American Tower (NYSE: AMT) reported steady returns for 3Q22, despite economic headwinds in some countries and some customer churn. Property revenues grew 10 percent year-over-year to $2.6 billion for the quarter. Adjusted EBITDA grew to $1.6 billion, a six percent YoY increase, resulting from both top-line revenue growth and cost controls. Organic leasing increases along with newly built towers contributed to the growth. In the quarter, AMT constructed nearly 1,600 new sites, 1,200 in India alone, making it the ninth consecutive quarter of over 1,000 builds worldwide. At the end of 3Q22, the company reported a base of 221,132 towers in 24 countries, an increase of two percent compared to 3Q21. AMT remains the largest independent tower company in the world.
The company has a positive outlook for the next several years despite what it deems to be some short-term headwinds. Importantly, at the end of August, it signed a new comprehensive MLA with Verizon that is expected to allow Verizon to efficiently accelerate its 5G network deployment over a multiyear period. The Big 3 accounted for 46 percent of AMT’s global property revenues in 3Q. With all the MNOs in full 5G deployment mode, AMT does not expect any slowdown in its site leasing revenue streams for a number of years. The company points out that even with overall U.S. wireless capex declines expected in 2023, as Inside Towers reported, demand for mobile data keeps escalating so the MNOs have to keep building their networks, both on towers and with small cells. Continue Reading |
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