Cellnex Telecom has announced its financial results for the first nine months of 2023, showcasing robust growth and strategic initiatives.
Financial Highlights:
Cellnex Telecom’s revenue for the first nine months of 2023 increased by 16 percent, reaching EUR 2,248 million. Including pass-throughs, the growth was 17 percent.
Cellnex Telecom said Adjusted EBITDA witnessed a significant uptick to EUR 2,248 million, reflecting both organic growth and the consolidation of the telecom tower company’s geographic footprint.
Cellnex Telecom said free cash flow surged to EUR 436 million compared to a negative EUR 774 million in the same period last year, driven by the sale of sites in France as per the French Competition Authority’s remedies.
Asset Disposals and Debt Reduction:
Cellnex strategically concluded the sale of 2,353 sites in France to Phoenix Tower International and a joint venture with Bouygues Telecom, generating EUR 631 million. An additional EUR 360 million is expected after the transfer of the remaining sites in 2024.
A 49 percent stake in Cellnex Sweden and Cellnex Denmark was sold to Stonepeak for EUR 730 million, contributing to debt reduction.
The company announced an agreement with Boldyn Networks to sell its private networks business unit, including Edzcom, with the transaction set to conclude in the first quarter of 2024.
Financial Structure:
The Group’s net debt, excluding lease liabilities, stands at EUR 17.6 billion, with 75 percent of the debt at a fixed rate.
A convertible bond issue for EUR 1 billion in July extended debt maturities and increased conversion price, contributing to a stable financial structure.
Business Lines and Main Indicators:
Infrastructure Services for mobile Telecommunications operators (TIS business) contributed 91.1 percent of revenue, with a year-on-year increase of 17.6 percent.
Broadcasting infrastructures activity contributed 5.7 percent of revenue, while the business focused on security and emergency service networks and solutions contributed 3.2 percent.
As of September 30, Cellnex had a total of 111,688 operational sites, with organic growth and expansion across various countries.
Year-End Outlook:
Cellnex confirms its outlook for the end of 2023, aiming for revenue between EUR 4 and 4.1 billion, EBITDA of EUR 2,950 – 3,050 million, and free and recurring cash flow between EUR 1,525 – 1,625 million.
Cellnex CEO, Marco Patuano, commented, “This period has been marked by excellent commercial performance and consistent operational execution. We are making good progress on reducing debt and achieving our financial targets, thanks to a strategic focus on core business and asset disposals.”
