American Tower Corp.'s (AMT) first-quarter net income jumped 39%
as the cell-tower operator reported continued demand to put new
antennas on its facilities.
Cell-tower operators have benefited from volume increases, which
has prompted wireless carriers to spend more to upgrade their
equipment. In response to the growing demand, the operators are
constantly investing capital into new projects. American Tower, for
example, said last week said it wants to strengthen its presence in
India, as it plans to enter other Asian markets.
The company, which has communications sites in the U.S., Mexico,
Brazil and India, reported net income of $58.6 million, or 15 cents
a share, up from $42.2 million, or 10 cents a share, a year
earlier. Revenue grew 6.9% to $408.7 million.
Analysts polled by Thomson Reuters expected per-share earnings
of 14 cents on revenue of $408 million.
Beyond the revenue gain, earnings were also boosted by lower
interest and tax costs.
American Tower noted that the currencies in Brazil and Mexico
are so far weaker than what American Tower was projecting for the
year. If current rates are sustained, it would impact 2009
expectations by around 1%.
Shares closed Tuesday at $32.54 and were inactive premarket.
-By John Kell, Dow Jones Newswires, 201-938-5285, john.kell@dowjones.com