(Finance) – S&P Global Ratings has improved the outlook on the Italian telecommunications company Aeolus from “negative” to “stable“, thanks to the improvement in liquidity, confirming the “B-” rating.
Eolo has recorded a constantly growing customer base, a slightly increasing broadband market share and solid overall results in the first half for fiscal 2025 (ended September 30, 2024), including net revenue expansion of 6% and EBITDA of 9%.
Eolo will continue to focus on attracting new customers and rolling out the network for its new 26 gigahertz (GHz) technology. Its capital expenditure (capex), although considerable, will moderate somewhat in fiscal years 2025-2026 due to lower network investments related to existing technologies.
One is expected slightly improved liquidity for the next 12 monthsdespite negative free operating cash flow (FOCF) in fiscal years 2025-2026 and a still relatively tight liquidity cushion. This results in particular from the capital injection of €50 million (preference shares) by supporting shareholder Partners Group.
The stable outlook reflects the expectation that, over the next 12 months, Eolo will increase its revenues and earnings thanks to the expansion of its customer base. This will result in a adjusted leverage of 5.5x-6.0x (excluding preferred shares) and in the reduction of the reported FOCF deficit after leasing.