me say, a simple commercial The discussion goes beyond because, as we said, we think that the industry is in a deadlock and this is actually putting at risk the current framework as well as the needed development and the intensification of investments.

24:43 The authorities within their remit are involved. I think that's the reason why, because we are talking about, again, a critical infrastructure with relevance from different perspectives. We think that the involvement is positive for the industry and for INWIT, and we are positive about the AGC from involvement, the sector regulatory involvement. That's an additional avenue which can be pursued and explored to help the parties reach an agreement on the conciliatory basis.

25:28 The first meeting is called by the end of November. We don't expect this to be a quick and fast process, but there could be some steps, and by the end of November we will be able also to understand better if and how the customer will join this conciliation process.

25:55 Okay, thank you. Welcome. The next question is from Andrej Czaveszek, UBS.

26:07 Hello, good morning, and thank you for the presentation. I had also two questions on the MSA, please. So one is effectively you're saying or you're highlighting the fact that, you know, the The transition period, or what do you call it, the repatriation plan, is supposed to last at least three years as per the MSA, which I guess the wording would be protective or give more protection to the tenants. At the same time, you mentioned on the call that basically there is no guarantee in the case of You know, this MSA becoming void of, you know, tendencies on your retirees beyond 2031. So on this, you know, issue, can you just provide a bit more clarity?

26:59 You know, how practically speaking does this work? In terms of by when does the anchor actually have to vacate all of the sites under the kind of all or nothing clause? Because there seems to be a bit of contradiction in some of this wording. That's question number one, please. And question number two, again, I guess referring to the fact that You know, you highlight the all or nothing clause. Your customers seem to think that they will have a bit of an easier time, you know, taking sites in steps gradually away from you.

27:47 Should there be a situation of basically no active or actively No active MSA and basically kind of a free market arrangement, if you will, year by year, however that would be structured. In this case, you know, the all or nothing doesn't necessarily apply with immediate effect, but then at the same time, The pricing mechanisms no longer apply either. So I guess the question would be, how easy is it for you, given the non-replicability that you highlight on something like 75% of your footprint, to basically make up for the potentially disappearing sites over the medium to longer term by simply raising prices on what you say is effectively monopolistic infrastructure.

28:42 Thank you. Yes, thanks, Andrea. Let me try. First of all, clearly, let me reiterate that we do believe that the contracts are valid until 2038 as we properly followed the triggering and triggered the change of control clause in 2022. That's for us clearly a foundation. However, if we If we talk about fast work, they send us a termination. So they do believe something different and I'm playing out scenarios following the termination we did receive, whereby the contract expires according to them by 2028.

29:42 If the contract expires after 2028, there is no other contract. So actually, They don't have access, any legal right to get access to our network. Then, of course, being an infrastructure, there is a transition period. Transition period is defined as at least three years, which, also considering other standards or other contracts in the market, is quite long. Our point is that we need to get visibility as soon as possible because we need in our interest and to protect the interest of the landlord which has received termination of the contract to be in the condition to decide what to do with our assets.

30:38 We receive the termination, the tenant has signed the termination, we did receive it, we need to protect the interest of the contract Thank you very much. on which sides, which towers are left when within the three years, because we have the right to market our assets at the best terms, at the best condition and to choose, considering that the tenant has sent the termination.

31:31 Let me make an example. Sorry if I keep on elaborating on this. Let's take the 650 towers we have in Rome. They have a market price. They are very valuable. After March 2028, we need to assess how and when and what price to market those towers to any potential customer. That's the picture we are trying to explain. Again, we do believe the MSA lasts until 2038. if the other party believes that last until 2028 if they need to get ready and to give us back the flexibility and the right to market the towers.

32:23 So then on the all or nothing, the all or nothing is a foundation of the MSA contract in our case as well as Thank you and if you may please answer also the kind of pricing

32:55 Yes, I mean, that's again, I think it's what already said.

33:25 There is a vacuum there, clearly. I mean, there is already a template which can be easily used, which is simply extending the MSA and considering the MSA valid until 2038. That's a template which is ready to be used immediately. Otherwise, We will have all the flexibility to market our assets as we do consider proper to maximize the value of the company. Thank you very much. Welcome. The next question is from Roshan Ranjit, Deutsche Bank.

34:09 Good morning, everyone. Thank you for the questions. I've got two as well, please. And thank you for the detail on the timeframes and the moving parts. Can I check what intervention can AgiCom take? Can they enforce A decision which yourself and TI have to accept. I guess in the back of their minds they have the framework for the Spectrum Renewal, which needs to be formalised by the end of this year. So how would it work? Are they just sitting in a room and listening to what you guys have to say or can they dictate what you have to agree to? And secondly, can I ask on the market growth opportunity?

34:55 You have raised the market growth potential 15,000 new towers. I think before it was between 7 and 12, perhaps a few more years added. But is that driven by... Densification or more coverage, what is the driver of that increase? Thank you

35:17 Thank you, Roshan. On the first question, the AGICOM may conduct supervisory reviews about the industry, and within these reviews may ask information to the operators, and in case of controversy, can facilitate The reconciliation between parties. So it's a conciliation process cannot impose. On the densification, yeah, previously in our estimate we did foresee the need for the industry by 2030 of a range between 7,000 to 12,000.

36:13 New Towers, and that's basically densification for capacity in urban areas for coverage in suburban and also for transport corridors. And now, honestly looking at the consultation document, Thank you very much. Thank you very much. The country in Italy has been under investment for a while now due to the low returns on the investments which the industry has suffered.

37:18 And there is a catch-up to be done. And again, we think that the approach comes from the For the frequency renewal makes sense because it's supporting the opening of a new cycle of investments for the benefit of the industry and the digitalization of the country. And to catch up then it's needed to densify the network to complement the existing grid with additional towers and point of presence.

37:49 That's very helpful. So just to check, the 15,000 or greater than 15,000 new towers, you think that reconciles with the kind of milestone coverage obligations that the regulators put out for the free consumer renewal? Is that the right way to think about it? That's the logic, yes. Okay, got it. Thank you. Welcome. The next question is from Abilash Mohapatra, BNP Paribas.

38:19 Hi, morning. Thank you for taking my question. I just wanted to come back to the migration plan comments, please, just to maybe ask it slightly differently. As you say that the MSA specifies that there is at least three years migration period. Is there any specific guidance on what is the upper limit for the migration period in the MSA? and if not, on what basis or effectively what is your thinking that sort of drives you to say that the 12-year transition period that Syscom have pointed to is not realistic? Thank you.

39:00 Yeah, to be specific, no, there is no upper limit. There is another limit which is related to the case when Inuit send the termination, and in that case the migration period is six years. in the case in which send the termination. But back to the termination sent by the tenants, it's a conscious choice by the customer, by the operator, and the network and the contract is available to them with automatic renewal, If instead the customer terminates, I should assume they have an alternative plan and I should build my alternative reaction.

40:02 and in order to, again, optimize the commercial value of the infrastructure and to make decisions in the perspective of the best industrial and commercial value and enhancement opportunities. So it's in with Wright. to get back the availability of the network following the termination of the party. And this, just to be clear, as we were a few days ago, there is no right from the party which sent the termination based on their conscious choice, there is no right from their side to unilaterally determine the timing and the procedure for vacating the assets.

40:56 And or the MSA does not allow that the repatriation period to be transformed in an arbitrary and indefinitive or fragmented migration in which needs to have a clear plan to explain into details how Pastop is going to give back the towers in the TRIAD framework and this has to be agreed between parties by March 2027. Got it, thank you.

41:35 Welcome. The next question is from Alexander Totomenov, Green Street.

41:43 Thank you for taking my question. You just mentioned that an agreement with FASWEB, assuming the determination notice were valid, has to be agreed by March next year. Have you started any discussion with TWICOM whatsoever, and what happens if there is no such agreement by March next year?

42:08 Yes, according to the MSA, the details of the repatriation plan must be agreed by March 2027. At this stage there is no agreement between us and Fastweb regarding the migration. So that will be an ongoing discussion and we will see where it does lead. Our position is clear, as I just stated a few minutes ago.

43:02 The next question is from Fabio Pavan, Mediobanca.

43:09 Yes, hi, good morning, and thank you for taking my question. Actually, some follow-up, I'm afraid, again, on the dispute. First of all, I wanted to know if I understood properly what you just said. You are currently engaging in any form of conversation with the two anchors. Second question is a very quick follow-up on Agicom. This process of calling for a conciliation Is a due act or is something that they decided to try to solve this issue? And the third question I have for you is that if you think Agicom may link this MSA dispute to the Spectrum renewal. Thank you.

44:10 Thanks, Fabio. With regard with the discussion, conversation with the anchors, with FASTO, we are discussing about the immigration plan, With Telecom, we have been engaging on the legally assisted process, which, as I said, in my view, was overall helpful. But anyway, we didn't get to an agreement. And I hope we will engage with the support and the facilitation role of Adicom to move forward and to reach Win-win, a reasonable agreement for all. With regards to Agicom, Yeah, it's a conciliation process.

44:58 I'm not sure I understood 100% your question, but let me try. It's a conciliation process, and then it will be up to the parties to enter the process and to do their best to reach an agreement. There is no specific timing for the process. Thirdly, yeah, the frequency renewal process. As I said, we think the current framework is positive for the industry, giving visibility and certainty to the MNOs. about the renewal and asking for additional investments, which, again, it makes sense for the industry and would help Italy to catch up on 5G and digitalization. So I think, again, it's a positive approach, which we do support.

46:07 At the same time we do believe that in the current industry framework the MNOs should prove to get access to passive infrastructure as a prerequisite to get the frequency and to get the frequency renewal because without access to the passive infrastructure the frequency actually do not serve the purpose. Then, the last bit I would add is that I don't think that the quality improvement of the network quality improvement which are required to comply with the current framework of the frequency renewal, I don't think they are achievable.

46:55 When being engaged with a migration plan and with the setup of a new network. So the two things are not consistent. um yeah because clearly actually repatriation the best network in Italy building up a new one will actually will not even allow to maintain the current quality levels so it's clearly absolutely impossible to think about improving those

47:33 If I may, a quick follow-up. Could you elaborate a little bit more on the win-win outcome you just have flagged as an option? Thank you.

47:45 Yes, thank you. I really appreciate the question, because actually we have been entertaining on a sort of chess game here, and people talking about legal and, let me say, value-destroying scenarios, which we are forced, unfortunately, to think about. Our approach, since the beginning Here there is a great opportunity and need for the industry, which is the densification of 5G to support better quality and the country digitalization.

48:30 in a framework of a frequency renewal process which may support the entire industry. I think it's a great opportunity and we keep on willing to play our part. And so we are, as already discussed in the past, we are open to think about and discuss about the regulation of future inflation. We are open to discuss on how we can optimize further the prices for new investments. We are open to discuss about the current perimeter, looking for ways to exchange values. We are open to discuss and consider the value of the contract duration.

49:20 So there are many topics which may allow us to identify a solution which has a material benefit for the MNOs. and Benefit for Inuit as well, in a framework of a fair, constructive approach to look for a win-win solution where, again, nobody loses and both win. Thank you, Diego. Welcome. The next question is from Paul Sidney Berenberg.

49:58 Thank you very much, good morning everyone. I just have three quick questions. Apologies for sort of building on the MSA dispute questions we've had already, but just a couple of follow-ups. The dispute with Tim, AgCom intervening in this meeting on the 26th of November, summoning is quite a strong word. Does that suggest that there's growing frustration from the government and the regulator on this ongoing dispute. Is that the correct interpretation? And has the Italian government made any comments or any comments from politicians over the past few months? And then just looking at the recent assisted negotiations that you had with Tim that didn't reach an agreement, can you give us any further detail on how far away the two parties are, what the main stumbling blocks were, I appreciate it's confidential, but could you just give us a bit more idea about how those negotiations went? And then, sorry, just on clarification on the medium-term outlook, it's incredibly complex. There's so many moving parts and many potential outcomes over the next few years. But I just wondered, could you just give us what is the assumptions in the medium-term outlook?

51:13 Just give us a reminder of what your assumptions are. Thank you.

51:20 Thanks, Paul. Different topics. On the first one, again, I think it's on the AGICOM facilitation process, I think it's a welcome initiative which may help to get out from the deadlock, and I think it's The logic is that it would be in the interest of everyone, in the interest of the industry. So that's the logic of the intervention. I think that overall, now time has passed, this story has started several quarters ago, and I think that it's probably time to move on, and that's why, because honestly, There are several, can I say, streams, and as we try to explain, not moving on would be a deadlock for the industry and would destroy value for the industry and all parties involved.

52:41 For us, duplication is really a waste of money. is a waste of capital in the moment where material capital is needed to invest in value-added activity and we do believe that it should be much better to exploit the current infrastructure to leverage on them instead of duplicating and I think that this is honestly quite common sense. On the second element, on the assisted negotiation, yeah, thanks for your understanding. You mentioned that clearly there are some commercial sensitive topics, so let me say that overall there have been some interesting points which came out also to understand better each other and the needs of the different parties, but was not enough to get to On the medium-term outlook, yes, I see your point, but I think that also On the other side, the baseline plan is a plan where actually we have assumed no discretionary investments from the MNOs and no densification.

54:06 So actually what we assumed is the clearly continuation of the MSA We have assumed the contractual, the commitment to continue for the next few years as contractually foreseen and the clearly inflation and some development of the business with other customers. So it's actually a quite balanced scenario, which takes us, considering the inflation, which we assume is basically 1.5%, and the development of the business as I described, revenue growth of 3% and EBITDA growth of 4%.

55:06 So that, I would say, is the overall logic of the baseline plan. And that's the guidance to 2030, which is quite clean and logical in the current context. Then, as things will evolve, There will be the opportunity to integrate it considering again the upside of densification, the upside of the normalization, the opportunity for it to expand across digital infrastructure and the closing, the resolution of the MSA dispute as well.

55:53 That's great, thank you. Could I just have a quick follow-up? Is there any reason why FASWEB hasn't been summoned to some sort of meeting by ASCO more? Could that happen in the next few months as well?

56:04 Yeah, it could happen.

56:05 Okay. Perfect. Appreciate your comment. Thank you. Thank you. The next question is from Ben Rickett, New Street Research.

56:19 Hi guys, thank you. I have two questions please. So firstly, just following up from Paul's question earlier on your negotiations with Tim, I was interested if you've seen any change in the tone of Tim's negotiations following the postie takeover. Have they changed their demands, for example, or what they want from the negotiations? And then the second question, just on your leverage. I mean, given that interest rates have been rising recently, I'd just be interested in your latest thoughts on whether you're still comfortable sitting in the middle of your five to six times leverage range or whether you might target a more conservative leverage going forward. Thank you.

57:17 Thanks, Ben. I think that on the negotiation with him, I mean, I think that, as I said before, overall, some borders have passed, and I think it's... It may be time to move on, to find a resolution and with a long-term view in the framework of the frequency renewal process. So compared to a few months ago, something has changed or has been changing. and may go into the right direction to support an environment whereby parties may find an agreement and we keep on working on that.

58:09 So the densification need means additional investments and we can play a part of that and can be a value to exchange. It can be a way to exchange value between parties. A team, as they declared, having a more long-term view with an overall commitment and objective to be the digital champion of the country, again in my view is supporting a view which may may lead our customers to consider even better the strategic value of Inuit infrastructure and the value of a strong partnership, refreshed, renewed, to invest together for densification in the most efficient way from industrial and financial point of view.

59:03 With regards to the leverage, I think we are fine with the current corridor. Clearly, we are, with Emilia and the team, monitoring very, very strictly, and we are pleased with the reduction of the leverage compared to the previous quarter, but overall, we are fine with the corridor as defined between five and six times.

59:30 That's clear. Thank you.

59:32 Thank you, everybody. We've run out of time for this call, but for any pending questions, we are at your disposal, so please do not hesitate to get in touch with the team and we will get back to you. Thank you very much and speak to you soon. Goodbye. Thank you, ladies and gentlemen. Thank you for joining the conference. It's now over and you may disconnect your telephones.