A towering success: Cellnex revenue tops €1bn
Cellnex, touted as the biggest wireless infrastructure specialist in Europe, has been going from strength to strength in recent months.
It has been benefiting from a growing trend throughout Europe that has seen operators, such as Vodafone, Iliad, Telefonica, and Telecom Italia, look to offload their tower infrastructure in favour of quick cash.
The great expense of 5G is partly to blame here, with operators racing to deploy the expensive next generation technology.
This shedding of infrastructure assets has been music to Cellnex’s ears, with the company snapping up a host of tower deals towards the end of last year.
The acquisitions have led to rapid growth, dubbed “extraordinary” and “unique” by CEO Tobias Martinez.
Revenue for 2019 exceeded $1 billion, with 67.5% of total income coming from infrastructure services the company provides to operators. This is an increase of 19% on 2018.
The company is currently in possession of 36,471 operative sites in eight European countries, with plans to add 28,000 more as a result of ongoing acquisition deals waiting to be finalised.
“2019 has been a transformational year that marked a quantum leap in terms of size as well as a qualitative leap in consolidating the group’s position in its key markets, while further expanding our geographical footprint in Europe with the incorporation of two new countries –Ireland and Portugal—into our operations,” said Franco Bernabè, Cellnex’s chairman.
Cellnex has also announced today that it intends to work with Bouygues Telecom to help them roll out their 5G network. The two businesses will be partners in the formation of a new company (51% Cellnex, 49% Bouygues Telecom) that will deploy a fibre network, with Bouygues Telecom as its anchor tenant.
Planned investment up to 2027 stands at €1 billion, which will be used to roll out a network of up to 31,500 km, interconnecting the telecommunications rooftops and towers providing service to Bouygues Telecom, of which 5,000 belong to and are operated by Cellnex.
"The agreement to roll out a genuine fibre ring in France interconnecting various key elements for the fixed and mobile ecosystem ranging from the towers connected to the fibre, the data processing centres distributed in the network, to small cells, represents our commitment to a holistic cooperation model with our key customers to facilitate planning and efficient operation of the telecoms infrastructures networks," explained Martinez.
The deal with Bouygues Telecom will, of course, await regulatory approval.
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