BREAKING NEWS – 09.02.2024

In the press release of February 7, 2024, Intred SpA, a telecommunications operator listed on the Euronext Growth Milan market, reported that revenues as of December 31, 2023 amounted to €50.10 million, an increase of 10.1 % compared to the €45.52 million recorded in the previous year. The excellent result is mainly generated from sales of fiber optic connections, amounting to € 30.40 million, reporting an increase of 16.1% over last year. Revenues related to the Company’s core business, services with recurring fees, amounted to € 42.60 million (+8.7% compared to FY22A), equivalent to 85.2% of the total. In addition, total revenues are higher than our estimates for 2023, amounting to € 49.50 million and reported in our latest document of October 2, 2023, confirming the positive performance of the Company and the reliability of the forecast made by management. From the geographical point of view, the provinces of Como, Cremona, Lodi, Pavia, Sondrio and Varese show the highest growth in percentage terms. In fact, thanks to the Schools Calls for Proposals, the Company is actively promoting the expansion of sales in all provinces, with a focus on the Local Public Administration sector and the Professional sector. As for the type of customers, there was a significant increase in sales to Public Administration; besides, the Professional sector also achieved excellent results. Also reassuring is the level of churn rate, which remains below the market benchmark, standing at 4.4 %, thus confirming a high degree of customer loyalty to the Company. In the context of the Schools Calls, more than 3,300 schools were activated during 2023, with a total turnover of more than € 8.70 million, an increase of 47.5 % compared to € 5.90 million in FY22A. The proprietary fiber-optic network also recorded a significant growth of 25.0%, increasing from 9,500 km as of December 31, 2022 to over 11,700 km at the end of 2023. The result confirms the positive trend for the Company and outlines an important growth path in the medium and long term. While waiting to evaluate the fiscal year 2023 financial statements, we confirm our recommendation: Target Price € 19.50, Rating BUY and Risk MEDIUM.

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