Tobías Martínez Gimeno will step down as CEO of Cellnex as of June 3, as reported to the National Securities Market Commission (CNMV) this Wednesday. The market reacted negatively to the news, company shares dropped by 2.98%, and despite the 1.5% drop in mid-session, it closed the day with a 2.5% decline in terms of the overall index. The telecommunications company hit its worst on the Madrid Stock Exchange this Wednesday. Company 39.18% of its accumulated value during the year is already up to 2022, making it the third worst value for the mountain goat, After Rovi and Fluidra. Despite this, its market value is 22,670 million euros. The tenure of the outgoing manager was determined by the telecommunications operator with a heavy purchasing period. The company announced multiple growth deals between January and April 2022, with cumulative investments totaling up to 2,000 million in France, Portugal, the United Kingdom and the Netherlands, as outlined in the first quarter 2022 final report. Growth stumbled on the ECB’s aggressive rate hike to combat inflation.
“One of the results that caused strong corrections in the company unlike other listed companies, Some of the pre-pandemic growth was supported by high levels of debt and leverage. “And in a context where the aggressive rate hike policies of central banks to fight inflation are becoming a problem because of the rising cost of debt,” says Darío García, an analyst at the XTB investment firm. 2019 with 94.87% growth, 37.41% 2020 and a fluctuating 2021 with a maximum growth of 61.82 euros and 34.2% per share, finally closed the year with +12.59%. 39.18% loss.
The European market entry of its main competitor, American Towers, which bought Telxius towers in different European locations from Telefónica, It puts additional pressure on Cellnex’s market share in Europe.
“For now, a few days until 2023, the company shows a small profit of 4.01%, This makes it difficult to predict the course this year compared to previous years,” explains Darío García.
“The current economic and financial situation, different from the one that marked the successful development of the company’s industrial project over the past eight years, requires us to turn a new page in Cellnex’s story. A new phase based on maximizing organic growth; consolidation of the industrial project in the countries where we operate today; In his letter of resignation, Martínez Gimeno drew attention to focusing on balance sheet management in order to reach “investment grade”. “This set of factors is anyone with a time horizon of this phase of the Cellnex cycle exceeding December 2024, on this date my contract expires.”
Profits and revenues in 2022
The Group closed the first nine months of the year with a revenue of 2 billion 572 million Euros.That’s 46% more than in the same period in 2021, according to information available to CNMV. The net accounting result recorded a loss of 255 million, 76% more than in the same period in 2021, “due to the impact of higher depreciation and financial costs” associated with the company’s acquisitions and integrations. The company expects to close 2022 with revenues of between 3,405 million and 3,455 million euros. Ebitda will be between 2,610 and 2,660 million. The company expects its sales to reach 110,000 million euros.
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On the revenue side, mobile phones contributed 90.5% of revenue, with €2,328 million representing a 53% growth compared to 2021. broadcast infrastructures accounted for 6.5% of revenue with 167 millionand safety and emergency networks and solutions for the intelligent management of urban infrastructures contributed 3% of revenue with €77 million.
Tobías Martínez is a Telecommunications Engineer and holds a Senior Management degree from IESE.. He also holds a Marketing Management diploma from the Marketing Institute of Barcelona. He was the sole director of the Cellnex Finance Company subsidiary and joined Acesa Telecom in 2000. He became a Board Member and Managing Director of first Tradia and later Retevisión. He was appointed CEO of Cellnex on 17 November 2015 and assumed the interim presidency in February 2018 following the resignation of Francisco Reynés.