Good morning, everyone, from the headquarter of EuroTeleSites. Today, we are here to discuss the Q2 and half-year results. I'm here with Ivo and Lars, who will guide you through the presentation. Once again, the reminder, you see the question mark on your screen. Please, if you want to raise a question, you can already type in your question and we will come to that after the Q&A session. Just one information up front, also here, this is the last conference call for this year because as you know, we will have the next conference call in 2027. Of course, as you know, we will publish all the information which you are used to get, in the same condition as we have it, and this will take place, of course, in October.
With that introduction, I would like to hand over to Ivo to give us the first guidance.
Thank you, Moritz. Good morning from my side, and thank you for joining on this call. We're very pleased to report that the first half of 2026, we have delivered solid numbers. You are seeing on the screen that the revenues were much higher than predicted. If we adjust those numbers compared to the reported year-over-year, which were 7.8% higher versus the adjusted, which are 6.1% higher for the first half of 2026 compared to the first half of 2025. We are pleased to report that we've grown very well on the third-party revenue, over 30%, and we had one customer project that was of EUR 2.4 million, that was completed in this first half year of 2026. Overall, solid performance in every country. We have done very well on the third-party revenue. The rollout for the anchor tenant is according to the plan.
What you're seeing on the screen is that year-over-year on the macro sites, we've added 177 sites, but 196 net adds of third-party tenants. If we go on the next screen, we can see a breakdown quarter-by-quarter, how we are progressing with the rollout of sites and the third-party tenants on the top right side. On the bottom left side, we have the total number of sites, and to the bottom right, we have the total number of tenants. For Q2 alone, we have rolled out 58 sites, but net adds of 40 sites and 64 third-party tenants. It's almost close to double versus the Q2 of 2025. We are doing very well in Croatia as far as the third-party tenant route and Bulgaria on the absolute locations.
On the revenue side, we have done very well in Austria in this period and in de facto in Croatia and Bulgaria since the number of third-party tenants has grown and some of the contracts were renegotiated last year, the end of last year, which has positively impacted this half-year results of 2026. Next, please. Coming to the CapEx. As usual, usually the first two quarters of the year, our CapEx utilization is lower. Q3 and Q4 especially are the quarters where all the projects are coming to life because the permitting process has most likely been completed. We are a little bit behind the plan of six months if you compare versus 2025. If we see how many sites we've built in Q2 versus Q2 of 2025, we are even ahead of that. The mandatory upgrades is consuming, again, a large sum of this CapEx.
This is to upgrade the existing sites for the anchor tenant to be able to put 5G, for example, C-band antennas, and at the same time to be ready for third-party tenants. This strategy has proven to be delivering solid results. As you can see, the third-party tenants are coming on existing network and as well as the new sites that we are rolling out. Next, please. The two parts.
Thank you, Ivo. Good morning from my side. I am anchoring to say that, as Ivo has mentioned, we can present solid numbers. I will start with Q2. In the later presentation, we also will see the half-year results. I think we can say and emphasize that we are actually glad to report that we are slightly ahead of what we will present later also in the guidance. We will stick to the guidance until the year end. We have refreshed our forecast until year end. That strengthens actually the numbers that we have presented to you also at the beginning of this year. Having said that, let's start with Q2. Let's start with the revenues. As mentioned by Ivo, we have a one-time non-recurring revenue contribution effect of EUR 2.4 million. If you look at both adjusted and non-adjusted numbers, they are very promising.
We have increased our revenues by EUR 5.9 million or 8.4% up to EUR 75.9 million. Adjusted, this is still an increase of 5% and an increase of EUR 3.5 million, i n comparison to Q2 2025. You can see, and this is very important that we emphasize this again and again, whatever we gain on the revenue side, the biggest portion of this directly impacts our operational results. In this case, the EBITDA has increased from EUR 58.8 million in Q2 2025 to EUR 64 million in Q2 2026, which again, is an increase of 8.9% or EUR 5.3 million, s ame and similar aspect you can see in the adjusted numbers.
By the way, as always, you can also find more details in our data book that has been published in the investor relations section of our homepage. The driver behind the increase of our revenue is, as we also report regularly, the indexation that we have implemented. The second one, Ivo mentioned it, and we're very happy to report that we even can see a 32.5% increase of our third-party tenant growth.
Last but not least, also the expansion, so building new sites for our infrastructure. Next page, we will briefly look at the EBITDA after leases where we see similar effects increasing from EUR 39.4 million in Q2 2025 up to EUR 44 million in Q2 2026. As well, the positive effect can be seen in the cash flow in Q2 2026, which increased up to EUR 49.5 million. We have to keep in mind what Ivo mentioned as well, that our current CapEx spend is, of course, on the way. We will expect until the year end some effects also on the cash flow, but then at the same time, an increase in the CapEx as we have planned. Having said so, let's have a brief look into the half year.
The first six months of 2026, we can see a positive effect, increasing the overall revenues year to date up to EUR 148.4 million, which is an increase of 7.8% or EUR 10.7 million. On the EBITDA, also year to date, we can see an increase up to EUR 128.3 million, which is also an increase of around EUR 10 million. Again, very direct impact of the generated revenues into the results of our business plan, which is considered to be very positive. On the next slide, you can see the EBITDA after leases for the half year coming from EUR 79.7 million in six months 2025, up to EUR 88.6 million in 2026 for the first half year. Again, we show here the adjusted values also to be aligned with the expectations of our guidance, which we will present again later.
Having said that, I think we can be glad to see that the progress is ongoing, and this is maybe also reflected in the fact on the next page, please, Moritz. The fact that we have had our yearly meetings with Fitch and Moody's, and we are very glad to report that Fitch has, after the discussion, decided to upgrade our rating from BBB- to BBB. This is a very positive development that we can see here, s ame or similar situation we can see with Moody's. They keep the investment-grade rating on their side, but they have lately also increased the outlook from stable to positive. Also a good sign for us in that respect. If you look at the overall share price in the performance 2025, you can see quite stable, slightly negative increase or decrease of our share price.
Please keep in mind that the industry itself, if you look at our major peers, the major stock-listed peers, they have sometimes suffered double-digit decreases. Therefore, I think we can at least show that the share price is quite stable. With the new rating, of course, we expect that we will further continue to work on investor relations and investor exchanges. We will also be on the road, shown a bit later until the end of the year. If you have a chance to meet us somewhere, please let us know or directly, of course, contact us. Having said so, I'm handing back to Ivo because Ivo will talk about the guidance until the year end.
Thank you, Lars. Regarding the guidance, we stay on the path that the growth will be around 4%-5%. As you've seen the results today, we are well on that track to be on the upper end. Regarding the rollout of sites, we mentioned at the beginning of this year that we have a very nice size of projects in Austria to support our anchor tenant with the coverage obligation for the 5G rollout, and this will be an ongoing project for 2026, 2027, and partly of 2028. On the part of the CapEx utilization, this is why the 2026 and 2027 CapEx will be a little bit higher than the normal when you compare versus the revenue and path to stay on the investment-grade ratings with Moody's and Fitch has already been achieved.
We are doing very well, and we believe that by the end of the year, we will achieve solid results. On the financial guidance, yes, you see on the right side, there are no dividend commitments in the near future unless we reach a leverage of 5x . After that, we will observe and take a decision what will be the best way moving forward and use the free cash flow. We have one more slide that Lars hinted. Since this is the last investor call for this year, there are many opportunities to meet with us. We are always available on the digital channels, of course. Moritz and his team hopefully are doing a great job responding to your inquiries.
We hear every once in a while, and we try to support him, also the road shows that Lars and his team are doing very active and we're trying to be as much as we can present closer to you, and we appreciate all the support that you have given to us and your belief in EuroTeleSites. I would like to thank once again the full team of EuroTeleSites and around all the countries for the excellent results that we've done the half a year, and we will continue to deliver for the second half of 2026.
Thank you so much, Ivo and Lars. We are coming right now to the Q&A section. Let me take a look at the questions. Before the call, we already received a question to be here transcribed. I will read it out loudly, but I think Ivo already answered that question. Assuming that the end of 2026, the leverage ratio will be below 5x , could we expect a dividend payment for year 2026?
I think the short answer is no for 2026.
Okay. Thank you so much. The second question is, please share what are the exact support services ETS is getting from A1 and at what level? Which services are fully outsourced to or provided by their parent? In which areas there are also own employees to cover the field; HR, IT procurement, O&M, fleet management?
Just to be clear, there are no free services. We are two separate companies and all the services are with arm's length, and we have services that we provide for A1, and they also provide some services for us. After the spin-off, mainly, there were human services related to human resources and the finance teams that are part of their CDC, which we still have an intercompany service agreement. There are IT services that we use from them, which for the whole infrastructure, with exceptions to the latest HR system, that we have separate HR system from A1, and previous year, this large asset management system, the Sitetracker. The rest of the systems are still within the framework of the A1 Group.
Thank you so much, Ivo. The next question, what I can see, despite very solid results and given the constant depressed trading equity multiple of the company, as well as its very low liquidity, does the board consider the business would be more valuable within a public listing context or under a full private ownership?
A very short answer. We don't see any changes appearing on a structural situation for EuroTeleSites. We're a listed company. We are aware of the low liquidity and also the small free float from the beginning. We don't expect any changes in the near future about this structure.
Thank you, Lars. There is another question popping in. What progress have you made on deleveraging in half year one from 5.5 at the end of 2025?
As Ivo has presented, on the revenue side, we are progressing very well, which also, of course, filters all the way through into the free float that you can see. Because of the issue that, of course, we have different CapEx spend and payments, for example, for the bond throughout the year, we don't publish half- year leverage numbers. We do it once a year, expect an updated number towards the end of this year, 2026. Nevertheless, the numbers, of course, go in the right direction.
Maybe just to add here, all the available information is available, of course, in the data book, so you can maybe calculate by your own. The next question is, what is the plan to refinance the EUR 255 million in November 2026? Will you reduce the side of the debt term loan or bond?
Good question, Peter. Thank you. First of all, as we have mentioned from the beginning, the focus is on deleveraging. Yes, we expect until the year end that a portion of the EUR 255 million will be used from the existing liquidity that we generated this year, and that will help us actually to reduce the debt, and the remaining part of the EUR 255 million will then be placed on a private placement again. This is ongoing. The bond, it will not be touched in the near future.
Thank you, Lars. One more. Can you share more background on the EUR 2.5 million one-time effect?
EUR 2.4 million you mean?
Yeah.
This is customer projects that has been going on for a while now. As you might recall, we also do work for not just on our towers, but also on other towers, whether it's indoor solutions or towers for equipment on other tower companies. This is just a revenue that we are receiving for this work.
Thank you, Ivo. Another one in terms of the dividend. Your leverage is already at near 5x . Why would you exclude the dividend for 2026? It wouldn't be paid until summer 2027, given plenty of time for free cash flow to cover a dividend.
We are aware that we ask for your patience about dividend payments. Ivo clearly has stated we also from the beginning said for the first four years, we will not pay dividends. The focus is on deleverage. Of course, we hear your suggestion, as Ivo has mentioned, at a later stage, we will discuss dividends, as promised and predicted. For now, we use any available free cash to deleverage.
Perfect. Thank you so much. For the moment, I don't see any further questions. If there is anything else, as you know, please just reach out directly to myself and we will get back to you, of course. Thanks again, and we will see you again in this setup in February 2027. If there is anything else, again, just reach out to us.
Thank you, everybody. Thanks a lot.
Thank you. Bye-bye. Have a good day.