EuroTeleSites (ETS) Q3 2024 earnings summary

Executive summary

• Q3 2024 performance aligned with expectations, with revenue up 1.8% sequentially to €68.0 million, mainly due to a one-time effect in Austria.

• EBITDA reached €58.4 million (85.9% margin), up 3.1% sequentially, and EBITDAaL was €39.6 million (58.2% margin), up 3.8%.

• 35 new sites were built and 69 new tenants onboarded in Q3, with total sites at 13,568 across six countries.

• The company is recognized as a leading independent TowerCo in Europe, serving anchor and third-party tenants, with strong operational execution and high revenue visibility.

• €180 million private placement completed, improving financing terms and expected to reduce annual interest by €0.4 million.

Financial highlights

• Q3 2024 revenue was €68.0 million, up from €66.8 million in Q2, driven by a €1 million one-time effect in Austria.

• EBITDA margin was 85.9% and EBITDAaL margin was 58.2% in Q3.

• Net result for Q3 was €8.8 million, up from €7.8 million in Q2.

• CAPEX for Q3 was €13.7 million, mainly for mandatory upgrades and new site rollouts.

• Net cash from operations minus CAPEX paid was €37.9 million in Q3.

Outlook and guidance

• Full-year 2024 revenue growth is expected to slightly exceed 5%, in line with or above guidance.

• CAPEX is on track, expected at around 20% of revenues.

• Medium-term revenue CAGR targeted at 4–6% with EBITDA margin expansion.

• No dividend commitment for the first four years to reach leverage target of ~5x.

• Updated midterm guidance will be provided after year-end 2024 results.