Unidata 1H24 Results Analysis
A sweet opportunity in a very active sector (M&A)
Analysis of the 1H24 results of Unidata, an Italian telecommunications company whose main service is providing broadband connectivity to residents, businesses, and the public sector. This represents a huge opportunity as Italy is lagging in the deployment of high-speed broadband connectivity.
Unidata has been one of the first movers in this area, building a proprietary infrastructure of more than 7,200 kilometers of fiber optic, providing access to half a million clients. We updated its thesis 10 days ago
Another one of our Italian companies that continues to go largely unnoticed by the market, but that has greatly exceeded expectations in this first half of the year. Increasing its revenues, consolidating the acquisition of TWT, and significantly increasing its margins. Its main avenues of organic growth - the three joint ventures with reputable players - continue to progress, and they are expected to contribute starting next year.
Apart from the analysis, financials, details of the conference call, and forecasts for the coming quarters, we are also sharing our downloadable financial model for Unidata.
1H24 Revenues reached €49.2m, in line with 1H23, with Service sales contributing €35.7m and Infrastructure €12.6m.
Adjusted EBITDA increased to €12.4m (25.2% margin) from €11.2m in 1H23.
EBIT grew by 11% YoY to €7.0m, and net income rose slightly to €3.6m from €3.4m in 1H23.
Financial debt stood at €46.1m, with a €2.4m secured deposit expiring at year-end.
Key metrics: FTTH fiber network expanded by 450 km to 7,250 km, and direct customers grew by 10% to over 25,500.
Unitirreno submarine cable installation began in November, with operations expected by 2Q25; Unifiber is operational and considered a benchmark by the EU Commission, with potential for scope expansion.
Regional projects: Smart metering IoT system in Molise and smart water metering system in Basilicata are ongoing.
Roma5G project: Initial fiber deployment aims to cover 30% of the city's targeted 100 squares.
