Cellnex Q1 Revenues grow 7% to €946 million

Results January-March 2024

EBITDA grew 7% to €778 million driven by PoPs organic growth (+10.7%)

Cellnex secured investment grade rating from Standard & Poor’s in March, ahead of the target date set for the end of 2024

• The financial and operational indicators[2] reflect the strength of the Company’s organic growth:
  • Revenue[1]: €946 million[3] (vs 887 million Q1 2023) +7%
  • Adjusted EBITDA[3]: €778 million: (vs 730 million Q1 2023) +7%
  • EBITDA after leases (EBITAaL): €535 million (vs. 490 million Q1 2023) +9%
  • Recurring Levered Free Cash Flow (RLFCF): €384 million (vs. 336 million Q1 2023) +14%
  • Free Cash Flow (FCF): €103 million (vs –139 million Q1 2023).
  • Solid organic growth: +10.7 % of the points of presence (PoPs) at the group’s sites.
• Cellnex announced the sale of its business in Ireland to Phoenix Tower International for €971 million, equivalent to a multiple of 24x EBITDAaL.
• The Company confirms guidance for FY 2024 with revenues[1] between €3.850 and 3.950 billion, EBITDA between €3.150 and 3.250 billion and free cash flow of between €250-350 million.
• Net financial debt[4] –as of March 2024– amounts to €17.361 billion. 75% of debt is referenced to a fixed rate.
• Cellnex has been recognised by CDP as a “Supplier Engagement Leader” for the third year in a row for its leadership and involvement with suppliers in the fight against climate change and for its efforts to measure and reduce environmental impact in the supply chain. MSCI has confirmed the company’s AA ESG rating (maximum AAA).

Barcelona, 25 April 2024. Cellnex Telecom has presented its results for the first quarter of 2024. Revenue¹ stood at €946 million (+7%) and adjusted EBITDA grew to €778 million (+7%) with a clear drive of the PoPs (Points of Presence) organic growth (+10.7%). EBITDAaL stood at €535 million (+9%) showing a disciplined approach to Opex and lease management. Free cash flow was €103 million vs -€139 million from the same period of the previous year, due also to proceeds from the second tranche (€152 million) of the sale of sites in France, in accordance with the remedies established by the French Competition Authority (FCA) following the purchase of Hivory in 2021.

The net accounting result of the group remains negative (-€39 million), however, this represents a €52 million improvement over the first quarter of 2023 (-€91 million), reflecting the growth in the Group’s EBITDA.

Marco Patuano, CEO of Cellnex, highlighted that “all our key indicators –from revenues to cash flow and key business metrics related to the expansion of the points of presence at our sites –reflect a solid start of the year in line with the objectives that we announced at the Capital Markets Day held on 5 March in London.”

Patuano added that “we are making good progress on the ‘Next Chapter’ of Cellnex, with the earlier-than-expected achievement of the simple most important financial target– attaining an Investment Grade rating from Standard & Poor’s, ahead of the end-of-2024 target.”

Business lines: Main indicators for the period

As explained at the Capital Markets Day, the Company will begin reporting revenues from the four business lines on which it has focused its operations:

• Towers accounted for 82% of revenues, with €776 million (c.+5%)³
• DAS, Small Cells and RAN as a service contributed 6% of revenues, with €59million (c.+21%)
• Fibre, Connectivity and Housing contributed 5% of revenues with €47 million (c.+24%)
• Broadcasting contributed 7% of revenues with €64 million (c.+2%)

As of 31 March, Cellnex had a total of 112,247 operational telecom sites: 23,861 in France, 22,559 in Italy, 16,227 in Poland, 13,341 in the United Kingdom, 8,770 in Spain –the Group’s five main markets–, and a total of 27,489 sites in the rest of the countries in which it operates (6,571 in Portugal, 5,498 in Switzerland, 4,639 in Austria, 3,979 in the Netherlands, 3,158 in Sweden, 1,652 in Denmark and 1,992 in Ireland); in addition to 1,892 Broadcasting & Others sites and 10,252 DAS and Small Cells nodes.

Organic growth of points of presence at sites was +10.7% compared to the same period of 2023, 7.5% from new colocations in existing sites, with a total of 3,390  –with Italy and Portugal standing out in this field–, and 3.2% from the roll-out of 1,454 new PoPs during the period due to the progress made in the BTS (Built to Suit) programmes in France, Italy and Poland.

Financial structure

• Group net debt⁴ stands at €17.361 billion (vs. €17.287 billion FY2023). 75% of debt is referenced to a fixed rate.
• Cellnex currently has access to immediate liquidity (cash and undrawn credit lines) of approximately €3.7 billion.
• Cellnex Telecom’s bond issues hold their investment grade rating from both Fitch and S&P (BBB-) with a stable outlook.

Selective divestment strategy aligned with the Company’s roadmap

With the ‘Next Chapter’, the Company has conducted an analysis of its current presence and potential path in the countries in which it operates in order to selectively direct resources and efforts towards the growth opportunities that these markets may offer for Cellnex.

As a result of this analysis, Cellnex announced on 5 March the sale of its business in Ireland to Phoenix Tower International for €971 million, equivalent to a multiple of 24x EBITDAaL. In parallel, it continues to evaluate the possibility of monetising other assets to crystallise value. Under this context the potential disposal of the Austrian business is being assessed. Non-binding offers are expected in May, while should the disposal be executed, an earlier distribution / share buyback could be considered subject to leverage and rating.

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]Excel support document available at www.cellnex.com.

[2]Excluding lease liabilities and the deferred payment in relation to the acquisition of Omtel, as disclosed in Note 19. c) to the consolidated financial statements for the period ended 31 December 2023.

[3]Considering a smaller perimeter due to asset disposals in France (remedies).

[4]Excluding lease liabilities and the deferred payment in relation to the acquisition of Omtel, as disclosed in Note 19. c) to the consolidated financial statements for the period ended 31 December 2023.