VIENNA - EuroTeleSites, a key player in the European mobile tower industry, reported a revenue increase to mEUR 68 in the third quarter of 2024, meeting company expectations. The firm also noted an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of mEUR 58.4, translating to an 86% margin, and an EBITDAaL (EBITDA after Leases) of mEUR 39.6, with a margin of 58%.
The company, which has been operational for a year, is now the third largest listed tower company in Europe. In the third quarter, EuroTeleSites rolled out 35 new macro sites, expanding its total to 13,568 sites across Austria, Bulgaria, Croatia, North Macedonia, Serbia, and Slovenia. Additionally, the company onboarded 69 new tenants, including 53 third-party mobile network operator tenants.
Ivo Ivanovski, CEO of EuroTeleSites, expressed satisfaction with the company's quarterly performance, highlighting the consistent improvement in revenue, EBITDA, and EBITDAaL as evidence of the business model's strength. The company's CAPEX for the quarter was mEUR 13.7, primarily invested in location upgrades, including the addition of solar panels and battery storage to its service offerings in line with ESG measures.
The company's financial stability was underscored by the reaffirmation of its investment-grade ratings by Moody's (NYSE:MCO) in July 2024 and Fitch in September 2024. Lars Mosdorf, CFO of EuroTeleSites, pointed to the high revenue visibility, high margins, and predictable cash flows as factors enabling the company to deleverage as predicted.
The positive financial results have led to a share price increase of around 35% year-to-date, and analysts have issued a "buy" recommendation for EuroTeleSites, with share price targets reaching up to 5.90 EUR.
Looking ahead, EuroTeleSites expects to exceed its revenue forecast for 2024, potentially surpassing the 5% revenue guidance. The CAPEX guidance, anticipated to be around 20% of revenues, remains unchanged. The company maintains its strategic outlook and continues to build upon its vision of "Building Europe's Digital Infrastructure."
These financial results are based on a press release statement from EuroTeleSites.
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