BOSTON - American Tower Corporation (NYSE: NYSE:AMT) has reported its results for the second quarter ended June 30, posting a robust performance with a 4.6% increase in total revenue to $2.9 billion, surpassing the consensus estimate of $2.82 billion.
The company's Adjusted Funds From Operations (AFFO) per share also saw a notable rise to $2.79, up from $2.46 in the same quarter last year.
The company's property revenue mirrored the total revenue increase, marking a 4.6% growth to $2.853 billion. Net income surged by a striking 96.8% to $908 million, while the net income attributable to AMT common stockholders rose by 89.3% to $900 million.
This increase in net income was partly due to the company's extension of the estimated useful lives of its tower assets and the estimated settlement dates for its asset retirement obligations.
Steven Vondran, American Tower’s Chief Executive Officer, commented on the quarter's success, stating, "The momentum from the start of the year extended into Q2, with core results highlighting the strong underlying demand for our portfolio of communications assets."
He attributed the growth to positive collection trends in India, over 5% Organic Tenant Billings Growth in the U.S. & Canada segment, and a record quarter of signed new business for CoreSite.
Despite the positive earnings report, the stock movement was relatively muted, with a slight increase of 0.5% in pre-open trade, indicating a cautious but positive investor response.
American Tower's financial outlook for the full year 2024 has also been updated, with the company raising the midpoints of its full year outlook for key financial measures, reflecting a strong performance and positive collection trends in its India business.
The updated outlook includes an expected $96 million revenue reserve reversal for the India business, with no additional reserves or reversals anticipated for the remainder of the year.
The company's strategic capital allocation and its position in the market were also highlighted by Vondran, who expressed confidence in American Tower's ability to deliver sustained growth and higher quality earnings for shareholders over the long term.
The second quarter results and the optimistic outlook for the remainder of the year reflect American Tower's strong position in the communications real estate market and its ability to capitalize on the ongoing demand for its assets.
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