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Sep 30, 2023
Crown Castle Q3 2023 Earnings Report
Reported third quarter results and provided outlook for full year 2024.
Key Takeaways
Crown Castle reported a 1% increase in site rental revenues, reaching $1,577 million, and a net income of $265 million for Q3 2023. The company's full year 2023 outlook remains consistent with expectations of 5% tower organic revenue growth and deployment of 10,000 small cell nodes. The company expects full year 2024 organic growth excluding the impact of Sprint Cancellations of 4.5% from towers, 13% from small cells, based on plans to deliver approximately 14,000 small cell nodes, and 3% from fiber solutions to generate consolidated organic revenue growth of 5%.
Site rental revenues grew by 1% to $1,577 million in Q3 2023, driven by a $53 million Organic Contribution to Site Rental Billings.
Net income for Q3 2023 was $265 million, which included $72 million in restructuring charges.
Adjusted EBITDA for Q3 2023 was $1.05 billion, a decrease compared to $1.08 billion for Q3 2022, primarily due to lower services contribution.
Crown Castle paid common stock dividends of approximately $680 million during the quarter, an increase of 6.5% on a per share basis compared to the same period a year ago.
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 expects full year 2024 organic growth excluding the impact of Sprint Cancellations of 4.5% from towers, 13% from small cells, based on plans to deliver approximately 14,000 small cell nodes, and 3% from fiber solutions to generate consolidated organic revenue growth of 5%. The company plans to deploy discretionary capital, net of prepaid rent additions of $430 million, totaling approximately $1.2 billion which the company expects to fund without issuing equity in 2024.
Positive Outlook
- Expects full year 2024 organic growth excluding the impact of Sprint Cancellations of 4.5% from towers.
- Expects full year 2024 organic growth excluding the impact of Sprint Cancellations of 13% from small cells, based on plans to deliver approximately 14,000 small cell nodes.
- Expects full year 2024 organic growth excluding the impact of Sprint Cancellations of 3% from fiber solutions
- Expects to generate consolidated organic revenue growth of 5%.
- Plans to deploy discretionary capital, net of prepaid rent additions of $430 million, totaling approximately $1.2 billion which the company expects to fund without issuing equity in 2024.
Challenges Ahead
- Expects full year 2024 site rental revenues between $6,347 million and $6,392 million, down from $6,488 million to $6,533 million in the current full year 2023 outlook.
- Expects full year 2024 net income (loss) between $1,213 million and $1,293 million, down from $1,429 million to $1,509 million in the current full year 2023 outlook.
- Expects full year 2024 Adjusted EBITDA between $4,138 million and $4,188 million, down from $4,399 million to $4,444 million in the current full year 2023 outlook.
- Expects full year 2024 AFFO between $2,980 million and $3,030 million, down from $3,261 million to $3,296 million in the current full year 2023 outlook.
- Expects full year 2024 AFFO per share between $6.85 and $6.97, down from $7.50 to $7.58 in the current full year 2023 outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income