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Sep 30, 2023

American Tower Q3 2023 Earnings Report

American Tower reported strong Q3 2023 financial results, driven by growth in the global portfolio and U.S. data center business, leading to increased full-year outlook.

Key Takeaways

American Tower Corporation reported a 5.5% increase in total revenue to $2,819 million for Q3 2023. Property revenue increased by 7.0% to $2,792 million. Net income decreased by 29.6% to $577 million, while Adjusted EBITDA increased by 10.4% to $1,814 million. The company raised its full-year outlook for property revenue, Adjusted EBITDA, and Attributable AFFO.

Total revenue increased by 5.5% to $2,819 million.

Property revenue increased by 7.0% to $2,792 million.

Net income decreased by 29.6% to $577 million due to goodwill impairment charges in India.

Adjusted EBITDA increased by 10.4% to $1,814 million.

Total Revenue
$2.82B
Previous year: $2.67B
+5.5%
EPS
$2.58
Previous year: $2.36
+9.3%
US/Canada Organic TB Growth
5.3%
Europe Organic TB Growth
8.2%
Africa Organic TB Growth
12.8%
Gross Profit
$2B
Previous year: $1.84B
+9.1%
Cash and Equivalents
$2.23B
Previous year: $2.12B
+5.2%
Free Cash Flow
$910M
Previous year: $473M
+92.3%
Total Assets
$65.7B
Previous year: $66.5B
-1.3%

American Tower

American Tower

American Tower Revenue by Segment

American Tower Revenue by Geographic Location

Forward Guidance

American Tower raised the midpoints of its full year 2023 outlook for property revenue, Adjusted EBITDA, AFFO attributable to AMT common stockholders and AFFO attributable to AMT common stockholders per Share by $60 million, $60 million, $40 million and $0.09, respectively. The Company is reducing the midpoint for net income and net income attributable to AMT common stockholders, each by $90 million, primarily due to the goodwill impairment charges in India.

Positive Outlook

  • Total property revenue is expected to be between $10,895 million and $10,985 million.
  • Adjusted EBITDA is projected to be between $7,010 million and $7,090 million.
  • AFFO attributable to AMT common stockholders is anticipated to be between $4,540 million and $4,600 million.
  • AFFO attributable to AMT common stockholders per Share is expected to be between $9.72 and $9.85.
  • U.S. & Canada segment property revenue of $5,205 million to $5,215 million

Challenges Ahead

  • Net income is expected to be between $1,695 million and $1,755 million.
  • Net income attributable to AMT common stockholders is projected to be between $1,755 million and $1,815 million.
  • The outlook reflects estimated negative impacts of foreign currency exchange rate fluctuations to property revenue, Adjusted EBITDA and AFFO attributable to AMT common stockholders, of approximately $28 million, $14 million and $5 million, respectively, relative to the Company’s prior 2023 outlook.
  • The Company’s outlook reflects India contributions of $1,095 million, $355 million and $290 million for property revenue, Adjusted EBITDA and Unlevered AFFO attributable to AMT common stockholders
  • International property revenue reflects the Company’s Africa, Asia-Pacific, Europe and Latin America segments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income