Business outlook

2019 was a year of transformation for Cellnex in which it performed two capital increases worth EUR 3,7 billion, announced the commitment of more than EUR 7.7 billion and consolidated our presence in Western Europe thanks to the entry into new markets such as Ireland or the consolidation in the UK, a reference market in the world of telecommunications.

As a result, in 2019 Cellnex has achieved the one billion threshold in revenues and has more than doubled in size in the last four years. This situation was accompanied and supported by the shareholding base of the company, which has always supported on Cellnex's business model project.

In view of the company's business prospects, Cellnex pursues a growth strategy that allows both customer and geographic diversification. Thus, in 2020 the Company will continue to focus on executing organic growth (leveraging its neutral operator character), integrating assets resulting from inorganic agreements already signed and seeking new inorganic opportunities to continue to remain a benchmark independent tower operator in Europe.

It should be noted that Cellnex is facing a general cycle of renewal of contracts with customers in the broadcasting area, although in recent years the relative weight of this segment has decreased significantly. In this regard, the Telecommunications Infrastructure Services business line is expected to account for close to 85% of total revenues once the entire contracted perimeter has been transferred (Bouygues, Iliad and Salt, Wind Tre, Sunrise, Arqiva).

Likewise, the company's challenge continues to be to grow in new countries and to be able to work with all European operators, offering them an industrial and neutral business model that allows them to rely on the infrastructure of Cellnex. At this point, it should be noted that Cellnex has managed to position itself as the benchmark in the sector in Europe thanks to its truly independent character, its vocation to seek long-term agreements beneficial to both parties and to build relationships based on an industrial approach of high added value, which has allowed it to benefit greatly from the accelerated trend of infrastructure outsourcing by mobile operators.