American Tower beats quarterly revenue estimates on strong leasing demand
Workers install 5G telecommunications equipment on a T-Mobile US Inc tower in Seabrook, Texas, U.S. May 6, 2020. REUTERS/Adrees Latif
American Tower on Tuesday beat Wall Street estimates for third-quarter revenue, helped by strong data center demand and robust spending from telecom companies on network coverage.
Telecom firms are increasing investments in 5G rollout and mobile network infrastructure to meet the growing demand for internet services.
"Leasing activity across our U.S. and international towers remains robust as carriers invest in network coverage and capacity," CEO Steven Vondran said.
The company owns, operates, and develops wireless and broadcast communications infrastructure, leasing space on its communication sites to wireless service providers, radio, and television broadcasters.
American Tower's major customers include telecom giants AT&T, Verizon, and T-Mobile, which together contributed a significant portion of its property segment revenue in the U.S. and Canada last year.
AT&T and T-Mobile topped Wall Street expectations for third-quarter wireless subscriber additions helped by customers switching from rivals.
Revenue from American Tower's property segment, which comprises of its site leasing business, rose about 6 per cent to $2.62 billion in the third quarter.
The wireless infrastructure provider reported total revenue of $2.72 billion in the reported quarter, above estimates of $2.65 billion, according to data compiled by LSEG.
American Tower expects full year 2025 total property revenue between $10.21 billion and $10.29 billion, up from its prior forecast of $10.14 billion to $10.29 billion.
