Masorange (MASORANGE) Q2 2024 earnings summary

Executive summary

• Achieved organic growth in H1 2024, with first synergies from integration materializing and a defined fiber network strategy.

• Maintained largest mobile and fixed broadband client base in Spain, with 25.8M mobile and 7.3M FTTH lines.

• Completed funding and debt repricing, with comfortable debt maturity schedule.

• Reported consolidated net loss of €411.7 million for Q2 2024, driven by high depreciation, amortization, and financial expenses.

• Revenues for the quarter totaled €1.78 billion, with significant external purchases and operating expenses impacting profitability.

Financial highlights

• Billed service revenues grew 1.1% year-over-year, while total revenues remained flat due to regulatory impacts with negligible margin effect.

• Adjusted EBITDA increased 6.7% year-over-year; reported EBITDA up 3.2%.

• Adjusted CAPEX declined 10%, reducing capex/sales to 13.7%.

• Operating cash flow rose nearly 20% on an adjusted basis; positive free cash flow of €170M despite higher interest and restructuring costs.

• Net cash flow from operating activities was €249.8 million, while investing activities used €324.6 million.

Outlook and guidance

• On track to achieve approximately €500M in total synergies, with about 30% of total and over 70% of FY24 synergies in execution; €50M crystallized in H1 2024.

• Fiber network strategy includes exclusive talks with Vodafone Spain to create a joint FiberCo, targeting 11.5M premises and expected to close in H1 2025.