Masorange (MASORANGE) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue, EBITDA, and cash flow growth in the first nine months of 2024, with a reduction in debt and steady integration progress, crystallizing €85 million in synergies and renewing key content agreements for the 2024-25 football season.

• Mobile and FTTH customer bases expanded, reaching 25.8 million mobile lines and 7.1 million broadband lines, with 86% 5G coverage in Spain and market leadership in both segments.

• Announced and initiated a redundancy plan for up to 650 employees, with union agreement and completion expected before year-end.

• Reported consolidated net loss of €533.5 million for the six months ended 30 September 2024, impacted by high non-cash charges and restructuring costs.

Financial highlights

• Adjusted EBITDA grew by 7.5% year-over-year, reaching a margin of 37.1% for 9M24, while EBIT was negative at €80.3 million for the six-month period.

• Billed service revenues increased by 1.2% year-over-year, with total revenues up 0.5% year-over-year to €3.64 billion despite regulatory headwinds.

• CapEx reduced by 8.1% (EUR 76 million), lowering the CapEx to sales ratio to 13.6%.

• Operating cash flow rose by approximately 20% on an adjusted basis, with net cash flow from operating activities at €796.9 million and free cash flow generation nearly €300 million.

• Net debt leverage at 3.7x EBITDA, total net debt at 4.6x EBITDA, and total financial liabilities exceeding €12.75 billion.

Outlook and guidance

• Confident in achieving over €100 million in synergy impact for 2024, targeting above €500 million in total run-rate synergies by 2027.

• Proceeds from the NetCo transaction will be used for further deleveraging, with more details expected by end of Q1 next year.