Jim Taiclet, American Tower’s Chief Executive Officer, stated, “The rapid adoption of unlimited data plans in the U.S. wireless market has elevated aggregate year-over-year mobile data usage growth to roughly 40 percent. This is in turn fueling record levels of U.S. commenced new business for American Tower, resulting in Organic Tenant Billings Growth of 7.4 percent in the second quarter.”
MoffettNathanson analyst Nick Del Deo said, “The general sense among investors coming into [yesterday’s] results was that American Tower wouldn’t have much left in the tank to help offset the FX hit it was going to take. The general sense was incorrect.”
Analyst Spencer Kurn of New Street Research called AMT’s results “solid” with “organic growth modestly ahead of expectations in most regions.” Kurn found revenue and AFFO beat expectations by a wide margin, “largely due to one-time and non-cash items. On a proportionate AFFO basis, AFFO per share was in-line,” he said. ”We have been Neutral on AMT, despite our bullish view on U.S. leasing activity, because of concerns over churn in India. We would rather play rising organic growth in the U.S. through SBAC,” Kurn said.
CEO Taiclet said given the robust growth in data, deployment of new spectrum and the introduction of advanced technology across their U.S. tenant base, they are increasing their full year 2018 expectations for U.S. Organic Tenant Billings Growth to approximately seven percent. “We also anticipate a multiyear period of elevated demand in the U.S. as our tenants invest in 4G capacity and quality while launching mobile 5G networks, enhanced Internet of Things services and other initiatives that we expect will sustain demand for our comprehensive telecommunications real estate portfolio,” Taiclet said. Click here for the full report.
Second Quarter 2018
“Our Latin America segment posted second quarter Organic Tenant Billings Growth in excess of 12 percent, reflecting especially strong trends in Mexico and Brazil, and we also saw consistent, steady results in EMEA. In India, where we recently added approximately 20,000 Vodafone and Idea Cellular sites, the carrier consolidation process is progressing as we anticipated. We fully expect the reordered India mobile industry to invest significantly to bring 4G to its subscriber base once the carrier mergers that are underway are completed. Taken together, we expect our highly diversified international business to deliver strong, sustainable growth for many years to come.”
August 1, 2018