Italy's INWIT looks at M&A after 2021 core profit meets targets

MILAN, Feb 24 (Reuters) - INWIT will consider M&A opportunities to boost value for shareholders, its CEO said on Thursday after Italy's top telecoms tower company posted full-year results in line with expectations and targets.

Born as a spin-off of Telecom Italia's mobile tower operations, INWIT merged in 2020 with rival Vodafone's mast business in Italy to create the country's largest telecoms tower firm which manages 22,000 towers in the country.

In a post-results conference call with analysts, Chief Executive Giovanni Ferigo said the company was in a position to assess potential M&A opportunities in Italy and Europe.

"In Europe, we are focusing on small and mid-sized tower companies," the executive said, adding organic growth would remain a priority.

INWIT full-year earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4.7% on a like-for-like basis to 715 million euros ($797 million), meeting an analyst consensus provided by the company.

It had targeted a full-year core profit of between 715 million and 725 million euros. Revenue rose 4.6% to 785 million euros.

INWIT now sees its core profit and revenue rising to 775-785 million euros and 850-860 million euros, respectively, this year and expects to benefit from an EU-backed fund to help the economy recover from the coronavirus pandemic.

Italy said it would spend some 7 billion euros coming from the EU-backed scheme to boost ultra-fast connectivity across the country.

Such funding from the programme might generate some additional 30 million euros in recurring revenue for INWIT by 2026, Ferigo said.

INWIT plans to distribute shareholders 0.3225 euros per share on its 2021 results, up 7.5% from the year before and in line with its current payout policy.

Ferigo said the company could consider options such as share buy-backs and increasing dividends to return shareholders cash in excess.

Regarding a potential sale by Telecom Italia of its indirect stake in INWIT, Ferigo said any change in the shareholders structure would not affect the relationship based on the existing master service agreement with anchor operators. ($1 = 0.8976 euros) (Reporting by Elvira Pollina Editing by Keith Weir, Bernard Orr)