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Jun 30, 2020
American Tower Q2 2020 Earnings Report
American Tower's financial performance remained solid in Q2 2020, with revenue and net income showing increases despite challenges from the COVID-19 pandemic.
Key Takeaways
American Tower Corporation reported a 1.2% increase in total revenue, reaching $1,913 million. Property revenue increased by 2.4% to $1,893 million, and net income rose by 3.2% to $448 million. The company focused on maintaining essential connectivity for tenants and strengthened its balance sheet.
Total revenue increased by 1.2% to $1,913 million.
Property revenue increased by 2.4% to $1,893 million.
Net income increased by 3.2% to $448 million.
The company repurchased approximately 51 thousand shares of its common stock for approximately $11 million.
American Tower
American Tower
American Tower Revenue by Segment
American Tower Revenue by Geographic Location
Revenue by Segment
U.S. & Canada Prop. Revenue
CapyFin.comLatin America Prop. Revenue
CapyFin.comAfrica & APAC Prop. Revenue
CapyFin.comEurope Prop. Revenue
CapyFin.comServices Revenue
CapyFin.comData Centers Revenue
CapyFin.comRevenue by Geographic Location
U.S. & Canada Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
American Tower provided full year 2020 financial and operational estimates based on several assumptions, including foreign currency exchange rates. The company lowered the midpoint of its full year outlook for property revenue, net income, and Adjusted EBITDA, while raising the midpoint of its outlook for Consolidated AFFO.
Positive Outlook
- Estimated favorable impacts of foreign currency exchange rate fluctuations to property revenue
- Estimated favorable impacts of foreign currency exchange rate fluctuations to Adjusted EBITDA
- Estimated favorable impacts of foreign currency exchange rate fluctuations to Consolidated AFFO
- U.S. growth rate includes an estimated positive impact of less than 1% associated with an increase in non-cash straight-line revenue recognition.
- The company is raising the midpoint of its outlook for Consolidated AFFO by $20 million.
Challenges Ahead
- Lower straight-line revenue in the U.S.
- Lower currency-neutral pass-through revenue in international markets.
- Additional bad debt expense, primarily in India.
- The Company is lowering the midpoint of its full year 2020 outlook for property revenue by $30 million.
- The Company is lowering the midpoint of its full year 2020 outlook for net income by $50 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income