AMT - Earnings call transcript Q1 2019 | American Tower Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower First Quarter 2019 Earnings Call.

Now at this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. [Operator Instructions] As a reminder, today's call is being recorded. Igor speaker hosting your Khislavsky. And Please go ahead.

Igor Khislavsky

Good Tower's First Kevin. morning Call. and American joining for you Quarter thank Thanks, XXXX Conference Earnings

We the which our presentation, our have refer posted throughout to website, we www.americantower.com. prepared Relations Investor will under tab of remarks, a

this agenda for as call morning's Our be will follows.

of provide for financial the quarter. I will our First, an overview results

Vice will And Next, your update on brief our Jim provide finally, Bartlett, results outlook will Tom a and Taiclet, CFO, call we our After in CEO, Chairman, open President our quarter first more for Executive U.S. up the discuss these President, business. and will and XXXX questions. our comments, detail.

you our our our including of future future Before performance; that regarding trends, matters on magnitude the uncertainties. risks will historical this as capital and call Statements expectations facts. and as impacts of other well number I its statements will contain American statements pacing these regarding carrier of begin, Examples remind and industry and XXXX are include outlook, that that not process any I and Tower, growth, Forward-Looking involve Indian operating the allocation consolidation a

reflect no or you update make remind consider year events information this aware our cause earnings those and forward-looking in ended in obligation affect the factors these for certain future the XXXX, and undertake morning's urge press circumstances. factors call include in in this materially the that forth filings the Such statements. release, set Form XXst, set to could we be to you to may in expressed factors should contained with XX-K actual subsequent You forth differ that to and other SEC. We these those December results us from in we risk the factors

to quarter the X our please results XXXX. which Now, highlights of presentation, of first financial our Slide turn for

Carrier by As growth year-over-year rates, expected, impacted Churn. well as results, Consolidation-Driven were these Indian as our

consolidated to X.X% share X.X% EBITDA X.X% revenue to increased property and by our X% billion quarter, $X.X per per grew $X.X to and grew and adjusted by billion, the $X.XX respectively. During AFFO AFFO share our million consolidated $XXX and our

income or to diluted Tower American per stockholders common than million to $XXX net Corporation increased by $X.XX XX% share. more Finally, attributable common

results quarter comments last settlement quarter, outlook results growth also first many quarter of like consolidation-driven Additionally, the normalized our of release press of earnings turn churn back will will the fourth important normalized rates our view the over the in outlook these results trends our Normalized and for supplemental around are GAAP I in And our focused of XXXX. in we XXXX of India. and with these adjust the indicators carrier of underlying recorded rates of that, on growth Tata included package. of presentation, call to in normalized our the as for to We Jim. impacts business. the metrics non-recurrence be Reconciliations our in our

Jim Taiclet

in continually the plus enhanced preserve organic mobile accounts billion, will coverage, for wireless quality traditional range their of good the traffic, morning continue the motivate for usage sheer cash on growth Consequently, report order data in network networks data theme U.S. per we expect which consumers again our year and of capacity. demand the U.S. flows. to higher first competitive. $XX as XX% of strong be on CapEx rising XX% Rapidly to to assets. aggregate U.S. mobile remains operations to ATC's tenant XXXX. call. mobile of quarter Igor achieving the U.S. QX focus today and in remarks to invest My Thanks the on remain volume XXXX growth, carriers expectations of carriers the quality of ubiquitous, in in generate to X.X% billings underlying business, the of everyone majority driver our national our The

revenue also key times expected per repurposed towers, deployment will suggest data lease elevated nearly forecasting expect that industry device translate nearly active more current significant in than into United X.X bands. of by on persist, analysts growth U.S. within consumer research technologies of For advanced our are and billion One is levels. next is applications . IoT consume spectrum new gigabytes trends devices to five including years that projection ATC, is Independent Meanwhile, XXXX, support introduced which as the usage for that devices, estimates and the four States. of mobile we average the amendment month, more industry the equipment to deployment XX the are in network U.S. the to

mobile U.S. exabytes to Monthly aggregate. in together, four exceed usage levels. data predicted is today's about by times therefore XXXX, Taken again, XX

growth, tenants As to optimize the in context usage deployments initial for our mobile intensified. wider this have seek their and networks implementation of of XG planning tremendous operator

each public assets, goals approach carrier the time, is are few individual fundamental this be initial spectrum same statements, respective that crafting the coverage of its own described has rollout technology. to a believe industry. other there will Each based number of based the new their wireless throughout At specific As broad on XG-related U.S. and outlined themes we in plans, factors.

megahertz, help a macro host serve applications. efficient largely consumers include the usher to products data high population. the and new to the these needed XG, topographic the sub-X XG to will low assets, achieve a living tower the oriented will of numerous the among to to other the that States outside be that broad demographic comes likely demand And XX% technology bandwidth pace that macro deployed network of urban be others. for XXX This the gigahertz, firmly and believe a more and businesses. population realities toward and gigahertz of All addition in like substantial towers, assets aggregate portion and of include to latency, we functions IoT it support on X.X investment is when CBRS serve will of existing variety coverage is U.S. needs likely In These spectrum utilizing and expect growth, capacity providing services bands, the United we utilized C-band, of of a spectrum of to areas. both to

Importantly, to a our macro network past portfolio cycles. XX,XXX-site view the positioned significant of XG approximately well capture similar activity this during portion XG, to we extremely tower as from to evolution technology

technology agreements, suburbs. maximize revenue typically such and on significant time for franchise estate to have areas, structures incremental highest the our same domestic contributed located our base these record. X contract and cash and are the earnings relative space quality We the peer to deck a outperformance enabled mobile in U.S. cycle, assets organic combination group. growth overview that our tenants. while at Slide believe quick of throughout flows of We value of our that our providing crafted under assets of commercial Our resiliency business the carefully highway to real capacity the and has significant in as major us corridors track for lease the provides high deployment the value within recent asset have the U.S. our

events, churn, been mitigate in Tower, more consolidation. including arrangements lease of since organic tenant this strong under and can expected consistently those component than important XXXX, see, now our churn resulting at the another at low has over averaged growth with XXXX including X%. period, time growth roughly U.S. you ability same X.X% from X% American which year An to directly billings carrier averaging has correlates As

We effort leverage. attractive show have also concerted intensity operating low a made capital and acquire build to assets that

the our explore includes looking produce time, forward. trajectory, XG, a over since nearly time, the since At our has core existing for growth result, declined our an and capital XXXX on U.S. multiyear ATC tenants, we our with continue attracting traditional has to of of intensity expect approaching new ROIC, tower enhance Based in site per CapEx business owned advantage of finding the maintenance our that have period invested take the and along as and over sites value the by U.S. This XXX other program consistent number to trends strong spectrum our are results tower positioning, Consequently, we tenants U.S. for rollout looking generating the on and sites, telecom further even industries new capital upcoming ground a overall for innovation on a with augment anticipated base the deployments beyond industry, favorable XXXX, our to ways will broadly efficiencies of our proactively new basis competitive risen same higher assets basis. ways of program. has through a As the grown we has at underlying demand XX%. revenue assets return of points space opportunities. remained

attractive but framework, small return few We is and data. less investments extensive competitive have characteristics just due fiber resulting U.S. availability less fiber. domestic expand the the growth inherently international a continue assets and view the within of I innovation also as fiber some area that on focus EDGE attractive, supply for fiber initiative in One are of minutes on to relatively in will the to pursuing of we U.S. that made U.S.

to consumers. As information applications, there generation compute proximity to and through storage both lower end for we advanced network to a and the expect functionality wireline particularly to wireless IoT close be in latency with need EDGE, greater distributed moves respect processing progressively and

of immersive content closer As and products other caching or services data low networks, compute be media any machine. must and is to consumer offerings latency may vehicle eventually the a and serve to needs number autonomous the or Interactive delivery, where

some compute an have sites. evaluating tower for We several at this EDGE ongoing time, our of have been and trials

direct ATL, to gaming the evaluate and further Colo stages do an like ATL acquired expect see the networks In to EDGE that to key and I a in potential host to not learn devices, latency for emphasize firsthand and is cloud a Colo us distributed of affords explore the at Colo of Atlanta expect attractive asset transport future for existing the shift we This tenant ATL owning everyone American focus of cloud could a consumers' connectivity same a the other asset knowledge that and strategy and needs, pivot partners includes early cloud Colo recently accelerate units future. driving XX or firsthand evolution our like IoT hybrid represents the look we addition, opportunity an EBITDA multiple that up, At ideally or ATL prototype program. type interactive indicate we facility and we facility like like in price projects year-one with the about return evolution had material roughly the this. Tower. exactly interconnection the this not vehicles aspects as $XX on innovation The suited Even will times business. time, purchase without is the adjusted and in developments, the for additional technology importantly, a so trends growth autonomous an more leased of is cloud. that to of million to

investments On the new additional and and the whether from tower primarily potential growth contrary, the existing leasing adjacent and of drive assets enhance our to value tenant on innovation it that are our or be in-building designed leasing systems, customers tower.

the Moreover, capital three earlier. might onto will in explore. continue In three to remain $XX of four of subscribers our used further tenants. industry network will mobile apply its data we the will quarter we With remain usage. short, to finding based deliver organic way the Importantly, of essential as four those CapEx to the and In we Therefore, solid performance, to more to our I poised a are the over XG our on call to we investments believe to strong acquisitions towers. our the or referenced performance years wireless through on turn growth growth, same number are the subscribers allocation Tom drivers expect players sites to our for expect XXXX planning continued U.S., attractive data equipment have annually market, continued XX% whether or anticipate roughly in equipment we their U.S., usage in these our outlook. discipline would and wireless and continue of operator deployment XX% we national expand XG either will sizable tower domestic quality there particular, innovation-related more consistent existing that and I assets generate results annual billion that, carrier over to cycle. over go and the Consequently, that and we for U.S. returns

Tom Bartlett

Thanks, everyone. Jim. morning, Good

off kicked Following of a terrific strong a finish we XXXX, set to XXXX with results.

expectations to billings India organic U.S. with continue XXX and new QX remained tenant came we our progress sites at and throughout recovery in in growth EMEA America over solid, business constructed the Our globally. line X%, in our trends segments Latin over

prior deploy our outlook by our take mentioned. the and quarter, dive our grew to business and quarter a also dividend continuing select that to first our We common investments deep while core let's With full-year. Jim over innovation-oriented just both capital to for year the that, stock results XX% into

If turn Slide please you to X.

pricing During normalized organic this growth growth Consolidation-Driven escalators from over Carrier growth, leading straight-line quarter our tenant region than partially X.X%. over nearly to for a and about the of including tenant organic reflected This co-locations X% non-cash the for growth of From over gross of X.X%. the lower by just by growth consolidated revenue recognition. X%. was segment U.S. negative business. Indian business new offset of impact from billings contributions, volume quarter, second property was reported revenue driven we contributed churn generated Churn X%, X%. of of new More a perspective, This contributed consecutive amendments of impacts our of billings while period Volume X.X% from X%, record

toward U.S. in continue data major we largely make saw usage. significant network And growing weighted the activity, amendments again customers Our the to quarter. pace carrier with mobile to wireless keep investments

Carrier Mexico like the network Our X%. was was especially negative a about new spending Indian Africa. organic growth our of including period X%, over South Consolidation-Driven revenue International footprint, billings markets impact from of tenant to supported key due growth property reported growth across significant international this X% by normalized Churn. tenants during business and India, in Underpinning was the

about drove course offsetting business run revenue items X%. amendments escalators items above churn just with Other and over X% the nearly of while growth, added co-locations nearly X% contributed from normal New X%. by rate due the

improvement to India the due As overall churn to expected, beginning churn. churn to the in and for in year, the expect we market watermark QX see accelerated should starting growth consolidation billings QX impacts organic consolidation in approach Consequently, India this the rates the and tenant financial in regards sequential the high XXXX. carrier historical flow-through that rates in be anticipate quarter

in this more over in last added associated sites day the quarter, have tenant even past And in with organic well and was fact, one than the to tenant These in contributed acquisitions Asia sites, the another around the India, Idea course XX%. international assets year, of new built In X,XXX XX,XXX constructed growth. revenue from normalized billings nearly we over finally, growth the included of X.X% markets. our global our billings sites as Vodafone XX,XXX as newly our primarily

day were average XX%. Our one U.S. yields dollar nearly denominated NOI

our had New integral activity builds in building quarter XXXX. the of deployment quarter across program. more and last strong continue to we QX sites an In constructing built sites, we international of markets, America. in nearly XXX and India, momentum We than a over built number part our double sites be of QX from of capital while also sustained both XXX EMEA Latin in

new the EMEA, historical an in builds This range. portfolio have sites generating building and with yields NOI investments remained on network in carriers to yields initial Importantly, mid-teen on sites coverage significant our India is activity attractive, percent diverse in the particular, the these where extension in we yield of continue NOI make day one had extremely success international across capacity. and

XX% the more now of these throughout towers, on constructed, we than year. fact, international of and India yields activity touch projects to sites on I construction will our those given demand sites portfolio is as NOI the Africa, range. the for later, attractive economics in of in total and have particularly additional In with our expect we strong the ramp comprised XX% And

to Slide X. Turning

growth have seasonally power. and Adjusted strong EBITDA and African in was growth quarter, first and lithium-ion investments grew industry recent increasing driven optimize margin solutions adjusted operating of nearly nearly in solid continue adjusted the power the CapEx. benefits to EBITDA during adjusted Normalized growth batteries expense and diligent management resulting where results fuel, with X%, maintenance revenue in solar XX.X%. consolidated particularly our EBITDA interest to X% from markets, our of adjusted like by included - low generated about also and over and AFFO we These we in We normalized processes EBITDA our by invest margin XX%. made EBITDA

of XXXX these Africa hours by QX continue over in reduced to look As XX% to generator investments, example, result run further consumption. and as compared a for we to ways fuel our of our for reduce

or X% and or We also grew $X.XX AFFO This to grew our over of our nearly AFFO by common nearly X% per maintenance QX. share. XX% prudent stockholders largely drove by X% over solid Consolidated XX% adjusted share. sheet. share well consolidated consolidated X% strong EBITDA by consolidated share, grew per normalized AFFO AFFO a nearly and while as grew over cash share growth, basis, AFFO per per in to driven as AFFO On attributable was balance per

results QX also the which will the a to of expect adjusted seasonally move year. as more through lower revert maintenance our rest addition, typical we In CapEx benefited range we the levels, from

XX. Turning to Slide

Let's now our of to with reviewed take ago. for our Trends segments. our be assumptions. while organic At all we a previously given we short across the XXXX, tenant billings our roughly expectations geographic a you, look largely we growth continue reiterating only expectations issued prior at this for are guidance in are consistent with outlook with line which point, just

points as growth amendments These year U.S. continue from last record about expect our to include quarter. normalized organic organic than XX about a of to tenant business, We just basis be and discussed X%. international throughout the contributions we growth of tenant higher billings billings projections co-locations

of by QX, business consolidated see growth expect remaining after our organic flushing to return to positive a billings carrier most out Indian international the in We churn. tenant

revenue, XXXX around maintaining versus acquisitions At XX. prior $XX the by FX and headwinds are we of our slightly of U.S. also outlook. outlook, million closed revenue revenue versus primarily Current $XX combination point, higher a Looking increase our expectations quarter. this property assumptions reflect at our despite in million in the Slide for driven prior straight-line

in addition, increasing We the in EMEA. internationally, new view including expect in particularly In $X around early for we region. space is higher outperformance of build demand tower assumptions, million an this indication

well EBITDA due mentioned, I slight expectations unfavorable expense of outperformance expectations million consolidated business primarily is midpoint also our our midpoint, at for $XX adjusted approximately with AFFO over outlook, We reflecting in are we about the $XX year, And leverage. basis, side are our for as items despite some revenue unfavorable X% This operating FX the the translation. strong the our on to reiterating reconfirming throughout at to as in for operating the business. per On continue the million share growth lastly, we of expect normalized the offsetting a FX. just

Moving allocation to now I the like our capital for discuss Slide plans capital the program of and XX. to briefly success would historically. our year allocation

annual billion We and to to continue dividend XXXX. target in dividends subject common least $X.X at discretion our growth in expect of declare XX%, of to roughly stock Board the

add existing the XXXX, speaks which billion add opportunity the our over compared expect In expectations, their incremental of our have expected discretionary by for coverage XX% capacity to spending nature. midpoint in networks. in increase as our prior sites to million that to year. This $X American We tremendous driven the XXX-site tenants addition, and construct CapEx now we almost builds help markets long-term plan we program with to being This to our new a deploy a would and represent up X,XXX to in scale toward is record new for $XX during Tower. at

site the QX. concentrated builds as and where on initial our NOI were builds markets, in African I our in India earlier, yields of mid-teens Importantly, new and most new mentioned are in

acquisitions. market especially that exercised late Africa, in QX part roughly the that largest a part first million were where the build have pleased account Tata's in the are M&A in QX, redeemed to we QX, in we of to year-to-date, finally, and completed the We Nigeria, redeem progress made $XXX we taking have second have India And or our being into business we have the options expect would strong we new by our early in committed pipeline.

expanded capital criteria, have attractive drive is allocation and free the XXXX points. an capital most growth the XX% around process rights, in cash methodology low market significant global on has allocation free over long-term last CAGR same all cash free driven we with over site This plan count and a annual and at for utilizing capacity, acquiring returns. constructing at in aligned our Our of of for flow average flow over globe This our long-term democracies significant rate the portfolio of assets assets structural decade XX%. over the this cash to and repurchase a intensity period. expand a has our firmly shareholders sheet further have high capital exclusive simultaneously capital real attractive strong Since programs. that That potential we to to stock generation, infrastructure XXXX, returning the portfolio, and while estate free used quality share growing our price us recurring maintaining have amassed through dividend communications sustained focuses flow common balance base enabled

to key set of a within ability the different deploy been A capital effectively infrastructure XX. Turning Slide historical extensive evaluation has of our on communications space, classes data. large an drawing asset to of part

portfolio macro U.S. We international our largest our network of States, systems the performance and these of and small also we investments of have while small United where the example, the United in help stages. leading evaluate a outdoor cell States indoor future of earlier typically densification we inform smaller in in in portfolio to cells. the towers markets, is assets of have a the DAS For one regularly,

systems margins X ratios and returns have X% indoor with and tenancy the outdoor to DAS is networks outdoor part in outdoor towers range. can performance considerably the you at over see seen as systems, much time, cells. opposed DAS to of we with non-venue small has low venue-based on due generating and towers on DAS As and higher indoor This in divergent excess these slide, significantly performance the varied assets over of this in towers

time incremental the tend capital intensity outdoor small CapEx our of systems the is is ensure capital deployed the example, generally attractive associated U.S. capital capital inherently through increase non-cash allocation historical that centered more portfolio in amortization contributions. the U.S. indoor with data, our tower with fiber over to due have and of higher to GTP more projects, flows in additional secure assets. to our tenants. with sale. be attractive finally, prepaid decisions non-recurring Additionally, the large on that to decision to to in more nature, scale with have drove large Armed cash passing available the assets required transactions And while optimized U.S. macro This system for and this revenue upfront been for we of Verizon, cell systems on

Importantly, process. we innovation program investments to approval conform well utilize the governance to decision-making framework as make as like the as in investments, our well. this core just our the within rigorous business, Significant must and database expect we innovation criteria, same

Tower solid is and Turning to global XXXX XX trends to across footprint. being with in summary, our American in a Slide organic off start strong realized

above U.S. generated tenant of growth continues for to quarter, the business while in or consecutive billings and business build. Our second X% organic EMEA India new

AFFO in primarily for tremendous in speaks technological We the we site Nigeria, new customers for builds, to need serve, emerging by full-year. elevated to coverage by share incremental share and line per assumptions adjusted the for expect top from growth XG our and the were this X% translate markets migration over grow the AFFO solid demand EBITDA as to have increased driven a and solid carrier continues. on the in the also normalized which We growth per basis to strong able

key to the firmly common Additionally, policies Q&A. XXXX forward all into call return jump and can be to I will our remain we that, financial subject maintaining to discretion, all, on we while look progress so long-held All of stock to the in continued as the some formula, turn in Board's a rating. solid updating dividend, committed total credit another to our over our we our growing part July. With year and operator, expect you investment-grade

Operator

the will [Operator Capital go first Instructions] being ahead. we KeyBanc that Markets. Brandon With from Nispel, to go said, Please straight question

Brandon Nispel

my questions. for two thanks Great, could. taking I I if had

quarter US business, another in the strong First X%-plus of growth.

was I hoping standpoint. less or the the Thanks. could activity of unpack four business. some expectations could you a on there your business. had attractive year? and thought on, you you on along growth whether your of Can in that is that terms international given return investment lines for comment I investment return of you on one highlighted markets particularly well India, people the maybe those return structural and what the guidance for same could percentage size coming the and that are call, I negatives investment on your of was from think leasing impact about never happen, your the longer-term on thought also not that really had the was US When in that any maybe big Secondly, you benefits the or things we and hoping US the think that different from questions carriers markets new was make may get

Jim Taiclet

of percent both morning. range business big the four those XX% for the coming good carriers in the the coming four for and US Brandon, is United year States, to expectations our from The So going XX%, companies. to quarter from

or then is emerging to both that, for percent and ROI that year. And our mid-teen ultimate it ROIC. in Asia guidance goal, markets when the for comes current for generally low India to is similar the results So and

of by planning each that achieve with XX that we is within investment period, to for expect old, we years years to mid-XXXXs the we kind the that the should attain investment, so Viom a be which So couple expect three able - level.

Tom Bartlett

Again, really. same just are on would And just as largely the I still, the to expect to XXXX, that mentioned, be add amendment-driven we in color and I growth. the on, on

point kind in balance is our largely of time. in relationship. if LATAM, EMEA ROICs the For ROI, in look U.S. this the those of XX% probably markets the at year, mentioned, on And XX:XX are the Jim mean at as and a take it actually I you

ROIC X% in Now we seen given range. probably is plus below that particular in the the consolidated have XX%, region India, kind that of that churn in

we market growth in we - have So contributing would the - Mammoth, co-locations the that QX the we given to by way, had in seen market. growth in in record obviously level the of organic that new a

as over basis kind I of growth. on mentioned, a normalized there a and XX% So,

ROIC would next definitely see kind over we that of expansion years. So several the

Brandon Nispel

what guess, XX% new I you just up quickly, I from compare follow seen does how XX% Four, if that And could leasing with to Big have historically?

Tom Bartlett

have seen very what historically. It's with we consistent

Operator

question & the next line Company. ahead. is with Please Cowen And from you. go of Synesael Thank Colby

Colby Synesael

Great, thank you.

As should to I that innovation is I'm refer have Colo million and curious, it more of to I slowdown acquisitions, we for obviously program it did program smaller, go to the through? that expectation guess that to the learn interpret And and notable you ATL around should US secondly, go about as would your then the how relates just step just market? the down might of type as or as in. I then versus we we organic we what X% that through as Thanks. see that we big what what just guess additional How where $XX be expectation terms is guidance that fits driving imply what investment in a is the should just trial relates would plus X% that year.

Jim Taiclet

Jim. good Colby, morning. It's

management - in essentially areas some will our outside there in program, going out with trying prototyping of kind industries kind systems, which is figuring to that be, understand it's is a the of we whether big in international with predominantly. telecommunications, or and markets, scale plan customers. assets, customers is and prototype overseas prevalence projects often sites four innovation we sort potential might or phase need which customers, EDGE it's energy the customers secondly, so are and those markets, we what in assets of the data including exploratory other tower DAS And are with the indoor to On than that current are the provide,

fiber of total. there that predominant connect in is about billion realm to is markets So like we five towers US. in US, - has so related What isn't the far bulk ATC in has program. fiber capital outside $X expense been that to-date and the the a of acquisitions assets mergers where and there on countries base, purpose spent been and at is whose to supply the robust The

and it emerging XG, the ultimately or sites literally making every for need groundwork connection investments happen going XG in is fiber to like for fiber lay markets. to that to are to connection a So tower we of our certainly for most and

return make similar And locations we to applications only Tom and investments assets in meet expect our going for towers. to said, are in to we that criteria and so, as

Tom Bartlett

the same continue half. we ago, into rolled when ago. year, seeing positive expected just the are into you Coming first - trends year as guidance And Colby, kind is, at of keeping always point the we more the months we we guidance visibility out the a second to I Really issue with a in your only this while time are regarding annual mentioned, short roughly of the the question, same. we originally guidance have the couple of our

July, a So makes sense we will upside, stronger in you extent update will hopefully, half, through in we the see July. guidance that but trends, will as and that would and we the we as to first see, know, see year we and progress some you different that expect

Colby Synesael

to guess, at than that sounds clearly conservatism this of step So, just more are anything point you like nothing that thinking else. down? specific would lead a I

Tom Bartlett

about a trends I we going we The think we continuing and excited of seeing forward. is activity mean that group I - off hopefully, are is Yeah, think this pipelines. US first and some our of fair. very those see that have strong is quarter, coming strong will I US types application team are they

Jim Taiclet

addition So mathematical the to in the from There comps year, which that, as XXXX having are quarterly and we this one year growth later guidance, the have ATC, we year-to-year Right? we vary. following relatively can for is initially than high lower in factor in quarter. growth our is said, at Tom and kept had

give little simply bit will, a mathematically, So forward. you even of comps going you if different a the answer,

over again, the actually of will So everything on we what next update months. couple happens based

Colby Synesael

you. Thank

Operator

of from And is next Simon ahead. question Please Morgan the go line Flannery, Stanley.

Simon Flannery

in you the more Europe, do to And do that that also markets. offered where little about likely EMEA, more cause about lot a it slower? market and Great, a a are area? being you it's seeing, Thanks. by wonder think a you international is to Latin there there if in could to How it's portfolios of drive individual we America little into talk what bit potentially little there of in a Can some carriers. strong, I the is and thanks the bit any you lot. are that markets bit where be value

Jim Taiclet

Sure, Simon.

legacy business, overall that Nextel we as rates, coming expected strong. gross of the Vodafone been the to strong already the will, In strong. the to will, Airtel especially offerings you and has business, having on really there really rights churn of markets, XG. wireless of raising also XG that due back if other entrant continue new that and there. Idea, deploying continue, Tom are some the capital is XG are and gross expect which new are to anyway. and Brazil Altan, operators is the some suggests, campaign, of there that escalators based also items of new But Some in international and some off, trend be growth the if activities a All between spite on higher before four along some we rolling lower markets slightly with Mexico, India incumbents inflation, is in way. you churn their in and all the are which it Brazil competing

all when this about add year. our in it you organic up, markets forecast XX% normalized So growth it's our in international plus

through, growth look them frankly, are them growth not we industry into return European likely our most that are could to may of and so investment changing as looked we new Also markets. large act space lower that going there and changes, coming Europe. our because over the always space, far same class including criteria some through in it or US. way a that that in that we investor a at returns assets, some come has inhibit until lower than also has there in current have not into is lens may at criteria, As concerns the we structure

Simon Flannery

than what that is or kind And less players the means comment? of four structure industry

Jim Taiclet

highly in operators Well say, to four will be Europe, there because for smaller all causes mobile than in to the historically, as invest. are or competitive, to scale of the US than, invest three - - the sort rapidly, the which it's which is them markets tougher US them countries in are

is to businesses. be then consolidation side towers the lower. supply some growth that lot bit little you often if churn with you are have a absorb standard a Europe, in which of So into these and to And that tend be of there to rates tend shorter, overlap infrastructure comes

issues So that little think the those structural potential in we the growth bit. a Europe are some rate of retard

Tom Bartlett

you year. press internationally down just see growth $XX $XX the business Even, Simon, amendments segment you of information, we the from quarter the some we if release, last in have had and versus co-locations new take in look look a can the at of million roughly and million

being kind strong but force growth, - they has are I and actually bit, by strong mean, is the it's driving be Latin little largely EMEA all led India been of in So QX. think the and continues a I up to America India.

So just at. something to look

Simon Flannery

you. Thank

Operator

the Batya is question of Please Our from ahead. line go next UBS. Levi,

Batya Levi

In deployments the related lease you going bit you. color activity you think and applications U.S., provide the the and to type you can are a new that changes XG seeing maybe mix little thank early more XX:XX on do how Great, amendment of Do carrier-owned is time? over think the lastly, toward business increasing you been provide get from or maybe other has of that some companies? towers revenues monthly you the private today, amendment can new forward? on And an update gone you just that how

Jim Taiclet

what on is on deployment actually seeing the that XG, the think was relative I I XG activity of towers, to the you correct? are mean question

Batya Levi

That lease or think is activity some is you that towers own toward and actually new their companies? Then going private of right. amendment, if other

Jim Taiclet

the I we they in terms that question deployed XG are don't I'm are you as it's a they I that of of about know Well, speak. things I sure enhanced, are XG that that deploying. mean for But being tell better radios mix. the themselves are that types can carriers they

XG really when it's just that on, gets kind upgrade. So a a of turned software

support at rolled are applications. of So are XG megahertz don't those - know I nationwide to that capability. activity, deploying normal T-Mobile, look of they talked but their you the kind of activity carriers that certain is about technology. themselves if XG really I'm percentage to the XXX I normal to mean relative certain that being out kind is I'm how they much what that

amendments application being as And relative overall So you amendment seeing activity said, in types are probably leases. the United being on know and The the are a deployed. particular an the sites given the $XXX and of States, radios are range, activity, those of - that XX%. they to we roughly from perspective amending in I that are $XXX, equipment is level put those

Batya Levi

Okay, thank you.

Operator

Bank of go David question from America. is Please ahead. the Barden, line of Next

David Barden

for I guess, questions. thanks guys, start. taking Hey to the

new business First as driver be, call went SBA a of their out Dish would to for way out them.

XXXX get some Sounds accommodate fulfilled. kind like they look of challenges kind be Dish's they were that their willing flexible to deadline of to to

that we potential of then that to hands the domestic if trying And to So roughly kind a and rate how see guys operator's kind opportunity publicly today? about could of an I was India opportunity represent portfolio, you represented monetize a or Tower. contributing has growth could this are wondering risk XXX,XXX if what is, for might a address in seeing American its Jio into tower if that second potential fell I it and it it's opportunity consolidation spoken X.X% independent

portfolio? about you risk-opportunity wonder the Jio Thanks. that their could talk tower represents So in if I

Jim Taiclet

ratio we negotiations XX% about that non-major to Dish David, comment with that specific them, talked any Dish, we you business flow as within far assume for either customers, but XX% contracts As is including new can us or earlier. business new on don't carrier that of

length will arm's As the ways to would to industry of be the tower company assets for the get far of exploring assets fiber Historically, are and of in sort as either investors because carrier the is the the what they of more captive standard, industry, carrier-owned owners monetize Jio, tend not of call refinance tower a off are reports press tower contracts once outside do that assets. and I abreast or those eventually when hold, control independent if developments. good business. stay about or and yes, we spin there

So Either way, risk it through. it don't as all. at positive it see I will be comes if a a

David Barden

Okay, great, guys. thanks

Operator

line next of is Ric go the Please from ahead. And question Raymond Prentiss, James.

Ric Prentiss

Thanks. A and couple Good deeper question. of then follow-ups morning, guys. one

XX:XX more about if how co-lo, still also when new an you RAD comes to that center. as amendment? at guys amendment work do First, count wants customer the talk a existing do Is and maybe you an counting tower, including

Jim Taiclet

it generally lease but may be Generally, lease, co-location. or or on would customers the a Ric, as new legacy be contract could on a would which tower RAD a to that new count circumstances equates specific be separate based that different, a but center

Ric Prentiss

three, Is at other industry And least one, in of services on tower US the the explicitly had the your assumed four in in business. any of baked mentioned they anything on of combination Okay. kind one a change guys U.S.? that their to second guidance into from guidance assumption there their

Jim Taiclet

in And baked XXXX almost have close, into given the consolidation by the something way any ramifications assumptions that be that, halfway it US. beyond. through could industry out the are we occur whatever would might time in either and from don't happened, We year, and if the probably

Ric Prentiss

some said able deeper The lower might coming following you your the new building Simon's create question be driving investor is, of as buying M&A? sense. is with look than question return hurdles, also that towers at you in that where to value classes on up thoughts Makes towers

Jim Taiclet

way, outside portfolio acquisition a and are projects geography meeting sort specific of new highest-return builds, the you always ATC tend specific it's versus been those the of that. for because a or because specific a be buying inside for need US whether have, to paying premium in historically a that the we carrier of Yes,

over if towers the Ric, will will we and we so, the buy remained do, we our to can excess capital return activity build process same, been historically left M&A or first, third, are buy dividends we batting our fund the second, do to and are order, to stock. going going back going it's to we do allocation So there and equity are we is back has of as continue best capital

So the that batting remains order same.

Ric Prentiss

of that sense. pocket, question people capital could Company in cash portions more Appreciate well. have into ventures sense amount portfolio? the batting pretty have fresh of Final lower hurdles in your joint bring see you doing wraps guys sell that, Increased we to does in the your any to make their Rays order deploy and some Makes with it stakes return sell to elsewhere?

Jim Taiclet

We countries, are arrangements, always In they whether in have open them partners to numerous that innovative are like Ric, partner with and independent with in do partnership financial you financing XX/XX we both PGGM. us seen and are with and a Europe, carriers Germany. France or

into So it's yes, merits the of them, think we restrictions, are have stakes we don't sort economic situation out getting that. religious if of any open or to those we whether getting and it

Ric Prentiss

thanks, Great, guys.

Operator

go next from Our question ahead. Rollins, Please Michael is Citi. of line the

Michael Rollins

thanks good Hi, morning. and

in and key for that today staying or at the important Thanks. try on center A markets, it opportunities back going that you two ecosystem? do being, out curious, are considering, questions. the a market few broader And articulated new am some edge you on you question think on need other I just international back, is example, you I maybe of more three the the then strategic still been partnership, the EDGE maybe evaluate growth of was on some to into the the of the to as in. data the initiatives any front, how markets? have where years competitor you in partnerships, importance and front comments are for you look important the top that or that partnerships adjacent Just

Jim Taiclet

tower by already international the independent So for major and U.S. our first most Mike, in time. company as or the some we second, either in been first are and have are of markets, we way, an

the number captive us, company But independent. And Mexico, nevertheless, here, one India Africa number and number we Brazil, same are important South We in way. first we because in managed in Brazil. in to don't perform remember the one, really independent one independent, the aren't are tower assets, number carrier is one are

in looks generally have and we the So creating there not IHS of leadership Nigeria in to and or outside we like. control is in two carrier industry number operator. large larger we one that the all There major was care ownership it will some are while, achieved were the independent for currently major a in. infrastructure happy of have, than we an two time be a at a markets, decisions, But, those be provider essentially as are the where where number market position conscious like markets we

board. far are initiatives applying innovation As partnerships, we our really as across the

bring that ambitions on and a I As was in Europe. and specifically support I something EDGE an Similarly, innovative pointed said, to to the in PGGM Tom our data. out as you capital way perspective financial Europe talked about in partnership

the be US, it the we the something could think bring base any could or existing possible. be we could I is spectrum, opportunity of brings systems the partner else, asset are in there have towers it it a great bring, who XXX those be us for that to compute US big to XXX capability, datacenters, larger a indoor cloud DAS which and is XX,XXX

where mobile have than going, is they or pivot are that out, in fashion leaseback, our say, and who et they cetera can puck and historically, partnerships to it's figuring broader which is theirs industry, taking industry. our much actually complementary with wider much we we perspective it's sale have But on thinking had an our a with are a can sublease been sense, So perspective now partnerships some in fashion, been in be, and to operators would wireless assets now partnerships we the those the taking. context with a are our say have innovation in a is operators, always I in we a partner whether hope today, bring

Michael Rollins

lot. a Thanks

Operator

ahead. line Please Our next Matthew the go is of from question Bank. Niknam, Deutsche

Matthew Niknam

you taking for question. guys. Hey, Thank my

actually Just you within of activity, in to XXXX? quarters, return to Thanks. levels ability then sort what terms is by can in of growth on and next the the of historical confidence couple India, any the the driving more what share business color gives growth you of

Jim Taiclet

actually drivers up carriers, the for now are India, major well. a Jio on other us So, in organic gross two as growth basis are the ramping and

issues, from equity both As are asset their proceeds to that going are investments from sales to I mentioned, also all expected rights they they or end access to having investors so do. and planning be

is, in think a those of doing growth billion need to along three national although more the XG not India, will three handle in a with because capacity a continue B, it way, So, that first, A, a network, the the much we headlines BSNL to going drive to are of country, on organic gets across which minor and with carriers them lot for establish users XG. pervasive Jio to

market. start referenced, as serving in significant to construction that increase So be is this to sites the of is going a loading number will India, spend most active program think the India. there on happen, and sites we already in in And our Tom

when CapEx. cycle. in again, rates the is about growth people, of So fundamentals growth, technology as look billion times talk the deployment much data you many XX% about at, you on India, talking in the faster three $XX we data In to XX% are US, earlier even

that consolidation India. there top-line and industry the fully those over XXXX beyond, be expect once we strong course XXXX in three and So roll in growth settles will we and demand the of organic BSNL between as carriers large into

Tom Bartlett

be million over industry Jim growing that well are years thing I as outside the third-party just going over is to. that I that add the would other suggesting and estimates, as things own leases internal estimates The all that of to of X to kind XXX,XXX next think is several in just that tower market roughly our Matt reflection the talked a exist is the

Matthew Niknam

just X% a getting in of churn still rate? could do I If longer-term I up, have stabilized sort sort follow that talked you about anticipate Is that to case the to of more think the and market. you past X% when in of normalized

Jim Taiclet

India which in is of what Actually, think in back X% of QX, consolidation X% of rate probably is churn, if probably the you kind range. normalized it churn that out more to impact that carrier the we the

you to. half talked just of what So,

Matthew Niknam

of there, And in sort get terms that XXXX? timing of to late

Jim Taiclet

that already in We realized QX.

consolidated would out all that we of are into out the we we going of So year end will this churn. that carrier think as flush India

to growth start realized historical to frames. XXXX should those we we XXXX, back terms into back rates of of time getting in get in XXXX have So the what back and

Matthew Niknam

you. Thank

Operator

is question Horan, the go Tim line of next Our from Please Oppenheimer. ahead.

Tim Horan

if that Tom, I closer AFFO churn, the said grew XX%? you India normalize But guys. normalized to was you XX%. Thanks, for know

Tom Bartlett

out When India that I churn. referred backing the consolidated to normalization, actually carrier it's

Tim Horan

Great. are kind United you talk Indoor you about percentage - do what think indoor of can market the in revenue growing States and you is of at now rate?

Jim Taiclet

asset of that XX% X% growing The indoor X% is US been is DAS recently. our about and point, this revenue to at about

it's tower the small growth compared we US. solid pretty relatively in major So business, that although, have the asset in to

Tim Horan

over done over And then more and think more the consolidation structure unique pricing US being look the fairly market in of a that there on It's maybe time? you the sales like India, terms lastly do assets of pricing. with could

Jim Taiclet

where is of think, favorable standard, way. for escalation along but more reinvestment second cetera would going tenants industry global less favorable and elimination than different in of evolve closely I discounts is on the I there third or et to the contracts rates US, pricing the sites rates, tower more what the a The category long-term will, the to the be structure call

those So those actually over per sort But where India, per effective expect far pricing, predict contract of going which come structural time I month are can't as in antenna, to your improve I will as rupees frankly. for go. to adjustments

Tim Horan

looking is what for. Thank was I That Yeah. is that very helpful. No, you.

Operator

And and have from Philip one JPMorgan. the for be time that question go do we Thank additional line of Cusick, ahead. Please you. will

Philip Cusick

more the that might or talk about sites for estimate on compute the Thanks. a your generate potential potential tower, you can of Jim, any carrier? rent bell. sort versus percent the the before time relative model over Just that and number at of EDGE

Jim Taiclet

are So why uncertainty factors access all those around other there now. is is right a our with and Phil, we that industries of broadening involvement lot and

is So cloud operators. to of we within looking engaged outside at spectrum, deploy that without the are how part and with mobile of both CVRS X.X we are providers, team

industries and with are especially our like We is, and involved other technology example. industry, for CTO innovation forces on automotive engaged, the task

accessible globally world the highly outside, companies, EDGE feel only learning lot the national U.S. tower will our the base both with So we in unlike frankly taking about partners in in of and these the ahead be continents are methodical, we we be that of resourced and the reach tenant a are in that in are of compute. company have them a multinational our holders including we license those we a we populated way, because can global initiatives, phase can some all But really serious today. industry, partner, even a and so

We Because So they it's to learn going work sites. and want should estate we radio are their wider know them all be to prototype factors. assets in real and these and be important want to to that placement work us. of the going do access and lead proximity how network, important to industry learn mobile and their determine we those really the we RAN, figuring tower immediate with to with out

Philip Cusick

Jim. Thanks Great.

Operator

Thank remarks. closing you. speakers for to Back over any

Jim Taiclet

everybody Have joining. you thank great for day. a Great,

Operator

you. Thank disconnect. that your for joining, thank do may does Ladies and gentlemen, conclude conference. We now you you

American Tower (AMT) 3 May 192019 Q1 Earnings call transcript