Cellnex will wait at least 12 months before increasing capital

telecommunications towers sector in Europe

The Spanish company Cellnex Telecom released its results for the first nine months of 2019. Revenues stood at € 753 million (+13%) and EBITDA was €498 million (+13%). The net result closed at € -12 million (vs. € -26 million in 3Q 2018) reflecting the effect of higher amortisation (+14% vs. 3Q 2018) and financial costs (+48% vs. 3Q 2018) associated with the group’s growth activities, including the expansion of its geographical footprint.

Some comments from Morgan Stanley analysts after the presentation of the firm’s CEO Tobias Martinez at the TMT conference in Barcelona:

Spain: growing in line with expected despite having Telxius as a competitor. The great driver is the need for densification.

France: It is the most active market and do not rule out investing more with current clients or with new ones.

5G services are not expected before 2022. Too soon for estimates on 5G, although it is an opportunity for them because it will require more infrastructure.

M&A: Of the € 2.5bn of the last capital increase, only 50% goes to Arqiva. They have the other 50% equity and debt available to use up to 4bn of additional transactions. They expect to be at least 12 months without the need to increase capital.



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