Cellnex Telecom (CLNX) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €2,903 million, up 7% year-over-year, with organic revenue growth of 7.4% and strong operational execution.

• Organic EBITDAAL increased 9.8% year-over-year to €1,723 million, with margin improving to 59%.

• Free cash flow was €326 million, down from €436 million in 9M 2023, mainly due to lower remedies proceeds and recurring dividends to minorities.

• Portfolio optimization continues, with asset sales in Ireland and Austria progressing and expected to close by Q1 2025 and mid-December 2024, respectively.

• Net result improved to €140 million from a loss of €198 million in 9M 2023, despite impairment and classification of Austrian assets as held for sale.

Financial highlights

• Total revenues ex-pass throughs reached €2,903 million (+7.0% vs. 9M 2023); organic revenues growth +7.4%.

• EBITDAAL at €1,723 million (+8.9% vs. 9M 2023); margin at 59%.

• Adjusted EBITDA at €2,386 million (+6%); adjusted EBITDA margin at 82%.

• Recurring levered free cash flow reached €1,256 million (+7%).

• Net financial debt stood at approximately €17,500 million as of September 2024, with 80% at fixed rates and €4 billion in immediate liquidity.

Outlook and guidance

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

• On track to meet short- and medium-term targets, with acceleration of shareholder returns expected after asset sales in Austria and Ireland.

• Commitment to maintaining investment grade rating and leverage targets while considering increased shareholder remuneration in 2025.