Published on 27 Jul 2023 on Zacks via Yahoo Finance

American Tower (AMT) Q2 AFFO & Revenues Top, '23 View Revised

Shares of American Tower Corporation AMT have been trending upward in the pre-market session after it reported second-quarter 2023 adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.46, beating the Zacks Consensus Estimate of $2.36.Results reflect better-than-anticipated revenues, aided by improving revenues across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 6.2% and total tenant billings growth of 7.2%. It also revised its 2023 outlook.The company has clocked in total revenues of $2.77 billion, outpacing the Zacks Consensus Estimate of $2.73 billion.On a year-over-year basis, while total revenues improved 3.6%, AFFO per share fell nearly 2% from the prior-year quarter’s tally.Per Tom Bartlett, CEO, American Tower, “The momentum from the start of the year carried on into the second quarter, as our customers continued to invest in their networks to meet growing demand. We saw Consolidated Organic Tenant Billings Growth exceed 6% for the second consecutive quarter, solid leasing in our U.S. Data Center segment, and demonstrated a focus on cost controls, all supporting strong growth and attractive margin expansion.”

Quarter in Detail

Adjusted EBITDA was $1.75 billion, up 4.7% from the prior-year period. The adjusted EBITDA margin was 63.1% in the quarter.In the reported quarter, AMT purchased 60 communications sites and other communications infrastructure assets, mainly in France and Spain, for $30 million.In May, American Tower disposed of its subsidiary in Poland (“ATC Poland”) for €6.7 million or roughly $7.2 million at the date of closing. The transaction generated a gain on sale of $1.1 million.