DGAP-News: Vantage Towers AG: Consistent revenue growth across all markets in Q1 FY23

 Vivek Badrinath, CEO of Vantage Towers AG, commented:

The financial year 2023 is an important year for Vantage Towers. We are focusing on further investing and accelerating our business to ramp up of our new site build programme and facilitate 1&1s access on our existing sites. In the first quarter, we have seen consistent revenue growth supported by our continued commercialisation of our business and inflation escalators in our contracts. We remain on track to deliver our guidance for the current financial year and our medium-term targets.

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Revenue development accelerated in Q1 FY23, generating a total revenue (ex. pass through) of 262.1m. The respective increase of 6.6% was mainly driven by Macro site and Energy and other revenue. Macro site revenue grew 3.4% YoY in Q1 driven by tenancy growth and our contractual inflation escalators. As previously disclosed, over 95% of our revenue is linked to inflation.

Energy and other revenue grew from 6.5m to 15.6m, mainly driven by other chargeable services to MNOs and a 3m non-recurring energy revenue in Spain.

Moreover, non-Vodafone revenue continues to grow and saw an increase of 16.1% YoY to 51.8m in Q1 FY23 (Q1 FY22: 44.6m).

In Q1 FY23, we saw consistent revenue growth across all markets driven by other chargeable services to MNOs and the contractual inflation escalators.

In addition, Germany witnessed revenue growth from non-MNO contracts, and Spain from the active sharing agreement and a 3m non-recurring energy revenue. 

Vantage Towers co-controlled joint ventures

The Groups co-controlled joint ventures include INWIT (33.2%) and Cornerstone (50%). The financial performance of our equity investments in INWIT and Cornerstone are in line with expectations.

INWIT has again delivered strong revenue growth in the first quarter of 2022, increasing 8.8% YoY to 207.0m. The acceleration of INWITs organic growth continues with approximately 850 new tenancies added, representing a 9% YoY growth.

Our Guidance

We confirm our guidance for FY23 as well as our medium-term targets

We expect to continue to drive forward the commercialisation of our business in FY23. Whilst leveraging on our strong infrastructure network, we will focus on the execution of our BTS programme and attracting incremental third-party tenants.

In FY23, we will further invest 10-15m in our business, incurring costs to facilitate 1&1s access on our existing sites, accelerate the ramp up of our BTS programme and build out our supporting teams, all ahead of the corresponding revenue contribution from FY24.

We reaffirm our unchanged FY23 Group outlook for Revenue (ex. pass through), adj. EBITDAaL, and RFCF and confirm our medium-term targets underpinned by the BTS programme, strong momentum in tenancy growth, and progress being made in GLBO programme.

Alternative Performance Measures

The Group presents financial measures, ratios and adjustments that are not required by, or presented in accordance with, IFRS, German GAAP or any other generally accepted accounting principles on a consolidated basis (Non-IFRS Measures) and on a pro forma basis (Alternative Performance Measures or APMs).

These Non-IFRS Measures on a consolidated basis and Alternative Performance Measures on a pro forma basis should not be considered as an alternative to the consolidated financial results or other indicators of the Groups performance based on IFRS measures. They should not be considered as alternatives to earnings after tax or net profit as indicators of the Groups performance or profitability or as alternatives to cash flows from operating, investing, or financing activities as an indicator of the Groups liquidity. The Non-IFRS Measures on a combined basis and Alternative Performance Measures on a pro forma basis, as defined by the Group, may not be comparable to similarly titled measures as presented by other companies due to differences in the way the Groups Non-IFRS Measures on a combined basis and Alternative Performance Measures on a pro forma basis are calculated. Even though the Non-IFRS Measures on a consolidated basis and Alternative Performance Measures on a pro forma basis are used by management to assess ongoing operating performance and liquidity and these types of measures are commonly used by investors, they have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the Groups results or cash flows as reported under IFRS

Definitions

Glossary

Disclaimer on forward looking statements

This announcement contains "forward-looking statements" with respect to Vantage Towers results of operations, financial condition, liquidity, prospects, growth, and strategies. Forward-looking statements include, but are not limited to, statements regarding objectives, targets, strategies, outlook and growth prospects, including guidance for the financial year ending March 31, 2023, medium-term targets, new site builds, tenancy targets and the tenancy pipeline; Vantage Towers working capital, capital structure and dividend policy; future plans, events or performance, economic outlook and industry trends.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "will", "could", "may", "should", "expects", "intends, prepares" or "targets" (including in their negative form or other variations). By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. All subsequent written or oral forward-looking statements attributable to Vantage Towers or any member of the Vantage Towers Group, or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. Any forward-looking statements are made of the date of this announcement. Subject to compliance with applicable law and regulations, Vantage Towers does not intend to update these forward-looking statements and does not undertake any obligation to do so.

References to Vantage Towers are to Vantage Towers AG and references to Vantage Towers Group are to Vantage Towers AG and its subsidiaries unless otherwise stated.

Rounding

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

[1] Tenancy net additions from 1 April 2022 to 30 June 2022.

[2] Consolidated refers to our reporting segments Germany, Spain, Greece, and Other European Markets, in which we have a controlling interest, excluding our joint ventures in Italy and the UK.

[3] Tenancy net additions from 1 April 2022 to 30 June 2022.

[4] Non-committed refers to tenancies that were not already committed in November 2020 at the Capital Markets Day.

[5] In Q1 FY23 the Cornerstone total revenue includes a pass through revenue of 24.0m (Q1 FY22: 22.6m) in total, which consists of recovery of business rates passed through to the tenants and capital expenditure recharges.

[6] An average GBP/EUR exchange rate of 1.179376 used for the period of 1 April 2022 to 30 June 2022.

[7] Medium-term targets of the consolidated group excluding the UK and Italy.

[8] Assuming capacity to invest in organic or inorganic opportunities up to leverage of 5.5x Net Financial Debt / Adj. EBITDAaL to maintain investment grade rating.