Crown Castle rides tower demand to Q1 beat

|About: Crown Castle International... (CCI)|By:, SA News Editor

Crown Castle International (CCI -0.9%) is up 0.8% after hours following a Q1 earnings report where it beat expectations thanks to site rental revenues growing 8% along with the demand for wireless data.

Site rental revenues (up 7%) included $34M in organic contribution, about 4% growth (8% growth from new leasing and contracted escalations, net of 4% from nonrenewals).

Capex was $262M: about $21M in land purchases, $16M in sustaining capex and about $225M of revenue-generating expenditures.

"Our tower business continues to see steady levels of activity in the short term," says CEO Jay Brown. "Over the longer term, we believe there is an extended runway of growth driven by positive industry developments, including the deployment of FirstNet and spectrum from the recently completed incentive auction."

It's boosting outlook for the full year, now expecting $3.488B in site rental revenues ($5M higher), and net income of $452M vs. previous guidance for $385M. It's forecasting EBITDA of $2.387B, above consensus for $2.364B, and adjusted FFO of $1.82B (vs. 1.825B expected).

Conference call to come tomorrow at 10:30 a.m. ET.

Press Release