Spain’s Cellnex reported a significant improvement in its financial performance for the first nine months of the year.
The company’s net loss narrowed to 198 million euros ($211.4 million), down from a loss of 255 million euros during the same period in 2022. This positive development was attributed to Cellnex’s ongoing expansion efforts across Europe.
The expansion of Cellnex’s European network has played a crucial role in boosting the company’s revenue, which surged by 17% to reach 3 billion euros.
Additionally, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 16% to reach 2.2 billion euros.
Cellnex’s CEO, Marco Patuano, expressed satisfaction with the company’s performance, highlighting the combination of strong commercial achievements and solid operational execution.
Notably, Cellnex has shifted its strategic focus from aggressive acquisitions to debt reduction.
The company is actively divesting some of its assets to lower its debt burden, and it is exploring opportunities to monetize other assets to expedite its credit rating upgrade, scheduled for 2024.
One of the standout achievements for Cellnex is its revised projection for positive free cash flow in 2023, a target initially set for 2024.
The company now expects to close the year with positive free cash flow ranging between 100 million and 150 million euros, primarily driven by equipment sales in France.
Cellnex’s commitment to debt reduction is evident in its financials, as net financial debt decreased by 300 million euros since June, reaching 17.6 billion euros.
The company maintains access to immediate liquidity amounting to 4.6 billion euros, providing financial stability.
In a strategic move, Cellnex has entered into an agreement to sell its private network unit to Boldyn Networks, with the deal expected to conclude in the first quarter of the following year.
Earlier in September, Cellnex also divested a 49% stake in its Swedish and Danish units to infrastructure investor Stonepeak for 730 million euros.
Following these developments, Cellnex’s stock price in Madrid experienced a slight dip of 2.2% initially but later stabilized, indicating investor confidence in the company’s strategic direction and improving financial outlook.