Italy’s Atlantia expects its core revenue to rise by 27% by 2024, it mentioned on Friday, as visitors on motorways and in airports it operates recovers and the infrastructure group expands into adjoining sectors.
Unveiling a brand new multi-year technique, the conglomerate managed by Italy’s highly effective Benetton household set a 2024 revenue objective of 5.1 billion euros ($5.6 billion), a determine matching the investments it expects to deploy over the identical interval.
Atlantia, making ready to attract a line underneath a prolonged authorized dispute with Italy’s authorities following the lethal collapse in 2018 of a bridge it operated, projected a 20% rise in income to round 7.7 billion euros in 2024 from 6.4 billion in 2021.
“We proceed to see ourselves as an infrastructure group, lively in a portfolio of property geographically diversified,” CEO Carlo Bertazzo instructed a web based investor presentation.
“We need to proceed to allocate our capital primarily in our core property – motorways by [Spanish unit] Abertis, airports and railways,” he added.
Bertazzo instructed analysts Atlantia was prepared to supply monetary assist to Abertis to assist it clinch a sizeable transaction within the “brownfield” toll-road enterprise – which means toll roads which can be already constructed and do not want growth.
Abertis CEO Francisco Aljaro Navarro instructed the identical presentation the Spanish group was reviewing alternatives in international locations the place it operated and would solely choose geographies with a “sturdy” regulatory framework.
Atlantia CEO Bertazzo mentioned it was additionally necessary for the group to “enlarge and diversify” its portfolio of property away from its core enterprise.
He indicated Atlantia could also be able to half methods sooner or later with its 16% stake in German builder Hochtief, which Bertazzo mentioned was not strategic.
The group by June will full the sale of its home motorway subsidiary which was in control of the bridge that collapsed in 2018.
It has already began utilizing a number of the 8 billion euros-plus in proceeds because it adapts its enterprise mannequin to extra sustainable and technologically superior mobility.
In January it agreed to purchase good mobility firm Yunex Visitors for 950 million euros.
“We see enterprise alternatives in e-mobility, vitality transition, good parking, vehicles-to-grid, rail intermodality, all markets which can be anticipated to develop quick by 2030,” Bertazzo mentioned.
Atlantia can be returning money to shareholders. It should pay out 900 million euros in dividends this 12 months, two thirds referring to 2021 outcomes and the remainder as an interim dividend on 2022 earnings. It additionally plans a share buyback of as much as 2 billion euros.
It mentioned dividends would develop by 3%-5% a 12 months underneath its new plan.
($1 = 0.9088 euros)