Inwit Is the Most Efficient Towerco in Europe; Initiating With a EUR 10.70 FVE and Narrow Moat

Inwit’s strategy is to remain a local tower player in Italy, growing organically as Telecom Italia and Vodafone deploy new equipment on existing towers and new built-to-suit (BTS) towers to cover white spots (areas with poor coverage). Telecom Italia and Vodafone have already committed to deploy more than 12,000 new tenancies from 2021 to 2026, approximately 8,000 on existing towers and almost 5,000 on new towers, which should result in tenants per tower (the tenancy ratio) getting closer to the 2.5 range, also aided by other tenants (Iliad and Wind Tre, and other non-mobile tenants like utility companies) also deploying new equipment in Inwit’s towers. We estimate Inwit will keep deploying new capital at double-digit internal rates of return through BTS towers, distributed-antenna-systems (DAS), and fiber-to-the-tower projects.