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Sep 30, 2024
Crown Castle Q3 2024 Earnings Report
Crown Castle reported solid operating and financial performance and reaffirmed its full year 2024 Outlook for Adjusted EBITDA and AFFO.
Key Takeaways
Crown Castle reported Q3 2024 results with site rental revenues of $1,593 million and net income of $303 million. The company reaffirmed its full year 2024 Outlook for Adjusted EBITDA and AFFO. It also completed discussions with customers, resulting in the cancellation of approximately 7,000 greenfield small cell nodes.
Site rental revenues grew 1% to $1,593 million, including $65 million in Organic Contribution to Site Rental Billings.
Net income for the third quarter 2024 was $303 million, including $48 million of restructuring charges.
Third quarter 2024 Adjusted EBITDA was $1.1 billion.
Third quarter 2024 AFFO was $801 million, or $1.84 per share, representing an increase of 4%.
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 updated its full year 2024 Outlook to reflect the impact of the mutual cancellation of approximately 7,000 small cell nodes, which is expected to result in a $125 to $150 million asset write-down charge in the fourth quarter, reducing full year 2024 Outlook for net income by $138 million at the midpoint.
Positive Outlook
- Full year consolidated site rental billings growth, excluding the impact of Sprint Cancellations, is expected to be 5%, inclusive of 4.5% from towers, 15% from small cells, and 2% from fiber solutions.
- Core leasing activity for full year 2024 is expected to contribute $305 million to $335 million.
- The expected 2024 small cell core leasing activity includes $22 million of higher-than-expected non-recurring revenues primarily related to early termination payments which occurred in the third quarter.
- Excluding the impact of Sprint Cancellations and the increase in non-recurring revenues, small cell organic growth is expected to be 10% in 2024.
- The full year 2024 Outlook for discretionary capital expenditures is $1.2 billion to $1.3 billion.
Challenges Ahead
- Mutual cancellation of approximately 7,000 small cell nodes.
- These cancellations are expected to result in a $125 to $150 million asset write-down charge in the fourth quarter.
- Reducing full year 2024 Outlook for net income by $138 million at the midpoint.
- Site rental revenues as a percentage of prior year site rental revenues (3.0)%.
- Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings 1.6%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income