Vantage Towers, the second-largest independent tower company in Europe, today announced its financial results for the quarter ending June 30, 2021 (Q1 FY22) through which it provided updates on its tower portfolio, newly signed agreements in Spain, Greece, and the Czech Republic, and reiterated its guidance for FY22.

Operational Metrics in Q1 FY22 – Vantage Towers

Vantage Towers’ consolidated portfolio includes its operations in Germany, Spain, Greece, the Czech Republic, Portugal, Romania, Hungary, and Ireland. In addition, Vantage Towers has a 33.2% stake in INWIT (Italy), and 50% stake in Cornerstone (UK) – see below.

Consolidated Portfolio

As of June 30, 2021, Vantage Towers’ macro sites totaled 45.6k, across 8 European markets. Specifically, this portfolio includes 19.4k sites in Germany and 8.7k sites in Spain – the company’s two largest markets.

Vantage Towers delivered 200+ new tenancies during the quarter ending June 30, 2021, resulting in a tenancy ratio of 1.41x. Of these 200+ new tenancies, 150+ were new tenancies in Spain, which was primarily driven by an active sharing agreement between Vodafone (Vantage Towers’ key tenant) and Orange in Spain. As a result, during the quarter, Vantage Towers’ tenancy ratio rose from 1.70x to 1.74x in Spain, despite a small decline in its macro site count.

Overall, an increase in Vantage Towers’ new build-to-suit (BTS) sites was offset by decommissioning of sites from Vodafone’s active sharing agreement with Orange in Spain.

Signed Agreements – Q1 FY22

LineoX – Spain

In Spain, Vantage Towers signed an 8-year partnership agreement to provide LineoX, a wholesale provider of connectivity services, access on up to 9.0k of Vantage Towers’ existing sites.

LineoX owns a portfolio of antennae and radio electronic equipment for its network of 10.8k microwave radio links in Spain. The company uses this active infrastructure to provide internet connectivity, especially in remote areas that cannot be accessed by cable or fiber optics.

Notably, LineoX is a portfolio company of Spanish private equity firm Asterion Industrial Partners.


In Spain, Vantage Towers expanded its agreement with wireless carrier MÁSMÓVIL. Specifically, MÁSMÓVIL’s tenancies will increase on Vantage Towers’ urban and rural sites, as part of MÁSMÓVIL’s 5G roll-out and upgrades.

Sigfox – Greece

In Greece, Vantage Towers signed a 10-year contract with Sigfox, an Internet of Things (IoT) network operator, for 5G-related services.

Overall, Vantage Towers expects the Sigfox agreement in Greece to deliver 280 additional tenancies by calendar year-end December 31, 2023. Of this total, the company will achieve 180 additional tenancies by calendar year-end December 31, 2022.

Multiple Agreements – Czech Republic

In the Czech Republic, Vantage Towers signed contracts with four new customers during Q1 FY22. Overall, these agreements will deliver ~400 new tenancies during the next three years. Specifically, these agreements are with customers including VanCo, WIA, NHK, and CBL.

Financial Results in Q1 FY22 and Guidance – Vantage Towers

Vantage Towers’ Group Revenue (excluding pass through) for the quarter ending June 30, 2021 (Q1 FY22) was €246m, which implies a 2.1% year-over-year growth. Within this total, the company generated macro site revenue of €233m (94% of total), which increased by 1.8% year-over-year. Vantage Towers notes that its key growth drivers are new tenancies and additional macro sites.

Additionally, for the quarter ending June 30, 2021, Vantage Towers generated revenue of €40m (16% of total) from customers other than Vodafone. Indeed, this implies that Vodafone still comprises 84% of Vantage Towers’ highly customer concentrated revenue base.

Geographic Segments

Vantage Towers’ two largest markets, Germany and Spain, both continued to grow during the quarter ending June 30, 2021. Firstly, Germany, Vantage Towers’ largest segment, had total revenue of €120m in Q1 FY22, an increase of 0.6% year-over-year. Secondly, Spain, Vantage Towers’ second-largest segment, had total revenue of €42m in Q1 FY22, an increase of 7.4% year-over-year.

Co-Controlled Joint Ventures

Vantage Towers’ co-controlled joint ventures include INWIT (33.2% ownership) and Cornerstone (50%). The latest results available for these companies is as follows:

  • INWIT: total revenue of €190.2m for the quarter ending March 31, 2021
  • Cornerstone: total revenue of €112.5m for the quarter ending June 30, 2021

Guidance – FY22 (Financial Year Ending March 31, 2022)

Vantage Towers also reiterated its financial performance guidance for FY22 (financial year ending March 31, 2022), which is summarized below:

  • Revenue: €995m to €1,010m, which implies 3.8% growth, at the mid-point, over FY21
  • EBITDA after Leases (EBITDAaL): margin broadly stable (i.e., 54%), implying €537m to €545m
  • Recurring Free Cash Flow (RFCF): €390m to €400m
Adam Simmons covers Towers for Dgtl Infra, including American Tower (NYSE: AMT), Crown Castle (NYSE: CCI), SBA Communications (NASDAQ: SBAC), Cellnex Telecom (BME: CLNX), Vantage Towers (ETR: VTWR), IHS Holding (NYSE: IHS), and many more. Within Towers, Adam focuses on the sub-sectors of ground-based cell towers, rooftop sites, broadcast / radio towers, and 5G. Adam has over 7 years of experience in research and writing for Towers.


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