Crown Castle Reports Solid Q3 2024 Results, Maintains Outlook Despite Reduced Net Income
Crown Castle Inc. (CCI), a leading provider of shared communications infrastructure, today announced its financial results for the third quarter ended September 30, 2024. The company reported solid operating and financial performance across its businesses, reaffirming its full year 2024 Outlook for Adjusted EBITDA and AFFO. However, Crown Castle also announced a reduction to its net income for the year, primarily driven by restructuring charges and an asset write-down.
Key Highlights from Q3 2024:
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Site rental revenues
increased by 1% year-over-year, reaching $1,593 million. This growth was attributed to a $65 million increase in Organic Contribution to Site Rental Billings, partially offset by a decrease in amortization of prepaid rent and straight-lined revenues.*
Net income
for the quarter reached $303 million, compared to $265 million in Q3 2023. This increase was partially offset by $48 million in restructuring charges related to the company’s previously announced plan to enhance returns.*
Adjusted EBITDA
for the third quarter was $1.1 billion, up from $1.0 billion in Q3 2023. This increase was driven by higher site rental revenues and lower costs related to staff reductions and office closures.*
AFFO
for the quarter reached $801 million, representing a 4% increase from Q3 2023. This growth was attributed to the strong performance of the company’s core business.Revised Full Year 2024 Outlook:
Crown Castle maintained its full year 2024 Outlook for Adjusted EBITDA and AFFO, but reduced its net income forecast due to the previously mentioned asset write-down and restructuring charges. The company expects to incur a charge of $125 to $150 million in the fourth quarter related to the cancellation of approximately 7,000 small cell nodes. This reduction will lower the full year 2024 Outlook for net income by $138 million at the midpoint.
Strategic Initiatives and Outlook for the Future:
Crown Castle remains optimistic about the long-term value creation opportunities in its tower, small cell, and fiber solutions offerings. The company is actively developing initiatives to prioritize customer service, revenue generation, capital discipline, and operational excellence. The company believes it is well-positioned to capitalize on the increasing demand for communications infrastructure driven by the continued growth in data consumption.
CEO Steven Moskowitz
stated, “In the third quarter, we achieved solid operating and financial performance across our businesses and reaffirmed our full year 2024 Outlook for Adjusted EBITDA and AFFO. Looking ahead, we continue to be optimistic about the long-term value creation opportunities in our tower, small cell, and fiber solutions offerings.”CFO Dan Schlanger
added, “Since announcing a change in our operational strategy in June, we have continued to deliver results in line with expectations. The third quarter was highlighted by 5.2% consolidated organic growth, excluding the impact of Sprint cancellations, as demand remained strong for our tower, small cell, and fiber solutions offerings.”Crown Castle’s third quarter earnings report reflects the company’s commitment to providing essential communications infrastructure while adapting to a changing market landscape. The company’s continued focus on operational excellence and its robust balance sheet position it well for continued growth in the years to come.
Conference Call Details:
Crown Castle will host a conference call on Wednesday, October 16, 2024, at 5:00 p.m. Eastern time to discuss its third quarter 2024 results. A listen-only live audio webcast of the call can be accessed on the Crown Castle website at https://investor.crowncastle.com.