Cellnex on Tuesday said it expects revenues of up to 4.7 billion euros ($5.1 billion) and adjusted core earnings of up to 4 billion euros in 2027, as it unveiled its new outlook amid a shift in strategy to focus on cutting debt.

In 2023, Europe’s largest mobile phone tower operator’s revenues, excluding pass-through costs, totalled 3.6 billion euros and its adjusted earnings before interest, taxes, depreciation and amortisation reached 3 billion euros.

The Spanish company added it would improve its dividend policy for shareholders and continue reducing debt, while remaining open for potential investment opportunities.

“With 10 billion euros in planned available cash by 2030, the new capital allocation will balance a combination of profit distribution via dividends (minimum of 3 billion euros between 2026 and 2030) and/or share buybacks, as well as investments in industrial growth opportunities (up to 7 billion euros),” Cellnex said.

After obtaining a credit rating upgrade in 2024, Cellnex said its debt target in the medium and long term will be 5-6 times EBITDA from the 6.9 times reported in 2023.

“Starting from 2026, shareholders can expect a minimum dividend payment of 500 million euros a year, with a minimum annual growth rate of 7.5% in the years to follow,” it added.

Cellnex also said on Tuesday it had reached an agreement with Phoenix Tower International for the sale of 100% of its Irish subsidiary valued at 971 million euros, as part of Cellnex’s strategy of reducing some of its assets.