| In 1H25A, the Company reported a Value of Production of € 27.89 mln, up 6.1% compared to € 26.29 mln in 1H24A, mainly driven by Ultra-Broadband connections (€ 16.20 mln, +20.2%) and Voice and Data services (€ 5.00 mln). EBITDA amounted to € 12.51 mln, up 9.1% compared to € 11.47 mln, with a record-high EBITDA margin of 44.9%. EBIT reached € 6.01 mln (+3.0% vs € 5.84 mln), with an EBIT margin of 21.6%, while Net Income stood at € 3.60 mln, broadly in line with € 3.54 mln in 1H24A. At the balance sheet level, Net Financial Position moved from € 32.86 mln at year-end 2024 to € 37.39 mln in 1H25A. In light of the results published in the 1H25A half-year report, we have revised our estimates for the current year and the following years. Specifically, we estimate a Value of Production for FY25E of € 57.00 million and EBITDA of € 25.65 million, corresponding to a margin of 45.0%. For the subsequent years, we expect the Value of Production to increase to € 70.50 million (CAGR 24A–27E: 8.0%) in FY27E, with EBITDA reaching € 35.25 million (corresponding to a margin of 50.0%), up from € 24.04 million in FY24A (corresponding to an EBITDA margin of 43.0%). At the balance sheet level, we estimate a Net Financial Position of € 15.69 million for FY27E. We conducted the valuation of Intred’s equity value based on the DCF method and the multiples of a sample of comparable companies. The DCF method (which prudentially includes a specific risk of 1.0% in the WACC calculation) results in an equity value of € 396.6 million. The equity value of Intred based on market multiples is € 241.0 million. The average equity value therefore amounts to approximately € 318.8 million. We set a target price of € 20.00, with a BUY rating and MEDIUM risk profile |
