Q3 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$193.40July 1, 2023
Final Price$164.45October 1, 2023
Price Change$-28.95
% Change-14.97%
- Strong international growth, particularly in Africa, where organic tenant billings growth increased to approximately 12%, driven by higher levels of new business activity that are durable and lasting.
- The company is focused on deleveraging, aiming to reduce net leverage to 5x in 2024, enhancing balance sheet strength and financial flexibility. Underlying core operating performance is driving double-digit growth without headwinds.
- Despite a moderation in services revenue, 5G capital spend remains higher than in the 4G cycle, and the company is optimistic about long-term growth prospects due to ongoing 5G deployments.
- American Tower's leverage remains high at around 5x, and the company aims to reduce it, potentially impacting capital allocation and growth initiatives.
- Growth in certain international regions is driven by delayed churn, which may not be sustainable and could reverse in future periods.
- Services revenue dropped significantly in Q3, with uncertainty about its trajectory into Q4 and beyond, indicating potential weakness in that segment.