Cellnex Q1 loss slightly narrows, core earnings rise 15%

Spain’s Cellnex reported on Thursday a first-quarter net loss of 91 million euros ($100.40 million), slightly narrower than a year before, as Europe’s largest mobile phone tower operator slows down its ambitious expansion.

The loss, which Cellnex attributed to higher amortizations and costs from the consolidation of its past acquisitions, was wider than the 79 million euros loss forecast by Refinitiv.

However, first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 15% to 730 million euros, in line with estimates. Revenue grew 19% to 985 million euros, significantly faster than Refinitiv’s forecast.

Cellnex’s chief executive Tobias Martinez, who plans to step down in June, said in a statement the company achieved its “organic growth goals” in the first quarter, noting they are in line with its strategic shift away from its breakneck acquisition spree to focus on getting a credit rating upgrade instead.

The results come following weeks of internal turmoil at Cellnex after activist hedge fund TCI, which has become its largest shareholder, has partly achieved its goal to remove its chair and two board members, arguing the board had mishandled the search for a new CEO, resulting in insufficient progress.

Cellnex granted a board seat to TCI on Wednesday and named an additional new independent board member after the fund had pressured the company’s top management leading to the resignation of two independent members earlier this month. Reuters