Tobías Martínez Gimeno will step down as CEO of Cellnex on June 3, a disclosure made to the National Securities Market Commission CNMV this Wednesday. The market reacted unfavorably, with the company’s shares slipping nearly 3 percent during trading and closing lower for the day. This marked a difficult session for Cellnex on the Madrid Stock Exchange, and the company has recorded a sizable decline in value for the year. Despite the setback, the market capitalization sits around 22.67 billion euros. Martínez Gimeno’s tenure came during a period of aggressive expansion and hefty acquisitions, with the company signaling several growth deals from January through April 2022 that involved investments totaling about 2 billion euros across France, Portugal, the United Kingdom and the Netherlands. These moves occurred in a year when inflation and rising rates were pressuring valuations and growth plans. The shift in leadership follows a framework built on expanding and strengthening the balance sheet to reach investment grade, a goal Martínez Gimeno emphasized in his resignation letter.
Analysts noted that part of Cellnexs recent performance stems from higher debt and leverage that supported earlier growth. They pointed to the impact of central bank rate hikes to curb inflation, which increased the cost of debt and added pressure to the companys financials. An analyst from XTB described the situation as a mix of pre pandemic momentum and the new cost environment that has challenged the company compared with peers. The historical profitability path included strong gains in 2019 followed by more modest results in 2020 and fluctuations in 2021, with a notable year end performance in 2021 that contrasted with other periods. The market, meanwhile, has watched developments alongside the companys strategic repositioning.
The European market landscape for Cellnex has been shaped in part by competition from American Towers, which completed the acquisition of Telxius towers in various European locations previously owned by Telefónica. This move exerts additional competitive pressure on Cellnexs regional market share. In the near term, the company has reported a modest profit margin as a sign of stabilization, but forecasting performance for the current year remains uncertain given the broader macroeconomic backdrop and ongoing consolidation in the sector. A senior market analyst from XTB commented that the current environment requires a fresh strategic page for Cellnex, focusing on organic growth and consolidation in its existing footprint.
In the resignation letter, Martínez Gimeno highlighted the importance of balance sheet management and the objective of reaching investment grade. He noted that the changes align with a defined phase of Cellnexs cycle, extending beyond December 2024, when his contract ends. The outlook for the company will hinge on how effectively it can execute its revised strategy and sustain progress during this transition period. According to a company briefing, the leadership transition is intended to reinforce financial discipline while continuing to advance operational plans across its European operations. The leadership shift appears to reflect a broader reassessment of growth strategies amid a volatile debt and rate environment, with the focus now on strengthening core assets and improving capital efficiency. [Citation: CNMV filing and market commentary]
Profits and Revenues in 2022
Cellnex reported that the first three quarters of the year produced revenue totaling 2.572 billion euros, marking a 46 percent increase from the same period in 2021 according to CNMV data. The net accounting result showed a loss of 255 million euros for that nine month period, driven by higher depreciation and financing costs linked to acquisitions and integrations. Management guided expectations for full year 2022 revenue of 3.405 to 3.455 billion euros and an EBITDA range of 2.610 to 2.660 billion euros. The company also forecast a sales target around 110 billion euros, reflecting the scale of its network and service footprint. [Citation: CNMV financial report]
The revenue structure was led by mobile infrastructure, with mobile devices contributing a substantial portion of total revenue. A sizeable share of sales came from broadcast infrastructures, while networks for safety and urban management contributed a smaller but meaningful portion of revenue. These figures illustrate how Cellnexs portfolio spans a mix of connectivity and public safety solutions that underpin modern infrastructure.
Tobías Martínez is described as a Telecommunications Engineer who also holds a Senior Management degree from IESE and a Marketing Management diploma from the Marketing Institute of Barcelona. He previously served as the sole director of the Cellnex Finance Company subsidiary and was associated with Acesa Telecom since 2000. His career included leadership roles at Tradia and later Retevisión before being named CEO of Cellnex on November 17, 2015. He assumed interim presidency in February 2018 following the resignation of a prior chief executive. [Citation: corporate biography]