Cellnex shares soar after trimming losses

Cellnex shares (CLNX.ES) they recorded growth of more than 1% after presenting their results for the first three quarters of the year. Although the company recorded losses between January and September, those losses were significantly lower than the previous year, which pleased investors. In particular, Cellnex went from a loss of 198 million to a loss of 140 million. which represents an improvement of more than 50 million euros.

This negative result is mainly due to the classification of assets in Austria that are in the process of sale, which had a negative effect of €265 million net.and as a result of higher depreciation charges and financing costs associated with the investments the company has made to date. At the level of income and profit Cellnex managed to improve its performancethanks to greater activity and effective management of its activities, which led to an increase in its share in the national selection.

Cellnex shares rise on higher earnings

In particular, in the first nine months of the year, Cellnex achieved total revenue of 2.904 million euros.which represents an increase of 7% compared to the same period of the previous year. For organic revenue, which excludes the impact of the sale of towers in France, growth is slightly higher at 7.4%.

For my part, The company’s EBITDA increased slightly to EUR 2.386 million.compared to 2.248 million for the same period in 2023. EBITDA after leases (EBITDAaL) reached €1.723 million, representing an increase of 8.9%, while organic EBITDAaL increased by 9.8%.

At the financial level for the first nine months of the year Cellnex strengthened its position by reducing debt to variable levels and improving free cash flow.. In particular, recurring leveraged free cash flow increased from €1.171 million in the previous year to €1.256 million, while free cash flow amounted to €326 million thanks to cash generation and €357 million from turnaround processes.

Cellnex CEO Manuel Patuano was positive about the results obtained in the first nine months of the year.highlighting the strength of the company’s key metrics. According to him, these indicators are in line with the company’s short- and medium-term goals and confirm the business prospects for 2024.”In just one year, we will achieve a significant portion of the major strategic goals we have set for the new Cellnex division.“, he stated.

Cellnex will explore the possibility of increasing its dividend

The company plans to complete the sale of its assets in Austria and Ireland at the end of the year and in the first quarter of 2025, respectively. an operation that will allow them to focus on their core operations and reduce leverage. Following completion of these transactions, Cellnex will explore increasing remuneration for its shareholders. The company maintains its investment grade rating, giving it greater access to capital markets. Additionally, the company does not want shareholder compensation to be called into question, but rather the company’s approach is to continue to increase it, as we learned from its CEO Marco Patuano today.

However, the Board of Directors has now approved a dividend payment of €0.046 per share, which will take effect on November 21st. This payment adds to the dividends the company already paid last Junewhich was valued at 0.01676 euros per title.

The company’s results were well appreciated by investors, and today Cellnex shares registered an intraday rise of 1.54%.. However, Cellnex shares are down more than 5.65% this year.

Cellnex share price

• Cellnex quote (15 minute candles)
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Cellnex share price It is trading up 1.95% from Friday’s close.. The bulls are looking to continue the trend with the price per share already hovering at €33.6.