Rai Way S.p.A. (RWAY) Earnings Call Transcript & Summary

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Rai Way Full Year 2020 Results Analyst Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Giancarlo Benucci, Chief Corporate Development Officer of Rai Way. Please go ahead, sir.

Thank you, and good afternoon. Let me start thanking all of you for joining us today, and welcome to our 2020 full year results presentation. As usual, Aldo will start with the highlights and figures for the period, Adalberto will then illustrate the financial details. And at the end, we will welcome your questions in the usual Q&A session. Let me now hand the call over to Aldo. Please, Aldo, go ahead.

Thanks, Giancarlo, and good afternoon to all of you. Today, we are presenting the activities and results of the year 2020, which will be remembered as one of the most peculiar and difficult experienced by all of us. Despite the negative context, Rai Way has, however, able to continue to hold part of its economic and financial results that has been uninterrupted since the IPO and which will, we expect, will continue and accelerate in the future. In particular, let me point out the recurring cash generation that in 2020 was close to EUR 90 million, and which allows us to plan the development and the diversification activities envisaged by our plan. Going now in the highlights in more detail, on Slide #4 and #5, the economic results are also above the expectation at the beginning of the year, within an adjusted EBITDA up by about 4% to over EUR 136 million. This number has undoubtedly benefited from a temporary reduction in operating costs due to the impact of safety and recovery measures introduced to react to emergency pandemic, a reduction that more than offsets the more gradual deployment of certain development activities in the March-May period due to the restrictions. But even excluding this temporary effect, the operating performance, as we will see in more detail shortly, remains very satisfactory. The development investment, which represents one of the angles of our future growth, has increased as expected, thanks to the refarming activities, but has been supported, as already commented, by a significant recurring cash generation. These results allow us to propose to our general assembly also for this year, a food distribution of the net profit equivalent to a dividend per share of EUR 23.85 and a dividend yield of 5%. From a strategic and operational perspective, first of all, I would like to recall the presentation of the new industrial plan in March, which applied a clear strategic direction of the near future. During the year, following the finalization of the agreement with RAI, we accelerated the activities related to the refarming, which must be progressively completed in the period between September 2021 and June 2022. At the same time, looking at customers other than RAI, the commercial effort produced good results, probably not yet immediately evident in numbers due to the anticipated pressure from MNOs. In reality, net of this segment performance with third-party customers recorded mid-single digit growth in revenues and volumes, driven by fixed adviser access operators. From a financial point of view, 2020 saw the finalization of the new EUR 170 million loan that will cover the financing needs related to the organic initiatives, including the industrial plan 2020-2023 and the implementation of the buyback plan completed in November with the purchase of approximately EUR 20 million of shares. We are also proud to share today the approval of the first Rai Way Sustainability Plan, which gives continuity to the company's straightened commitment to ESG and innovation issues, already started with the preliminary definition of some macro objectives within the industrial plan. We have now outlined new objectives, specific targets and the portfolio actions which, as we will see later on, have brought tangible benefits already in 2020. So in terms of outlook, growth will not stop. Also in 2021, despite the temporary FX effects recorded in 2020 have rise as the basis of comparison, we expect a further increase in adjusted EBITDA level. Apart from 2021, as previously mentioned in the March of last year, probably in the worst period of the pandemic, we presented an industrial plan that outlined our idea and commitment to evolve our company to the technological update of the networks, the launch of new services and new digital organization model and the setup of the size scale through the expansion of the managed infrastructure, a plan totally confirmed on which we are already working, not only through the refarming, but also through the setup of all the other initiatives. But before going into the details of the financial performance, I would like to draw your attention to the positive behavior, the performance that the digital resell platform has shown in recent months. So moving to Slide #6. In fact, there is one thing that 2020 has confirmed: It's the resilience of the so-called traditional TV, in particular, with highlighting the social role that, together with the market structure, Italy as you know, is mainly free-to-air, and the efficiency with respect to the video distribution typical of free-to-air broadcasters, meaning linear distribution or light content addressing a wide audience, represents one of the strengths and drivers of future sustainability of this platform. In particular, the strong push that the COVID emergency has brought on video consumption as a result of greater time spent at home and higher attention paid to information, has in fact, supported not only the uptake of the OTT platform, but also the use and audience of linear TV intended, of course, as digital terrestrial platform. So what's the message? It is likely that this period of marked growth will be transitory. However, it would not be fair to compare the trends of a mature platform with those of platforms that are in an early stage and uptake phase. But the message here is that we are not witnessing a replacement, but rather a complementary and coexistence of platform based on different uses, on demand and on deferable, on broadband, live and directed to a large concurrent audience on broadcast. Which is exactly the direction rebalancing back to coexistence when fully operational envisaged in our industrial plan. And even some studies and surveys, which begin to be more reliable and representative following the growth of the OTT subscribers base seem to confirm that this complementarity is valid for the vast majority of users. Moving now to Slide #7. This evidence is also consistent with the large amount of work that operators are making to upgrade the digital terrestrial networks ahead of the refarming. The refarming process that, among other things, will also allow an improvement in the quality of transmissions, thanks to the higher capacity of the T2 technology and the greater compression of the HEVC standard. This large amount of activities obviously concern also to us, in particular, when the upgrade of the networks we manage for RAI, in addition to the new networks that we will manage for at regional level, which will have to be completed progressively between September 2021 and June 2022. As you may recall, the agreement signed -- that we signed with RAI provides for investments of approximately EUR 125 million, EUR 150 million, based on the number of multiplexes managed at full capacity, of which 1/3 completed at the end of 2020, so banged in line with the plan. The activity started first with the extension of the coverage of the current national multiplex, one of which will be extended to be the national -- the new macro regional multiplex. When fully operational, the number of equipment and sites will be increased from the original 400 to 1,000. And to date, we have exceeded 900. On the other 2 macro projects, namely the macro regional UHF T2-ready multiplex and the upgrade of national multiplex to DVB-T2, we have started the installation of new antennas where necessary, and of the T2 transmitters. In terms of regulatory steps, the only pending point is the awarding of the remaining 4 1/2 multiplex. With current visibility, the auction should take place by this summer, so by third quarter 2021 following the rules already announced and commenced. Although we will not have the final confirmation until the outcome of the auction, our base case remains the 1 with 3 multiplex managed for RAI, a scenario that implies EUR 150 million investments and approximately EUR 60 million of additional revenues. Moving now to Slide #8, you find as usual the financial highlights of the 2020, starting from the core revenues totaled EUR 224.5 million, up 1.4% compared to 2019, mainly as a result of the progressively growing contribution from new services to RAI in presence of a flattish CPI and a broadly stable level of third-party revenues with a more balanced customer mix. As already anticipated, adjusted EBITDA reached EUR 136.1 million, so a 3.7% increase compared to 2019, bringing profitability above 60% level -- 60.6%, to be precise. Moving on at the bottom line, one-off expenses and higher G&A linked to rising investment resulted in EUR 64 million net income, so up 1% year-on-year. On the financial side, CapEx in the period grew to EUR 60.6 million, boosted by the refarming project and in particular by the multiplex coverage extension projects. About net debt, at December 30 amounts to EUR 46.1 million and includes the effect of the buyback executed from August until November. This level reflects a very strong recurring cash conversion over the year, above 90%, exceeding the 2019 figure by more than 5 percentage points. And now I leave the floor to Adalberto to tell you more on the financial performance. So please, Adalberto, the floor is yours.

Thank you, Aldo, and good afternoon to everybody also from my side. As underlined by Aldo, in 2020, the company delivered a good set of results, even exceeding the expectation we have. If you look at Slide 9, starting from the top line, core revenues were EUR 224.5 million vis-a-vis EUR 221.4 million in 2019, with RAI component growing 1.7% despite the flat CPI dynamic, but thanks to the contribution of the recurring new services that you may see in the slide, which is a very strong evolution and growth for year-on-year. Thanks to this contribution, new services are now up by 55% on 2019, back as anticipated by -- in the 9 months and by Aldo, by the MUX coverage extension and the DAB project, totaling EUR 10.7 million contribution. Last year, we had EUR 6.9 million. On the other hand, revenues from third parties are broadly stable at EUR 33.2 million, benefiting from the mid-single digit growth from non-MNO customers, boosted by fixed wireless access customers, offset by pressure -- by the pressure from the MNO customers, resulting in a more balanced customer mix, with non-MNO customers that now represent more than 40% of the third-party portfolio. Moving on to cost, Slide #10. As you can see, our cost base amounting to EUR 88.9 million decreased by 2.4% in 2019, having been favorably impacted along the year by the COVID-related measures. However, if you consider the underlying trend, excluding noncore and temporary impacts, we have an overall stable cost base. Let's enter into some detail. Personnel costs reached EUR 45.5 million and were basically flat, even excluding noncore items and capitalization, with the saving coming from COVID-related impact on the variable component, offset by other temporary factors. Other operating costs fell by 5.1% at EUR 43.5 million, mainly driven by the pandemic impact on energy, maintenance, travel items in general, all our variable cost. On a recurring basis, the cost related to implementation of new services has been balanced by lower energy price and efficiencies on the rental of connectivity capacity. All in all, profitability reached 60.6% from the previous 59.3% as you can see, in the following slide, the #11. Well, I would also highlight the EUR 1 million one-off costs incurred in the year in relation to the voluntary retirement incentive plan, that, together with a higher D&A following the rising investment activity, mainly development CapEx and the tough comparison with 2019 figures when we recorded a EUR 1.5 million benefit, one-off benefit from the release of our provisions. This brings the net income to EUR 64 million, 1% higher vis-a-vis the EUR 63.4 million recorded in 2019, still benefiting from the COVID-related tax relief we commented also in the previous call. Moving now to the cash generation on Slide 12. You can see how the EUR 9.5 million net debt recorded at the end of 2019 increased to EUR 46.1 million at the end of December 2020, which, besides the EBITDA contribution, was mainly driven by a relevant CapEx outflow for more than EUR 60 million, 80% out of which are due to the already mentioned development CapEx and some small M&A investment. Then we have EUR 5.8 million related to the positive contribution from the -- our net working capital and the EUR 20 million of cash out related to the buyback program that we finalized during -- at the end of last year. And then we have the EUR 63.3 million of dividends we paid in July. If we strip out the IFRS 16 effect on net debt figure, we would obtain a net debt position of about EUR 11 million at the end of the year. Lastly, before coming to the dividend proposal, please let me put the light on cash generation. We are in Slide 13. Cash generation, which has been quite remarkable in 2020, with EUR 88.9 million, so almost EUR 90 million normalized free cash flow to equity, up 15% compared to 2019 figures, boosted by higher EBITDA and lower maintenance CapEx. Of course, these figures must be derived together with the EUR 20 million cash out with the buyback. These are all the uses that we do -- we did, and the EUR 48.3 million devoted to development CapEx and some M&A. Keeping all this in mind, we are proposing to the next Annual General Meeting, the distribution of 100% of our net income, EUR 64 million as a dividend, in the amount of EUR 23.85 per share, with an implied dividend yield of 5%. These figures confirms, once again, our strong focus on shareholder remuneration, with around EUR 350 million -- almost EUR 360 million, equal to 40% of the company initial market cap distributed since the IPO, showing a material progression year after year. That's really all on my side. So I now leave the floor back to Aldo for the closing remarks. Thank you.

Thanks, Adalberto. Here, we come at Slide #14, to an issue on which the company has put a lot of effort in throughout the year and of which we are very proud. I'm talking about the sustainability -- the first sustainability plan approved by the -- our company, through which we reinforce the commitment already anticipated in our industrial plan by detailing for each pillar, as you remember, environment, social, governance and innovation, the sustainability strategy for now until 2023 together. This slide provides a snapshot of the key goals and targets of the plan, which focuses on 6 strategic directions, addressing 9 of the sustainable development goals set by the United Nations: And so the fight against the climate change; the pursuit of health, well-being and growth of our people together with the social and cultural development of communities; and the safety and security standard of the value chain; and the alignment of the -- of ESG government systems; and investment in technological innovation of both the company and the country. And these guidelines are backed by specific initiatives, most of them already ongoing, as you may appreciate from the results already achieved in 2020. I needed to match qualitative and quantitative targets like on the environmental front, the Carbon Neutrality by 2025, to be pursued through the confirmation of the purchase of 100% of electricity from renewable sources, as was already in the case in 2020; and the implementation of initiatives to reduce energy consumption and environmental impacts, such as those that in 2020 allowed us to cut CO2 emission by 36% compared to 2019. On social level, one of the key objectives is to promote the work-life balance, with a configuration of an agile work model accessible at full capacity to at least 45% of employees, thus confirming what has already been successfully tested during the COVID-19 pandemic. As for ESG governance, we will continue to develop systems and controls aligned to the best practice and integrated with sustainability profiles, for example, integrating ESG objectives in the management incentive plan. And finally, Rai Way's technological footprint will allow us also through the EUR 200 million development investment included in our industrial plan, to promote innovation and diversification of the company -- for the company and at the same time, contributing of the digitalization of our accounts. So these plans also reflects the outcome of a process of progressive engagement with the main ESG rating agencies already started in 2020, with the aim to improve Rai Way's position with respect to the evaluation of leading international ESG information providers such as EDP, MSCI or Sustainalytics. Moving now to the expectations for 2021. The indication we are sharing today are based on 2 main assumptions: Firstly, the 3 multiplex managed by RAI after the refarming that, as I said before, although the final confirmation will come only after the auction remains our base case, impacting both the revenue step up and the total refarming investment figure; and second assumption on the current visibility, of course, of the, on the pandemic. In particular, we expected 2021 adjusted EBITDA to be slightly above the 2020 reported level, meaning that when excluding the temporary OpEx reduction recorded last year mainly as a result of the COVID measures and the slightly negative CPI contribution, the underlying growth could be more marked and evident, driven by the step-up in RAI contracts starting from the second half. Looking at the investments or the CapEx, both development or maintenance CapEx are expected above 2020, in particular for the development component, the increase is driven by the refarming activities. As for maintenance, for maintenance CapEx, let me just confirm that the expected run rate level post network upgrade remains at around 6% of core revenues, so about EUR 50 million this year. And as a final remark, 2020 has been the first year of execution of our industrial plan, a year that, first of all, proved once again the visibility and cash generation guaranteed by a contract backlog of over EUR 1.5 billion, as well as the solidity of the business model confirmed also in the distressed economy caused by the COVID emergency. And our ambitions for the future remains totally unchanged, also in the context of possible inflationary environment and increased interest rates as the market is now anticipating. Indeed, let me remind that our main contract with RAI and all the tower-hosting contracts are CPI-linked. And as a rule of thumb, every 1% of inflection translates into approximately EUR 2 million of EBITDA. At the same time, considering a top line not directly linked to a business cycle and the limited current debt exposure, an interest rate hike could have a negligible impact on our numbers. So we do not even fully agree with the perception of Rai Way as a pure bond proxy. Okay, the visibility, okay, the dividend. By looking at the targets of our plan, we should be approaching an above-average growth phase driven by the full impact of the refarming and the new efficiency opportunities enabled by the digital transformation of the operating model. So targets that remain, of course, valid. As fully valid remains our commitment to the industrial plan execution, also with regards to capital allocation and exploitation of financial flexibility. We aim to enhance the long-term growth through the introduction of new services and the expansion of the asset portfolio. Although we are not yet at the point of being able to share details by the plan covered for years, we are working on the setup of the main initiatives and services we are confident on their feasibility and on the potential tangible contribution to accelerate the company's growth profile. That's all on our side. We can now open the line for the Q&A session.

[Operator Instructions] The first question is from Jakob Bluestone with Credit Suisse.

I had 2 questions, please. Firstly, just going back to Slide 6, which is quite interesting, where you show the increase in viewing of the linear TV over the course of 2020. And I'm just interested, I mean, is that something you've seen, or is your impression of that is, you've seen a similar increase across all platforms? Or do you think linear TV has actually seen an increase in its share, so you show the absolute level? But I'd be interested in any thoughts around the sort of relative viewing of linear TV. And then just secondly, on the guidance, I don't know if you're willing to comment, but I mean you have a consensus of EBITDA of about EUR 138 million for 2021. Is that a consensus you're comfortable with?

Starting from your second question, yes, the consensus, as Aldo had said, for 2021, is at around EUR 138 million of adjusted EBITDA. We usually do not comment consensus. We have provided the guidance, but let me say that we are comfortable with the number. While coming to your first question, and on the share, let me say that the share represented by linear TV in Italy remains very high, much higher than in other countries for several reasons. We are, I would say, above 70%, represented by the linear television in total -- on the total video consumption. In any case, let me say then, if you compare the performance of the digital segment, the trend, of course, is different, but it's something logical, considering that, as also highlighted by Aldo during the presentation, you are comparing a mature media with digital platforms that are in early stage. But keep in mind that when presenting our plan and the scenario in terms of evolution of video distribution inflation, we have never denied the progressive rebalancing in terms of platforms supported by broadband smart device, on demand and so on. We basically said the opposite, that the rebalancing will continue. But our point, and what we said is that at the same time, if we try to look at a run rate scenario, we see not a replacement but a complementarity of the different platforms, translating into a broadly balanced opportunities for our company.

If I can just ask a follow-up as well. You highlighted the strong growth, particularly for fixed wireless access. I think we saw something similar then with, just sort of interested in what do you think is sort of driving the fact that we're certainly seeing the step-up in fixed wireless access in Q4? Is it just -- it tends to be lumpy? Or is there some sort of step change that's happened in the market in the last few months? I realize it's something that's been discussed for a while, but just it seems like it's something accelerated.

Basically, the growth on -- in the fixed wireless access contribution has been not only in the fourth quarter but throughout the entire year. Let me say, it's driven by, I would say, more players pushing for this kind of technology that is proving to be quite efficient, in particular in the area with digital divide. I mean, in Italy, 3 years ago, you had only a few more companies offering this kind of technology as of today is becoming the reference technology also for big players in digital divide areas.

The next question is from Fabio Pavan with Mediobanca.

Thank you for taking my 2 questions. The first one refers to something we just discussed. So it seems 5G and FWA will be key part of the digital strategy the new government tends to implement. My questions are, did you have managed already to meet with the new government representatives? And second, would you share the view that consolidation in broadcasting space would is, eventually bid up in the refarming process? The other question is about the other options for external growth. Clearly, the feedback seems to be, you are still to work on that. Can we expect something concrete to happen before the end of 2021?

Could you repeat, please, your first question, Fabio?

Yes, actually, 2 parts. First of all, I was wondering if you already have managed to meet the new government representatives. And the second part of the question is, if you would share the view that consolidation in broadcasting tower space, what is actually the refarming process and directly supporting the plans of the government for 5G? Thank you.

So the link between the -- I would say that the consolidation is the -- at this stage, independent from the refarming process. Refarming process could give some -- could give some help in reducing some integration cost in a hypothetical scenario of consolidation. But clearly, the rationale and the synergies arising from a potential consolidation of the sector are independent from this. So I don't see a direct link but this, of course, in this context, as you may see from the slide that we present, we confirm our commitment on the pillars of our business plan. That includes, of course, also this opportunity for the company.

About the timing of the potential deal, it's difficult to comment on timing. From my perspective, it's an opportunity that has an operational and financial rationale. But which, from a strategic point of view for Rai Way, makes sense if done in a certain way, a way that we say that sounds a certain consensus, but makes it depend not only on us but also on the alignment and the actions of several other stakeholder. So it's difficult to comment on timing. But believe me, in the meantime, we are not sitting on our hands, not only in pursuing this opportunity, but also in setting up the other opportunities that we consider material and complementary to the consolidation on this.

The next question is from Andrea Devita, Banca Akros.

Yes, my first question is on what I heard this morning on a certain quarter or related to potential interest on RAI television, your client company, and the different scenarios related to the content distribution method or CDM, which has obviously to do with strong developing streaming and the potential to develop a proprietary network or other -- other scenarios, which could, in theory, involve you as a preferred supplier or as the manager of this infrastructure. So I would like to know your position on this point, if there is actually an opportunity in this sense? And the second question related to the timing of the MUX auction, if there is a possibility of delays in investments or in revenues related to the contract with RAI. So if I have to suppose EUR 0.5 million lower revenues per month, should the government not be able to assign the frequencies by July?

Let's start from the last question. At this stage, clearly, we don't see this risk. I know that there is a lot of work from the government in order to be ready to start everything really in the short term. And then there will be some time in order to make and prepare the offer by the bidder. But the guidance to have an outcome by the third quarter is confirmed. So we don't see this risk absolutely. For the other question, probably Aldo can...

Yes, the other question is about the CDN. We welcomed the press on the relevance of the CDN. We can have a role in all the envisaged scenarios, also considering the [indiscernible] in terms of capillarity and quality of services that we think the CDN, of public broadcasting service should have. So I could say it's consistent with our 2020 -- industrial plan.

Okay. My previous question was, if there is no -- I understand that you believe that there will be an auction. But maybe the auction will not take place in the due time frame. So what does the service -- the refarming contract with RAI provides for, in case there is no auction? So this is something that you don't want to happen, but could happen.

No, no. Andrea, and we want to ask, don't mind. We didn't get your question correctly before. Let me say that with the visibility we have today, the auction should take place in time. But in any case, just to answer your question, the math is very simple because it's what has been written in the contract we signed with RAI. In case of management of 2 multiplexes, we will have EUR 6 million lower additional revenues and EUR 25 million lower CapEx. So considering that in 2021, the impact will be only for 6 months, the EUR 6 million lower additional revenues will translate in EUR 3 million lower additional revenues. That's it.

So, on a monthly basis? Okay.

No, no, not on a monthly basis, on a yearly basis.

Now my question is, sorry, we can take it off-line, but I would like to explain later my question.

No, no problem, give us a call.

Not a one-off. The question is, it's not a one-off. But clearly, sooner or later, the spectrum will arrive. My question is, if it is later, should I take out the monthly lower revenues? Probably yes.

Andrea, one second.

My question was, if I get to the spectrum, if I start in September, I will get the 3 months left?

Now. Actually, it's -- sorry, I mean, if my understanding is correct, and you're asking if there are impact, assuming...

A different time frame.

A different time frame. Now, we should not have an impact. If in September, we will have we will have the assignment of this frequency. We should not have an impact on the contract.

The next question is from Stefano Gamberini with Equita.

Sorry to come back still on the main topic, in my view that is the potential deal with EI Towers hours. Just to understand, first of all, if you have a deadline for -- reach this deal. What I mean is it such strong story that probably -- and there are a lot of stakeholders that should be involved, that probably is too difficult to reach an agreement with all of them. So what is your deadline regarding this deal? And second, what are the other measures, investments, M&A deals that are under analysis on your side, considering the optimization of your leverage. And this is the second question regarding what would be an optimal leverage for your company is still valid something in the region for 4 to 5x debt to EBITDA. And in this case, how we can reach this target without this deal with EI Towers, considering all the difficulties that are already going on.

So Stefano, for your question, it's the same answer, because there's no deadline regarding the consolidation date. And about your second question, Giancarlo?

On the optimization of the capital structure, you mentioned just external lines, M&A. Let me say that optimization can be reached and achieved not only through external lines, not -- so not only through M&A, but also through organic investments. It can be a mix of both. And the areas of interest, of potential investments are the one we put and we explain, presenting our industrial plan. So new infrastructure mainly related to data center, potentially both edge and hyper scale. On the, let me say, target leverage, Adalberto?

On the target leverage, of course, looking at the market, we have also represented in one slide in our industrial plan presentation. We -- looking at the market, we have flexibility, as you mentioned, by the way, until 4, 5x the EBITDA. Of course, the potential consolidation of the broadcasting infrastructure is the ideal scenario to change our capital structure. If not, we are working, and we will try to do something on some diversification opportunities in order to try to reach a more -- a better capital structure.

Just a quick follow-up. When could we expect an update of the business plan considering this potential opportunities that could arrive or not? Just to understand, to have an update also on the potential growth from investment.

As of today, we are not assuming to update our business plan in the next months, also because these are impacts that should come from something nonorganic. So to see if -- hopefully, we will be able to do something. At that stage, we will be able to give an updated business plan. Just to be clear, is the one that we commented, all the opportunities that we commented in the context of our industrial plan are opportunities on top of the organic trends that we included.

The next question is from Giorgio Tavolini with Intermonte.

I have 3 very simple yes or no questions on my side. The first one is on the 2021 budget law that has introduced the possibility of realigning the tax value of goodwill and other intangible assets. Your -- some of your peers already announced some tax schemes. Are you interested in those schemes? The second one is on the buyback. Last year, you set an absolute size of EUR 20 million. Is that correct, that for this year, you do not have a specific capsule of cash on the size of the new buyback program, apart one on the number of shares? And the third one is on the electromagnetic clinic. Do you have any visibility from the new government? And I don't know, tables, technical tables on the opportunity from the loosening of the electromagnetic limits in Italy.

So let's start from your first question, of course, something interesting. But unfortunately for us, we don't have such interesting amounts that could be included in this tax opportunity. So there is nothing on our balance sheet that could give a material impact from this. On the buyback program, could you kindly clarify your question? You were referring to the limit?

Yes. Last year, last year, you basically set a cap size for the buyback program, EUR 20 million for this year. The new buyback, you asked a new buyback authorization for the new program. But you didn't set any specific absolute size for this...

No, no. We -- it's just -- I understand it is one of the points that will be presented in our Annual General Meeting. But we don't have any buyback program approved. As you may see, this is something that we do all the years. So each year, we present the same authorization in order to have flexibility, but there is nothing approved. While on your question, the electromagnetic limits, we do not have specific updates. But let me say, as you know, that for us, it's less of an issue considering the location and the size of our towers. So it's something affecting more the telco towers and the roof operator than the huge broadcasting masts.

[Operator Instructions] Gentlemen, there are no more questions registered at this time.

Okay. Thank you to all of you for joining the call, and bye-bye. Speak soon.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.