The youngest publicly-listed towerco, EuroTeleSites, presented its Q2 2024 (and also H1 2024) results, demonstrating a 4.5% revenue growth year-on-year and reaching a 1.24x tenancy ratio (up from 1.23x), partially exceeding its guidance since 2023. The company also reported the onboarding of 135 new tenants across its six markets, including 79 third-party tenants — a strategy it has followed and previously shared with TowerXchange after it became operational.
In addition to exploring revenue generation from non-MNO customers and further increasing its tenancy ratio, the towerco has shared it will also focus on implementing asset management software to improve asset digitisation and optimise operations, a trend common for many of Europe’s towercos.
The numbers
Revenues grew from EUR 63.9mn to EUR 66.8mn, up 4.5% year-on year, and EBIDTA increased from EUR54.4mn to EUR56.7mn, a 4.1% uplift. EBITDA margin was 84.8%.
Citing inflation adjustments and robust growth on new sites and tenants, resulting in developing revenues quarter-on-quarter, the towerco has also managed to achieve a good cash position and reduce its term loan from EUR500mn to EUR470mn. In addition, EuroTeleSites reports has implemented tight cost control on OpEx.
CapEx stood at EUR9.8mn, driven by 5G roll-out, mandatory upgrades to make towers ready for the anchor tenant´s standard configuration and for a second tenant, and selective modifications for third parties in the second quarter of 2024.
The company spent the majority of CAPEX on 5G upgrades and the ongoing rollout in accordance with the master lease agreement (MLA) with its anchor tenant A1, as well as selective conversions on behalf of third-party customers.
The company now operates 13,552 sites across six markets, with Austria being the largest market, followed by Bulgaria and Croatia. Despite subdued economic activity on the continent, it rolled out 64 new sites in the past quarter across its footprint, of which 40% are greenfield sites.
"Actuals of the first half year 2024 partially exceed expectations of the pre-spin-off assumptions. Our ambitious guidance stays unchanged. This is a strong ground on our way to further develop and establish EuroTeleSites. A new best-in-class asset management tool will furthermore foster our progress in digitalization”, said Lars Mosdorf, CFO of EuroTeleSites.
