Cellnex expects to grow by 6% annually until 2027

The telecommunications infrastructure group Cellnex is advancing its new strategy after years of exponential growth with a simplification of business lines, a reduction in debt and an increase in the dividend. In a statement sent to the National Securities Market Commission (CNMV), Cellnex has defined the new plan for the coming years, which it will detail today in a conference with analysts from London.

The company plans to increase revenue by 6% annually until 2027 to reach a figure that ranges between 4,500 and 4,700 million euros. In 2023, current income without counting energy expenses was 3,659 million.

Likewise, it has announced the sale of the business in Ireland to the American Phoenix Tower International (PTI) for 971 million euros. Cellnex had been operating in the country since 2019, with around 1,900 locations. The operation, subject to regulatory approvals and which is part of the company’s “new chapter”, will allow it to reduce debt, simplify its structure and focus on markets with more opportunities, it is noted.

Back to its new plan, the company led by Marco Patuano, since he replaced Tobías Martínez last year, expects an increase in gross profit (adjusted ebitda) of 7% each year, up to 3,800-4,000 million. Through a statement, Patuano highlighted that “we are now focused on improving efficiency, simplifying the portfolio and business, and capturing essential growth opportunities.”

As part of the process of simplifying the activity, the company has begun the partial divestment of certain businesses to reduce debt. In parallel, the new strategy foresees a “distribution of results via dividends and share repurchases.” The dividends to be distributed will be a minimum of 3,000 million between 2026 and 2030. The company also reserves about 7,000 million for purchases of “industrial growth opportunities.”

Regarding business lines, Cellnex wants to increase the weight of proximity infrastructure activity such as DAS (Distributed Antenna Systems) or Small Cells. This activity should go from representing 11% of the business to 15%.