EuroTeleSites (ETS) H1 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4.5% sequentially, driven by indexation and new tenants, with 64 new sites built and 79 new third-party tenants onboarded.

• H1 2024 revenue reached €130.7m, supported by a 3% inflation-linked rent increase and 219 new rental agreements.

• EBITDA for H1 2024 was €111.1m (85% margin); Q2 2024 EBITDA was €56.7m (85% margin), up 4.1%.

• Moody's completed a periodic review of EuroTeleSites' ratings.

• Net result for H1 2024 was €14.1m, with EPS of €0.08.

Financial highlights

• Q2 2024 revenues reached €66.8m, up 4.5% from Q1 2024; EBITDAAL was €38.1m (57% margin), up 5.3%.

• H1 2024 revenues were €131m, up 8% year-over-year (proforma); EBITDAAL rose 15% to €74m.

• Net cash from operating activities was €107.3m in H1 2024.

• Cash flow (EBITDAAL minus CAPEX) for H1 2024 was €52m, up 23% year-over-year.

• Net cash from operations minus CAPEX paid was €38m in Q2 2024.

Outlook and guidance

• 2024 guidance: ~5% revenue growth with positive free cash flow; CAPEX to remain ~20% of revenues.

• Mid-term guidance: 4–6% CAGR revenue growth, EBITDA margin expansion, and leverage target of ~5x.

• No dividend commitment for first four years to prioritize debt reduction.

• Strategic outlook unchanged; company expects to meet annual targets.

• Focus on ESG strategy, CSRD compliance, and asset management software implementation.