Cellnex, Europe’s largest mobile phone tower operator, is reportedly considering selling its French data center unit in a deal worth several hundred million euros. The company is discussing the potential sale with advisors as part of its ongoing strategy to refocus its core business and strengthen its financial position.
Cellnex operates over 100 edge data centers in France through its NexLoop unit, which it acquired in 2020. While specific revenue figures for the French data center business remains undisclosed, France emerged as Cellnex’s largest revenue-generating market in the first half of this year, contributing EUR 399 million, or 21% of the company’s overall earnings.
In March, Cellnex announced that it would streamline its focus to four core business lines: towers, fiber, connectivity and housing services, broadcast, DAS and small cells. With its telecom tower portfolio, comprising over 138,000 towers in 12 countries, accounting for over 80% of the company’s revenue, Cellnex aims to reinforce its leading position in these critical areas while offloading non-core assets, such as the French data centers.
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Cellnex Market Capture
Cellnex first entered the Irish market in 2019 with the acquisition of Cignal, which owned 546 tower sites, including 300 previously owned by Coillte, for EUR 210 million. Over the years, Cellnex expanded its footprint in Ireland, acquiring additional sites and, in 2021, purchased hundreds more from CK Hutchison, the parent company of Three Ireland, for around EUR 600 million.
This potential sale aligns with Cellnex’s strategic shift away from its aggressive acquisition model evident in the early 2020s.
Cellnex has managed approximately 4,600 sites in Austria since 2021, when it acquired CK Hutchison’s telecom infrastructure as part of a multi-nation deal.
Since 2022, the company has focused on organic growth and financial consolidation. As part of this strategy, Cellnex has already divested several business units across Europe, including selling its Austrian operations and its Irish division.
In March, the company agreed to sell its Irish telecom masts business to Florida-based Phoenix Tower International for EUR 971 million. This deal marks Cellnex’s exit from the Irish market after five years, as the company shifts its focus towards reducing its debt and consolidating its operations.
In August, the company finalized an agreement to sell its entire Austrian business to a consortium consisting of Vauban Infrastructure Partners, EDF Invest, and MEAG for EUR 803 million.
Additionally, the company sold its private networks subsidiary, including Finland-based EDZCOM, to Boldyn Networks.
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Financial Outlook
Cellnex saw a 5.9% rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching EUR 1.58 billion in the first half of 2024. This growth was driven by increased revenues from its core telecom tower operations, which remain the company’s primary focus.
As of the first quarter of 2024, Cellnex’s net debt stood at EUR 17.5 billion, up from EUR 17.3 billion in the previous quarter. However, the company has maintained its full-year EBITDA guidance of EUR 3.15–EUR 3.25 billion, reflecting its efforts to stabilize its finances following its expansive growth phase.
