American Tower has revealed its financial performance and key achievements for the second-quarter of 2024.
American Tower has reported revenue of $2.9 billion (up 4.6 percent) and net income of $908 million in the second-quarter of 2024.
American Tower said growth rates and capital expenditures were impacted by revenue reserve reversals of $67 million associated with Indian telecom operator VIL (Vodafone Idea) as compared to VIL-related revenue reserves of approximately $35 million in the prior-year period.
American Tower recently sold its 1,440 million VIL shares for $216 million. American Tower has also recognized a gain of $46.4 million on the sales of the VIL shares.
American Tower’s capital expenditures were approximately $328 million.
For 2024, American Tower’s capital expenditures will be $800 million. American Tower is shifting its Capex to developed markets. For instance, American Tower will be spending 34 percent of its Capex for data centers in the United States, 18 percent for telecom towers in Europe, 18 percent for telecom towers in U.S. & Canada, 11 percent in Latin America, 14 percent in Africa, and 6 percent in Asia Pacific.
American Tower is targeting revenue of $11.1 billion – $11.28 billion and net income of $3.225 billion – $3.315 billion in 2024. This includes U.S. & Canada property revenue of $5.225 billion to $5.285 billion, international property revenue of $4.965 billion to $5.065 billion and Data Centers property revenue of $910 million to $930 million.
American Tower, which is in the process of selling its India business for $2.5 billion, is betting on the potential of 5G in the United States.
“There’s still a lot of room for the carriers to continue to expand their 5G presence. We would say that over half of our sites are upgraded with mid-band 5G, but one carrier is ahead of the other two. We have one that’s over 80 percent, one that’s a little over 60 percent now and one that’s a little bit further behind,” American Tower CEO Steve Vondran said.
