Cellnex’s revenues reached €2,903 million in the first nine months of the year

Results January-September 2024

The period was marked by consistent commercial performance and solid operational execution, with a 9.5% increase in PoPs (Points of Presence) at Group sites

Organic revenues[2] grew by 7.4%. Organic EBITDAaL[2] increased 9.8%

The Company is focused on free cashflow generation, deleveraging and acceleration of shareholder remuneration

• Financial and operational indicators[3] of the period reflect solid organic growth:
  • +9.5% new organic PoPs vs 9M 2023.
  • Revenues[1]: €2,903 million (vs €2,713 million 9M 2023) +7%.
  • EBITDAaL (EBITDA after leases): €1,723 million (vs. €1,582 million 9M 2023) +8.9%.
  • FCF (Free cash flow): €326 million (vs. €436 million 9M 2023).
• Cellnex plans to close the sale of Austria before the end of the year and the sale of Ireland in the first quarter of 2025.
• Net financial debt[4] –as of September 2024– stood at c.€17,500 million. c.80% of debt is referenced to a fixed rate.
• The Company is assessing with credit rating agencies the potential for the acceleration of shareholder returns in 2025, whilst keeping its leverage and Investment Grade rating commitment unchanged.
• Cellnex has signed a Power Purchase Agreement (PPA) for the supply of renewable electricity, reinforcing its commitment to 100% renewable electricity consumption by 2025 in line with its Energy Transition Plan, included in the ESG Master Plan 2021-2025.

Barcelona, 11 November 2024. Cellnex Telecom has released its results for the first nine months of 2024. The period was characterised by consistent commercial performance and solid operational execution, with PoPs up 9.5% year on year.

Total revenues[1] amounted to €2,903 million (+7%). Organic revenue, which mainly excludes the impact of the sale of sites in France, increased by 7.4%.

EBITDA after leases (EBITDAaL) reached €1,723 million (+8.9%). Organic EBITDAaL[2]  increased 9.8%. Adjusted EBITDA increased to €2,386 million (compared to €2,248 million in the first nine months of 2023).

Recurring leveraged free cash flow (RLFCF) increased to €1,256 million, compared to €1,171 million the previous year, and free cash flow (FCF) reached €326 million thanks to cash generation and €357 million received in the context of the remedies processes.

The Group’s net result was -€140 million (vs €-198 million in the same period of the previous year), due mainly to the classification of assets in Austria as undergoing sale (with a negative impact of €265 million, net of the corresponding tax effects), and the effect of higher amortisations and financial costs associated with the intense investment process carried out to date.

Cellnex CEO Marco Patuano highlighted the “strength of our key indicators quarter after quarter – from revenues to cash flow to key business metrics related to the expansion of points of presence at our sites – in line with our short and medium-targets and thus confirming the outlook for 2024. Furthermore, we are making progress in extending and broadening contracts with our customers in the main markets in which we operate”.

“In just over a year, we’ll have achieved many of the main strategic objectives we set for the next chapter of Cellnex, which we expect to complete with the acceleration of shareholder returns –once the sales deals in Ireland and Austria have been completed– thus fulfilling each and every one of our commitments to the market.”

Expanding customer relationships in key markets

In July the Company strengthened and extended its relationship with Vodafone UK and Virgin Media O2 with the agreement of a new long-term partnership to provide tower infrastructure and associated services to both mobile operators in the UK.

Cellnex is currently in advanced negotiations with MasOrange, to extend and unify into a single contract its relationship with the mobile operator in the context of their consolidation process in Spain, extending it until 2048 (with an ‘all or nothing’ renewal option in 2038). The Company will flexibly adapt to MasOrange’s network strategy in the short term, providing it with additional services for network densification (small cells, new collocations, 5G upgrades…).

In France , the Company has renewed 1,700 Iliad PoPs installed on Hivory sites for an additional 10 years.

Business lines. Main indicators for the period

• Sites for telecom operators made up 82% of revenues, at €2,376 million (c. +6%).
• DAS, Small Cells and other Network services contributed 6.4% of revenues, at €186 million (c. +13%).
• Fibre (wholesaler), Connectivity and Co-location services (Housing) contributed 5% of revenues with €146 million (c. +21%).
• Broadcasting contributed 6.6% of revenues with €194 million (c. +3%).

As of 30 September, Cellnex had a total of 113,741 operational sites: 24,401 in France, 22,586 in Italy, 16,612 in Poland, 13,533 in the United Kingdom, 8,770 in Spain –the Group’s five main markets–, and a total of 27,839 sites in the rest of the countries in which it operates (6,687 in Portugal, 5,534 in Switzerland, 4,670 in Austria, 4,005 in the Netherlands, 3,264 in Sweden, 1,680 in Denmark and 1,999 in Ireland); to which we should add 1,903 broadcasting and other sites; and a total of 11,478 DAS and Small Cells nodes.

Organic growth of points of presence at the sites stood at +9.5% in relation to the same period in 2023, with 6.4% from new placements in existing sites –with Portugal and Poland standing out in this area– and 3.1% coming from the roll-out of new sites in this period, mainly due to the progress made in the BTS (Built to Suit) programmes in France and Poland.

Financial structure

• The Group’s net debt[4] stood at €17,500 million. c.80% of debt is referenced to a fixed rate.
• In May –after obtaining investment grade from S&P in March– Cellnex successfully carried out and closed a bond issue of €750 million (used to amortise debt at variable cost).
• Cellnex currently has access to immediate liquidity (cash and unused credit lines) of approximately €4 billion.
• Cellnex Telecom’s bond issues maintain investment grade rating from both Fitch and S&P (BBB-) with a stable outlook.
• The Board of Directors has approved a dividend payment of €0.046 per share, charged to the share premium reserve, to be paid on 21 November (€32,456,291.44), in addition to the dividend of €0.01676 per share paid on 17 June (€11,824,922.47).

About Cellnex Telecom

Cellnex is Europe’s largest telecommunications towers and infrastructures operator, enabling operators to access a wide network of telecommunications infrastructures on a shared-use basis, and thus helping to reduce access barriers and to improve services in the most remote areas. The company manages a portfolio of more than 138,000 sites, including forecast roll-outs up to 2030, in 12 European countries, with a significant footprint in Spain, France, the United Kingdom, Italy and Poland. Cellnex, which is listed on the Spanish Stock Exchange, is part of the selective IBEX35 and Euro Stoxx 100 and enjoys outstanding positions on the main sustainability indices such as CDP, Sustainalytics, FTSE4Good, MSCI and DJSI Europe.

[1] Excluding energy rebilling to customers – pass-throughs.

[2] Excluding change of perimeter (disposal of sites), FX and others

[3] Excel support document available at www.Cellnex.com

[4] Excluding lease-related liabilities and the deferred payment relating to the acquisition of Omtel, broken down in Note 18(c) of the consolidated financial statements for the period ending 30 June 2024.