Telefonica to ‘monetise tower portfolio’ within next year

11 Sep 2019

Spanish telecoms giant Telefonica has issued a statement confirming its plans to monetise its tower portfolio within the next twelve months. The group currently operates a portfolio of around 68,000 cell sites across twelve markets. Of this figure, Telxius, Telefonica’s infrastructure unit, owns approximately 18,000 sites, while the remaining 50,000 sites are owned by other units within Telefonica Group. Over 60% of these sites are said to be located in Telefonica’s four major markets: Spain, UK, Germany and Brazil. (Note: Telefonica Deutschland currently owns nationwide 19,000 sites, making it one of the largest single country portfolios in Europe.)

Based on comparable market benchmarks, Telefonica says that this portfolio of cell towers could generate approximately EUR830 million (USD917 million) in revenues and EUR360 million in OIBDA and would require EUR25 million in maintenance CAPEX on a full year pro-forma basis. Telefonica stated: ‘The company is analysing different monetisation options in order to deliver value for its shareholders whilst retaining maximum operational and strategic flexibility. One alternative could be scaling up Telxius by incorporating additional sites from Telefonica units, with the support of our existing minority partners in the company. Other alternatives could also be contemplated.’

Spain, Telefonica, Telxius