Cellnex's first-quarter core earnings rise 4%, says SFR deal can prove positive
Cellnex Q1 Results and SFR Takeover Bid Analysis
Financial Performance Overview
BARCELONA, April 29 (Reuters) - Cellnex reported on Wednesday a 4.3% increase in first-quarter adjusted core earnings to 832 million euros ($973 million) and it said it was hopeful a takeover bid for French telecoms operator SFR would be positive for the Spanish company.
Revenue and Cash Flow
Europe's largest mobile phone tower operator posted a 2% rise in revenue to 1.09 billion euros, in line with analysts' expectations in an LSEG poll.
Free cash flow swung to a positive 118 million euros, from a negative 66 million euros a year earlier. Cellnex also reported a narrower net loss of 37 million euros for the quarter, compared with 49 million euros a year ago, while operating profit rose to 153 million euros.
SFR Takeover Bid and Potential Impact
Cellnex is closely watching the takeover bid for French telecoms operator SFR by Bouygues, Iliad-Free and Orange, which raised their offer to 20.35 billion euros this month, in what if successful would be one of the biggest European telecom deals in recent years.
Relationship with French Telecom Operators
All four companies are customers of Cellnex in France.
CEO Comments on SFR Deal
Chief Executive Marco Patuano said the company was "well positioned", the impact the takeover could have on Cellnex would be "very limited" and that it wants to play a "proactive and constructive" role to reach a solution.
But he warned that any change in the contracts would have to be agreed with Cellnex and that it would oppose moves that it does not consider positive.
"Time works in our favour, we are in no rush ... (we have the) conviction we will achieve an outcome that is positive for our customers and us," Patuano said in a call with analysts.
Outlook and Market Position
Cellnex maintained its outlook for 2026 and 2027. For 2026, Cellnex forecasts revenue of 4.075 billion to 4.175 billion euros, adjusted EBITDA of 3.425 billion to 3.525 billion euros, and free cash flow of 600 million to 700 million euros.
Cellnex's market capitalisation has roughly halved since its peak of about 40 billion euros in 2021, as investors worried about its debt levels and potential consolidation among its customers.
Additional Information
($1 = 0.8554 euros)
(Reporting by Joan Faus. Additional reporting by Andrés González Editing by Charlie Devereux, Mark Potter and Keith Weir)
