Cellnex Telecom has presented its financial results for the end of fiscal 2023, consolidating its position as a key player in the telecommunications sector.
Key figures indicate significant growth in revenues and EBITDA, reflecting the consolidation of its geographic presence.
Key Financial Data
Cellnex’s turnover for 2023 exceeded 4 billion euros, reaching exactly 4,053 million euros, an increase of 16%. At the same time, regulated EBITDA grew to 3,008 million euros, marking an increase of 14%. These positive results, together with organic growth of 6.4%, reflect the consolidation of its geographic footprint.
Free cash flow was €150 million, compared to -1,115 million in the same period last year. This turnaround was mainly influenced by the sale of sites in France, in accordance with measures established by the French Competition Authority following the acquisition of Hivory in 2021.
Financial Structure and Rating
The Group’s financial structure shows that the Group’s net debt, excluding lease obligations, amounted to €17,287 million (compared to approximately €17,475 million in Q3 2023). Currently, 76% of debt is indexed at a fixed rate.
Cellnex has maintained its investment rating from Fitch (BBB-) with a stable outlook and a rating from S&P of BB+ with a positive outlook.
Key Activities and Leading Indicators
Infrastructure services activities for telecommunications operators (TIS business) contributed 91% to turnover, reaching 3,685 million euros, up 16% compared to 2022.
The transmission infrastructure business contributed 6% of the turnover, with 230 million euros.
The business focused on security networks and emergency services and solutions for the intelligent management of urban infrastructures (MCPN and IoT and Smart cities) contributed 3% to turnover, totaling 138 million euros.
Selective Disposal Strategy
Cellnex has adopted a selective divestiture strategy, in line with its corporate roadmap. In 2023, it completed the sale of 2,353 sites in France to Phoenix Tower International (PTI) and the joint venture of PTI and Bouygues Telecom, receiving €631 million for the sale of these assets.
In November, it closed a deal with Stonepeak to sell 49% of Cellnex Sweden and Cellnex Denmark for €730 million, equivalent to a multiple of 24x 2024 EBITDAaL.
In line with its strategy to focus on activities and businesses around telecommunications towers (its core business) and adjacent assets, Cellnex has closed the deal to sell its private networks business unit to Boldyn Networks, which mainly includes Edzcom, the Group’s Finnish subsidiary specialized in connectivity solutions for private networks in industrial complexes and environments.
Cellnex is evaluating the possibility of monetizing other assets to crystallize value and accelerate the process to reach investment grade by S&P.
Future perspectives
Anne Bouverot, President of the Board of Cellnex, commented: “2023 was a year of transformation for Cellnex. After years of significant growth through mergers and acquisitions, we announced a “next chapter” to focus on integrating these acquisitions and accelerating organic growth. The company has strengthened the execution of this new chapter, giving greater responsibility to countries with a new organizational model, making some selective divestitures and continuing to achieve strong financial results.”
Marco Patuano, CEO of Cellnex, added: “In 2023, Cellnex delivered excellent commercial performance and consistent operational execution. We look forward to sharing what the future holds for Cellnex and our “Next Chapter” roadmap with the investment community at the upcoming Capital Markets Day in London on March 5. We remain committed to operational excellence and delivering results. There will be much more to share in just a few days.”
In summary, Cellnex’s financial results for 2023 reflect a solid performance in terms of revenue growth, EBITDA improvement and positive free cash flow turnaround. The selective divestment strategy appears aligned with the company’s long-term vision of focusing on its core business and sustainable value creation.