Wireless and broadcast communications infrastructure company American Tower Corp. (AMT) reported Tuesday an increase in third-quarter profit, as revenues grew over 9% at its rental and management segment. Citing its continued strong operating performance, the company reaffirmed its outlook for full year 2009.
For the third quarter, net income attributable to the Boston, Massachusetts-based company increased to $67.35 million or $0.17 per share from $60.47 million or $0.15 per share in the previous year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
In its second quarter, the company had reported a sharp decline in profit due to the absence of a hefty gain from discontinued operations recorded in the prior-year second quarter. American Tower posted second quarter net income attributable to the company of $56.3 million or $0.14 per share, compared to $158.8 million or $0.38 per share in the year ago period.
Total operating revenues for the third quarter grew 8.5% to $444.1 million from $409.27 million in the same quarter last year. Twelve analysts had a consensus revenue estimate of $430.02 million for the quarter. In its second quarter, operating revenues grew 7.5% to $423.4 million from $393.7 million last year.
The company's operating revenues constitute revenues of two segments: Rental and management segment and Network development services segment. For the third quarter, rental and management segment revenues increased 9.2% to $430.52 million from $394.4 million in the comparable quarter a year ago. According to the company, rental and management segment revenue includes $6.7 million of one-time revenue related to a termination agreement with one of the company's broadcast customers. In addition, revenue growth was negatively impacted by about 2.1% due to foreign currency exchange rate fluctuations and 0.9% due to straight-line revenue recognition. Excluding items, core growth in rental and management segment revenue was 10.3%, the company said.
Revenues from Network development services segment decreased to $13.58 million from $14.87 million a year earlier. Operating income increased to $179.08 million from $154.37 million in the preceding year. Total operating expenses for the quarter grew to $265.03 million from $254.9 million in the prior year.
During the quarter, the company completed construction of 267 communications sites and purchased 304 communications sites, including previously announced acquisition of 230 communications sites in Brazil.
American Tower also repurchased a total of 3.6 million shares of its Class A common stock during the quarter for about $117.6 million, pursuant to its stock repurchase program. For the nine-month period, net income attributable to the company dropped to $182.24 million or $0.45 per share, compared to a net income of $261.41 million or $0.62 per share in the previous year. Total operating revenues for the period grew to $1.28 billion from $1.18 billion in the same period last year.
Based on its continued strong operating performance, the company reaffirmed its full Year 2009 outlook and said it still expects rental and management segment revenue in the range of $1.640 billion to $1.665 billion and network development services segment revenue in the range of $35 million to $50 million.
Income from continuing operations for the full year is still expected to be in the range of $235 million to $247 million. Analysts expect the company to earn $0.62 per share, on revenues of $1.7 billion for the full year. Jim Taiclet, chief executive officer said, "2009 has been a very successful year thus far for American Tower, both operationally and financially. Our achievements to date include the integration of over 2,650 new communications sites into our portfolio, while maintaining our industry leading Adjusted EBITDA Margin."
Among competitors, Crown Castle International Corp. (CCI) is slated to report its third-quarter results today. Analysts expect the company to post a loss of $0.04 per share on revenues of $419.06 million.
Another competitor, SBA Communications Corp. (SBAC) reported last Thursday a third quarter net loss of $50.1 million or $0.43 per share, compared to a net loss of $27.6 million or $0.26 per share in the year-ago period. Total revenue for the quarter was $139.3 million, up 17.4% from $118.7 million in the comparable quarter last year. AMT is currently trading at $36.44, down $0.69 or 1.86%, on a volume of 232 thousand shares. In the past 52 weeks, the shares have been trading in a range of $19.35 - $40.54, with an average three-month volume of 3.64 million shares.
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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.