In This Article:
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cellnex Telecom SA (CLNXF) reported a solid performance with revenues reaching 964 million, representing an organic growth of 6.3%.
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The company achieved an EBITDA after lease of 566 million, implying an organic growth of 8.7%.
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Cellnex successfully completed the sale of its operations in Ireland, allowing for portfolio streamlining and increased financial flexibility.
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A new syndicated loan of $625 million was secured for refinancing purposes at competitive terms.
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The company executed a significant share buyback program, acquiring shares worth approximately 755 million, reinforcing its commitment to returning value to shareholders.
Negative Points
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The reported numbers were impacted by a change of perimeter, with no contribution from Austria and only two months from Ireland.
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There is a notable churn in Spain due to the contract with Mas Orange, which allows network flexibility but results in short-term site disconnections.
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The macroeconomic and geopolitical situation is impacting financial market performance, posing challenges for the company.
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The company faces potential risks from land aggregators who may seek unfair returns on land leases.
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There is uncertainty regarding the future growth of build-to-suit contracts in the event of client mergers, which could affect expected revenue growth.
Q & A Highlights
Q: Can you provide insights on the potential impact of the Swiss asset sale process and the attractiveness of selling infrastructure assets to private investors? A: (CEO Marco Patuano) We are in the process of market testing for our Swiss assets, and if the offers are attractive, we will proceed to phase two. We are not forced to sell, which puts us in a better negotiating position. The decision will depend on the price offered and the strategic fit with our goals.
Q: What is the rationale behind the accelerated execution of the share buyback program? A: (CFO Ramon Trias) The decision to accelerate the buyback was influenced by the current undervaluation of our stock and the unpredictable macroeconomic factors affecting share prices. We aimed to maximize shareholder value by taking advantage of the lower share prices.
Q: How do you view the potential for extending the traditional tower model to include more active equipment sharing, such as RAN sharing? A: (CEO Marco Patuano) We already have experience with this model in Poland. Real efficiencies are achieved when two networks are combined into one, allowing for shared infrastructure and reduced costs. However, replicating this model in other countries is complex due to spectrum ownership and investment cycles.