Cellnex will consider buybacks and distribute dividends when TowerCo generates positive FCFs in 2024


Morgan Stanley |The main issues dealt with on Cellnex’s panel of the TMT:

  1. Capital allocation is the priority: The company has announced that it will consider carrying out buybacks and distributing dividends when TowerCo generates positive FCFs in 2024.
  2. The next priority is to take advantage of BTS capacities/organic growth, which in the context of 5G offers new challenges. The “Greenfield” projects also have attractive yield profiles according to the company. France, Italy and Poland are countries where Cellnex has higher BTS commitments.
  3. Inflation in Europe is a tailwind for Cellnex. Management indicated that 60-65% of revenues are completely linked to inflation. That said, the company is managing inflation costs (for example, it is capable of transferring the lion’s share of energy costs to the consumer). Leasing costs of plots have improved over the last four years via a programme of more precise costs (consisting of the purchase of plots and subsequent negotiation of the duration/costs of contract). Whatsmore, personal and maintenance costs are also under control.

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