EQS-News: EuroTeleSites Meets Growth Expectations in Q1/25

• +5.9% revenue growth YoY resulted in mEUR 67.7 revenues
• EBITDA in Q1 at mEUR 59.6 with EBITDA margin at 88.0%
• EBITDAaL in Q1 at mEUR 40.2 with EBITDAaL margin at 59.5%
• Rollout of 36 new sites in Q1 leads to 13,662 total sites
• Onboarding of 24 third-party tenants on existing and new sites in Q1
• CAPEX at mEUR 12.3, with mandatory upgrades still accounting for most of the CAPEX
• Refinancing of mEUR 255 at more favorable conditions

In Q1/25, the global economy faced continued uncertainty due to further Inflation in key markets, and ongoing geopolitical tensions. For Tower Companies, these challenges translated into rising capital costs, delays in infrastructure rollouts, and increasing pressure on operational efficiency. Despite these headwinds, demand for digital connectivity remains strong, driving the need for resilient strategies, cost-optimized network expansion, and agile adaptation to evolving market conditions.

“Year over year, we achieved solid revenue growth of 5.9%, driven by the development of new tenants", says Ivo Ivanovski, CEO of EuroTeleSites. "I am also pleased to announce that we have received our first Build-to-Suit orders from two different MNOs outside of A1 Group. This is a strong testament to the recognition we have earned for our quality of work and reliable on-time delivery".

Revenues were at mEUR 67.7, growth is primarily driven by indexation effects, the addition of new sites, and continued onboarding of third-party tenants across all markets. In Q1 36 new sites were constructed across the six operating countries - Austria, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia - bringing the total number of sites to 13,662.

The EBITDA margin stood at 88.0%, highlighting the strong operational efficiency and disciplined cost management. Even more telling of the core business strength, the EBITDAaL margin reached an even higher level, closing Q1/25 at 59.5%. This reflects the true, recurring operating performance of our business, as it accounts for lease-related costs and provides a clearer picture of the underlying profitability and sustainability of the operations.

CAPEX amounted to mEUR 12.3, primarily driven by mandatory upgrades, network rollouts and ongoing maintenance. In addition to the contractually agreed upgrades, further modifications were carried out at the anchor tenant’s request, such as installations for new LTE antenna spaces or multi-band antennas. As part of the mandatory upgrades, towers were prepared to accommodate both the anchor tenant’s standard configuration and a potential second tenant.

"We are continuing to optimize our expenditure structure: Therefore, in Q1 2025, we have fully refinanced our remaining term loan by a private placement. Therewith, we are securing more favorable interest rates and reducing our overall interest expenses,” says Lars Mosdorf, CFO EuroTeleSites.

Outlook

Looking ahead, the demand for digital connectivity will further accelerate as technologies like 5G, IoT, AI, and cloud services continue to shape how we live and work. As user expectations rise and data consumption grows, the industry must invest in smart, future-proof solutions, balancing innovation with cost-efficiency. The ability to adapt quickly to shifting market needs and regulatory landscapes will be key to capturing growth and delivering long-term value.

Accordingly, the outlook for EuroTeleSites remains optimistic: For 2025, EuroTeleSites reaffirms its financial guidance, anticipating revenue growth of approximately ~4%. The CAPEX outlook remains unchanged, expected to represent around ~20% of revenues. In parallel, EuroTeleSites continues to strengthen its financial position by further reducing debt, aiming to uphold its investment grade ratings from Moody’s and Fitch.

Please find detailed information on the key data and segments at https://eurotelesites.com/investor-relations/ .