Fri, Feb. 27, 7:31 PM
- Wind Telecomunicazioni -- the Italian unit of Russian telecom VimpelCom (NASDAQ:VIP) -- may be selling its wireless towers to Spain's Abertis Infraestructuras (OTCPK:ABRTY) as soon as the coming week.
- The companies are talking about 6,000 towers that Wind values at as much as €700M ($786M), though other observers peg the value even higher, at €800M ($914M).
- An additional 1,700 towers under discussion could easily boost the deal to that latter figure or even to €900M ($1B).
- Abertis -- chiefly in toll-road management -- is reportedly considering transferring the towers into a unit to be listed on the Madrid exchange, in order to get more cash to shareholders.
- The Spanish firm is winning the deal over competition from American Tower (NYSE:AMT), Mediaset's (OTCPK:MDIUY) EI Towers and a coalition of investment fund F2i SGR and Providence Equity Partners.
- Shares of VimpelCom closed the day up 4.8%; they tracked lower in after-hours trading, -1.5%.
Tue, Feb. 24, 4:58 PM
- American Tower (NYSE:AMT) declined 2.8% today in its first day of trading after an earnings report where the firm guided lower than expectations, as well as announcing a stock offering in connection with its planned $5B purchase of Verizon's cell towers.
- The company will offer 23.5M shares of common stock and 12.5M depositary shares (representing a 1/10 interest in a share of Mandatory Convertible Preferred Stock, Series B).
- The offerings will be separate, but concurrent. Goldman Sachs acts as lead book-runner.
- Proceeds will go to financing the Verizon transaction and associated fees.
- Previously: Verizon reaches $5B sale of towers to American Tower (Feb. 05 2015)
Mon, Feb. 23, 6:28 PM
- American Tower (NYSE:AMT) is off a bit after hours, -0.9%, after posting Q4 EBITDA of $661M (up 10.2%, but which missed expectations of $669.6M).
- Overall revenue was up 11.5%. Revenue breakouts: domestic rental and management, $681M (up 9.3%); international rental and management, $349M (up 15.9%); network development services, $16M.
- Total rental and management gross margin increased to $763M (gross margin percentage of 74%). Cash from operating activities was $565M, up 24.3%.
- The company expects to close its transactions with Verizon, Telecom Italia and Bharti Airtel in 1H15, to "further enhance our strategic positioning in the U.S., Latin America and Africa."
- The company guided for full-year 2015 revenues (rental and management) of $4.25B-$4.33B vs. an expected $4.6B, and for adjusted EBITDA of $2.82B-$2.9B vs. expectations of $2.987B.
- Press release
- Previously: Verizon reaches $5B sale of towers to American Tower (Feb. 05 2015)
Mon, Feb. 23, 5:30 PM
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Mon, Feb. 23, 4:49 PM
Thu, Feb. 5, 4:19 PM
- On the hunt for funds, Verizon (NYSE:VZ) has moved quickly to reach a deal to sell cell towers to American Tower (NYSE:AMT) for $5.06B.
- American Tower, with 28,000 towers, is second in the market only to Crown Castle, with 40,000 towers.
- Previously: WSJ: Frontier close to $10B buy of Verizon's wireline assets (Feb. 04 2015)
- Previously: FCC releases winners in record spectrum auction (Jan. 30 2015)
Mon, Jan. 26, 7:05 PM| Comment!
Thu, Jan. 22, 2:24 PM
- American Tower (AMT +1.8%) and (especially) SBA (SBAC +4.2%) are rallying after fellow tower owner Crown Castle beat Q4 revenue estimates (while slightly missing AFFO forecasts) and hiked its 2015 guidance. The S&P is up 0.9%.
- AMT (1.6% dividend yield) is $8 away from a high of $106.31. SBA is $6 away from a high of $122.79.
Dec. 2, 2014, 6:24 PM
- American Tower's (NYSE:AMT) new quarterly distribution is $0.02 above a prior $0.36/share, and good for a 1.5% yield. The distribution is payable on Jan. 13 to shareholders on record as of Dec. 16.
- The tower owner has also declared a $1.3125/share distribution for its 5.25% convertible preferred stock. It's payable on Feb. 16 to shareholders on record as of Feb. 1.
- Earlier: AMT, CCI hit by Raymond James downgrades
Dec. 2, 2014, 10:53 AM
- Raymond James has downgraded American Tower (AMT -2.5%) to Outperform from Strong Buy, and Crown Castle (CCI -2.3%) to Market Perform from Outperform. Peer SBA (SBAC -2.2%) is off in sympathy.
- AMT and SBAC have rallied strongly this year; CCI has seen more moderate gains.
- A month ago: Goldman, Macquarie downgrade AMT; CCI receives upgrade and downgrades
Nov. 24, 2014, 11:27 AM
- American Tower (AMT +0.2%) hasn't disclosed how much it's paying to buy Airtel's Nigerian tower portfolio. Airtel's Nigerian unit will act as the portfolio's anchor tenant, courtesy of a 10-year lease. (PR)
- AMT CEO Jim Taiclet: "With the largest population and economy in Africa and relatively underdeveloped wireless infrastructure, we view Nigeria as a tremendous growth opportunity. Further, we expect this investment to support our long-term objective of generating double-digit AFFO per share growth for our stockholders."
- The agreement comes on the heels of a $1.2B deal to buy 6,480 Brazilian towers from TIM Participacoes.
- Update: AMT discloses in an 8-K it's paying $1.05B for the Nigerian towers.
Nov. 21, 2014, 6:36 PM
- American Tower (NYSE:AMT) is buying 6,480 towers from TIM Participacoes (NYSE:TSU) for R$3B ($1.2B), slightly more than the ~$1.1B previously reported by Reuters. AMT "intends to finance the acquisition in a manner consistent with its previously announced leverage targets."
- The towers are expected to produce R$435M/year ($171M/year) in revenue, and R$191M/year ($75M/year) in gross margin. TIM has agreed to 20-year leases for the towers, and will act as their anchor tenant.
- AMT has already bought Brazilian towers from NII Holdings, and acquired local tower owner BR Towers. The company also bought 666 Brazilian towers in 2011, a transaction Muddy Waters took aim at.
- Altogether, AMT owned/operated 69.5K towers at the end of Q3.
Nov. 21, 2014, 3:48 AM
- Telecom Italia (NYSE:TI) will likely sell the mobile phone towers of its Brazilian unit TIM Participacoes (NYSE:TSU) to American Tower (NYSE:AMT) for almost €900M ($1.1B), says Reuters quoting two sources.
- Yesterday, Telecom Italia was reported to be weighing a deal between TIM and Brazil's Oi (NYSE:OIBR), saying it would ask its board for support today to "explore a potential transaction".
- Previously: Oi, PT rally; Telecom Italia reportedly weighing deal
Nov. 3, 2014, 8:48 AM
- Goldman and Macquarie have both downgraded American Tower (NYSE:AMT) to Neutral, and Nomura has issued a similar downgrade for Crown Castle (NYSE:CCI). Meanwhile, Goldman has upgraded CCI to Buy, and Raymond James has downgraded the company to Outperform from Strong Buy.
- AMT rallied on Thursday thanks to a strong Q3 AFFO figure and a full-year guidance hike. CCI sold off on Friday due to the company's soft 2015 outlook.
- Macquarie's Kevin Smithen says his firm has spent the last few days conducting checks to "try and reconcile" AMT's bullish commentary with CCI's cautious outlook. The checks "suggest a 100-150bps slowdown in industry US site leasing revenue growth in ‘16 as AT&T, Sprint and T-Mo reduce aggregate wireless capex and decommission Leap, Clearwire and Metro sites."
- He sees AMT's U.S. organic growth falling to 7.5% in 2015 and 6.4% in 2016 from 9.5% in 2014, and predicts the slowdown will yield multiple compression. "While we regard AMT’s mgmt. team and business model very highly, we are moving to the sideline on the shares until we feel ... expectations reflect slowing growth in ’16."
- Goldman's Brett Feldman says his "fundamental outlook for AMT" hasn't changed. However, he thinks "investors looking for exposure to the tower sector can generate a more attractive total return in CCI," following the company's huge dividend hike.
- If they pan out, Macquarie's checks also have implications for SBA (NASDAQ:SBAC). SBA's shares fell 1.8% on Friday thanks to Crown Castle.
Oct. 30, 2014, 1:39 PM
- Though it missed Q3 EPS estimates (while beating on revenue), American Tower (NYSE:AMT) is hiking its full-year AFFO guidance to $1.8B-$1.82B from $1.755B-$1.795B.
- Also, AMT now respectively forecasts U.S. and international organic core revenue growth of 9.5% and 16%; prior guidance was for 9%+ and "nearly 15%" growth.
- Rental/management revenue guidance has been narrowed to $3.975B-$4.005B from $3.945B-$4.015B, and net income guidance lowered to $805M-$825M from $830M-$850M.
- Q3 AFFO rose 25.2% Y/Y to $460M ($1.15/share, well above EPS of $0.50).
- U.S. rental/management revenue +25.2% to $664M (+9.1% organic); international revenue +30.3% to $348M (+17.7% organic). Network development services revenue more than doubled to $27.1M.
- Rental/management op. margin slipped to 67% from 69% a year ago. AMT ended Q3 with $13.6B in net debt, and a 5.1x net leverage ratio.
- SBA (SBAC +1.4%) and Crown Castle (CCI +0.8%) are up moderately.
- Q3 results, PR
Oct. 30, 2014, 7:04 AM
AMT vs. ETF Alternatives
American Tower Corp is an owner, operator and developer of wireless and broadcast communications real estate. The Company's main business is leasing antenna space on multi-tenant communications sites to different providers.
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