13.02.2024 |
Reporting period September 22 – December 31, 2023
- Revenues amounted to mEUR 71.9
- 61% of all revenues from Austrian segment
- EBITDAaL margin at 56%
- CAPEX at mEUR 27.3
- 13,465 macro sites across CEE (vs 13,162 sites FY2022)
- Positive first step in tenancy ratio development at 1.23x
EuroTeleSites, a listed Tower Company (TowerCo) on the Prime Market of the Vienna Stock Exchange, reports its financial results for the first time since its company foundation on September 22, 2023. Following the spin-off from A1 Group (A1) and listing, the reporting period that followed (Sep 22 – Dec 31, 2023) was characterized by the transformation into a sovereign company. Despite a challenging macroeconomic environment, EuroTeleSites has successfully established as an independent provider of passive infrastructure, integrating six countries under one umbrella. An economically well-developed region with approx. 30 million people and home of EuroTeleSites, the company effectively started its operations smoothly as of day one. The solid business model is reflected by the results of its first reporting period. A considerable customer demand for higher data transfer rates in Austria and the CEE region also supports EuroTeleSites’ growth plans in the short and midterm.
Growth in Revenues and EBITDAaL
In its first 100 days of operations, EuroTeleSites showcased a strong performance: Revenue growth reached the upper bandwidth of expectations at mEUR 71.9. This was driven by the strong anchor tenant A1 and rising third party revenues as well as a one-time collocation effect in Austria. EuroTeleSites’ six local tower companies in the markets – Austria, Bulgaria, Croatia, North Macedonia, Serbia, Slovenia, and– are successfully operating within a well-developed tower infrastructure with 13,465 strategically well positioned sites as of December 31, 2023. A revaluation of EuroTeleSites assets (towers) to fair value was implemented and is currently audited. The majority of revenues (61%) derives from the Austrian, followed by the Bulgarian and Croation segment (each 11%).
EBITDAaL (EBITDA after lease) was at mEUR 40.1 due to higher lease payments in conjunction with cost discipline. Strict cost management guaranteed cost stabilization despite negative effects driven by high inflation. EBITDAaL margin demonstrates resilience at 56%, underscoring operational efficiency.
The company also reported a strong CAPEX of mEUR 27.3. In the period Sep 22 – Dec 31, 2023, EuroTeleSites managed to expand within its footprint by adding 118 towers, which were bought from its anchor tenant.
On a pro-forma basis for the full year 2023, EuroTeleSites reports revenue increase by 6% to mEUR 246 (FY22 mEUR 232), EBITDAaL increase by 6%, and a deleveraging from 7.7x to 7.3x.
Please find detailed information on the key data and segments at https://eurotelesites.com/investor-relations/
Ivo Ivanovski, CEO of EuroTeleSites, comments: “Together, we at EuroTeleSites have managed the transition into a listed and fully independent Tower Company in an exceptional effort. Our company is the third largest listed TowerCo in Europe. Our first financial figures prove that we are at the upper bandwidth of growth expectations within the first months. With an increase of 240 towers vs. the first half year 2023, reaching more than 13,400 sites across CEE, we align with our vision for organic growth. Therewith, we further solidify our position as a key player in the telecommunications infrastructure industry. The additional towers and 5G-upgrades are a testament to our dedication to enhancing connectivity from Bodensee to the Black Sea and supporting to bridge gaps in underserved areas.”
Outlook remains optimistic
Lars Mosdorf, CFO of EuroTeleSites: “Our first 100 days of operations have shown that we are in line with our ambitious expectations. Especially, looking at deleveraging: to already reach 7.3x is a solid success. Regarding 2024 we will focus on developing our core business with our anchor tenant: continue the 5G upgrade. Thisenables our tower infrastructure also for further tenants to utilize. Additionally, we expand new macro-locations and set up co-locations for third parties to steadily increase the tenancy ratio. We are aiming for revenue growth of around 5%. This year, we will also focus on further developing our ESG strategy. We anticipate a CAPEX/revenue ratio of around 20% and therewith, will fulfill our obligations under the Master Lease Agreement with A1. In addition, we intend to maintain our investment grade rating and further deleverage”.
The audit for September 22 – December 31, 2023, has not yet been completed at the time of publication. The attestation is scheduled for the third week of February 2024. Figures are subject to review and approval by the Supervisory Board. Proformas 2023 are unaudited.