American Tower reported revenues up 4.6% to $2.9 billion within the second quarter of 2023, with its income seeing a soar because of the sale of property because it exits the Indian market.
AMT stated that its property revenues had been up 4.6% year-over-year to about $2.85 billion.
“The momentum from the beginning of the 12 months prolonged into Q2,” stated CEO Steven Vondran, including that the corporate stated greater than 5% natural progress in tenant billings within the U.S. and Canada and that it’s taking a “disciplined strategy to capital allocation.”
Capital expenditures through the quarter had been $328 million; American Tower stated that $37 million of that determine was for non-discretionary capital enhancements and company capital expenditures.
Vondran stated on the quarterly name with analysts that whereas AMT has taken the technique of exporting its U.S. enterprise mannequin to different markets, it’s now making changes to that technique because it turns into clear that the danger is larger, and impression of unfavorable macroeconomic situations more durable, on creating economies. Along with exiting India, American Tower additionally has bought “underperforming” property like its Mexico fiber enterprise and its operations in Poland, Vondran identified, even because it has pursued mergers and acquisitions in Europe and america.
“We anticipate to additional cut back our relative publicity to rising markets over time as we proceed to give attention to incremental investments in developed economies,” he continued, including: “That doesn’t imply that you need to assume we plan on divesting particularly markets. … We’re going to stay opportunistic as we proceed to actively handle our portfolio.” He added later: “We retain the optionality to reinvest into these markets if financial situations and progress outlooks evolve.”
He additionally stated that American Tower is targeted on progress with Tier 1 operators and that in markets the place it’s working with smaller or new service suppliers, it must modify its threat profile accordingly, based mostly on its experiences. (AMT purchased Vodafone Concept’s towers in 2017; the provider has since had issues paying its payments.)
Vondran additionally gave a number of insights in regards to the state of the 5G rollout in america, telling analysts: “There’s nonetheless numerous room for the carriers to proceed to broaden their 5G presence.” Whereas he didn’t title particular particular person carriers, he stated that “Over half of our websites are actually upgraded with mid-band 5G, however one provider is forward of the opposite two. We’ve one which’s over 80%, one which’s a bit over 60% now and one which’s a bit bit additional behind. So there’s numerous runway there for them to proceed to roll out mid-band 5G throughout the portfolio, and we anticipate them to proceed to do this.”
