Cellnex Telecom (CLNX) Q2 2024 earnings summary

Executive summary

• Revenues ex-pass throughs rose 7.1% year-over-year to €1,921 million, driven by organic growth, escalators, new colocations, and BTS program execution.

• Adjusted EBITDA reached €1,578 million, up 5.9%, with an 82% margin; EBITDAAL grew 8.4% to €1,114 million.

• Net loss attributable to the parent widened to €418 million, mainly due to a €402 million impairment in Austria and higher amortization/financial costs.

• Achieved S&P investment grade status ahead of schedule and issued a new bond to repay higher-cost variable debt.

• On track to meet 2024 financial outlook, with strong commercial and operational performance and robust liquidity.

Financial highlights

• Organic revenues grew 7.4% year-over-year, with operating income for H1 2024 at €2,117 million, up 5.9%.

• Adjusted EBITDA margin was 82%; EBITDAAL margin was 58%.

• RLFCF increased to €781 million from €741 million; free cash flow reached €49 million, up by €180 million year-over-year.

• Net financial debt stood at €21,078 million, with 80% at fixed rates and immediate liquidity of €3.9 billion.

• CapEx for 2024: maintenance below 4% of revenues, expansion around €500 million, and build-to-suit CapEx expected at €1.3 billion.

Outlook and guidance

• 2024 guidance: revenues ex pass-through €3,850–3,950 million, adjusted EBITDA €3,150–3,250 million, RLFCF €1,650–1,750 million, FCF €250–350 million.

• 2025 guidance: revenues ex pass-through €4,100–4,200 million, adjusted EBITDA €3,400–3,500 million.

• Target leverage of 5.0–6.0x Net Debt/EBITDA by 2025–2026; investment grade status to be maintained.

• Minimum €3 billion dividends until 2030, payable from 2026 at the latest; up to €7 billion for buybacks and extraordinary dividends.

• Guidance will be updated after completion of asset sales.