(Reuters) -Wireless infrastructure provider American Tower raised its annual property revenue forecast on Tuesday, betting on healthy leasing activity by wireless carriers.
Competition among wireless service providers has been rising as they rush to enhance capacity for 5G services, benefiting companies like American Tower.
The Boston, Massachusetts-based company leases space at its communication sites to wireless service providers, radio and television broadcasters and other firms that require network infrastructure.
Telecom firms including AT&T, T-Mobile and Verizon accounted for 86% of revenue for the property segment in the U.S. and Canada last year.
American Tower now expects full-year property revenue between $10.14 billion and $10.29 billion, up from its prior forecast of $9.97 billion to $10.12 billion.
The company said its raised forecast also reflects a boost for property revenue from fluctuations in foreign currency exchange rates.
For the year, the company now expects adjusted funds from operations (AFFO) per share between $10.46 and $10.65, above analysts’ estimates of $10.27, according to data compiled by LSEG.
The company posted second-quarter revenue of $2.63 billion, compared with analysts’ estimates of $2.60 billion.
The company’s quarterly net income decreased 58.1% from a year ago to $381 million, primarily due to foreign currency losses, the company said.
For the second quarter, AFFO came in at $2.60 per share, compared with $2.54 per share a year earlier.
(Reporting by Kritika Lamba in Bengaluru; Editing by Sahal Muhammed)
Comments