Masorange (MASORANGE) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue, EBITDA, and cash flow growth in the first nine months of 2024, with €85M in synergies realized and integration of the joint venture progressing well.

• Mobile and FTTH customer bases expanded, reaching 25.8 million mobile lines and 7.1 million broadband lines, maintaining market leadership in Spain.

• Secured key content agreements, including football rights for La Liga and Champions League for the 2024-25 season.

• 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.

• Billed service revenues increased by 1.2% year-over-year; total revenues up 0.5% year-over-year despite regulatory impacts.

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

• Operating cash flow rose by approximately 20% on an adjusted basis, with free cash flow of €287M despite interest and restructuring costs.

• EBIT was negative at €80.3 million for the six-month period, with net financial expenses of €531.9 million.

Outlook and guidance

• On track to achieve over €100 million in synergy impact for 2024 and targeting above €500 million run-rate synergies by 2027.

• Proceeds from the NetCo transaction will be used for further deleveraging, with more details expected by end of Q1 2025.

• Strategic focus on B2B, public administration, and cross-selling additional services such as content, finance, insurance, alarms, and energy.