• Revenues in Q3/2024 amounted to mEUR 68.0, aligns with expectations
• EBITDA at mEUR 58.4 with EBITDA margin at 86%
• EBITDAaL at mEUR 39.6 with EBITDAaL margin at 58%
• CAPEX at mEUR 13.7, most of it is invested in location upgrades
• Rollout of 35 new macro sites with a total of 13,568 macro sites
• Onboarding of 69 new tenants, whereof 53 third-party MNO tenants on EuroTeleSites locations
• “We are pleased to report that we improve our results each quarter. Revenue growth of 1.8%, EBITDA growth of 3.1% and EBITDAaL growth of 3.8% vs. the previous quarter is a testament to the strength of our business model, and I am proud to see this as a clear validation of our concept”, says Ivo Ivanovski, CEO of EuroTeleSites

With one year in operations, EuroTeleSites, has positioned itself as a reliable and trustworthy partner within the mobile tower industry, being the third largest listed TowerCo in Europe. Seeing the mobile data volume in Austria surged by 17% in Q1*, clearly underscores the need for a robust mobile infrastructure. EuroTeleSites’ vision is Building Europe’s Digital Infrastructure: ensuring the assets meet both current and future customer demands.

As an independent infrastructure provider, EuroTeleSites is being closely intertwined with mobile communications operators in the region. The company reports another successful quarter: in total, EuroTeleSites onboarded 69 new tenants across all markets compared to Q2. This includes 53 third-party tenants and the roll-out of 35 new sites, whereof 19 are greenfield towers, and 16 being rooftop towers. Resulting in a total of 13,568 sites across its six markets in Austria, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia. The tenancy ratio remains at 1.24x.

“We are pleased to report that we improve our results each quarter. Revenue growth of 1.8%, EBITDA growth of 3.1% and EBITDAaL growth of 3.8% vs previous quarter is a testament to the strength of our business model, and I am proud to see this as a clear validation of our concept”, says Ivo Ivanovski, CEO of EuroTeleSites. “A year after both spin-off and listing, we can proudly say that we are well established in our day-to-day business, that our processes are running smoothly, and we are a trusted partner in the industry”.

CAPEX spent in Q3/2024 was at mEUR 13.7, mainly attributed to mandatory upgrades of existing towers and the continuous roll-out activities. Furthermore, in some of the markets solar panels and battery storages are added to the service portfolio. This also supports ESG measures to the telco side. Expansion and upgrades were again characterized by high number and speed in Q3/2024, owed according to the master lease agreement with the anchor tenant. Here too, figures are in line with the business plan 2024.

As a listed company that is obliged to compliance, high standards have been set across all markets in the area of corporate governance and employees have been educated accordingly. Overall, trainings especially in the areas of Safety at Work, Compliance and Data Security & Privacy, are given high priority.

Financial Results

EuroTeleSites business model resulted in a stable performance across all key metrics. In Q3/2024, the company generated revenues of mEUR 68.0, that is +1.8% in comparison to Q2/2024. EBITDA is at mEUR 58.4, which is an increase of +3.1% in comparison to Q2/2024, with an EBITDA margin at 85.9%. EBITDAal amounts to mEUR 39.6 (+3.8% to Q2/2024) with the EBITDAal margin at 58.2%, indicating high profitability of EuroTeleSites.

"Q3/2024 results meet our expectations. With our high revenue visibility, high margins and predictable cash flows from day one, we will be able to deleverage according to our predictions," says Lars Mosdorf, CFO of EuroTeleSites.

Mandatory upgrades that make the towers ready for the anchor tenant´s standard configuration and for a second tenant, and the rollout activities resulted in a CAPEX of mEUR 13.7. The investment-grade ratings from Moody's (July 2024) and Fitch (September 2024) were recently reaffirmed, reflecting our solid financial standing.

“Furthermore, ‘after around 70 investors’ dialogues until year end and a share price increase of around 35% (YTD), we are seeing further potential. Latest updates of analyst reports are supporting our optimism, evaluating EuroTeleSites with a “buy” recommendation and seeing our share price at up to 5.90 EUR”, says Mosdorf.

Outlook

The results for the first nine months of 2024 confirm the revenue forecast for 2024 as a whole, it is even expected that the revenue guidance of 5% will be exceeded. The guidance for CAPEX, which are expected to account for around 20% of revenues, remains unchanged. EuroTeleSites maintains its strategic outlook.

Please find detailed information on the key data and segments at https://eurotelesites.com/investor-relations/

The investor call will take place on October 16 at 10am Vienna time.

*Source: RTR Telekom Monitor Q1/2024