(Reuters) -Wireless infrastructure provider American Tower on Tuesday beat the first-quarter revenue estimate, driven by steady demand for its leasing business.
Shares of the company were up 2.5% in early trading.
As competition heats up in the telecommunications market, wireless players in the United States are enhancing their 5G solutions and network infrastructure to increase the value of their plans.
“In the U.S., accelerating broad-based mid-band deployments and the early indications of capacity-driven new site demand supported our highest quarter of services revenue since 2021,” CEO Steven Vondran said.
American Tower’s main customers include telecom firms like AT&T, T-Mobile and Verizon, which accounted for 86% of property segment revenue from the U.S. and Canada in 2024.
For the first quarter, total revenue grew 2% to $2.56 billion compared with the analysts’ estimate of $2.54 billion, according to data compiled by LSEG.
Adjusted funds from operations (AFFO), a key measure of cash flow, came in at $2.75 per share in the quarter compared with $2.79 per share a year earlier.
The company’s property segment, which comprises its site leasing business, accounted for 97% of total revenue and reported $2.49 billion in the first quarter.
American Tower expects full-year 2025 total property revenue between $9.97 billion and $10.12 billion, up from its prior forecast of $9.92 billion to $10.07 billion.
The forecast raise reflects estimated positive impacts of foreign currency exchange rate fluctuations on total property revenue, American Tower said.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)
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