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Mar 31, 2021
Crown Castle Q1 2021 Earnings Report
Reported solid results that exceeded expectations, reflecting a robust 5G leasing environment and raised outlook for full year 2021.
Key Takeaways
Crown Castle reported a strong first quarter in 2021, exceeding expectations due to a robust 5G leasing environment. They also raised their full year 2021 outlook, expecting double-digit growth in both AFFO per share and dividends per share.
Site rental revenues grew by 5%, or $59 million, compared to Q1 2020, including $82 million in Organic Contribution to Site Rental Revenues.
Net income for Q1 2021 was $121 million, compared to $185 million for Q1 2020, impacted by a $143 million loss on the retirement of long-term obligations.
AFFO per share for Q1 2021 was $1.71, a 20% increase compared to $1.42 for Q1 2020.
Capital expenditures during the quarter were $302 million, including $17 million of sustaining capital expenditures and $285 million of discretionary capital expenditures.
Crown Castle
Crown Castle
Crown Castle Revenue by Segment
Revenue by Segment
Site Rental Revenue
CapyFin.comServices and Other Revenue
CapyFin.com Forward Guidance
Crown Castle increased its full year 2021 outlook. The increase to the midpoint of the full year 2021 Outlook for site rental revenues, adjusted EBITDA, and AFFO primarily reflect a long-term tower leasing agreement with Verizon, an increase in the expected services contribution, and a decrease in expected interest expense, offset by additional labor related costs associated with higher Towers activity than previously expected.
Positive Outlook
- Additional straight-lined revenues associated with a long-term tower leasing agreement with Verizon that became effective April 1, 2021.
- Increase of the average contracted lease term under our existing Verizon tower site leases to approximately 10 years.
- Increase in the expected services contribution.
- Decrease in expected interest expense.
- Expects to generate industry leading domestic tower revenue growth in 2021.
Challenges Ahead
- Additional labor related costs associated with higher Towers activity than previously expected.
- Dependence on demand for communications infrastructure, driven primarily by demand for data.
- A reduction in the amount or change in the mix of network investment by our tenants may materially and adversely affect our business.
- A substantial portion of revenues is derived from a small number of tenants.
- The loss, consolidation or financial instability of any of such tenants may materially decrease revenues or reduce demand for our communications infrastructure and services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income