The following is a summary of the American Tower Corporation (AMT) Q1 2024 Earnings Call Transcript:
Financial Performance:
American Tower Corporation reported Q1 2024 performance with organic tenant billings growth of 5.4% and cash adjusted EBITDA margin expansion by 240 basis points to 64.9%.
Contributions from co-location and amendments were strong in Europe and Africa with elevated rates of around 8%.
AFFO and AFFO per share grew by 10% and 9.8%, respectively, despite 90 basis points in FX headwinds.
The 2024 outlook has increased expectations for property revenue by $30 million and adjusted EBITDA outlook by $40 million.
Revenue from the US business was $16 million, but represents near 70% growth from Q4 2023 levels.
Despite forex headwinds, the company still witnessed growth in EBITDA, AFFO, and property revenue.
American Tower's portfolio in India has up to $2.5 billion in total proceeds expected from the sale to Brookfield.
Business Progress:
With the increasing demand for hybrid and multi-cloud IT architecture, American Tower Corporation is poised to start executing its backlog of signed business.
Strong collection trends in India allowed the reversal of approximately $29 million of previously reserved revenue.
US activity is accelerating with the Q1 application pipeline coming in about 70% higher than in Q4.
CoreSite, the data center operation subsidiary, continues to show strong performance and is entering into a promising year.
The company anticipates resuming growth in 2025, subject to board approval, with a focus on margin expansion, cost discipline, and cautious capital allocation.
A shift to new lease activity could potentially increase average rent with new lease rates typically exceeding amendment rates.
With significant growth in fixed wireless subscriptions being one of the first use cases of 5G, the company is geared up to leverage this opportunity.
More details: American Tower Corp IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.