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Jun 30, 2020
ATN Q2 2020 Earnings Report
ATN's second quarter results benefited from past investments. Operating income and EBITDA performance remained steady across International Telecom and US Telecom segments.
Key Takeaways
ATN International reported a 1% increase in consolidated revenues, reaching $109.1 million. The company experienced a significant rise in operating income and EBITDA, driven by strong performance in the International Telecom segment and growth in US Telecom revenues.
Consolidated revenues increased by 1% year-over-year to $109.1 million.
Operating income rose by $4.2 million to $7.0 million.
EBITDA increased by 19% to $29.0 million.
Net income attributable to ATN's stockholders was $4.7 million, or $0.30 per diluted share.
ATN
ATN
ATN Revenue by Segment
Revenue by Segment
International Telecom Revenue
CapyFin.comUS Telecom Revenue
CapyFin.com Forward Guidance
Looking ahead, the company is concerned about the economic impact that long delays in the return of tourism and travel could have on international markets and will adjust its course as needed. At the same time, the company believes that the pandemic will lead to changes in global business and social behaviors and accelerate a shift to heavy telecom and data reliant activity, which could provide attractive growth opportunities.
Positive Outlook
- CAFII federal revenue support contracts will provide relatively consistent revenues for the year.
- Increased carrier service revenue as part of the FirstNet transaction.
- Pandemic may accelerate a shift to heavy telecom and data reliant activity.
- Conservative approach to balance sheet management should provide resources to manage through potential downturns.
- Investments that position telecom services platforms for longer term growth.
Challenges Ahead
- The impact of lower mobile revenue and handset sales due to pandemic-related travel and stay-at-home restrictions.
- Pandemic-related construction delays in FirstNet network buildout.
- Economic impact that long delays in the return of tourism and travel could have on international markets.
- The network build portion of the FirstNet agreement has continued during the pandemic, but the overall timing of the build schedule has been delayed
- Customers' operations and revenue generation in Renewable Energy segment were suspended temporarily.
Revenue & Expenses
Visualization of income flow from segment revenue to net income