American Tower reported revenues up 4.6% to $2.9 billion within the second quarter of 2023, with its income seeing a leap because of the sale of belongings because it exits the Indian market.
AMT mentioned that its property revenues had been up 4.6% year-over-year to about $2.85 billion.
“The momentum from the beginning of the 12 months prolonged into Q2,” mentioned CEO Steven Vondran, including that the corporate mentioned greater than 5% natural development in tenant billings within the U.S. and Canada and that it’s taking a “disciplined method to capital allocation.”
Capital expenditures in the course of the quarter had been $328 million; American Tower mentioned that $37 million of that determine was for non-discretionary capital enhancements and company capital expenditures.
Vondran mentioned on the quarterly name with analysts that whereas AMT has taken the technique of exporting its U.S. enterprise mannequin to different markets, it’s now making changes to that technique because it turns into clear that the danger is increased, and affect of unfavorable macroeconomic situations more durable, on creating economies. Along with exiting India, American Tower additionally has offered “underperforming” belongings like its Mexico fiber enterprise and its operations in Poland, Vondran identified, even because it has pursued mergers and acquisitions in Europe and the US.
“We anticipate to additional scale back our relative publicity to rising markets over time as we proceed to concentrate on incremental investments in developed economies,” he continued, including: “That doesn’t imply that it’s best to assume we plan on divesting particularly markets. … We’re going to stay opportunistic as we proceed to actively handle our portfolio.” He added later: “We retain the optionality to reinvest into these markets if financial situations and development outlooks evolve.”
He additionally mentioned that American Tower is targeted on development with Tier 1 operators and that in markets the place it’s working with smaller or new service suppliers, it should alter its danger profile accordingly, primarily based on its experiences. (AMT purchased Vodafone Concept’s towers in 2017; the provider has since had issues paying its payments.)
Vondran additionally gave a couple of insights in regards to the state of the 5G rollout in the US, telling analysts: “There’s nonetheless a variety of room for the carriers to proceed to broaden their 5G presence.” Whereas he didn’t title particular particular person carriers, he mentioned that “Over half of our websites are actually upgraded with mid-band 5G, however one provider is forward of the opposite two. Now we have one which’s over 80%, one which’s a little bit over 60% now and one which’s a little bit bit additional behind. So there’s a variety of runway there for them to proceed to roll out mid-band 5G throughout the portfolio, and we anticipate them to proceed to try this.”