Good morning, everyone. My name is Juan Gaitan, Director of Investor Relations at Cellnex, and I would like to thank you all for joining us today for our Q2 2021 results conference call in this busy day. As always, I'm joined by our CEO, Tobias Martinet our CFO, Jose Manuela Iza and our Deputy CEO, Alex Mestre, who will lead today's session. Throughout our prepared remarks. We will refer to the results presentation we have shared this morning, and then we will open the line for your questions.
Please note that this session today needs to for maximum duration of 1 hour. And without further ado, over to you
Tobias. Thank you, Juanjo. Good morning, everyone, and thank you so much for your time today. Let me please go straight to the main highlights of the period. Our organic growth generation continues to be strong with new POPs on existing sites and our build to shoot program generating at 7.5% growth.
Please note that the main driver behind this strong growth in the period has been the significant contribution from build to suit with around 1,000 new sites transferred in Q2, 2020 And taking into consideration that we are delivering such kind of build to suit in the middle of the pandemic, which is Remarkable. We are also making tangible progress on our efficiency plan in a way consistent with the lease optimization and initiatives we have been implementing over the past last years. The period also provides a strong financial performance with revenues increasing 47% compared to the last year. Our adjusted EBITDA 53% and our recurring leverage free cash flow 47% with our EBITDA margin expanding 400 basis points to 79%. As you know, ESG is a cornerstone of our strategy.
And as such, we are making a steady progress on the initiatives set out in our new ESG master An example of this is the Sustainability Sustainability Analytics, recent risk rating, improving 4 points and placing Cellnex among the top 5 companies in the telecom sector. We are also happy to share the creation of the Cellnex Foundation with the objective to narrow the digital and social dividers through projects that will improve the access to connectivity. Our intention is to create a dynamic tool at the service of people, tackling situations of vulnerability while contributing to the improvement of the environment. Moving to Capital structure strategy in order to fund our growth, we continue keeping all doors open and we are constantly assessing A wide array of options to maintain our financial flexibility. One recent example of This pragmatic approach is our inaugural bond in dollars.
We have tapped the most kit market for the first time, issuing our longest ever instrument and at a very competitive We've even some deals closed earlier than expected and all our Relations projects are advancing in line with our initial expectations. And finally, we are upgrading our guidance mainly expecting the early closing of the Port Comtel deal. And we are also reiterating our medium term guidance with all metrics on track. If we go to Slide number 3, we are showing here For illustrative purposes, the expected profile of both adjusted EBITDA and recurring leverage free during the remaining quarters of 2021. As you can see, these magnitudes will increase every quarter as we generate organic growth, make progress on our build to suit programs and efficiencies this plan and see the contribution from new deals as they are closed.
Our upgraded Guidance implies unexpected adjusted EBITDA growth of 65% and a recurrent leverage free cash flow growth of close than 60% compared to 2020. On the following slide, you can see the status of our current integration processes. And the main conclusion is that all of them are going as planned. Compared The previous quarter, you can see that we have closed T Infra in the Netherlands, Hatch, Italian Deal and PolComtel. While we are actively working on our 2 pending closings, Ivory in France and Hatch in UK.
We have implemented a global governance model with the following Styx. Clearly, distributed responsibilities between group and countries. Transversal policies, which can be adapted to the realities of each country. Use of global dashboards, which allows the tracking of KPIs and also supervisory and decision making roles at all levels. If we go to Slide number 5, just a quick review of our current footprint and financial targets.
When all of our deals are closed and our Bluetooth programs completed, Cellnex will further strengthen its position in Europe as the main independent telecom infrastructure operator, managing a portfolio of around 130,000 sites. With present in 12 markets and boosting our financial and becoming the industrial partner of choice for our craft clients. Finally, a quick reminder of our medium term guidance, which we are reiterating. It implies an annual growth of well above 20% in our key financial metrics from 2020 and a very well diversified expected EBITDA in 2025 of between €3,300,000,000 3,500,000,000 And with this, I will now hand over to our CFO, Jose Manuel Aiza, who will provide a few more details of the
Thank you, Tobias. Moving to Slide 7, I'm providing a few more details on the Revenues have increased around 50%
to EUR
1061,000,000 in the period. Our recurrent level free cash flow has increased 50% to $394,000,000 Our total POPs Almost double if we include the contribution from organic growth and M and A and if we focus on organic growth Our POPs have increased around 7.5% compared to the year as a result of increased colocation on acceleration of our build to suit programs. Please note that our POPs do Moving now to Slide 8. The performance of our main Metrix, on top of the figures just discussed, our adjusted EBITDA has increased 53% compared to this year and our margin has expanded around 400 basis points. This adjusted The growth is mainly explained by the contribution from Telecom Infrastructure Services, organic growth, build to suit and recent and by the efficient management of our cost base.
Payment of Leases increased with a larger portfolio of sites, maintenance CapEx is expected to converge towards for guidance and interest paid reflects the terms of our debt structure. The following Slide explains our recurrent level free cash flow generation in the period and you can see the contribution to organic growth from our efficiencies. These elements combined generate €52,000,000 in the period, a 20% growth compared to last year. And if we also take the contribution from M and A and the rest of cash items below adjusted EBITDA, Cellnex has generated again a strong recurring levered free cash flow growth of 47% compared to last year. Moving to Slide 10, A quick update on our efficiency plan.
Please note that the site management has always played a key role in our operations. And we have a strong track record crystallizing efficiencies out of our portfolios of sites. We have renegotiated close to 1500 round leases contracts in the period, generated €10,000,000 of efficiency this year so far and we are on track to meet our 2025 target. Moving to our balance sheet movements compared to last year mainly explained by our M and A and capital structure activity in the period. The increase in total assets also explains the Corresponding increase in equity and liabilities as a result of our last right issue and the issuance of debt instruments in the period, respectively.
And just to remind that we take a prudent purchase special location approach in the context of our M and A activity that prioritize the location to fixed assets. So the goodwill you can seeing our balance sheet does not correspond to any cash out. You will find a thorough explanation in the frequently as questions section. Now a quick update of our capital structure and liquidity position. We have around €19,000,000,000 of available liquidity including €11,000,000,000 of undrawn credit lines.
A strong backlog of with a highly competitive associated cost of around 1.5%. The significant refinance is expected before for 2024. 86% of our debt is fixed and our corporate debt has no covenant pledge for guidance. And very quickly on our The upgraded 2021 financial outlook in Slide 13, which mostly reflects the early closing of at Port Monter deal. It implies an expected adjusted EBITDA growth of 65% and our recurring level free cash flow close to 60% compared to 2020.
And with this, let's please open the line for your
Thank you very much. Ladies and gentlemen, The The first question comes from Simon Cowes from Barclays. Please go ahead.
The first one is on the U. K. Deal. We've obviously seen the news of the CMA and the deal moving to Phase 2. But I'd love Your thoughts on what we've seen so far, some of the objections or concerns seem quite surprising given you are an independent tower guide.
And then secondly, just on the pipeline, not seeing any mention of that in Lee, just on the pipeline, not seeing any mention of that in the presentation. I'm sure there's lots going on. Could you just give us some color and any update on what the mix So the pipeline might be in time line expectations, is it still 12 months and you're just waiting for the right deal? That's
it. Thank you.
Thank you so much, Simon.
Well, good morning, Simon. Well, about CMA in U. K, I I can tell you that is everything as expected. I mean, we are in Phase 2. We understand perfectly that We have to work to assess and to work with the CMA.
It was planning. You can see in our last Capital decrease in the prospectus, we were expecting around Q2, the closing on Q2 2022. So nothing, I think, remarkable up to date. And but well, we should expect to overcome obviously and to finally successfully the transaction, but we have to work on it. And about pipeline, maybe there is no relevant news, if I may You know that we are always proactively looking for the opportunities or at least our opportunities.
And again, consolidation in every country where we are today, I think it's It's a public information that maybe in Germany will come an opportunity, but believe me, no news Today, obviously, we if there is an opportunity, we will assess seriously. But Currently, we do not have additional information in order to be disclosed. So everything I think on track and so far so good and the company remains Active in order to improve our local presence in every country and obviously ready to go, ready to assess
The next question From Roshan Ranjit from Deutsche Bank. Please go ahead.
Great. Good morning. Thank you for the questions. 2 for me, please. And maybe just to maybe follow-up quickly on Simon's point.
I think the CMA said that some of the measures presented In their view, it wasn't a viable solution. And whilst everything is tracking according to your H1 'twenty two time frame, it would be really interesting to know what some of those And secondly, just moving to Italy. Now in your KPI file, you've obviously included now the Hutch Italy deal, which is closed, so it's a bit difficult to see how the organic pop growth track there. Are you seeing any upside in this given the delays from Inwit and being able to get some of the Iliad POTS on there? Are you I know, obviously, you have the build to suit and you are the default provider for Iliad, but any upside there?
And then you could say will be good. And Maybe tied on to that, tracking with your synergy run rate, you saw a material increase In the organic POP growth this quarter, should we think that the synergy run rate is closely aligned to that organic top growth given the scope for the combination of build to suits. Thank you.
Thank you, Rojan. Maybe I will maybe reverse the order in terms of answers. So starting with your last One, maybe the short answer is too early to say, but in mind that it is true that we have forced a quite strong organic growth this quarter. We think it's So you know that there is a perimeter of sites to be deployed and for tenants in the context of the different build to shop programs. The speed which we have been able to direct sites this quarter has been maybe faster than anticipated.
But the perimeter is what it is. So after the completion of this field to support brands, we will be able to deploy the sites that we announced at the moment of those transactions. In terms of the progress that we are making on our efficiencies and synergies programs, we are happy with the progress. The vast majority of the savings are mostly related to ground lease renegotiation rather than synergies or But as we make progress and have more information, we're happy to provide a more updated feature. But As of today, we are not in a position to change our view.
Now your second question, No, I mean, we are happy with the performance that we are generating with organic growth that we are generating in Italy. We are not seeing any change or any acceleration due to any relationship that Iliad or Ringwood might have. So we continue within our plan and the way we see our organic growth generation in Italy's ecosystem with the performance that we have posted during previous
No, Roshan, good morning. Just to maybe to reiterate today, It's very difficult for us to provide additional information because at the end it's a perception. So We need to work deeply with CMA. Market assessment is key as you can imagine, always in a filing in antitrust authorities. And we do expect to provide enough information to the CMA in order to show that maybe no one in this call maybe It's no one in this call is having doubts about the role, the active role of CTIL in the U.
K. Market. But again, I think we should work together with the CMA in order to make a new market assessment, which will The structure in UK rather than the previous IPO of Vantash in the market. But again, I think to work on it, but let's see at the end. But just to reiterate again, our A strong, strong, strong commitment with UK market with our customers as well.
And therefore for us, UK, it's a masterpiece in our on Cellnex European Platform.
That's great. Thank you very much.
Thank you. Your next question comes from Ottavio Adoresio from Societe Generale. Please go ahead.
Hi, good morning. A couple of questions also from my side. The first one is on the Organic growth rate. You recorded a mild deceleration on Revenues from new colocation and associates revenues, euros VAT7,000,000 compared with €9,000,000 in the first quarter. That is against the acceleration on the POP.
Now you're also stressed that the POP meant the acceleration comes from the BPS. So I was wondering if you can give us the breakdown of the BOPs on your existing towers and the one from the BTS. The second question is on a point you make during the presentation on the purchase price and acquisition. Now my understanding is that The aim is to attribute a price paid intangible that could be depreciated and provide tax shields while goodwill is not depreciated. So therefore the question is, has the process completed for all the acquisition you announced or it's still ongoing with the auditors?
And it is still ongoing in terms of the allocation for the price towards intangible versus goodwill. Could that impact the 2025 guidance that you have for SEK 2,000,000,000 to SEK 2,200,000,000? And the third is just for clarifications. The CMA raising competition concern, it's an ongoing process and totally understand that's difficult for you to comment. But could you just give us a bit of color if that could be repeated in other countries or if the UK situation makes at different because of the presence of 2 large JVs.
Thanks.
Thank you, Very quickly on the first one, out of the 7.5% organic growth that we have generated, this is basically through 2 factors. The contribution From build to suit is 4% and the contribution from pure colocation is 3.5%, so for consistent with previous quarters. On the second question, sorry, you want to On the PPA, Octavio, no, We have never changed the criteria and the criteria is the following. The auditor has 1 year and the management of Cellnex has 1 year to present amendments to the PPIs that are initially recorded in our books. We have always agreed with the auditor, no change in our initial criteria of PPA and therefore we do not Expect any impact at all in the 2025 outlook.
So I would suggest if to go through if you can go through Slide 26, for instance, that's helpful. And also our semestial Accounts, you will see that the criteria which has not changed and no impact in recurring free cash flow at all. So the answer is super simple, no change. The third question, That is maybe a difficult answer. No, I guess that but remind that we haven't gone through Any European process, European wide process, all of our antitrust processes happening at local level and it is to that, maybe each antitrust regulator defines to market in a different way.
So I guess that the situation that we are now facing in the U. K, if you could extrapolate across Europe,
Probably it's a matter of time on actually realizing that those companies are having commercial activity, which is the case. We find them in the field, but we are going very fast and this is true. And maybe sometimes regulators need to get at a time in order to get a proper settlement of the market. Also, it is true that The transaction in the UK was not a plain vanilla transaction. There is additional complexity with the EVA and everything to be assessed.
And that's the reason that We believe it's normal that probably we are on the situation as we have already a business since the very beginning.
Thanks.
Thank you. The next question comes from Giles Theren from Jefferies. Please go ahead.
Thank you. I think it's probably 2 questions for Alex. First one is on Spain And the recent spectrum auction and when it was already signaled that Maas wouldn't participate in 700 megahertz auction. But I just wanted to get your sense of organic growth going forward in Spain as Results of 1 of your anchor tenants or your anchor tenant being subscale in some of their spectrum holdings relative to peers. And then my second question in a similar fashion is on Italy and YOLO has A new owner and has spoken about a very big investment program into the network.
I don't know if you've had any early sites So early conversations on how you can help them. Any color there would be useful. Thank you.
Yes, Giles, thank you. In relation to Spain, look, not really we do expect here Any potential reduction of the addressable market, to be honest, because MasMovil has been always quite pragmatic on the way that they have been approaching both the access to frequencies and their potential Rancheoring agreements with others. Remember is that if this is translated to a Rancheoring agreement, there are also revenues mechanisms linked to that, that we will be able to capture even though we will not until now we are not reporting that as POPs as was previously In relation to the second question, yes, this is Quite interesting, specifically in general, the fixed wireless access Italy is a very interesting market. We have Aeolo, we have Lincoln, we have also Fastweb. All those are quite active on that market, Which is very much perceived as a fast track digital divide Action that can be done on rural areas to provide with 3.5 gigahertz Another spectrum with broadband connection.
So it is very interesting. Of course, we are having, let's say, Very close discussions with all those players and we've been reporting already in the past that, let's say, that it It has been part of our, let's say, commercial activity in Italy. And interestingly, we think that that Short of model of fixed wireless access could be traction in other countries potentially.
But no explicit conversations with the new owners at Yoro?
We are maintaining The active talks with the OpCos and the shareholders as well. So I would say in general in all this arena because since being as of now specific for Italy, well, we want to be very ensured that if we endorse actions and commercial activities with them, We are having the proper view in relation to our effort in order to support this type of players. But it's a very interesting opportunity.
Very good. Thank you.
Thank you. The next question comes from Nick Delphos from Redburn. Please go ahead.
Around BTS optimization, could you talk to us a little bit about how many conversations you've started to And over what kind of period we might see some results from that. Thanks very much.
Thank you, Nick. Alex, you want to?
Yes. I think the question is in relation to Bluetooth optimization? Yes. Yes. Well, no, We've been proactively at the moment that we are having those 2 anchors with agreed Bluetooth programs.
We We have been already active and we are starting to have deferred results, not in order to show that increment on Deltosur, as the Question was referring before. So that increment is not due to those synergies being captured, but we are starting to have, I would I
would say the
first harmful cases on which we've been able to demonstrate that What we were envisaging as a potential value creation lever, the Bluetooth optimization, It's actually working. It's as you can imagine a process which is not immediate because you need to negotiate The radio frequency design plans with the MNOs in order for them to agree that what was initially in business Not going to be the final position of the point of presence, but yes,
it will work. Mainly maybe I can add that mainly in Italy and France. Those countries are the more active ones in terms of capturing this such kind of efficiencies.
And can I just ask for one operator who is no longer building a tower and It on to you, and therefore, they won't be recording some kind of EBITDA benefit? Is that a problem for them? Because obviously, The ability to show revenues from build to suit on the other side or rather EBITDA on the other side is quite So how do they what do they get instead in terms of the structure for the party that's no longer building a
Well, I think what the beauty of the element In those build to suit agreements we have, as you know, there are several modes and schemes on which we have a great deal to suit with our anchors. We have levers by which we can do Share a fair share of the value creation on all. So if there was a A potential revenue on our anchor side to be created with this Due to suit, we intend to honor that. However, in any case, there is the CapEx savings that We'll not be required anymore. So and with all those levers that we have, Not all the cases are identical.
We are finding the way to have the proper incentive by the MNO to engaging those discussions.
Okay. Thanks very much.
Thank you. The next question comes from Savi Pavant from Mediobanca. Please go ahead.
Yes. Hi, good morning and thank you Thank you for taking my two questions. The first one is on the European recovery plan. We have I heard in recent days some operators is already starting to have some discussion with the countries government Countries on this plan. I was wondering if you already started to have some conversation, if there is something you can share with us.
And the other question is on an update You said in the past, you would have had with your existing customers what concern Potential inclusion in the agreements of the active equipment. Thank you very much.
Thank you, Fabio. I will take maybe the first one. There is no tangible progress on this. As you can imagine, I mean, we are the different processes. We are doing our homework, coming up with a quite long list of projects that we think might be eligible for these funds.
We are also aware of everything that our clients are saying. We might agree that this could be a very good opportunity. But I get that in terms of a tangible process on how European countries will be setting up the rules of the game. Nothing new,
I would say. And the second question, Alex? Yes. In relation to the augmented tower company, Well, as you can imagine, we are tractioning very well discussions with everyone because MNOs are intrigued on what we've been doing with all Contel and everything. So there are a lot of conceptual discussions being on the table as of now.
Nevertheless, let's do not forget that we have just got the keys of the factory a few days ago. So we are now on the process of also understanding the deep implications on providing these type of services on understanding if there are some fine tunes that should be done on the value proposition To other players, the different schemes on maybe just doing that on by region area or getting the full active equipment for 1 operator. So we are having that as we have As I mentioned in the past, this is going to take some time and we are very prudent on the way that we want to scale up this
activity.
Thank you very much.
Thank you. Your next question comes from Garrett Hollis from BNP. Please go ahead.
Thank you. Good morning, both. So first one, a couple of your peers have been talking about seeing inflationary OpEx pressures as they renew their maintenance contracts on-site. And I think this partially Relates to some of the Huawei swap outs. So when it comes to some of your maintenance OpEx and CapEx looking forward, how much do you outsource Much of the spending, are you seeing any inflationary pressures?
And then on the second one, just more broadly, the pace of the BTS, you're obviously making good But when you've closed deals recently, you've commented that much of this is back end loaded, and we've seen such progress coming through in these results. I was wondering kind of why and how this is accelerating? Thanks both.
Thank you, I can maybe try and start. You can complement Alex, please. Typically, when we announce a transaction, you know that It's the initial acquisition of an existing portfolio of towers, but also where that's ability to suit. And maybe at the moment of the announcement, we have Limited information on the actual needs of the client in terms of future densification needs. Then what happens is that at the moment that we start working closely with the client.
We find opportunity to accelerate this deployment. So it's just I guess it's a combination of specification needs of our clients. Maybe they need besides already earlier than we expected, but also at the moment of announcing the deal, a running approach. So that's why we have been saying that our initial expectation was a backend loaded completion of these programs. So it's just mostly timing, no?
On your first question, short answer It's no. I mean, we are not seeing any also bear in mind that, I mean, obviously, we are in the telecom sector. We are following everything that is going on, but also our business model is quite different from that of our clients. And we are not seeing the Basically, we are not seeing what you mentioned. We have our not really OpEx, but linked to our activity leases.
But if anything, that is being the object of our quite important efficiencies to wrap. So I would say that in general, we are not seeing any inflationary pressure on any of our OpEx or lease
James. Okay, clear. Thank you very much.
Thank you. The next question comes from Ben Rickett from New Street Research. Please go ahead.
Hi, good morning guys. Thanks for your question.
I had
a question on
the Question on the Italian emissions restrictions. So you've been growing co And the Trusted by the emissions restrictions there. And then secondly, I know there's been some It's called noise around whether those restrictions will be lifted. It would be great to understand your expectations for whether They will be lifted this year or in the near future? Thank you.
Yes. We never factorized any regulation change so far.
And the
question has been in the past also being post. And When we came into a country, we take what it is and we want to build based on what it is. So however, on that point, We have sometimes a mix, let's say, feeling because when there is The possibility to raise the colocation emissions, the colocation, you may expect, could also go Hi, but also could go higher than Rane Shearing. Whereas because Rane Shearing, as you know, there are additional Carriers on the same side, so emission being radiated is also increasing. In the event that this is not possible, Another site may be required nearby at, say, Reasonable distance in order not to affect the gradations around the original site.
So this is also generating New demand for densification, as Juan Pablo was also mentioning before. So that's the element that we We do see and we believe all the MNOs in Italy have been already considering. So all those that were thinking on doing craneshering, that may be having an impact. That's And they may require a physical pop at a certain distance from the original one. In the case of Italy, So the players that we're thinking of doing so,
maybe
that could potentially have So there will be less run sharing, more physical points of presence. So maybe it's
Thanks. That's helpful color. Thank you.
Thank you. The next question comes from Amit Goelley from Morgan Stanley. Please go ahead.
Yes. Good morning, everybody, and thank you for taking my questions. I have had two questions, please. The first question relates To build to suit, uncovering white and gray spots in Spain. I know that you've partnered with REE to fund the rollout of independently owned masts in rural parts of Spain.
Can you maybe just say a few words about this And how big it could be? Would it run into the thousands of potential new sites? And maybe just also mention that maybe some sensitivities Because I know you are competing with a consortium that is made up of your telco customers. So does that pose an issue or And then the second question is, I think something similar to what I asked last quarter. You've already announced a few contracts to cover railway across And you've been pretty successful in this area with rail projects on London, Brighton, ProRail in the Netherlands, Spain, etcetera.
Can you maybe just say a few words about the outlook for this market, especially with the European recovery fund Thank
you. Yes. Thank you, Emmet. Look, in the first Question, well, you mentioned that we are competing with our clients. Well, That's not really the case.
So what we are always willing is to cooperate, to find the best way in order to ensure that What this project is actually looking after is best self with the minimum resources And not overspending. Here we have, let's say, the Spanish government that has yet to, let's say, release the public tender proposals. And maybe the public tender will already face the situation on a different way that We may have initially envisaged with REE or the MNOs themselves have initially envisaged or even the vendors because The sources for the funding could be devoted to passive, to passive plus active or Both of them or just one of them. So what we now is on this standby mode, proposals as Expression of interest have been already presented to the Spanish government. I think Spanish government has a very clear idea on what can be done or not.
And That will be translated in a tender process. So hopefully, we'll be in a position to have a really cooperating project around that. And that's What we really expect to happen. Then on the second question in relation to Transportation Look, we believe that this has life on its own even without recovery funds because It's heavy on demand. And we have started, let's say, working around that, as you know, even the We expect to be in a position to, let's say, provide good news in the future from that in other areas where we are, let's say, commercially pushing for developing these type of With the recovery funds, yes, it is true.
You are well aware that there are also expressions of interest in relation And we feel the public administration is very sensitive to the topic as well. So yes, We remain inclined to think that this is going to be an interesting path for growth for
Super. Thank you very much.
Thank you. The next question comes Giovanni Montalte from UBS. Please go ahead.
Good morning. Thank you. You were mentioning that I mean, the current market for SWA is particularly developed, and you think that there may be similar Opportunities in other European markets. Is there any other market you could flag in particular? And also, why Do you think the data market has moved so much ahead of, let's say, European average in terms of SWA?
Is this linked with, I The quality of the fixed coverage in certain areas or competitive dynamics or I mean anything you could share with us that would be helpful. Thank you.
Look, where else this could be deployed and maybe just referring to public So we've been hitting some initiatives in the UK in relation to that. So that will be, It's an area where we would potentially benefit because we are having presence in the UK. And in a few other countries also, Let's say there is this push for this fix, especially with 5 gs at 3.5 gigahertz and with new frequencies like 26 ban that may be coming in the future. So the reason why this is Opening in Italy, well, that's a very interesting question. I think there is probably an entrepreneurial origin in all of that In order to cover, let's say, areas where the fixed broadband was initially not yet arriving.
And That has been endorsed by strong investors, all those entrepreneurs around on these type of activities. And we believe that if you look at the investors behind those initiatives, those are International players that will also help potentially to spread that type of services beyond Italy and those early initiatives in other countries.
Thanks so much. If I may have a very quick follow-up. Unfortunately, I missed part of the call, so I may go back to something you have already Scott, apologies for that. But we've seen a big acceleration on your organic growth in terms of PoPs. However, you are reiterating The guidance means I'm not, let's say, improving the guidance.
Is this just because you want to keep some marginal, Let's say, flexibility. So there could be room, let's say, to maybe improve it later on? Or I mean, shall we expect this improvement in terms of organic growth to continue in the coming quarters? How should we think Again, apologies if I already discussed this. Thank you.
No, this is what we have highlighted is that this is just a timing effect in Q2 only. We have seen around 1,000 of new sites being integrated coming from our British Wealth brands. So that is also putting upwards pressure on our organic growth. Also as As I mentioned before, out of these 7.5%, around 3.5% is coming from peoprolocation. So and the additional 4%, which is linked to this 1% new sites is coming from build to suit.
So again, it's just an acceleration in the quarter of the build to suit efforts. But again, I mean, we are changing the we are not changing the total scope for obvious reasons of the EBITDA Super AMS and then difficult to anticipate future performance. In any case, that's why we want to stick to our media type guidance because in terms of colocation generation And in terms of the total scope of the build to suit programs that we have on the table, nothing is really changing.
Sure. Thank you very much.
Thank you. Your next question comes from Georgios Irodicuno from Citi. Please go
ahead. Thank you for taking my questions. I actually have 2 follow ups. The first one is just a follow-up on the question Giovanni asked around the B2C programs. I appreciate you having upgraded the mid term guidance.
Perhaps you want to confirm expansion of the build to suit programs before you do that. But perhaps if I can ask the question a bit differently, is the phasing of the build to suit programs different So what you are expecting, is it more front end loaded? Or are you seeing any perhaps indications that there may need To be more rollout plans from some of your clients than what you expected 6 or 12 months ago. And then the other question is just Clarification, one of your answers earlier to Nick's question around the efficiency programs. I just want to clarify, when you do Approach your partners and agree to more efficiently roll out their networks.
Am I right in assuming you will still buy 2 separate sites through the build to suit program, but you will coordinate that effort So they are based on the same physical side. Is that the way to think about it? So there's still TSS, but then you get the efficiency for the colocation. Thank you.
Thank you, Georgios. I will now start with the first one. We have today and also maybe looking at the rest of the year 2021, maybe it is true that the progress is a bit more for all loaded compared to the information we had when we provided the dividend guidance. So this think this is maybe an effect that we are anticipating for 2021 only. Other than that, let me reiterate that we are not changing the total amount of sites to be deployed.
So this is just a timing effect. And of course, I mean, we haven't reached any binding agreement to go beyond what we have announced to the market. If over the course of the conversation that we are having with our We identified that there is an additional opportunity. Of course, we will provide that information. But as of today, the scope of What we have on the table, the scope of our build to support brands is still the same.
It is simply that in the coming quarters, maybe you see an activity a bit more front loaded than You
feel respected. Simone? Yes. And on the build to suit, I think on our 2020 results presentation on On the annexes, Page 29, there was one slide trying to illustrate the different synergies Because not only is a book to suit against a book to suit that may actually be safe here, it's a book to suit against A legacy side that we may be having from a other portfolio or could be between 2 Besides, no? So in the case of build to suit, which if I understand correctly, this is what you were asking for, We do not build the 2 sites and then we do movement of on the one of the two sites.
We avoid building 1 of the sites. So this means there are 2 types of savings. First of all, the ground lease of 1 of the sites and secondly, the CapEx for building 1 of the sites. And this is the way we approach this deal to suit against deal to suit synergies. I don't know if
Very clear. Thank you.
Thank you very much. Next question comes from Andrew Lee from Goldman Sachs. Please go ahead.
Yes. Good morning, everyone. I I have two questions. One was a follow-up from the last two questions just on the underlying organic growth. I get that build to suit was You're responsible for a large chunk of the uplift, but if we strip out build to suit, the underlying organic growth ex build to suit actually Improved a bit too.
Just wondered if you can make any comments on that and the potency growth in demand you're seeing. I know that 5 gs CapEx peak run rate is still a while away, but if you're seeing any kind of change in behavior from operators there, it would be great. And then the second question is just on fiber to the tower. No contract signed since the Bouygues one at the start of 2019. I think you'd mentioned a few months ago that there was chance to maybe sign a new contract or 2 similar to that in the coming quarters.
Just wondered Any progress on that and how we should be thinking about it? Thank you.
On your first
question, the answer is no. We are not seeing any change in underlying trends. The 7.5% growth Due to a timing effect, we have been integrating build to suit sites at faster speed at least compared to Q1 2021. But in terms of pure co location, new tenants on existing sites, we continue to provide A consistent performance, 3.5% this quarter. This compares to 3.2% in Q1, so quite consistent.
And this is the sort of speed that we are also expecting for the following quarters based on the information that we are from our clients.
In relation to the fiber to the tower, what we perceive, which is happening now in the market Is that the real need for the fiber came when 5 gs is massively in usage, which does not mean that You powered up one 5 gs site. What we are realizing is that many of the Emenors are still using radio frequency links to power up 1 5 gs and the Fiber maybe envisaged in the future because the traffic being generated by this 5 It is very small because the number of handsets yet being available. So there are very few handsets yet in the market. So therefore, the traffic that this 5 gs has to be handled, it's small enough to reuse The backhauling to the tower that was already existing before powering up 1 5 gs. What is clear is that at the end, the fiber will be required because the bandwidth When you have all the frequencies per site, we'll require another means of holding every Beyond the radio frequency link, which is what today is being used.
So the market is there. But what now is being put as priority by the MNOs is just powering up 5 gs because it's So part of
the regulatory
obligations and the backhaul will come later on.
Thank you very much. There are no further questions. Ladies and gentlemen, thank you for joining. We have reached the end of the conference.
Thank you so much. Take care. Bye bye.