Cellnex Telecom SA (CLNXF) Q1 2025 earnings call Highlights: Str

Appearance date: May 09 May 2025

You can find the complete copy of the earnings call in the complete earnings call.

Positive points

• Cellnex Telecom SA (CLNXF, Financial) recorded a solid performance with income of € 964 million, which corresponds to organic growth of 6.3%.
• According to the rental agreement of EUR 566 million, the company received an EBITDA, which implied organic growth of 8.7%.
• Cellnex has successfully completed the sale of its business in Ireland, so that portfolio optimization and increased financial flexibility are increased.
• A new syndicated loan of 625 million US dollars has been secured for refinancing purposes on competitive conditions.
• The company carried out a significant share buyback program in which shares worth around EUR 755 million were acquired, which increased its commitment to the return value for the shareholders.

Negative points

• The reported figures were influenced by a change in re -course, without a contribution from Austria and only two months from Ireland.
• Due to the contract with MAS Orange, there is a remarkable emigration in Spain, which enables network flexibility, but leads to short -term interruptions of the website.
• The macroeconomic and geopolitical situation affects the financial market performance and represents the challenges for the company.
• The company consists of potential risks of Landaggregators who may be looking for unfair returns in land rental contracts.
• There is uncertainty about the future growth of development contracts in the case of customer mergers that could affect the expected sales growth.

Q&A highlights

Q: Can you give insights into the potential effects of the sales process for Swiss assets and the attractiveness of the sale of infrastructure systems to private investors?
A: (CEO Marco Patuano) We are particularly in the process of market tests for our Swiss assets, and if the offers are attractive, we will continue with phase two. We are not forced to sell, which brings us into a better negotiating position. The decision depends on the price offered and the strategic agreement with our goals.

Q: What is the reason behind the accelerated execution of the share buyback program?
A: (CFO Ramon Trias) The decision to speed up the repurchase was influenced by the current undervaluation of our shares and the unpredictable macroeconomic factors that influence the stock prices. We wanted to maximize the shareholder value by using the lower share prices.

Q: How do you see the potential for expanding the conventional tower model for a more active exit release like the RAL sharing?
A: (CEO Marco Patuano) We already have experience with this model in Poland. Real increases in efficiency are achieved when two networks are combined into one, which enables the common infrastructure and cost reduction. However, the replication of this model in other countries is complex due to spectrum ownership and investment cycles.

Q: Can you explain the effects of the Masmovil orange contract in Spain and its effects on the income?
A: (CEO Marco Patuano) The contract enables the network new design of flexibility without immediate income. Although there will be temporary use in income, we expect that we will be back and exceed the previous times over time due to the financial structure of the agreement.

Q: What measures are there to mitigate risks associated with Landaggregators who may terminate contracts?
A: (CEO Marco Patuano) We have a comprehensive strategy for the management of location risks, including the expansion of contracts and the acquisition of land where this is necessary. We are ready to build alternative locations if necessary, but we will not succumb to unfair requirements of land agency residents.

You can find the complete copy of the earnings call in the complete earnings call.