BREAKING NEWS

In the press release dated May 7, 2025, Intred SpA, a telecommunications operator listed on the Euronext Growth Milan market, announced that revenues as of March 31, 2025—unaudited and inclusive of revenue generated by the subsidiary Connecting Italia Srl, acquired on April 3, 2024—amounted to over € 13.90 mln. Organic growth of 8.1% compared to the same period of the previous year demonstrates the strength of the Company’s business model and the continued expansion of its customer base. Compared to the previous quarter, revenues remained essentially stable (+0.3%), a figure mainly impacted by the gradual reduction of one-off revenues related to the school tenders—now nearing completion and expected to transition into recurring fees—and by the launch of the new management strategy for Connecting, aimed at rationalizing the service offering. The latter seeks to eliminate less profitable or non-strategic services in order to improve efficiency and margins. For reference, in the first quarter of 2024, Intred alone had reported revenues of € 13.00 mln, mainly attributable to fiber connectivity sales amounting to € 8.40 mln. Organic growth in the first quarter of 2025 was primarily driven by sales of Ultra Broadband connections, which reached € 8.10 mln, and by Voice and Data services, totaling € 2.50 mln. Once again, Intred demonstrates the soundness of its strategic positioning in the recurring-fee services segment, the Company’s core business, with revenues amounting to € 13.00 mln, equal to 93.2% of the total, up 10.2% year-on-year. This result confirms Intred’s ability to consolidate a continuity- and profitability-oriented model, leveraging its proprietary infrastructure and the quality of its offering. From a geographical standpoint, the most significant growth in the first quarter of 2025 was recorded in the provinces of Brescia, Bergamo, Cremona, Lodi, and Como. Commercial expansion was supported by the School Tenders, which helped boost sales across all Lombardy provinces, with particular reference to the local Public Administration sector and the professional segment. The proprietary fiber-optic infrastructure reached an extension of over 14,000 kilometers as of March 31, 2025, up from over 13,500 km at the end of 2024, ensuring coverage of every Lombardy municipality with at least one school. In the first quarter of 2025, when analyzing revenue by customer type, the Wholesale segment recorded the highest percentage growth, with revenues of € 1.10 mln, up 11.8% compared to the same period in 2024. The Retail segment showed a 5.7% increase, reaching € 2.50 mln, while the Professional segment remained stable with revenues of € 7.70 mln, in line with the figures from the previous year. In Q1 2024, the Professional segment had grown by 19.0%, and the Wholesale segment by 4.6%, indicating that the current period reflects a consolidation of previously initiated dynamics. In Q1 2025, the Public Administration segment posted revenues of € 2.60 mln, showing a decrease of 8.7% year-on-year. This decline is mainly due to the gradual reduction of one-off revenues related to the public school tenders, which are now nearing conclusion. However, considering only recurring and structural revenues, the public client segment shows a significant year-on-year increase of 35.4%, indicating a shift in the offering mix towards more stable and continuous services. Lastly, the churn rate on revenue stood at 4.3%, remaining at low levels, consistent with trends seen in recent years. In light of the first-quarter 2025 results—marked by solid organic growth, strengthening of recurring revenues, and a continuously expanding network—we confirm our positive view on the stock: target price € 20.00, rating BUY, risk Medium.

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