American Tower performed well during the third quarter 2018, according to its financial results. U.S. organic tenant billings growth were 7.4 percent, reflecting ongoing investments in 4G technology by its tenants to meet data and video demand.
“After a couple of relatively soft years of leasing activity, 2018 was supposed to be the year that the domestic tower industry saw a legitimate breakout in growth,” MoffettNathanson wrote in its U.S. Communications Infrastructure Research note. “Growth in its largest market, the United States, has stepped up materially from levels posted over the last couple of years, whether judged on a gross or net basis, the highlight of this year’s results.”
American tower has increased its domestic outlook from 6 percent up to more than 7 percent so far this year, but is not as hopeful, seeing a number of possible drags on the towerco.
“T-Mobile/Sprint risk is real,” the analyst wrote. “The financial positions of several key customers are weak. And we worry that domestic churn could spike early in the next decade as old deals covering Leap, MetroPCS, and iDEN roll off.”