EuroTeleSites reports revenues of mEUR 63.9 and an EBITDAaL Margin of 56.6% in Q1/2024

Highlights

• Revenues amounted to mEUR 63.9, on track to achieve growth target
• EBITDA at mEUR 54.4 with EBITDA margin at 85.1%
• EBITDAaL at mEUR 36.2 with EBITDAaL margin at 56.6%, up from 55.7% at year-end 2023
• CAPEX at mEUR 12.6, driven by mandatory site upgrades
• Rollout of 49 new macro sites and onboarding of 53 third party (MNO) tenants on EuroTeleSites' location; in total 13,496 macro sites
• “Our solid performance in the first quarter of 2024 reflects our growth model that we set out when listing at the Vienna Stock Exchange last year,” said CEO Ivo Ivanovski

Relevant documentation on the results can be found at the following link:

https://eurotelesites.com/investor-relations/

+Data Book
+Results Presentation

The investor call will take place on April 17th at 08:00 GMT or 10:00 CEST.

EuroTeleSites, a leading provider of telecommunications infrastructure and solutions in the CEE region and Europe’s third largest listed tower company, reported revenues of mEUR 63.9 and an EBITDAaL margin of 56.6%, in line with the company’s targets in the first quarter of 2024.
While the overall economic activity in the first three month of 2024 remained subdued, EuroTeleSites onboarded 84 new tenants across all markets, including 53 third-party partners from various industries and business areas. The company now operates 13,496 sites across six markets, up from 13,465 at the end of the year.

Despite the quarterly variation in construction activity, EuroTeleSites completed 49 new sites during the first quarter of 2024, investing around 14% of CAPEX. The company spent the majority of CAPEX for mandatory upgrades of the towers for the anchor tenant A1. This resulted in a total CAPEX of mEUR 12.6 and a CAPEX ratio of 19.7%, in line with the company’s business plans.

“Our solid performance in the first quarter of 2024 reflects our growth model that we set out when listing at the Vienna Stock Exchange last year,” said CEO Ivo Ivanovski. “We're set to benefit from an improved economic activity and faster digitalization across all industries in our region. I’m particularly pleased that we managed to onboard 84 new tenants across our six markets, confirming our attractive offer for our customers.”

The reporting period was characterized by several milestones, with one highlight being the acquisition of a 3.6 GhZ and 26 GhZ spectrum in Austria by the three mobile network operators A1, Magenta and Hutchison. In midterm the new spectrum potentially be positive for data growth and locations demand. In addition, mandatory upgrades and new sites for the anchor tenant A1 are on track.

Financial Results
The company´s business model, driven by increased data demand, resulted in a robust performance across key metrics in the first quarter of 2024. This is reflected both in revenues amounting to mEUR 63.9, and EBITDAaL at mEUR 36.2. Both figures are in line with expectations and targeted margins. The EBITDAaL margin of 56.6% (year-end 2023: 55.7%) is at a level that demonstrates the high profitability of the business.

"We carried over the good momentum with which we started as an independent company and further developed our growth potential,” said CFO Lars Mosdorf. “We signed contracts with new tenants and third parties, resulting in a stable tenancy ratio of 1.23x with a higher number of sites, allowing us to keep our outlook for our business unchanged. For the whole year, we’re expecting revenue growth of about 5%.”

EuroTeleSites expects CAGR revenue to grow between 4% to 6%, targets a CAPEX ratio of 20% of revenues, and plans to further increase its tenancy ratio from the current 1.23x. In addition, the company will explore non-MNO business opportunities, develop an ESG strategy as it prepares for CSRD compliance and work towards finishing the installation of a digital asset management software by the end of the year.