A balance sheet in the red for Cellnex
Cellnex, the telecommunications giant based in Catalonia, has revealed its balance sheet for the first half of 2024, where it faces net losses since June that add up to 418 million euros. This result represents a more than double increase compared to the previous year, an alarming increase of 113.2%.
Causes of significant losses
One of the main factors that have contributed to this unfavorable balance is the reclassification of assets in Austria. These have been listed as held for sale, in the framework of advanced negotiations for their sale after having received binding offers. This strategic change has triggered accounting losses amounting to 265 million euros.
A promising scoreline despite the losses
Despite this complicated scenario, Cellnex has reported revenues of 1,921 million euros in June, an increase of 7.1% compared to the same period last year. This indicates a solid potential for the company in terms of expansion and stability.
Perspectives on the horizon
The CEO of Cellnex, Marco Patuano, has expressed his satisfaction with the operating results during the first semester, considering them ‘solid’ and in line with the goals set. The company is developing a new strategic plan to drive shareholder value and improve its financial structure.
Forecasts for 2024
Cellnex maintains its expectations for next year, with revenues projected between 3,850 and 3,950 million euros, an Ebitda in the range of 3,150 to 3,250 million, and a free cash flow that will range between 250 and 350 million euros
A diversified line of business
At the end of June, Cellnex operated with 113,216 locations internationally. Most of these were located in France, Italy, Poland, United Kingdom, Spain and other regions. The company has experienced remarkable organic growth, with an increase of 9.3% year-on-year.
Details of income
The telecommunications sector accounted for 82% of revenues, generating 1,573 million euros, while the rest of tolls such as ‘DAS’ and other services have contributed to maintaining constant growth.
Reflection on the future
Cellnex’s results reflect a time of transition for the company. Despite the losses, its consolidation strategy and future growth forecast could put it in a strong position to face the challenges of the telecommunications market.