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Dec 31, 2019

American Tower Q4 2019 Earnings Report

American Tower reported a decrease in total revenue and an increase in net income for Q4 2019.

Key Takeaways

American Tower Corporation reported a decrease in total revenue by 9.8% to $1,924 million, while net income increased by 94.5% to $569 million for the fourth quarter of 2019. The results were impacted by the nonrecurrence of the Tata settlement.

Total revenue decreased 9.8% to $1,924 million.

Property revenue decreased 9.3% to $1,908 million.

Net income increased 94.5% to $569 million.

Adjusted EBITDA decreased 14.6% to $1,217 million.

Total Revenue
$1.92B
Previous year: $2.13B
-9.8%
EPS
$1.93
Previous year: $2.4
-19.6%
US/Canada Organic TB Growth
6.2%
Europe Organic TB Growth
2.6%
Africa Organic TB Growth
10%
Gross Profit
$1.37B
Previous year: $1.59B
-13.7%
Cash and Equivalents
$1.5B
Previous year: $1.21B
+24.2%
Free Cash Flow
$719M
Previous year: $350M
+105.4%
Total Assets
$42.8B
Previous year: $33B
+29.7%

American Tower

American Tower

American Tower Revenue by Segment

American Tower Revenue by Geographic Location

Forward Guidance

American Tower provided full year 2020 outlook, expecting total property revenue between $7,975 million and $8,125 million, net income between $1,950 million and $2,050 million, Adjusted EBITDA between $5,085 million and $5,185 million, and Consolidated AFFO between $3,740 million and $3,840 million.

Positive Outlook

  • Total property revenue is expected to grow by 7.8%.
  • Net income is projected to increase by 4.4%.
  • Adjusted EBITDA is anticipated to rise by 8.2%.
  • Consolidated AFFO is forecasted to grow by 7.6%.
  • U.S. property revenue is expected to be between $4,385 million and $4,445 million.

Challenges Ahead

  • Foreign currency exchange rate fluctuations are expected to unfavorably impact property revenue by approximately $85 million.
  • Foreign currency exchange rate fluctuations are expected to unfavorably impact Adjusted EBITDA by approximately $44 million.
  • Foreign currency exchange rate fluctuations are expected to unfavorably impact Consolidated AFFO by approximately $41 million.
  • The churn rate is expected to remain elevated in the immediate term due to uncertainty created by the recent court ruling by the Indian Supreme Court.
  • International property revenue reflects the Company’s Latin America, Africa, Europe and Asia segments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income