Cellnex Acquired 7000 Towers In Poland For Us $1.6 Billion

2021-02-26   |   by CusiGO

Cellnex, the telecom operator, continues to invest heavily to expand its scale and scope in Europe. On Friday, the company announced the purchase of 7000 towers in Poland, a deal that will cost 1.6 billion euros, and promised to invest another 600 million euros in 10 years to deploy 1500 new websites and 5g networks. This is the latest in a series of acquisitions that cellnex has completed. It has arranged three capital increases and received extensive subscription. In February, he announced a new $7 billion. The strong investment affected his income statement, which was released on Friday, showing a loss of $133 million compared with last year’s $9 million. However, neither shareholders nor companies are worried about this, and they are focused on doubling the size in five years.

The loss that other companies may be worried about is the loss of this company – according to its head – indicating that it has achieved its goal. This is evidenced by the performance reports received on the stock market: as of noon, cellnex’s share price has risen by about 5%, except for the red number on the income statement. The redemption rate soared 94%, and the financial cost soared 83%.

Part of the impact is to report the results of a new round of large-scale acquisitions, which will increase cellnex’s sales by 10 billion euros to 110 billion euros. In 2020, the company’s revenue reached 1.608 billion euros, an increase of 55% over the previous year, while its operating profit before tax (EBITDA) increased to 1.182 billion euros, an increase of 72%. This figure has been rising over the past year, with net debt of $6.5 billion in 2020 and $3.926 billion in 2019. Cellnex has $17.4 billion in outstanding cash and debt liquidity.

The company has 58104 outlets in Europe, invested 6.4 billion euros in 2020 and acquired new assets in Austria, Denmark, Ireland, Portugal, the UK and France. These agreements must be added to the agreements already reached in the first few months of 2021. Once closed, cellnex will operate 120000 towers in 12 European countries. As Martinez stressed, it was a “special year” because it experienced growth. Since its IPO in 2015, the company has invested EUR 35 billion in Europe, of which EUR 16 billion was used for growth in the previous fiscal year.

The agreement to buy Torres in Poland was signed with cyfrowypolsat. Cellnex will acquire a 99.99% stake in polkomtel infrastruktura, its telecommunications infrastructure subsidiary, which owns 7000 locations, about 37000 wireless operators and 11300 km of optical fiber network. The operation involved a cash cost of 1.6 billion euros. As Tobias mart í Nez, cellnex’s chief executive, explained, the agreement would mean “a move to rapidly consolidate and strengthen cellnex’s position in Poland, following the announcement of the acquisition of towers and amusement parks in October last year.”.

In addition, this business makes cellnex an integrated operator of telecom infrastructure, not only a tower operator, but also an operator of assets such as optical fiber network and radio equipment. This combination has been implemented in France and other countries, but it means “a qualitative leap” in Poland. The business’s additional operating profit before tax (EBITDA) is estimated at EUR 330 million and cash flow at EUR 150 million.

On this growth path, Martinez pledged on Friday that the company will be able to triple its existing size in the next five years, and through more acquisitions, it will mean $9 billion in investment in the next few months alone. According to their forecasts, EBITDA will increase from $1182 million today to $3.5 billion in 2025.