Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the INWIT second quarter 2023 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Fabio Ruffini, Head of Investor Relations and Corporate of INWIT. Please go ahead, sir.
Thank you. Good evening, everyone, and thanks for joining us. With me today is Diego Galli, INWIT's General Manager, and Emilia Trudu, Chief Financial Officer. Before we begin, please allow me to draw your attention to the safe harbor statement on page two. As usual, following a brief presentation, we will open up the floor for questions. Over to you, Diego.
Thank you, Fabio, and welcome everyone. The second quarter results show steady progress in the execution of the business plan. Industrial delivery of new sites continues at scale. Organic growth was 13%, among the best in the industry, with the new services up by 45%. Margin expansion and cash flow generation were solid. Demand for digital infrastructure is structurally positive, driven by mobile data growth, densification needs, and urgency to optimize coverage, both outdoor and indoor. INWIT is building a solid track record in a challenging environment for the Italian telecom industry, where operators are looking for cost savings and better returns. Shared infrastructure investment can be part of the solution, a source of efficiency. While this is typical for tower costs, INWIT is unique, with two anchor tenants and also the role of neutral host.
We are extending this model from macro grid outdoor to micro grid indoor and DAS. Our companies can be at the center of a virtual cycle between location owners, public and private, and mobile operators, with value creation for all. Moving to the key figures of this quarter on page four. Financial and operational indicators maintain the consistent growth rate in Q2, among the best in the industry. Starting with revenues, growing consistently at low teens since the beginning of the year. Growth with anchors is material at more than 12%. OLOs continued to add new PoPs, offsetting lower other revenues, which were particularly significant in 2022. Increased commercial effort led to a 45% growth in new services. Here, the quarterly revenue figure is two digits for the first time.
EBITDA after lease growth was more than 16%, leading to margin expansion to 71%. We are on a path to hit 76% EBITDA after lease margin by 2026. Cash flow generation was strong. We captured the benefits of networking capital efficiency actions on legacy items. These benefits are structural and support the progress towards full year targets. After dividend payments, leverage was 5x in terms of net debt to EBITDA, against 5.6x a year ago, confirming our ability to deliver quickly. INWIT industrial delivery machine continues to operate at high level. The rollout of MSA new site is in line with targets. We started the delivery of other two BTS programs, NextGenerationEU 5G and Open Fiber.
Strong in new sites, supported the volume of new PoPs at 1,060, with tenancy ratio inching higher at 2.2. Real estate transactions were more than 500, with the majority of acquisitions supporting margin expansion. A quarter of further progress along the trajectory of the business plan. Now, I will turn it over to Emilia for a more detailed review of the results. Thank you.
Thank you, Diego. Good evening, everyone. On page five, the evolution of macro sites, about 23,500 today and growing 3% year-on-year, confirming INWIT leadership in the market. Demand for new sites is strong. Operators are focused on optimizing coverage of the market and upgrading to 5G, drive densification. We invest with a minimum threshold of double-digit IRR, highly visible cash flows, and a tenancy ratio of 2 from day one on every MSA new site. Over the past couple of years, we made new sites a priority in terms of both being able to grow the quarterly base and being less volatile. We have built a consistent track record, going from 17 new sites in 2020 to about 800 in 2023.
The second quarter of the year shows a total of 225 new sites, a sequential improvement for DMSA from quarter one, and the initial rollout of the other two BTS programs. We continue to address the administrative challenges that still makes building a new site a long process, adjusting to the higher delivery scale we have reached. Let us now review anchor points of presence on page six. We added 650 new PoPs with TIM and Vodafone in the second quarter of 2023, with total PoPs reaching nearly 40,000 and growing 7% year-on-year. INWIT's mission is to deliver an efficient solution to the ongoing upgrade to 5G, and this means both new PoPs on new sites and a continuous effort to optimize the grid on existing sites.
Contractor commitments are the main driver of this growth. With nearly 1,400 new PoPs added this year, we are progressing in line with our full year targets. Moving on to OLOs , page seven. We see that hospitalities with other clients were up significantly, +17% year-on-year, for a total of nearly 13,000 PoPs at the end of June, among the best trends in the industry. We added 410 new PoPs in the quarter, an improvement as compared with Q1, although still a bit below the earlier run rate. In terms of mix, we added new hospitalities with every client category, including MNO, where the potential is limited by the remedies process in district. While demand from some FWA clients was softer due to specific developments, other clients supported volumes, in particular, in segment.
INWIT business model is based on hospitality services to multiple client categories and technologies, from mobile to FWA and IoT. Growing mobile data use, need for better coverage, and the emergence of new use cases confirm our positive structural outlook for the market. Next, on page eight, we review new services. New services were up 45% year-on-year, outpacing the rest of the business and reaching EUR 11.5 million in the quarter. This compares with only EUR 3.4 million just two years ago. The business expanded more than three times in two years, mostly on the back of increase in indoor coverage services through DAS, Distributed Antenna System, and highway tunnel connectivity. This will continue to be a key growth driver for the business plan to 2026.
INWIT micro grid assets, nearly 1,000 remote units and 1,000 km of road tunnels, are multi-tenant solutions that provide connectivity and capacity in indoor and traffic locations. They will become even more important with a pervasive diffusion of standalone 5G. Demand is growing. In the first half of 2023, we added about 130 new locations in a variety of verticals, in particular, the public administration, leisure, transportation, and healthcare. Some of the most flagship locations include luxury hotels, important transportation hubs, and iconic museums. Moving on to the P&L on page nine. Quarterly revenues were up to EUR 237.6 billion, up 12.8% year-on-year, and +EUR 4 million as compared with Q1 2023, supported by the CPI link of our contract, where DMSAs have no cap.
The run rate benefits from growing volumes of hospitalities with all clients, anchors and all. On a year-on-year basis, we booked fewer other revenues, such as in installation, maintenance, and technical services, which limited the overall trend in our second revenue reporting line. This is broadly in line with our expectations and will normalize over the course of the year. New services were up materially, +45% and +EUR 3.6 million year-on-year. With regards to costs, OpEx were up year-on-year, +12.2%, in line with revenues, also discounting accelerated phasing of maintenance. This resulted in an EBITDA margin of 91%, in line with guidance.
Below the EBITDA line, we booked higher D&A, in line with our CapEx cycle, higher interest, driven by the variable portion of our debt position, and higher taxes in line with the phasing of the tax schemes entered into. Including these effects, a relevant portion of which are non-cash, net income was up 9% to about EUR 81 million. Ground lease costs were lower. Efficiency in real estate more than offset the higher number of sites and those projects, as well as inflation, driving EBITDA margin up 2.4 points year-on-year. On slide 10, we discuss cash flow. Cash flow generation in the second quarter was up materially year-on-year, with recurring free cash flow at about EUR 187 million. On a six-month basis, approximately EUR 324 million. We are at more than 50% of 2023 guidance.
We had minor cash outlays for recurring CapEx, EUR 3.9 million, and tax, EUR 4.8 million. As anticipated in Q1, we recorded sequentially better trends in the scope and networking capital. More in detail, the EUR 37 million positive networking capital figure was related to efficiency actions linked to legacy items with a number of clients. This positive effect will not materially reverse in the coming quarters, contributing to our full year guidance. Total CapEx was about EUR 60 million in the quarter, up from about EUR 39 million in the second quarter of 2022, mostly due to a higher volume of new sites. Moving to the balance sheet, the financial position was up for the quarter to EUR 4.3 billion, including IFRS 16 liabilities.
The debt-to-EBITDA moved up to 5x from 4.7x at the end of March, essentially due to dividend payments. When comparing end of June leverage in 2023 and 2022, we can appreciate INWIT's ability to quickly deliver 0.6x leverage terms in a year. Our debt profile continues to be efficient. Cost of debt remained low at 2.4%. More than 75% of debt is fixed, we do not have any relevant maturities before 2025, with the expiry of a term loan for EUR 700 million. We are mindful of the importance of capital allocation for any business, infrastructure in particular. In the coming months, we will continue the buyback program and look for opportunity to deploy more CapEx at attractive returns.
With this, I thank you, and I leave the floor to Diego.
Thank you, Emilia. Before some concluding remarks, I'm pleased to share an update on the sustainability plan, as we do on a semi-annual basis. Sustainability sits at the core of what INWIT does, sharing infrastructure so that there is less duplication and better use of resources, as evident by a growing tenancy ratio. Connecting communities to high-speed networks, we added 140 PoPs in wide or vulnerable areas in the first half of the year. In certain cases, enabling innovative services which directly protect the environment and its biodiversity, such as smart sensors in national parks. We set ambitious targets in terms of reduction on environmental footprint and choose to have them validated by highly regarded international bodies. This has been progressively reflected in improving ESG rating and in the entry in the most important indices, such as the FTSE4Good.
Looking ahead, we will be carbon neutral by 2024 and net zero by 2030, while fostering the widespread adoption of broadband connectivity in a sustainable way. A few more words on page 12. Our business plan aims to make INWIT structurally stronger. We invest at attractive returns to grow the asset base, more macro sites, a nationwide network of DAS indoor locations, and a growing proportion of land ownership. We do this with a renewed focus on industrial processes, able to manage the growing complexity and scale of the company, and enhanced commercial capabilities on the micro grid, where we are building momentum, more clients, more sales channels, innovative service proposition. In an industrial context where clients are focused on efficiency and improving returns, we stand as a source of efficiency and a trusted industrial partner.
With this, I thank you, and we are now ready for the Q&A session.
This is the Chorus Call Conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one. At this time, the first question is from Andrew Lee of Goldman Sachs. Please go ahead.
Yeah. Hi, good evening, everyone. Look, your results show clearly continued strong delivery. I just wanted to ask a question about kind of potential risks to the underlying delivery. Just taking into account the recent M&A in the Italian space and more broadly. Just first question, the basic question is, have you seen any change in behavior following EQT's Wind Tre active equipment acquisition, or suggestions of changing behavior, potentially more actively pursuing sharing equipment and putting downward pressure risk on tenancy longer term? Or also minded that EQT bought Radius in the U.S., which has had some modest success in Europe in terms of consolidating landlord sites.
Just wondered if you've seen any kind of, increase in efforts to consolidate sites, given that some of this this activity could, you know, focus initially on Italy. Thank you.
Thanks. Thanks, Andrew. In terms of market, we, no, we don't see any significant change in the market coming from the Wind Tre transaction operation. In general, we do see that transaction, that structure going into the direction, clearly, of a separation between service company and infra company, which is, we think, something which makes sense over time, and is consistent with our view for the medium long term, for also tower companies, getting to a broader space, and expanding the perimeter also broadly, and on top of the passive equipment, gradually, towards managing also the active equipment. We don't see it in the short time, but we do think it's a rational opportunity for the industry over medium long term.
With regards to landlord, as well, no significant change. We continue to pursue our targets of continuous efficiency through both renegotiation as well as buying out land. We made good progress also in this, in this quarter. We are progressing towards the target of achieving 20% of land owned by the end of 2026.
Thank you. That's really helpful. No, no change in pace at your ability to kind of buy in that land?
No. No, no.
Thank you.
Thank you.
The next question is from Roshan Ranjit of Deutsche Bank. Please go ahead.
Great. Good evening, everyone. Thanks for the questions. I've got two, please. Thanks for the extra detail on slide five with the new sites. Just so, and make sure I understand it correctly, you're saying that this quarter you had 55 new sites from a combination of the NextGen EU fund and Open Fiber agreement. Firstly, can I check that's right? Secondly, how should we expect that to trend in the second half of the year, please? My second question is on the working cap. You highlighted a big positive this quarter, which, if I heard correctly, I think you said, will continue or should rather carry forward to the end of the year. You've reiterated your recurrent free cash flow guidance for the full year.
Should we, did you anticipate this big cap, working cap gain, or are there any other kind of drags which this working cap gain will offset for the full year? Thank you.
Hi, Roshan. On slide five, yes, we made in the quarter 170 sites for the MSA programs with the anchor and 55 in relation to the other programs. We started the NextGenerationEU and picking up also on the Open Fiber program. We do expect to continue a good base for this, for the next quarter. We will see similar numbers for the next quarters. We will end up the fiscal year with broadly overall 800 sites in the fiscal year.
Concerning the net working capital trend and the current free cash flow, as already anticipated in Q1, we anticipated the reversal of the negative net working capital. This positive trend, positive move in the quarter, is structural, so we do not expect to reverse this in the coming quarters. Going forward, we do expect a continued trend of strong recurring cash flow, supported by ongoing EBITDA growth, low recurring CapEx in the order of 2%-3% of sales, the relatively low cost of debt, efficient tax payment, and ground lease costs that will be stable or almost in line with this quarter.
Okay. That's helpful. Thank you.
The next question is from Jakob Bluestone of Exane BNP. Please go ahead.
Hi, thanks for taking my questions. I have two questions, please.
Can you maybe just provide a little bit more color around the outlook for FWA revenues, given there's obviously some changes happening within some of those players. Do you think that might slow down? If so, is that an issue? Can you maybe just remind us how much lower the revenues for FWA tenants are versus sort of MNOs? Secondly, I think you made some comments around OpEx phasing within the year. If you could maybe just clarify what are those OpEx phasing elements that we need to bear in mind for this year? Sounds like you had some additional maintenance costs this quarter, which maybe don't recur later in the year. If you can maybe just clarify. Thank you.
Yeah, thanks for the question, Jakob. On fixed wireless access, yeah, pricing is overall 1/3 of an MNO mobile tenant. In terms of trend, we do see the market soft right now on with specific customers. We remain positive on the structural business and structural opportunity. We do expect some recovery and coming back to more sustained level. Generally, I have to say, half two is better than half one. As I said, relatively soft right now. We do expect some improvement in half two, and structurally, we continue to see the opportunity in the market because the technology is a valid alternative to fiber.
In broader terms, let me say that this conversation brings me also to other conversation last year, and it takes me to the point about the fact that we have multiple sources of revenues and multiple source of tenants. For instance, in this quarter, we do see very good performance on the other customers, such as utilities companies. It's again, a situation where we are, we have the opportunity to compensate some low performance on one side with better performance on other sides. In this case, the volume-wise, it's good that we are, we keep our trend at above more than 1,000 tenants with dollars per quarter.
Clearly, we pay a little bit the impact of price mix because the other customers have price per unit lower than the fixed wireless access. Yeah.
Hi, Jakob. As mentioned, OpEx in the quarter, we're discounting some phasing impact due to accelerated maintenance. Overall, on clear basis, we confirm our guidance in terms of EBITDA margin at 91%.
Got it. If I can maybe just ask a follow-up question, just in terms of the sort of mix. I mean, from what you've described, you know, this quarter, your new services growth grew quite a bit sequentially, first time above in double digits, while your OLO revenues are sort of down, I think, for the second quarter in a row. Can you maybe just comment on what is the margin difference between those two revenue streams? Is there any margin effects that we should think about as perhaps the mix shifts a little bit away from OLO to new services?
Yes. On the OLOs, let me also highlight that the quarter-on-quarter trend is mostly driven by the other services, kind of, installation, maintenance, project management. That's the more volatile bit where we have seen less potential, less business than the last year that was quite high. In terms of mix between tenants and the new businesses, let me say that, clearly, new tenants on existing sites are is the business line with the highest margin. Almost everything goes down to bottom line.
When we develop new services, margins are still high and broadly in line with our EBITDA margin, actually, higher than our average EBITDA margin. Clearly, not as good as a new tenant on existing site, but on the high side, it's still clearly quite high.
Thank you. That's very clear.
Welcome.
The next question is from Fabio Pavan of Mediobanca. Please go ahead.
Yes, hi. Thank you for taking my question. I would love to go back to the new services. In particular, I was surprised by the strong acceleration in the development of,
... of DAS in the quarter, which was super strong. Could you just provide some more color on this? It was in line with your expectation, which kind of number, which we should expect for the next few quarters. Thank you very much.
Yes, thanks, Fabio. The, yeah, new businesses for us is a strategic priority. We strongly believe on the two legs of our growth plan. One is the macro grid, which will be complemented by micro grid. In Italy, in mostly indoor, in Italy, there is a huge number of indoor locations which requires and deserves better indoor coverage. We actually, we have been leading the market since the beginning, we are putting additional effort to capture this opportunity in verticals such as health and hospitals, education, travel, and transportation. We have also strengthened the internal capabilities and the commercial resources, and this is delivering the results expected, and we do expect to accelerate further, coming, as I said, by the initiatives we put in place.
We are working with both the MNOs as final customer, as well as with the location owners, which in some cases are so willing to improve the indoor coverage that are also a paying parties. They are willing and open and happy to contribute or to pay for the service. We, in the strategic plan, we shared the goal actually to deliver by 2026 an amount of revenue, which will be 3x the 2022 revenues, which was EUR 30 million, we think we are on track, and we are building all the capabilities and the trajectory to get to that level.
Thank you.
The next question is from Stefano Gamberini of Equita. Please go ahead.
Good afternoon, everybody. Three quick questions, if I may, from my side. The first is the topic of the rising of electromagnetic pollution limits still on the table or the political agenda or definitively out? The second, do you have some novelties about M&A dossier? Do you have something on your table? Something is changing on the market, we could expect some small acquisition and as you have in your business plan targets by the end. Finally, just a clarification about the OLOs target. Have I understood correct that you expect to reach around 1,000 OLOs in the second part of the year, or this is just a target in order to reach your growth of 2026 and will be reached probably later on? Thanks a lot.
Ciao, Stefano. Thanks for the question. On the EMF, yeah, no, the topic is still on the table, on the government. The government is well aware of the topic, and yeah, it's on the table, I would say, actively on the table. Let's see what will happen. Difficult to make forecast, no clear visibility of the next steps, but yeah, I would say absolutely on the table. On the M&A, yeah, we constantly also assess small bolt-on, the opportunity to broaden the perimeter, to acquire port of size, and clearly, we keep on looking at land and port of land.
We monitor, we assess, and we are open, and we would like to make some small bolt-on to broaden quickly, in a rapid manner, our perimeters. With regards to the OLOs and the OLOs trends, we have the 51,000... Sorry, I was, before I probably made a mid confusion. On the OLOs, we have around rate of broadly 400-500 tenants per quarter, and this is what we expect to keep to year-end.
Thank you.
Welcome.
The next question is from Usman Ghazi of Berenberg. Please go ahead.
Hello. Thank you for the opportunity. I've got two questions, please. The first one is on tax. Obviously, you've highlighted that for the full year, you'll come in quite below EUR 35 million that you were planning at the start of the year. I can also see that in the cash flow, there's a EUR 14 million kind of payment, or advanced payment made for the goodwill treatment. I just wanted. Sorry, so the goodwill tax prepayment. I just wanted to check if, you know, if anything has changed with respect to your kind of, you know, tax outlook that you gave at the Capital Markets Day? Is it that, you know, there's just a bit less tax in-.
in this year, there's going to be a catch-up in 2024? That was the first question. My, the second question was just going to the site additions that you've done, obviously very strong number, in Q2, and you're guiding for a to do 800 this year. I mean, if you, if you keep this kind of run rate, you'll be, you know, you're probably a year ahead, of your site build-out targets that you gave at the CMD, right? You, you'll probably be done well inside 2026.
Is this possible, or do you expect that this year, for some reason, is a peak year, then things kind of begin to moderate back to normal levels, next year? Thank you.
Hi, Usman. Yes, the EUR 14 million are related to the goodwill tax scheme and are in line with our expectations, while the cash out for tax above our current free cash flow are slightly below, lower than our expectations. We do expect this level to remain low on full year basis.
On your sites, honestly, we are satisfied with the closing speed we have achieved. Q2 is a strong quarter. Q1 was strong as well. Q4 last year was strong, so now we have really a strong track record and delivery machine. We cannot yet say that we are ahead of plan. Hopefully, we will get there, because actually, just let me clarify, the 800 I did mention is a combination of the slightly less than 600 for the MSA, which we guided explicitly for, and the broadly 200 related to the other two programs, the Open Fiber and the NextGenerationEU. The current delivery is solid, is robust, we are very happy and overall in line with the business plan.
Right. Can I just clarify on the tax? You're saying that this year is going to be EUR 20 million, and next year it'll be similar, or will there be this difference between what you had planned of EUR 35 million versus the EUR 20 million that you will pay this year, that there will be a catch-up of that in 2024?
We do expect, let's say, on full year 2023, we do expect about EUR 20 million to be a fair assumption. We do expect this amount to grow, starting from next year.
I see. Okay. Thank you.
Welcome.
The next question is from Luigi Minerva of HSBC. Please go ahead.
Yes, good evening, and thanks for taking my two questions. The first is a clarification on the 55 new sites from the other BTS programs. Should we model these with a 1 tenancy ratio, or some of them come with more than 1 tenants? Secondly, on capital allocation. Obviously, in this quarter, you reached 5x leverage ratio. In the past, you mentioned consistently that a leverage ratio below 5x is inefficient. I just wanted to check whether that is still your assessment, and perhaps if you can remind us your capital allocation priorities once the leverage ratio falls farther. Thank you.
Yes. Hi, Luigi. On the 55, yeah, the tenancy ratio will be below 2, something higher than 1. The NextGenerationEU funds will be broadly 2. The other Open Fiber will be at least at the beginning, 1. This is in terms of tenancy ratio. Let me say the price per the revenue per unit will be consistent with the specific programs. In particular, the NextGenerationEU fund the price per unit will be lower than average. On the leverage, yeah, we clearly we set a threshold, a band for the leverage between 5x-5.5x in the overall framework of the capital allocation. The environment has not changed. We still think that's the reasonable level.
As always, we will keep on being consistent with our capital allocation framework. We will assess opportunity, having as a first priority, additional growth CapEx. Secondly, additional small acquisition, bolt-ons, as we talked. We keep on monitoring on bigger acquisition if opportunity comes. If otherwise, we will consider the additional shareholder remuneration as we did last year.
Thank you. Very clear. Thank you.
The next question is from David Guarino of Green Street. Please go ahead.
Thanks. Just wanted to kind of follow up on that last question on the new sites from the BTS program. Could you maybe also comment on obviously lower tenancy, but what are the day one returns on those new sites? Also attached to that, were those new sites from BTS programs included in the long-term business plan you presented back in March?
Yeah, the NextGenerationEU funds, there will be a subsidy on CapEx. The returns will be in the range of 10%, slightly below 10%. The return is related to the next CapEx. We will see, yeah, lower revenues than usual. This is for the first 10 years. After 10 years, the sites clearly will remain of INWIT ownership and then will be marketed at, let me say, standard market prices.
Okay, that's helpful. Switching topics on the share buyback program, it looks like I know we're early on, but you've been repurchasing a similar amount of shares each week. Is this something we should anticipate going forward, more of a systematic approach, or do you think there might be some variability in terms of your repurchase activity?
Let me say that we followed, we decided the approach to assign the mandate of to a broker. We are hands off on this. Clearly, the framework is the nine-month period. What we do see is, yeah, it's a pace, is a stable pace. Honestly, we don't see any specific reason to see this change, as I said, it's up to the broker.
Great, thank you.
Welcome.
The next question is from Ben Rickett of New Street Research. Please go ahead.
Thank you for the questions. Two questions, please. Firstly, going back to the fixed wireless access demand. On slide seven, you mentioned the structural demand tailwind. I just wondered if you could provide some color as to what those tailwinds are. Is that rural fiber deployments, or is it competition from Telecom Italia, or any context there would be helpful? Second question, following on from that, as you look forward to your OLO tenant net adds, how should we think about the mix there between fixed wireless access, MNOs, and also other? I think in the past you've said fixed wireless access and other would be 80%, but how does that split between fixed wireless access and other? Thank you.
Yeah, on fixed wireless access, we do see it as a valid, and the market sees it as a valid alternative to fiber. Is a business which has developed quite well, starting from the COVID days, and is a business which has been driven by specific companies dedicated to this service, which developed it quite well and has been very well received by customers, considering the nature of Italian territory and the number of places where fiber or high, high-speed connectivity is not yet available. It's a combination of technology as well, customer service, which has proven to be successful in Italy, and by the way, the technology keeps on improving also in terms of performance.
That's why we remain, we remain with a positive structural view. Having said that, we see in our numbers, and we see the markets relatively soft, specifically with a couple of customers, but we do think it's more related to contingent specific situations. In terms of mix, we, of all tenants, the MNOs component, which we know is the richest, has broadly a 15% weight, the remaining 80% plus is for the others, different from MNOs. Within these, in the last couple of quarters, broadly, 50% has been related to other customers and 50% to fixed wireless access customers. Thank you.
The next question is from Georgios Ierodiaconou... Sorry, Ierodiaconou of Citi. Please go ahead.
Yes, good afternoon, thank you for taking my questions. The first one, Diego, is around the Gigabit Infrastructure Act. I know it's in draft stages at this point, it will be interesting to get your reaction and opinions on it. I know some of the other tower companies have been a bit critical of some of the recommendations within the draft. My second question is on working capital. I know it was asked earlier about this year, I'm curious whether there could be inflows in the coming years as well, or whether it's something that just proves temporary for 2023. If you can give us an indication as to what's driving that, will be great. The final one is just a follow-up also on the new sites for the non-anchors.
You mentioned the initial tenancy ratios, I'm guessing that these sites are available for others to collocate, do you expect to see demand? How long do you think it would take before you see it? I was also curious whether there's any restrictions in you making them available initially. Thank you.
Yeah, hi, George. On the Gigabit Infrastructure Act, actually, there was some areas of concerns in the first in the first draft. We think that the following drafts have gone in the right direction, we think that the potential concerns have been we do see them basically addressed in the development. So at this stage, for us, it's not an area of concern. We're also thinking about the spirit of the act, which is actually to foster, to support the development of connectivity, and so the development of services which companies such as our and tower companies do deliver. I go to the third one, which is related to the other BTS.
No, they are open. There is no restriction. Those are new programs, we will see shortly. It's a little bit too early to comment. We do expect other tenants as well, but let's let me comment with more details as soon as we understand a little bit better and we have a little more visibility.
Hi, George. Concerning your question about networking capital, we do expect it to remain positive in 2023, but starting from 2024, to be in the, let's say, neutral to positive networking capital impact on cash flow.
Thank you. Very clear.
Gentlemen, there are no more questions registered at this time.
Thank you, everyone, for connecting. Have a good day. Thank you.
Thank you.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.