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Edited Transcript of ENAV.MI earnings conference call or presentation 6-Aug-19 1:00pm GMT

Half Year 2019 Enav SpA Earnings Call

ROMA Sep 2, 2019 (Thomson StreetEvents) -- Edited Transcript of Enav SpA earnings conference call or presentation Tuesday, August 6, 2019 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Luca Colman

ENAV S.p.A. - CFO

* Roberta Neri

ENAV S.p.A. - CEO & Director

* Stefano Raffaello Songini

ENAV S.p.A. - Head of IR

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Conference Call Participants

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* Arthur David Truslove

Crédit Suisse AG, Research Division - Research Analyst

* Juri Zanieri

Kempen & Co. N.V., Research Division - Analyst

* Luigi De Bellis

Equita SIM S.p.A., Research Division - Co-Head of Research

* Nicolò Pessina

Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst

* Rishika Dipak Savjani

Barclays Bank PLC, Research Division - Assistant VP

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Presentation

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Operator [1]

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Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the ENAV's First Half 2019 Results Conference Call. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Stefano Songini, Head of Communications and Investor Relations. Please go ahead, sir.

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Stefano Raffaello Songini, ENAV S.p.A. - Head of IR [2]

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Thank you, operator. Good afternoon, ladies and gentlemen, and good morning to those of you connecting from the U.S. and welcome ENAV's First Half 2019 Results Call.

Just as a reminder, we are having problems with our systems today, they must have gone on holiday as well. So the presentation will be found in the Italian section of the link we have sent to you inside the date. So the presentation is available there. Bear with us that the systems are not functioning today.

With that, I'm joined here in Rome by Roberta Neri, our Chief Executive Officer; and by Luca Colman, CFO, who will be walking you through the formal presentation. As always, we'll be taking your questions after the presentation.

With that, I will hand the call over to Roberta.

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Roberta Neri, ENAV S.p.A. - CEO & Director [3]

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Okay. Good afternoon to everyone, and welcome to ENAV's First Half of 2019 Results Call.

The half year performance further confirmed the strong trend for the weakness in the first quarter of the year and approve the [perceiveness] of the Italian space. This was despite ongoing closure of the Libyan airspace.

As for the top line, our net revenue in the first half of 2019 increased by 1.5% year-on-year, reaching EUR 417.3 million, with solid growth in revenues from operation, up 2.9% year-on-year, offset by higher negative balance in the period. More specifically, route revenues reached EUR 310.1 million, up 2.9%, and our terminal charges reached EUR 108.8 million, moving 5.8% over the first half of 2019.

As I mentioned, in the first half of this year, we recorded a negative balance of EUR 29.8 million compared to more less negative balance of EUR 24 million recorded in the same period of 2018. The increased negative balance is mainly the result of both higher balance of the 2019 tariffs and the growth in the traffic higher than expected, which led to the creation of a slightly negative route and terminal balance for the period, and we will explain further details.

Our nonregulated business in the first half came in at EUR 4.1 million, declining vis-à-vis 2018 mainly as a consequence of the delaying activities in Libya, given to the country's complicated situation for the team.

In the first 6 months of 2019, we continue to focus on cost efficiency and achieved a significant reduction in terminal cost, which, together with the growth in top line, enabled us to increase our EBITDA by 3.2% year-on-year to EUR 115 million, with a margin increase in the 27.6%.

On the bottom line, we recorded a net income of EUR 34.1 million, growing 3.4% versus for the first half of 2018.

Beside these positive results, I would like to lie -- to highlight that we recently finalized the acquisition of air navigation division of IDS. We expect to consolidate IDS in our figures sharing from our 9-month results and I am also happy to announce a news regarding the fact that we received the win of bid for the new contract in Argentina for providing of a system [Chronus] for total consideration of $857,000.

Finally, I would like to confirm our 2019 full year guidance, with a marginal revision of CapEx from EUR 125 million to EUR 115 million to EUR 120 million.

Next slide, on Slide 2, we can see the robust traffic trends in regards to the newer routes and internal businesses. As I previously highlighted, route traffic performance was strong driven by a solid growth in all traffic segments. In particular, it's worth mentioning the ongoing increase in other slides with the service units up 9.5%, which we attribute in part to the positive effect of these route services, which (inaudible) space for longer distance.

Such a growth in traffic was achieved despite of, as I said before, the ongoing debilitation of Libyan airspace. Our slight growth of 9.5% mainly -- was mainly related by increase in traffic for medium distance for posting an increase of 18%. In terms of geography, the most impressive growth was seen for connection between Europe and Asia, up 15.6% in terms of service units as well as between European countries, up 9.8%. National route traffic performance was also very strong with service units increasing by 7.1% as a result of both increase in the number of flights, up 4.9%, and the greatest distant flown driven by more flights connecting directly northern and southern Italy where high speed rate is less competitive.

Lastly, in traditional traffic we also posted a solid growth of 5.9% in terms of service units, thanks to both an increase in the number of flights and increase in medium and shorter distance also. The performance to and from all countries was positive in Europe as major destination, accounting for 78% of international service units. And with the significant growth in connection with Africa, up 17% in terms of service units.

Overall, our performance in route in the first half of this year has been the strongest among the big 5 European countries. Also in terms of quality, where we delivered the best performance in terms of delay per assisted flight.

Terminal traffic growth was also solid in the first half of 2019, with a 5.4% growth in service units and 4.5% in terms of flight, driven by a positive contribution from all 3 traffic zones in both the National and International segment. So the National segment, up 5.4% overall, was characterized by an impressive 9.5% growth in Terminal Zone 2 and reinforced by resilient trends in Terminal Zone 3 and for 1 up 4.4% and 4% respectively.

Similarly, the international segment posted an encouraging 5.8% increase in service units as a combined effect of a 7.6% growth in Terminal Zone 3, 5.4% growth in Terminal Zone 2 and 4.2% growth in Terminal Zone 1.

In terms of airports, the most attractive were [Malpensa] growing by 10.2% in terms of service units as well as some major zone 3 airports such as Calgary, up 15%; Bali, up 12.1% and Palermo, up 9.3%.

As you can see from the figures on the right side of the slide, our business mix remain very diversified with a favorable exposure to international traffic trends. Only 19% of our en-route percent, this is related to domestic flights. About 52% of them are generated from international flights and over 59% are generated from our flights.

Looking at our revenues in more detail on Slide 3. As you can see, our en-route revenues grew 2.9% year-on-year, driven by the strong increase in traffic, up 7.5% in terms of total being service units, combined with the lower applied tariff of EUR 77.96, that is minus 2.5% versus the EUR 79.98 for 2018.

Premier revenue in the first half in this first half show a significant increase of 5.8% year-on-year. And these are the combined results of solid traffic trends, up 5.7% in terms of paying service units, coupled with the lower tariffs on charging zone 2 and zone 3.

The negative balance of EUR 29.8 million is the result of balance reversal applied in 2019 terminal and tariffs for a negative amount of EUR 25.4 million compared to minus EUR 24.7 million in the first half of 2018, combined with a negative en-route traffic balance for the period as a consequence of the actual service units in the first half of 2019 being higher by 2.4% than the forecast service units.

In addition, we recorded negative terminal balance for the period of approximately EUR 2.5 million as a sum of negative balance from higher traffic and charges of 2 than the 1 forecasting the performance plan and a slightly positive balance for Terminal Zone 3 managed according to cost recovery mechanism.

Revenues from our nonregulated business dropped to EUR 4.1 million, with new contracts in Croatia and Romania related to flight expansion and training activities, not compensating for the decline in revenues from contracts in Libya and the conclusion of the activities in Middle East.

The decline of revenues from contracts in Libya basically depends on the complicated situation and does not allow to speak to the original timing of what's [planned] in Libya and also increase (inaudible) cost.

We remain committed to growing our nonregulated business [control] for the launch of new products and expansion into new markets. In the second half of the year, we expect a more robust top line of potential contracts coming to market.

Lastly, the item other operating revenues remained stable year-on-year, including various grants for Safety and Security of EUR 15 million as well as financing for common European project.

Next slide, cost efficiency. As you can see, we remain fully focused on our OpEx efficiency plan. In fact in the first 6 months of 2019, we achieved external OpEx reduction of over EUR 4.9 million, with a decrease of 6.9% year-on-year.

The main savings were related to several factors. One, reduction of telecommunication costs through the full IP network and fee renegotiation with our supplier; lower ATM equipment purchase and the lower maintenance cost due to different phasing of investment activities performed by the TechnoSky on ENAV's assets; and last but not least, reduction of the external services and consultancies.

Finally, we also saw the effect of the first-time adoption of IFRS 16 on our lease and fleet rental costs classified as an item in invested capital and depreciation in the P&L.

Concerning the personnel costs, we saw an increase of EUR 4.6 million, up 1.9% year-on-year, mainly related to the economic effects of the labor contract renewal signed in July 2018 and of the recently signed agreement for the 2019 summer season as well as the adoption by TechnoSky of the ENAV contract and also the effect of the calendar on vacation balances.

These impacts were partially counterbalanced by lower voluntary redundancy costs and by reduction in headcount of 118 employees on average. The account -- the headcount as of June 1st is 4,054 employees.

I will now hand the call over to Luca.

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Luca Colman, ENAV S.p.A. - CFO [4]

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Thank you, Roberta. Moving to Slide 6. You can see that our net revenue in the first half 2019 increased by 1.5% year-on-year driven by a solid performance in our revenue from operations, up 2.9%, only partially offset by material negative balance. The contribution to the growth in revenue from operations mainly came from revenue increase in en-route activities, which grew by approximately EUR 8.8 million as well as an increase in revenue from terminal activities, up EUR 6 million. We also saw a slight reduction in revenues from exempted flights of EUR 0.4 million and from nonregulated business of EUR 2.3 million. The increase in negative balance of EUR 5.8 million was the result of various factors. The continued increase in traffic weakness in the first 6 months of the year led to add actual service units, exceeding planned service units by 2.4%, which is above the debt and the threshold of minus plus 2%. This generated a small negative balance from en-route activities in the period. Similarly, higher traffic than expected for Terminal Zone 2 led to negative balance for the period of EUR 3.3 million, only partially offset by a positive balance of EUR 0.8 million for Terminal Zone 3.

Finally, we also saw a higher balance reversal in tariffs for a total of minus EUR 25.4 million, including both en-route and terminal. EBITDA increased by 3.2% to EUR 115 million, reflecting the dynamics of our top line, only partially offset by the modest increase in total costs due to OpEx and personnel cost trends previously highlighted by Roberta. As a result, the EBITDA margin grew to 27.6% versus the first half of 2018.

Looking at the P&L on Slide 7. As you can see, the increase in net income is mainly explained by top line growth, partially offset by higher costs and a mild negative effect of below EBITDA movements. Depreciation and amortization, net of CapEx contributions, was approximately EUR 64.9 million, increasing by 0.5% over the amount recorded last year and reflecting higher D&A linked to the first adoption of IFRS 16 of about EUR 1.1 million.

On the previous -- on the provisions and write-downs line, we recorded a loss of EUR 0.6 million related to the write-downs of certain receivables and settlements versus a gain of EUR 1.3 million in the first half of the previous year, impacted by the positive settlement of a legal dispute with the supplier.

Given the fact of all these items, EBITDA went up by 2.7% year-on-year to EUR 49.6 million, corresponding to a margin of 11.9%. Net financial expenses in the first half 2019 were higher than those in the first half of 2018, mainly due to the fact of balance receivables actualization which posted a financial income in the first half of 2018 versus the financial loss in the first half of 2019.

Finally, the lower income taxes in the first part of the year was due to positive effect of deferred taxes.

As in the first quarter, also the first half of the year, we have consolidated our stake in this slide in our accounts. As a result of the above, our net profit for the period came in at EUR 34.1 million, improving by 3.4% compared to the results of the same period last year.

Moving on to Slide 8. Let's have a look at the main movements of our cash flow and capitalization. Our cash balance in the first 6 months of the year decreased by EUR 32 million as a combined effect of several things. First of all, dividends paid for EUR 108 million, almost fully offset by a net profit of EUR 34 million and D&A of EUR 70 million; CapEx of EUR 35 million, corresponding to the cash CapEx of EUR 33 million; debt repayments of $7 million, compensated by the EUR 6.6 million capital increase related to D-Flight; net working capital absorption of about EUR 10 million, mainly due to the dynamics of the trade receivables and payables, counterbalanced by other assets and liabilities changes for EUR 30 million, including tax items as well as cash-in of PON, EUR 214 million to EUR 220 million financing and of CEF call in 2015.

It is worth noting that the cash generation at the end of the first 6 months of 2019 is much higher than the first 6 months of 2018, mainly as a result of higher cash flow generated from operating activities in the first half of the current year as explained by the items I just mentioned.

As a result of the decrease in cash, our net debt as of June 30, 2019, increased by EUR 37 million to EUR 39 million, leading to a net debt-to-EBITDA ratio of 0.1x. When including also the cash out for the IDS acquisition, analyzing in mid-July, the pro forma net debt-to-EBITDA ratio becomes 0.3x.

With that, I will hand the call back to Roberta for her closing remarks.

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Roberta Neri, ENAV S.p.A. - CEO & Director [5]

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Okay. Before opening the floor to your questions, let me recap our key achievements in these first 6 months of 2019. Traffic trends have been very strong pointing to a sustainable growth in traffic for the full year. Preliminary data for July seems to confirm this positive evolution. As you all know, sorry for repeating again, these traffic trends include the negative effect of growing debilitation of the Libya airspace. ENAV will remain set [at the front] of new technology that I have mentioned quality of services, as confirmed by the ongoing increase in traffic and the excellent performance in terms of quality and is firmly committed to pursuing socially and environmentally sustainable business model.

As for Aireon, the launch of the several batch of satellites occurred in January. (inaudible) and other partners have offered the system to clients worldwide. Indeed, the services is currently used by the Canadian and the U.K. navigation service provider and this is expected to be deployed by many other countries, such as India with whom Aireon has recently signed contract.

Furthermore, it's worth mentioning that on July '18, we finalized the acquisition of air navigation division of IDS. The price paid was EUR 41 million, equivalent to [2 NAV] (inaudible) multiple of 5.95x based on the 2018 EBITDA of EUR 8.9 million. On top of that, we have also signed an agreement whereby ENAV has the option to purchase within June 2020. The activities of IDS air navigation division currently carried out by IDS North America and by IDS Australasia.

Our cost discipline remains one of our major areas of focus. And at the start of the year, we believe that the further savings on external OpEx. With regard to petrol costs, we recently signed the 2019 summer season agreements with trade units and it's affecting the conditions for an optimal margin of basic traffic we expected as it references to these for the summer months of the year. The agreement will also allow us to experience less volatility in personnel costs related to peaks in traffic.

Our first half results allow us to maintain in 2019 a full year guidance of slightly low single-digit net revenue growth and EBITDA margin is approximately 32% as well as a target to deliver a 4% increase in dividends per share viable in 2020 for the 2019 financial year and this is in line with our dividend policy. On EBITDA, we have taken a prudent approach in traffic growth for the full year. And we plan also to sustain certain higher costs related to the TechnoSky activities and also on the deployment of the new operative model.

On the other hand, we have decided to marginally increase our 2019 -- sorry, marginally decrease our 2019 full year guidance for CapEx from about EUR 125 million to EUR 115 million to EUR 120 million to taking into account the better economic trends negotiated with suppliers.

So with that, we are now ready to answer any questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question is from Nicolò Pessina with Mediobanca.

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Nicolò Pessina, Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst [2]

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I would have 3 questions. The first one is on the regulatory review. I would like to ask if we could have an update on the latest talks with Eurocontrol in this regard and on the timing of the finalization of the new regulatory framework for the next few years.

Second question on the EBITDA guidance for the full year. Looking at the margin of 32%, you indicate -- I calculate a decline of EBITDA in the second half of the year and a sharp increase of the OpEx. So you mentioned that there are new activities at TechnoSky that can impact on OpEx. I would like to ask if this reasoning is correct. And if there are other reasons why OpEx should increase so much?

And final question on the dividend, on the dividend guidance for the full year. I would like to ask if it would be fair to assume at least EUR 5 million to EUR 10 million of lower CapEx could be added -- to be distributed to the shareholders. So if it would be fair to assume dividend growth above 4%?

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Luca Colman, ENAV S.p.A. - CFO [3]

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Okay. I think the first question, the regulatory situation. We are finalizing our business plan. We have already -- we are continuing our discussion with national and world with the European regulatory body. At the moment, we had a meeting last June 3 -- sorry, July 3, where we met the airlines representative and together with also the [PLV] and representative of European Commission. We showed them our figure, we have discussion with them of our figures. And the meeting went obviously well for what concern our point of view.

At the moment, we foresee to finalize the final draft of the performance plan within the end of September, sent to the European Commission together with the National Authorities with ENAC. The performance plan to the European Commission with the first week of October. And we still believe that within the end of the year -- sorry, the review of the analysis of the business plan could be done by the regulatory body and all the process could be closing that time.

At the moment, we are continuing the discussion -- the talking and the negotiation with authority. And until now, things are going obviously in the positive situation.

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Roberta Neri, ENAV S.p.A. - CEO & Director [4]

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Okay. To your second question, Nicolò, EBITDA margin of 32% that we confirmed in terms of guidance. Yes, just to confirm that on EBITDA, we have taken a prudent approach on traffic for the second half of this year. And the second element is that we plan to sustain, set some higher costs related to the TechnoSky's activities to deploy investments plan in extraordinary maintenance activities. And as I mentioned before, we expect also to foresee some cost to deploy the new alternative model in the second half of the year. IDS also to have the data, we will have based on costs related to the integration of IDS considering the recent acquisition of the company.

Last, to your question, CapEx and the link between the new guidance of CapEx and the dividend policy, we do not plan to change our dividend policy for now.

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Operator [5]

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The next question is from Luigi De Bellis with Equita SIM.

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Luigi De Bellis, Equita SIM S.p.A., Research Division - Co-Head of Research [6]

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I have 3 questions. The first one on the OpEx. What is your expectation of personnel cost growth for 2019? The second question on LP3 on 2020, 2024. In light of the current negotiation with the regulator, is it possible to have a range or at least the floor or potential 2020 route tariffs pre-balance compared to the 71.4 per service unit of 2020? Or putting it another way, how do you feel confident to keep a 17% EBIT margin in 2020, excluding potential new savings expected during the new period? The last question on the nonregulated business. You have signed an agreement with the option to purchase the activity of IDS in North America and Australasia. Could you quantify the perimeter of these activities in terms of revenues and potential profitability?

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Roberta Neri, ENAV S.p.A. - CEO & Director [7]

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First 2 questions is about the personnel costs over the current year. I have to say that total personnel cost will -- is going to increase over the current year compared to 2018. And this is due to the fact of the contract on the effect of the increase of traffic that is impacting in terms of the extraordinary workforce over time, and this is the major effect, and total cost is also benefiting about the reduction of the headcount that in the first half of the year is of 118 average (inaudible). And we don't expect in the second half of the year, further reduction of number of employees.

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Luca Colman, ENAV S.p.A. - CFO [8]

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For the second question related to the tariffs 2020 -- the 2020 tariffs, as you can imagine, we cannot give you the number, I mean, the value because it's not -- it's too early at the moment. What is -- the saving, as you said, 2020 situation, what we believe is what we are negotiating is to move some of the efficiencies that we are doing now in 2018, 2019 versus a higher level of cost of capital. So we believe the key part of these efficiencies here. The traffic will be reset. The traffic will be reset. That's for sure. And probably, we will have also some room for what concern cost of personnel -- like external costs also related to the fact that the traffic is increasing very fast in a very important way. So the negotiation with the counterpart, with the regulator is taking in consideration also this cycle. So we believe that were not so important in 2020 figures -- in 2020 tariff. That's the most we can say now.

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Roberta Neri, ENAV S.p.A. - CEO & Director [9]

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Okay. With regards to your last question, we have not disclosed about the subsidiary that we are going to acquire. But I can say that no material effect -- no material amount we expect. We feel that after the activities are already managed by IDS, now that we acquired.

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Operator [10]

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The next question is from Arthur Truslove with Credit Suisse.

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Arthur David Truslove, Crédit Suisse AG, Research Division - Research Analyst [11]

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Arthur Truslove from Credit Suisse. A few from me. So firstly, obviously, there's obviously been some disruption amongst ANSPs across Europe this year as there has been in prior years. And have you benefited from airlines rerouting from other air navigation service providers would have a disruption than you? And has that improved your financials?

Second question, obviously, the rate of growth in the nonregulated business has been relatively soft. You've obviously previously suggested that you will be able to reach EUR 35 million of nonregulated revenue in 2022, and that's obviously not including any acquisitions that you've recently made. I just wonder whether you'd be able to sort of talk through the progression that you expect towards that EUR 35 million between now and 2022?

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Roberta Neri, ENAV S.p.A. - CEO & Director [12]

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Okay. So about the rerouting activities in place, considering the contraction at European level, we can say that we are having some effects coming from at least rerouting considering high quality of the services provided in Italy in the (inaudible) space. We don't believe that in the first half of the year, the effect of this rerouting is so material.

About nonregulated activities, we reported in the first half of 2019 [decreased] EUR 4 million vis-à-vis about EUR 6 million. I have to say that the revenues getting from nonregulated business are not linear in general, considering the trends of the offering activities. I have to say that we are optimistic for the second half of the year and in general for the future, considering the professional new contractor that we have in pipeline. Obviously, the integration with IDS is good news in terms of efficiency, in terms of offering. So we are positive also considering the recent acquisition of IDS.

And your last question in terms of guidance in 2022, we confirm our guidance of EUR 35 million in 2022.

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Arthur David Truslove, Crédit Suisse AG, Research Division - Research Analyst [13]

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Just could I be coming back on your point on IDS? When are you expecting to sort of provide clear guidance as the financial performance that you're expecting from that business?

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Roberta Neri, ENAV S.p.A. - CEO & Director [14]

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After the new -- after the performance plan of the [store] and then after the update of our industrial plan. So we -- between the end of the year and the beginning of the next year.

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Operator [15]

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The next question is from Rishika Savjani with Barclays.

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Rishika Dipak Savjani, Barclays Bank PLC, Research Division - Assistant VP [16]

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Just a few follow-up questions for me. In terms of the IDS transaction multiple, I think 5.5 you put in the press release today is lower than the one that you said originally. Can you just explain what happened? And whether or not any of the terms of the acquisition did change?

And then my second question is also just on the topic of disruption. I think some of the airlines have been saying that they have experienced less disruption in the summer, and maybe it's partly because they've invested in more for aircraft and more buffers in their schedules themselves. But do you think that the environment in Europe is improving relative to last year? Or do you think it is still very tough?

And then my final question, just on the Aireon deal in India. Now that you signed one very significant deal with a nonpartner within the consortium, are you able to share at all what the revenue model might look like and the potential kind of margin potential of these new contracts are coming through? That would be very helpful.

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Roberta Neri, ENAV S.p.A. - CEO & Director [17]

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Okay. In -- all right, your first question is about the multiple of the IDS acquisition, very simple 5.5x EBITDA is the result of the negotiation that we managed during the visibility period. So we are happy to close these results that taking into account the adjustments coming from the results of the divisions.

About your second question, traffic trends -- traffic growth seems to be a trend, considering that also July, we have not the final results data of July in terms of service units, but we have the evidence of the number of flights that is growth. And our feeling is that also the current bounce is continuing in this line.

And -- yes, the last question is about Aireon. I can see that Aireon means confirm the business model and the business plan of Aireon that took into account the trading is coming from the providing of the new satellite services to all the clients, both shareholders and not the shareholders. India is confirmed but (inaudible) maybe you know, also affect the contract which was signed many months ago. And is the part of the perimeters of clients. So we are very happy of the results of India because of the negotiation with India. The negotiation was very fruitful with some difficulties coming from the bureaucracy of the India institutions. So the business, the business -- in terms of how the business model was, I can say that the clients and air navigation service provider [sector use the service] pay to Aireon services in terms of cost, that is a part of the total cost covered by the tariff. And obviously, in the -- this cost is able to support the management of strong growing traffic, in particular, in areas, in oceanic areas, so this is the situation and this is the component of cost. This is related to a new system and the new coverage of space.

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Operator [18]

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The next question is from Juri Zanieri with Kempen.

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Juri Zanieri, Kempen & Co. N.V., Research Division - Analyst [19]

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Actually, most of them have been answered. I'm left with only one. I was wondering, considering the strong traffic growth, I was hoping maybe you can give us a bit of guidance on what you expect traffic to perform in the second half of the year, especially at the terminal level considering the temporary closure of Linate Airport.

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Roberta Neri, ENAV S.p.A. - CEO & Director [20]

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No, as I told before, growing traffic seems to be a trend. Obviously, 7.4% is a very hard level of growth, also compared with the other country in Europe. So generally speaking, we take into account the stock force forecast. But for the current year, obviously, the final results, should it -- the position is higher than the stock force forecast. So we are positive and we have to consider that in the last months of the year, the longer we wait compared with summer season, much more months. About the Linate transfer to Malpensa, I have to say that we don't expect material effect considering that the Malpensa is currently managing higher level of traffic compared with the normal situation so that we don't expect a material effect.

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Operator [21]

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(Operator Instructions) There are no more questions registered at this time.

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Stefano Raffaello Songini, ENAV S.p.A. - Head of IR [22]

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Thank you very much, operator. Well, ladies and gentlemen, thank you very much for being patient on August 6, and I realized this, obviously not the earliest part of the year. So thank you, again, for joining us on this call. Obviously, we are able to take any further follow-up questions. I wish you a very good summer.

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Roberta Neri, ENAV S.p.A. - CEO & Director [23]

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Thank you. Thank you also from my side and you have a good summer.

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Luca Colman, ENAV S.p.A. - CFO [24]

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Goodbye.

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Stefano Raffaello Songini, ENAV S.p.A. - Head of IR [25]

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Bye-bye.

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Luca Colman, ENAV S.p.A. - CFO [26]

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Bye.

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Operator [27]

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