Cell phone tower operator Crown Castle International Corp. (CCI) on Wednesday reported a net loss for the second quarter compared to a profit in the year-ago period, hurt by losses on early redemption of debt as well as unrealized losses on interest rate swaps. Excluding payment of dividends, loss per share for the quarter came in narrower than analysts' consensus estimate. Revenue for the latest quarter increased 8% from a year ago. Looking ahead, the company narrowed its net loss forecast for 2009 and raised its full-year site rental revenues guidance.
Second-Quarter Results
For the second quarter, the Houston, Texas-based company reported that net loss attributable to CCIC common stockholders was $111.42 million, compared to net income attributable to CCIC common stockholders of $60.34 million in the year-ago quarter.
The results for the latest quarter include $98.7 million of losses on purchases and early redemptions of debt and $59.5 million of unrealized losses on interest rate swaps. The year-ago quarter's results include $74.9 million of tax benefits related to previously unrecognized US net operating losses.
After deduction of dividends, on preferred stock of $5.2 million, net loss attributable to CCIC stockholders was $116.62 million, or $0.41 per share, compared to net income attributable to CCIC stockholders of $55.14 million, or $0.19 per share, in the previous year quarter. On average, ten analysts polled by Thomson Reuters expected the company to report a loss of $0.45 per share. Analysts' estimates typically exclude special items.
While reporting its financial results for the first quarter in April, Crown Castle had forecast net loss attributable to CCIC common stockholders for the second quarter in a range of $174 million-$121 million, or $0.61-$0.42 per share.
Total net revenues for the latest quarter increased 8% to $409.87 million from $379.51 million in the comparable quarter last year. Analysts expected the company to report revenue of $404.75 million for the quarter.
Ben Moreland, President and Chief Executive Officer of Crown Castle, said, "We had an excellent second quarter, exceeding the top end of our Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA, and recurring cash flow. Despite prevailing macroeconomic conditions, we continue to enjoy strong leasing demand for our towers, as evidenced by year-over-year revenue and Adjusted EBITDA growth of 8% and 16%, respectively."
Peer Performance
American Tower Corp. (AMT) on Wednesday reported a sharp decline in profit for the second quarter profit due to the absence of a hefty gain from discontinued operations recorded in the prior-year quarter. Net income attributable to the company for the second quarter declined to $56.3 million, or $0.14 per share, from $158.8 million, or $0.38 per share, in the year-ago period. Total operating revenues for the second quarter increased 7.5% to $423.4 million from $393.7 million last year.
SBA Communications Corp. (SBAC) on Tuesday reported a wider loss for the second quarter on higher operating expenses despite an increase in revenues. Net loss for the quarter was $29.4 million, or $0.25 per share, compared to net loss of $26.2 million, or $0.24 per share, in the same period last year. Total revenues for the quarter increased 22% to $136.2 million from the previous-year period.
Other Metrics
Crown Castle's site rental revenues for the second quarter increased 8% from a year ago to $376.44 million, while network services and other revenues increased 7.8% to $33.43 million. Consolidated results were negatively impacted by the 19% decrease in the Australian dollar to U.S. dollar exchange rate from the year-ago period.
U.S. site rental revenues for the quarter grew 9% to $358.5 million from $329.0 million in the previous-year quarter. Site rental revenues from Australia, accounting for about 5% of the company's consolidated revenues for the quarter, dropped to $17.9 million from $19.6 million in the year-ago quarter. On a currency-neutral basis, Australia site rental revenues grew 14% and site rental gross margin increased 17% from the year-ago period.
Total costs of operations for the quarter declined to $134.39 million from $135.57 million in the comparable quarter of the prior year. Asset write-down charges for the latest quarter were $7.30 million, compared to $4.99 million in the year-ago period.
Operating income for the quarter rose to $98.49 million from $68.57 million in the previous-year quarter. During the quarter, Crown Castle invested $39.6 million in capital expenditures, comprised of $5.1 million of sustaining capital expenditures and $34.5 million of revenue generating capital expenditures. However, total capital expenditures for the quarter were down approximately 72% from the year-ago period.
Year-To-Date Results
For the first six months of fiscal year 2009, net loss attributable to CCIC stockholders after deduction of dividends was $111.24 million, or $0.39 per share, compared to net income attributable to CCIC stockholders of $36.76 million, or $0.13 per share, in the year-ago period.
Total net revenues for the half year rose to $812.78 million from $750.13 million in the same period last year.
Outlook
Looking ahead to the third quarter, Crown Castle forecasts earnings attributable to CCIC common stockholders in a range of loss of $31 million-profit of $12 million, or loss of $0.11 per share and profit of $0.04 per share. Analysts currently expect the company to report a loss of $0.06 per share for the quarter.
The company expects to report site rental revenue for the quarter in a range of $385 million-$390 million.
For the full year 2009, the company now forecasts net loss attributable to CCIC common stockholders in a range of $172 million-$81 million, or loss of $0.60-$0.28 per share. Earlier, the company had forecast net loss attributable to CCIC common stockholders in a range of $222 million-$102 million, or $0.78-$0.36 per share. Analysts expect the company to report a loss of $0.62 per share for the year.
Crown Castle now expects site rental revenue for the year in a range of $1.52 billion-$1.53 billion, up from the prior range of $1.50 billion-$1.52 billion.
Stock Quotes
CCI closed Wednesday's regular trading session at $27.06, down $0.41 or 1.49% on a volume of 1.13 million shares. In the past 52 weeks, the stock has been trading in a range of $8.75-$38.91.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.