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BARCELONA (Reuters) -Cellnex reported a 63% rise in adjusted core earnings in 2021 to 1.92 billion euros ($2.15 billion) on Friday as Europe’s largest mobile phone tower operator expands ahead of the roll-out of next-generation 5G technology.
The Spanish company, which has been targeting core earnings, also reported a 58% surge in revenue, both slightly above its target and Refinitiv’s estimates.
But costs related to its European expansion, an early retirement plan in Spain and a tax hike in the UK meant its net loss shot up to 351 million euros from 133 the previous year.
Telecom towers have been the target of several big takeovers in recent years and Cellnex is in a race with U.S.-based American Tower Corp (NYSE:AMT) to increase their European footprint ahead of the 5G roll-out.
Barcelona-based Cellnex will control around 130,000 masts in 12 European countries by 2030, once its announced acquisitions are finalised. It plans to spend up to 9 billion euros on acquisitions this year.
In 2022, Cellnex expects earnings before interest, taxes, depreciation and amortisation (EBITDA) to grow to between 2.65 billion euros and 2.7 billion euros, while revenues are estimated to reach 3.46 billion euros to 3.51 billion euros.
Cellnex entered Poland in 2021 and built its presence in four other countries. It invested 1.09 billion euros in increasing its stakes in companies in France and Poland, fulfilling purchase rights for Iliad and Play.
The company said it is likely to offset the spending with 1.1 billion euros it may raise from the disposal of masts required by regulators in France and potentially in Britain.
It could also sell stakes in its different units to minority shareholders, the company said.
Net debt as of December 2021 stood at 11.9 billion euros – excluding lease liabilities – up from 4.9 billion euros a year earlier.
($1 = 0.8922 euros)
