Cellnex closes H1 2024 with revenue of €1.921 billion

Period marked by a consistent commercial performance and a robust operational execution with PoPs (Points of Presence at the Group’s sites) increasing 9.3%

Organic revenues increased 7.4%[1]. Organic EBITDAaL increased 10.7%[1]

The Company is in advanced negotiations regarding the Austrian divestment process

An earlier distribution/share buyback could be considered after closing, subject to leverage/rating commitments

• The operational and financial indicators[2] of the period reflect the strength of organic growth:
  • +9.3% new organic PoPs vs H1 2023.
  • Revenue[3]: €1.921 billion (vs €1.795 billion H1 2023) +7.1%
  • EBITDAaL (EBITDA after leases): €1.114 billion (vs €1.028 billion H1 2023) +8.4%
  • RLFCF (Recurring leveraged free cash flow): €781 million (vs €741 million H1 2023) +5.4%
  • FCF (Free Cash Flow): €49 million (vs negative €130 million H1 2023).
• The Company confirms its outlook for FY2024 with revenue[2] between €3.85 and €3.95 billion, EBITDA between €3.15 and €3.25 billion and free cash flow between €250 and €350 million.
• As of June 2024, net financial debt^[4] stood at €17.521 billion. 80% of the debt is referenced to a fixed rate.
• Cellnex has 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.
• The Company has completed registration of the firm Celland Estate Management which will focus on land acquisition in Spain, Portugal, France, Italy and the United Kingdom.
• TIME magazine ranked Cellnex number 12 among the 500 most sustainable companies in the world for 2024.

Barcelona, 1 August 2024. Cellnex Telecom presented its results today for the first half of 2024. The period has been marked by a consistent commercial performance and a robust operational execution, with PoPs increasing more than 9% compared to last year.

Total revenue^[3] stood at €1.921 billion (+7.1%). The organic revenues, which mainly exclude the impact from the disposal of sites in France, increased 7.4%.

EBITDA after leases (EBITDAaL) stood at €1.114 billion (+8.4%). Organic EBITDAaL increased 10.7%. Adjusted EBITDA grew to €1.578 billion (vs 1.490 billion H1 2023).

The recurring levered free cash flow (RLFCF) increased to 781 million Euros from 741 million Euros last year, and the free cash flow (FCF) reached 49 million Euros vs negative €130 million in the same period of the previous year, benefitting from the cash flow generation and 154 million Euros received in the context of the remedies processes.

The Group’s net result in the period was negative (- €418 million), mainly due to the classification as held for sale of its assets in Austria, as the Company is in advanced negotiations after having received binding offers for its business in the Alpine country (€265 million net of the corresponding tax effects)[5]; and the effect of higher amortizations and financial costs associated with the intense investment process carried out in the past.

Marco Patuano, Cellnex CEO, said: “Our key organic indicators –from revenue to cash flow to the main business metrics relating to the expansion of points of presence at our sites– reflect a solid first half of the year, in line with our objectives”.

“We are making good progress in Cellnex’s Next Chapter –added Patuano–, focused on consolidating and streamlining our structure, strengthening our balance sheet and maximising shareholder value, thus fulfilling our commitments to the market”.

Business lines. Main indicators for the period

• Sites for telecommunications operators contributed 82% of revenue, or €1.573 billion (c.+6%)³
• DAS, Small Cells and other Network services contributed 6% of revenue, or €123 million (c.+17%)
• Fibre (wholesale), Connectivity and Co-Location Services (Housing) contributed 5% of revenue, or €96 million (c.+24%)
• Broadcasting contributed 7% of revenue with €129 million (c.+3%)

As of June 30, Cellnex had a total of 113,216 operational sites: 24,340 in France, 22,572 in Italy, 16,409 in Poland, 13,417 in the United Kingdom, 8,770 in Spain –the Group’s five main markets– and a total of 27,708 sites in the other countries where it operates (6,672 in Portugal, 5,518 in Switzerland, 4,654 in Austria, 3,992 in the Netherlands, 3,212 in Sweden, 1,666 in Denmark and 1,994 in Ireland); plus 1,903 broadcasting and other sites and a total of 10,865 DAS nodes and Small Cells.

Organic growth in points of presence at the sites stood at +9.3% compared to the same period in 2023, 6.2% from new co-locations at existing sites, with a total of 4,668 –most notably in Italy and Portugal– and 3.1% from the roll-out of 2,482 new PoPs during the period, thanks to the increase in BTS (Built to Suit) programmes in France and Poland.

Financial structure

• The Group’s net debt⁴ amounts to €17.521 billion. 80% of the debt is referenced to a fixed rate.
• In May – after achieving investment grade status from S&P in March – Cellnex successfully completed and closed a €750 million bond issue (used to repay debt at a variable cost).
• Cellnex currently has access to immediate liquidity (cash and undrawn credit lines) in the amount of approximately €3.9 billion.
• Cellnex Telecom’s bond issues maintain their “investment grade” rating from Fitch and S&P (BBB-) with a stable outlook.
• On 17 June the Company paid a dividend charged to the share premium reserve in the amount of €11,824,922.47 (0.01676 for share).

Selective divestments to focus on key markets

As part of the “Next Chapter”, the Company conducted an analysis of its current presence and potential in the countries where it operates to focus resources and efforts selectively on any growth opportunities that these markets may offer for Cellnex.

As a result of this analysis, in March Cellnex announced the sale of its business in Ireland to Phoenix Tower International for c.€971 million.

In addition, the Company is in advanced negotiations regarding the Austrian divestment process.

An earlier distribution / share buyback could be considered after closing, subject to leverage / rating commitments.

About Cellnex Telecom

Cellnex is Europe’s largest operator of telecommunications towers and infrastructure, allowing operators access to an extensive network of telecommunications infrastructure on a shared-use basis, thereby helping to reduce access barriers for new operators and improve services in the most remote areas. The Company manages a portfolio of over 138,000 sites – including planned roll-outs up to 2030 – in 12 European countries, with a prominent presence 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 indices and performs notably well on the main sustainability indices such as CDP, Sustainalytics, FTSE4Good, MSCI and DJSI Europe.

[5] If an agreement for the divestment is not finally reached, the recorded impairment will be subject to subsequent review.