March 5, 2015 — SBA Communications’ domestic cash site leasing revenue in the fourth quarter 2014 increased 16.1 percent to $295.4 million, with more than half of the incremental leasing activity coming from new leases. The big four major U.S. carriers contributed 75 percent of consolidated incremental leasing revenues in the quarter.
Organic leasing activity was strong throughout 2014, ahead of initial expectations, and was the driver of the tower company’s outperformance, Jeffrey Stoops, president and CEO, said during the fourth quarter 2014 earnings call.
“Our customers were very busy all year with network improvements, which benefited both our leasing and services segments,” Stoops said. “We continue to see strong demand across our entire portfolio, both domestic and international, as well as in our services segment.”
For the first time in many months, revenue from new leases was greater than amendments, representing more than 50 percent of incremental U.S. leasing revenue.
“This change in [the new lease/amendment] mix reflects both different priorities and different levels of activity among our customers,” Stoops said. “AT&T and Verizon represent once again the substantial majority of our new business in the quarter, but less on a percentage basis than they have in prior quarters.” SBA is still getting work from Sprint on the Network Vision project and now in the 2.5 GHz band. The tower company also reports increased LTE activity from T-Mobile