Cellnex Telecom Sa Ord

Okay, good morning, everyone. My name is Maria Carapato. I'm the head of investor relations. And I'd like to thank you again for joining us for our third quarter 25 conference call. I'm joined by our CEO, Marco Petuano, and our CFO, Raimond Trier, who will go through the key highlights of our results, and then we'll open the line to take your questions. In the interests of time and clarity, I'd ask that you focus on more strategic questions for the management team and avoid repeating topics that have already been explained in previous questions. On more detailed numerical issues, I encourage you to place them to the IR team to make this call as relevant as possible for all participants. If you wish to ask a question, please press the button on your screen to raise your hand. And we will be limiting questions to two per participant. And as usual, any follow-up questions can be addressed after the call to the IR team. So without further ado, over to you, Marco.

Thank you. It's a pleasure to be with you again this quarter to share how we continue to execute our strategy with discipline, consistency, and a sharp focus on long-term value creation. While we acknowledge recent concerns around potential impacts from M&O consolidation that have affected our share price, I'd like to begin by focusing on what truly matters, the fundamentals. Because ultimately, it's the strength of our business and our ability to deliver sustainable performance that defines Sellnext's value for both shareholders and stakeholders. We report Another period of strong operating and financial results enabling us to reaffirm all our public targets and demonstrate the resilience of our business model. The first nine months of the year, we delivered a solid growth across all major financial metrics on an organic performer basis. Revenues increased by 5.7%. Adjusted EBITDA rose 6.9%. EBITDA grew 7.5%. These results reinforce our confidence in the business and allow us to strengthen our commitment to shareholder returns. We began returning capital ahead of schedule with $800 million delivered in 2025 via share buybacks. Today, we're committing to a total of $1 billion in shareholder returns through the end of 2026, representing a 5.4% yield at current share prices. Looking at the highlights of our results for the period, the operational demand remains robust with continued momentum in BTS and co-location. POPS grew by 4.1%, underscoring our critical role in enabling digital connectivity across all our portfolio, including markets that have recently undergone consolidation. Our operational efficiency and land acquisition programs are delivering tangible results, driving a 150 basis points improvement in EBITDA after lease margin, which expanded to 60.8% up from 59.3% a year ago. We remain confident in our ability to unlock further efficiency and enhance operating leverage. Recurring levered free cash flow grew 9.5% year-to-date, reinforcing a consistent quarterly trend. Over the past 10 quarters, recurring-level free cash flow has delivered a cargo of 2.1%, and on a per share basis, a key metric for us, recurring-level free cash flow has achieved a cargo of 2.5%, reinforcing our commitment to sustained shareholder value creation. Free cash flow has turned positive and is accelerating along a clear upward trajectory, supported by lower capital intensity positioning us firmly to meet our 2025 and 2027 targets, which we fully reiterate today. As communicated to the market, we recently signed a put option agreement to sell our French data center business for 391 million, reinforcing our focus on core telecom infrastructure and unlocking value through disciplined asset rotation. A note on our shareholder reduction program underway. Following the 800 million buyback executed earlier this year, this will drive clear improvement in per share metrics and continue enhancing shareholder value. On the balance sheet, leverage is down from 6.6 times to 6.4 times, and we remain committed to our 5 to 6 times target range. We are investment-grade and fully committed to maintain that status. I would also like to share positive news on our credit rating. Just days ago, Fitch reaffirmed our BBB- rating and raised our levered threshold from 7.0 to 7.3 times. This adjustment gives us greater financial headroom. We view it as a further independent validation of our strong business outlook and financial discipline. In summary, we are delivering continued operational growth, increasing operating leverage through efficiency, reducing capital intensity, and accelerating free cash flow generation, positioning ourselves to capture long-term value. The outlook is positive, and as a result, we are accelerating shoulder returns whilst reinforcing strategic focus. Let's now take a closer look at the details behind our results. In slide five, we illustrate the strength of our operational leverage and how it translates into profitability and cash flow growth. Over the first nine months, we've delivered consistent progress across all key metrics, underscoring the resilience of our model. Organic revenue growth was solid, and combined with efficiency initiatives, we successfully converted that momentum into profitability. Both EBITDA and NBDA after lease advanced on strong rates, reflecting not only scale, but also disciplined cost and lease management. Beyond profitability, we further reinforced cash generation. And when we look at the recurring leverage free cash flow per share, the improvement is even more pronounced, highlighting our commitment to creating sustainable shareholder value, in short, These results confirm that our growth is efficient, margins are expanding, and our ability to generate recurring cash is stronger than ever. Moving to slide six. We're happy to announce 1 billion shareholder remuneration for 2026, which will be split in 500 million in dividends, as previously announced at our Capital Market Day, which will grow at an annual rate of 7.5% through 2030. Payments will be made in two equal installments of 250 million in January and July. 500 million will be returned via share buybacks. This includes 300 million already earmarked for shareholder remuneration, plus an additional 200 million enabled by the sale of our French data center. The buyback program will be executed in the regulated market and will run through the end of 2026. Remaining proceeds will be used to reduce leverage, reinforcing our disciplined approach to capital allocation. These reinforced commitment to share all the returns reflect our deep conviction in the fundamental value of our company and our focus on delivering long-term value. And yes, we should expect more on that front. Financial outlook is reiterated. Given the strength of our results, and continued execution, we are reaffirming our guidance for 2025 and 2027, underscoring our confidence in delivering our business outlook and on our commitment to the market. I will now hand over to Raimon to share some more key data on our operational and financial performance on the quarter. Raimon, to you, please.

Thank you, Markov. Good morning, everyone. Let's move to slide nine and back into the results. We have in front of us another quarter of a strong performance. As highlighted earlier by Marco, revenue grew organically by 5.7%, demonstrating solid momentum and the resilience of our business model. Adjusted EBITDA increased by 6.9%, while EBITDA after lease rose by 7.5%, reflecting a strong operational leverage. Looking at cash generation, recurring leverage free cash flow reached 1.3 million euros, keeping us firmly on track to meet our full-year targets. Free cash flow came in at 187 million euros, reinforcing our trajectory of accelerated cash generation supported by lower capex intensity, mainly lower build-to-sum. Turning to operational metrics, execution remains strong, We added almost 3,000 new build-to-shoot POPs, expanding our footprint to meet rising demand. In parallel, we delivered above 2,000 new co-locations, underscoring our strategy of network densification and quality enhancement for our customers. Our customer ratio improved to 160, up from 158 at the year-end 24, marking continued progress in tenancy. We continue to execute effectively on our lease management programs. As committed in the Capital Markets Day, we're increasing the focus on land initiatives. As a result, this year, land and efficiency capex totaled 195 million euros compared to 135 million euros last year, more than 40% increase. All our metrics show solid performance quarter after quarter. As you can see in slide 10, we continue to deliver a strong year-on-year organic growth. Such growth is driven by several key factors. CPI and escalators on the paid revenues. Collocation on existing sites. And the rollout of new builders of programs, particularly in France and Poland. To provide a clearer view of our performance during the period, we have excluded the impact from Iceland and Austria. On this slide, we present our organic revenue bridge on a pro forma basis. Excluding both countries, organic pro forma growth at the consolidated level was 5.7%, while our revenues grew by 5.1%, underscoring the strength of our corporations. Let's look at the data on the remaining business lines on the next slide. Starting with fiber connectivity and housing services, we delivered a strong growth of over 20% year-on-year, driven mainly by the continued growth of the next loop fiber project in France. Thus, the small sales and run-as-a-service growth was 0.8%, but when adjusting for the discontinuation of operational maintenance contracts in Spain, the underlying trend was positive at 6.2%. Please remember that we decided to discontinue O&M activities due to its low profitability. Project deployment in DAS tends to be quite lumpy, depending on the pipeline execution facing, but also impacted by trading activity that is less recurrent. Finally, broadcasting delivers stable growth of 1.5%, supported by ongoing renegotiation of contracts. Overall, these results confirm the robustness of our diversified portfolio, with each business line contributing to consistent growth. Moving to slide 12, this slide reflects the continued positive evolution of our POPs growth across all geographies, driven by a combination of co-location and build-to-suit programs. What stands out is the consistency of this trend, even in markets that have undergone consolidation processes. Take Spain and the UK, for example. Both have experienced consolidation among M&Os, which could have created headwinds. Yet, we successfully mitigated these impacts and maintained robust growth, proving the resilience of our model, the strength of our customer relationships, and our contracts. Looking at the consolidated view in the top right, the upward trajectory is clear. We have a large and growing base of POPs across Europe, reinforcing our position as the market leader. This scale not only supports current demand, but also gives us a strong platform to capture future opportunities. In the bottom right, we show the quarter POPs growth by country and providing the split between collocation and bill to suit program. It is worth noting that in the third quarter, we had an important contribution of run sharing POPs from DG in Spain. Moving to the next slide, we provide the details on how our operational efficiency and industrial focus are driving tangible results. It all starts with the key levers, process optimization and standardization, integrated maintenance and vendor management, centralized knowledge and performance excellence, and targeted land acquisition and efficiency actions. These initiatives enable automation and scalability creating standardized and data-driven operations across all countries. We have achieved sustained reductions in maintenance costs to improve operations and efficiencies. Full digital adoption has allowed us to standardize workflows and enable real-time supervision, while centralized models have reduced complexity and improved resource utilization. The impact of these actions can be clearly seen on the right side of the slide on a per-hour basis. Staff costs are down 1.7%. Repair and maintenance costs have decreased by 3.7%. SG&A is down 5.5%. And in leases, we have offset the impact of CPI as a result of the successful outcomes of our lease management and CAPEX programs. Altogether, these efficiencies have contributed 180 basis points to a bid-after-lease margin, reinforcing the scalability and cost effectiveness of our operating model. In short, this is a strong example of how industrial discipline translates into measurable financial benefits and positions us for sustainable growth. Moving to slide 14, the first part of the slide explains the reported breach from a bit after lease to free cash flow, showing all the components that shape our recurrent lever free cash flow and free cash flow. This strong recurrent lever free cash flow generation is the result of our solid operational performance and efficient tax and capital structure. Finally, our free cash flow was positive at 187 million euros, supported by the strength of recurrent lever free cash flow and lower capital intensity on both expansion and build-to-shoot CAPEX. On the bottom chart, we break down the evolution of Proforma CAPEX. First, overall expansion CAPEX decreased by 1.7%, reflecting disciplined investment without compromising growth. Second, looking at the mix of expansion CAPEX, we see a balanced allocation. Towers remain the largest share, while efficiency CAPEX initiatives have increased, reinforcing our focus on optimizing returns. Finally, build-to-shoot CAPEX decreased by 4.2%, reflecting progress to complete the outstanding programs supporting the free cash flow acceleration path. This disciplined deployment is driving efficiency and improving free cash flow conversion, which is a cornerstone of our strategy. On slide 15, we see that cash flow generation is accelerating, supported, as we mentioned, by lower capital intensity. This improvement reflects disciplined investment and a clear focus on efficiency. It also adjusts for the impact of remedies. Equally important, our share-by-back program is enhancing per share metrics, as Marco mentioned. Let me remind you that during the year 25, we have executed 800 million euros of share-by-backs. The recurrent level of free cash flow per share has grown significantly, 13.2%, showing that we are not only generating cash, but also returning value to shareholders in a meaningful way. Together, these elements confirm that our capital allocation strategy is working. We are investing wisely, generating more cash, and creating sustainable value per share. Before I give the floor back to Marco, let's now take a look at our debt maturity profile on slide 16. All 2025 maturities have been either repaid or refinanced. As a result, there are no remaining maturities left in the year, while we still remain with a strong cash position. It is worth noting that 78% of our debt is fixed rate, Our average cost of debt is 2.1%, with an average maturity of 4.4 years. Our leverage ratio has improved from 6.6 to 6.4, and net financial debt decreased, despite the execution of the share buyback, by circa 500 million euros, reflecting disciplined capital management. Now, I'll give the floor to Marco to continue with the presentation. Thank you.