AMT - Earnings call transcript Q3 2019 | American Tower Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the American Tower Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded.

Now I'd like to turn the conference over to our host, Igor Khislavsky. ahead. go Please

Igor Khislavsky

the thank XXXX and which joining Tower's remarks American will Web of Good www.americantower.com. site conference you call. quarter under prepared our earnings to presentation Relations We've third tab refer our morning throughout for Investor posted we a

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

our for quickly the First, summarize I'll quarter. financial results

And our in will we call for on the some update Vice Jim our your the particularly CFO, our Next, U.S., an will Taiclet, Bartlett, these outlook up Chairman, and third provide President more finally, around and President quarter comments, questions. XG. technology detail. open After Executive revised and trends Tom in CEO, discuss will key XXXX results

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

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

well as U.S., in of impacted Carrier new quarter slide were rates, XXXX. our to impacted as positively turn four with negatively the by third year-over-year highlights by our the of AT&T results These and financial which Indian for growth results, please Churn. presentation, our Now, our Consolidation-Driven agreement

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

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

like these in included in for important the in these focused presentation, outlook around our our Additionally, updated India, the few results churn normalized We as XXXX third be last and view carrier the comments the our will consolidation-driven of normalized and in Reconciliations Tata to supplemental our normalized in and rates package. release, growth press many underlying our quarters, XXXX. settlement of quarter our on our GAAP results metrics in back business. trends results of of indicators earnings are QX,

that, call turn with to Jim. And me over let the

Jim Taiclet

mobile for technology. everyone my Igor, on will generate of XG be call. of the on remarks good the my with practice focused today particularly quarter I'll of to are There two-thirds morning past our exciting reports, where Thanks, and to our Consistent most evolution front many third the beginning flows. developments on potentially spend time we emerge. were on impactful and U.S., roughly cash the

business time, be over in in growth largely believe the our trajectory. to markets thereby U.S. our technology replicated international will cycles that global lengthening strengthening and continue We the our driving

today's incremental up, led year. customers These while existing increasing now advanced with years. plans, America usage than XX mobile for XG annual that continue industry sites, devices, trends consumption at in U.S. mobile U.S. our factors Tower, result have to XX% and XX Longstanding from data six unabated. XXXX, smartphone additional gigabytes average roughly deployments added per period To transmission driving be domestic to And data equipment support Unlimited sustained times by XXXX suggest roughly monthly to and in video consistently growth less around of doubling significant in operator usage robust mobile in or more three forward stands now, years networks. mobile mobile have U.S. billings tenant the per estimates organic a keep will growth total consumption month, spectrum levels. nearly data

deployments, that deployment traffic manage actually the of at We the drive down carriers using the growth across density will tools continued like We've recently growth network that network continue aggregate same carrier driver evolution, per the our those with the and mobile the in for the that's tenants' Simply carried put, gigabyte need concluded generation sustain technology, the must advanced XG. challenges incremental of in with rate to to delivered X, successive cost design, historically seen additional technological explosion this network to efficiently each decline needed this pattern creates efficient roughly to operating to spectrum cost X, margins. be XG, traffic costs. network radio main more to as

bands for mobile interesting for massive help equation with may opportunities, and usage coverage efficiently The networks, to some nationwide industries. of carriers manage technology as not dynamic For offer as be variety the new towards deployment well profitable will spectrum The pave allocations. enable we network their be expected enable eventually, and is both XG, the a spectrum across products is a wider similar, achieved newly will to we sharing, such these techniques aspects. expect variety spectrum but also of that the wireless cost exploding just broad XG that developed next-generation services but XG operators, will tailored of coverage new All and of And way believe MIMO, of capacity. to demand. self-optimizing as as will the

practical So, from next and network the perspective XG and a necessary cost efficiency evolution. is in step logical

areas technology usages all now. to carrying limited here the same in years with nearly at already XG is coverage and with time, for being is to United And devices With to come. network still States the beginning the market enter that will faster deployed speed continue primary today said, XG in be

So for comments XG on rest are One spectrum. that migration. specific focused the is morning my this of areas of three

The the that products at that services likely by anticipated timeline second what thirdly, look are and potential is And be and enabled of ultimately of advanced XG then topology. XG technology. networks some those will

assets expect of be the on high full first deployments by point, range accompanied to So, spectrum low, the new mid, we bands. of and significant across XG

seen of that What critical serve towers. XXX the gigahertz gigahertz megahertz coverage already well XX,XXX site they U.S. and be significant the blend us stated of our are publicly selectively on has offered deployed their for time intriguing between portfolio attributes XG a Both is across and have and even T-Mobile We our mid high band capacity component band expect may these generate to coverage that is rollout widespread impactful bands band deployment. low of networks. country, plan benefits XG X over expected megahertz to band very support spectrum. as spectrum to X.X more be low of of positioned These of benefits. XXX

satellite and Sprint's So, CBRS the gigahertz gigahertz the by and operators X.X gigahertz gigahertz. spectrum, currently between spectrum range held in assets C X.X X.X band, includes band spectrum this X.X

XG In be low Importantly, we band, this given support signal. necessary nationwide transmission collocations carrier favorable of an equipment. ample spectrum across should will ubiquitous deliver expect propagation additional characteristics to sites incremental that to to today which level lead that this as has as amendments turn, more our in aren't portfolio capacity

utilizing of CBRS potential was expanding and evaluate the significantly earliest for to of to Additionally, of the And we process. spectrum. CBRS alliance continue ATC host neutral addressable systems market that indoor one facilitate by the the help members private

small and around their applicability considerable millimeter wave been has to cells there spectrum, Finally, discussion XG.

that applications urban outdoor and small arrays. and predominately serve wave our Our enough cells to small support millimeter Less remains minimal some if in expected millimeter advance wave fix homes risk service are such other and population cell from of perspective, over with wireless uses to dense and X% initially pedestrian enterprise tower to may will XG U.S. in deployments be located for view macro than macro-related economically location Consequently, sites opportunity urban other density high sites fix of impact millimeter areas. tower least backhaul, spectrum an applications. from areas but macro the wave there wireless time, a such XG product be hotspots are for both spectrum and and

discussed, in the to our do tower we in sufficiently not aim have for indoor of evolution we small believe that investments As to XG make us and their Instead, macro throughout economics estate. in outdoor attractive previously maximize dash our the material form value to fiber XG is current real the cells business. U.S. existing fed offers that

and business. to returns base our growth add program capital expand to of time, similarly that initiatives innovation this attractive look offers augment same existing our At complimentary the seeking towards and to portfolio. are We selectively our tower our the deploying tenant to also for continue ways technologies we by value through core as

all be some in of The be time. likely be characteristics. and more more area XX and indoor to and low consistent to to mid network likely amount at XG view, millimeter from perhaps population experience will the specific our technologies solutions. any systems, take have band us. of more number will are complex wave areas access requiring coverage and component dense to band will high have a intelligent people In corridors, components. including user sunset. radio least suburban since low more geographic deployments Past even band is to layers In spectrum main architecture, deliver likely wave outdoor a considerably a result of also given XX likely combination locations, spectrum usage, significant of is and In topographic a rural compute band important rooftop likely and spectrum we of are density, to small an high urban through likely areas, antennas, design deployed. These mid with all where And and years types more to have that broadly are more band cell power, finally believe other an there lasted net deployed be of three to inception XG

involved the add and intricacies scope with timeline. Given a similar we would minimum a XG, expect

exploring for the is ready of option long C-band to sites are XX% consumption suggested the to are to likely the of in the program ATC still yet timelines to the majority available anticipate Sprint's for years continue investments is LTE represent this use. device XG with cycle X.X existing more and XXXXs five expected that be to added near-term, to X the a to away further period usage of today, evolution vast country. by gigahertz market by the the the our from This systems we XX-year Consequently, turn our than occur Moreover, the of XG will year the continue CBRS their last XXXX. tower into by made and spectrum projected is in-building license technology. assets to assets maximize be spending support a reinforced available with when innovation period to a year spectrum us networks well related combination mid XG to man spectrum incremental Consequently, transitory ahead to macro terrestrial will being and deployed serve and mix. Therefore, of progressively data be being our share us currently from estimates capabilities. has augmenting use ever-increasing revenue will our will mobile in Currently, driven through in even embedded industry our XG tenants opportunities across from

As sites tower compute example. solutions one are at

increases the access to the of the wireless potential the as networks, sites today's our demand enterprise tower convergence towers act for on services, both positioning networks, Internet edge wired networks. macro networks, wireless data on of and Things As have mobile cloud and points given

further U.S. control there acquired a datacenters autonomous As applications at interconnect even for understand play systems, compute to developments. air opportunity an EDGE latency cars, and year. have require in already potential establishment a forward better of with and this sites, more vehicle important XG the management our autonomous develop, trial mid-sized that the To supported minimal in especially also can and and tower of Atlanta role, ground several drones. EDGE moving industry other facility of earlier and this We're be

and data possible models, to prospective type monitoring this well. our promising which future tenants architecture we are future innovation compute site functions. to much potential together using We're distributed approaches efforts within our some another enhances storage and continue work as using applications technology. maintenance and focus We're program promotes evolve Drone safety where their area to drones as they to limited as business scope and with this of learn already as internally, about

cycle play we others air cost us purposes, operations, and continue drone are tenants, as to to tower drone a anticipate deliveries have term, analysis. significant sites mobile our our the increase traffic geographic In role clearance some of to a control unit specific and enabled Already our begin towards the believe is well for in that being indication what the could we our we're which see from reduce using first as we operator structural XG technology and working and inspections longer quality UPS, an regulatory limited Google goal. made. time received to areas, to progress this as Similar that system, of and site we that

are and a of the that also even verticals, of there's will these by and Then deployed autonomous operators, pipeline. Many by next virtual existing industry applications trucking, be mobile or government. long-haul in buildings reality and XG the generation myriad other factories augmented smart

or fail ultimately to may Some gain scale. traction

aren't others about there just platform to Lyft when creative became may While Uber be of like had that that be thinking introduced today available robust and entrepreneurs, XG founders will even we a them. the by

critical American be we're be transmission longer-term developments XG and extensive throughput towers our to we more future equipment utilized of spectrum and heavier our be our Tower innovation enable these expect role value there to portfolio. the the tenant pursue will data denser important program DAS in that well-organized sites to we both play given indoor striving will more XG a and Further, networks, are from deliver anticipate us asset tower. near-term the much All integrated will will XG for bands assets hope we and networks in and to that topologies for expand the and that of the as our additional investors even base

In our roles as of operators a the across for expectation long-time both will international the to evolution similarly XG global apply as U.S. markets. medium will and per primary XX should internationally today, mobile conclusion our of management Importantly, a this and remarks to my U.S. believe serve is properties critical over imperative the become gigabyte cost in well. reasons our horizon we outside technology

And with over to for our it full-year that, revised I'll Tom quarter on the detail and more turn expectations.

Tom Bartlett

Thanks, Jim. Good everyone. morning,

acquired in signed master record the generated again with a than so expected just and AT&T, Igor agreement or another As stronger financial we mentioned, a results X,XXX XXX. new quarter, lease built sites

We quarter, refinance of during also continue process our around to we sheet, extend and balance improvement. a particularly and and internal progress opportunistically and to maturities debt the further strengthening number initiatives make our innovation continue

result, quarter year. into expectations our results details that, dive updated metrics raising for outlook. and the across third we're the our let's a As full-year With of our key

Indian billings respectively. slide generated six, growth quarter we impacts you the If Churn turn to for revenue during please and of organic consolidated and tenant the property X.X% XX.X% Carrier normalized gross of Consolidation-Driven

the tenant all year in we've amendments as Volume investments driven growth, of contributed growth markets. organic number elevated seen by about billings of continued co-locations levels and tenant from a X% of

over billion, with Our revenue grew $X.X U.S. billings organic XX% tenant growth of property to X.X%.

drove co-locations X% from amendments this and X%. of growth just to growth Volume escalators contributed over and close

amendment in of pace These side carriers items actively mobile few the from rapid driven, the the We the most investing usage. also data a of in Similar business straight straight initial saw finalization were $XX we agreement. AT&T. than to to associated the roughly new last keep our million partially new revenue activity with million quarter projections line recorded growth $XX line roughly during was approximately agreement calculations This incremental resulting of on with our the offset more quarters, as with by the of with churn result X.X%. was

Consolidation-Driven property X.X% under during and Our the X% approximately impact from of revenue the in around EMEA America, the organic X% reported negative Churn. about factoring international period Latin growth in adjusts Carrier growth Normalized X% including billings was just X% tenant churn was after which impacts both international of quarter, the India. for that in and in Indian

escalators business X% this these so. by churn rate amendments and another nearly nearly items X%. course X% revenue added with drove items offsetting Other while New or from growth normal contributed of X% co-locations run about

impact across in period. of business And board finally in we $XXX,XXX run rate if billings EMEA anticipate million added were nearly $X million of $X year-ago up to America. expected new rate growth to around QX. international close Carrier million These lower run quarter the Churn the drop the gross more Indian $X.X than Consolidation-Driven and to markets commitments Importantly, in tenant India, were higher coming was million XX% significant organic $X.X even with in sequentially, and roughly in Latin in from it's additions roughly

run sites new the were illustrating international An builds into to and almost and the momentum including QX number NOI markets. return of sides, from new of Similar some that bills than in U.S. roughly average exclusively India day and rate $X revenue $XX in recorded expect lastly, them back-billing. attractive third the also positive of around reversals to build quarter. including global growth. payments were the nearly Both average double XX% and new of the tenant X,XXX yields these last fourth than in course in added sites rate positive quarter, the constructed the some primarily million items, last comprise on of over the over the day higher internally, more last contributed we QX $XX nearly revenue Around sites revenue year. in settlement one one of of over we around to billings these non-run million profile were associated strong we've the with our million in in added revenue quarter tenant And X,XXX year sustain two-thirds items our X%

also our seven, margin gross benefits consolidated XX the as quarter, efficiency. strong carrier helped margin in EBITDA growth during solid we churn. XX.X%, as the adjusted revenue margin reflects Adjusted of by grew points EBITDA as this continued the I on coming consolidation This our the focus fueled MLA, basis EBITDA conversion adjusted at with impacts well as India XX% generated slide driven to AFFO operational sequentially. in mentioned strong up of over which offset Turning AT&T growth well by

we attained $XX related reserves The also growth around as $XX EBITDA impacts. slow well impacts roughly pay quarter in in as adjusted negative FX debt during million in negative the of bad the factors million booked

result a cash AFFO XX.X% adjusted quarter, over strong strong key approximately holders per to growth consolidated AFFO AFFO track growth consolidated X% this normalized by and continuing As growth per also consolidated attributable common consolidated drove share per grew a Meanwhile, of of in XX% EBITDA AFFO X.X% double-digit the On in per XX% grew AFFO up we with to $X. and metric. share delivering stock AFFO nearly share AFFO consolidated this share. by our and or record basis, growing long

in loaded Now is at to expected over commencements outlook slightly we comps updated reflection in of two-thirds that organic eight, new two the new be a growth to moving This year terms expected tenant our than churn full-year look months. and business business, of to the activity quarters. booked is the some XX levels more X% first growth being half XXXX. for tougher some a the a U.S., on X%. quarter we've expectations also a our front new seen stronger were now based in let's record billings raising and our on XXXX expectations in business full-year higher are continuing of is third roughly This deceleration last increase relative take will In slide based QX around now than

to year, revenue second-half our due outpacing expected being initial raising of forward. than of organic prior activity the to a driving X% X% lower we're outperformance pulled in growth due that growth Latin the to churn much aggregate, to of and in on normalized the Latin assumptions more We're and outlook billings organic for of in and our the India X% year reiterating our than basis year. Meanwhile, consistent trends the EMEA expectations also In expectations kind tenant timing. we India X% on are to based America America with X% largely and are for billings

of a growth be new continue additions. markets of the organic we the expect U.S. U.S. to run and aggregate, roughly across new volumes, slightly our In business rate that the points expect we tenant to international normalized to above year international in XXX record for unlike second-half billings business terms driven basis weighted be by in

to for we've in the process our but Court as reported in negative past, and return the growth organic adjusted next billings ruling our positive on, definition of wind do it basis quarter the I on we a what want international of to business to India carrier week growth carriers tenant on Finally, before moving continue means the India. expect briefly the down, in potentially last on gross said her consolidation wireless as for touch expectations XXXX in Supreme and revenue impacts

provide from that, network in believe XG incremental become expect approach a XXXX to footprint. to lack to Prior it's determine in expectations density the carriers more much respond, coming Indian significantly early the market of churn we the to our in of historical in point a significant some India, and is the Today whether after when XXXX business government to too given necessary, the are impacts our information to Having anticipated comprehensive long-term, reality view. time we that and anticipate that capital would we and issue said with and By growth ICC still wireless decision more billings at continue those February ubiquitous fading. the knows gross of it that for would trends was certainty the having XXXX solid also the available investment organic over court we out ruling, how new benefit we outlook may complete and though, related next and due rates to growth year, tenant that rates reasonable.

in for X.X%. expectations to million we're items consolidated rate revenue attributable the line of million revenue our $XXX earlier benefits Looking reflects The by to non-run items expected offset $XXX quarter. are FX raising the XXXX outperformance MLA. the be expectations, and trends This of well to in or million straight in referenced $X fourth from pass-through additional our some benefits unfavorable AT&T QX around organic at slide neutral $XX prior revenue. as the FX nine, primarily These relative by partially property I as roughly million

I QX, continued master Additionally, note at and real demand the carefully us last lease that for quarter. for come. of $XX of for This would billion from billion years result six as strong a of strong equates revenue our the foundation than book estate agreements, years a to end constructed stood approximately our $XX of non-cancelable at up annual tenant more to for revenue creating business

we by bad the our QX to to raising This saw items expectations reflects outperformance, the cost non-rate to would the around from as expect benefits not so assumptions, revenue QX revenue conversion from debt EBITDA X% recur. benefit for the translation the adjusted from offset and adjusted direct be also prior particularly Turning $XXX by of being the upside well million. India. our property as is we're MLA in straight slide line other positive impacts, partially EBITDA and XX, QX or we continuing $XX and million are AT&T the This write-offs, in $X unfavorable USCIT in consistent QX as with our expected sequentially in expect million reserves we down in FX in around

year AFFO operations offset by being the well headwinds. and $X million in income, interest across increasing taxes or FX partially by is million around roughly for primarily QX X.X% in $X $X EBITDA international the consolidated cash expectations we're expected in our our million $XX as additional incremental million adjusted cash as by for performance in this driven Finally,

Additionally, million as you revised can distributions to our see roughly in PGGM. on outlook $XX the slide, includes

which year-to-date not prior JV Our in of understand as well that the as reverses outlook fourth was contemplated CapEx quarter. maintenance our assumption in Europe, in partner

QX remind in XXXX. settlement and we recorded sizeable with Finally, a Tata just to you,

impact that growth will further year-over-year So, us the of rates for non-recurrence quarter. next

a share year, expect once AFFO the again growth roughly deliver continue we normalized For of per to on double-digit XX%. basis to

capital same the remained and investment the Turning discipline XX, year we've our consistent to that governed plans slide for used by historically. allocation are

X.X We dividend grow XXXX by expect to subject in is discretion. XX% around total billion. to always of This a our to board

sites the In discretionary outlook, focused existing ones, addition, the plan and buying of capacity under on of around of midpoint new of macro billion to we CapEx sites, our augmenting which is the site XX% in to the projected XX driven to a United prior our XX expectations to XXX our States. as in $XX This our building build by to suits in is million $X.X land program at increase compared midpoint. up part at deploy

In anticipate $X than total, add million more rate run that sites will we revenue. these monthly in

leading land to for of U.S. XX of land in benefits of prior the also the quarter, five than program $XX of was lease our least margin either points last outlook U.S. the purchases our our at spending on owned the XX% and more We've anticipate end years We basis under or XX land million of with a business, in as over United the States. had over success tremendous years.

And scale being incremental debt spent of on committed acquired $XXX existing with And this billion or expect an million as Uganda, and release Ghana add to to by to XXXX the joint paid sites Eaton buying of transaction about end morning, stakes the additional to ventures in million expect nearly pay we year another of their which which in first million and in for the in to of with press the we the in our $XXX second finally including the close continue so, of March Tower the Eaton approval. through the targeting regulatory would our set set for now puts by we're $X.XX we out noted on Indian in MTN are we $XXX Africa, we further, And acquisitions subject to year-end. the first-half XXXX assumption year-to-date happen and assuming transaction. closing working the

need the while billion equity full-year, about the deploying for leverage for anticipate our we of $X capital without and keeping So, financing. steady

of Looking to our forward, evaluate share long-term further AFFO portfolio portfolios per to our number to diversify growth. expect a enhance and continue we attractive

in us see grow increasing on same the has capital decade. can rate you XX% return XXX invested an average by charts enabled process to disciplined As capital slide, of allocation our the and annual the right AFFO middle points while on per over this basis share at consolidated

growth forward, our expect business. we to prudently diversify and enhance further towards capital Looking as we globally deploy initiatives

an invested annual return on Although it continue larger far double-digit capital. we than what business and XXXX, in the consolidated target is to increasing today AFFO was growth share per

secured, to supporting believe structure issuances balance investment a $XX sheet debt differentiator perspective. around our rate issuance that cost preferred than capital our on and Turning instruments, key advantage ago, October. strategic a and as composed XXXX process environment the average growth. of has optimizing end we've slide Through historical convertible our of X.X% stock reduced well been of we local American capital taking today, from in M&A supporting we've early cost unsecured, of X.X% market and more is focused becoming decade investment our latest This funding roughly included currency-denominated from mandatory select a the including has Since to as Tower to and our of billion this roughly issuances XX, weighted component of critical grade as debt been large transactions. a for of in

And around portfolio the dividends, billion over has capabilities tremendous balance in over average tenure deploy today, to the debt the to has the enabled of us of underlying time, in cash repurchases over along same our in one with $XX roughly a XX,XXX that XXXX strength we've while CapEx, This by expansion sites out business share XXX,XXX of At acquisitions, AFFO and from leverage this, flexibility timeframe, moved the of our year. increase than the same accommodation more our maintaining investment solidly and per and period. to nearly range. levels fourfold sheet facilitated grade share generation

on our that to risk, attractive continue more absorb make believe achieve manage our and maintaining Today, it growth, than positions and expansion, we and are investments enhancing total returns balance focused to shareholders. drive in continued well sheet, for and us ever portfolio

Internationally, able our third demand our sustained a terms our in billion. strong, organic and contracted footprint which revenue across come summary, with now base, adding were growth. yields. to demand meaningfully quarter results growth, we long for ubiquitous on slide to U.S. We more to with deliver were to opportunistically new tenant towards And over leading trends stands we dividend, the $XX augmenting at future MLA record and added in turning XXX around our new attracted share into visibility supporting growing to to of record footprint. to strong foundational key XX, our global day-one growth, and of by networks our the AFFO continue continue And tenants finally, and that consolidated and per large track constructing our capitalize for multinational towers levels denser U.S. extended mobile

QX, As consistent year for raised finishing and our and the a continued performance we've expectations forward year-to-date strong of our positioning outlook key measures, the our for result company and all of success. to look for

into jump the so to I'll some we operator that, can turn the call With Q&A. over

Operator

line is Ric Thank first go the from going ahead. to come question you. from Raymond [Operator Instructions] Our James. Please Prentiss of

Ric Prentiss

Good morning guys. Thanks.

Jim Taiclet

Ric. Hey,

Ric Prentiss

companies tower trends pause T-Mobile, you delayed Hey. any the has as slowing which you the seen going to or far maybe people caused customers, talk figure aggregate, and some the road in down noted and a pausing temporary a fork? to as don't try deal is marketplace, have want equipment and way being a specific questions, to out A first, as companies have guys decision and but any maybe similar approval Sprint in and on the uncertainty couple of DISH

Jim Taiclet

it's Ric, good morning. Jim, and

The one type their sine ebbs and is with you've have, It's that at circumstances long the grooming all sine a a build-out very is U.S. wave in period think that's follow, know, period, to to over watching more and years, I now particular or market networks happening of kind time. less as deployment the wireless conventional will I way in this in whichever results and to schedule that that carries as and some adjust the a been flows, will typical. wave any deploy a the of You

at look as this course. we So normal

Ric Prentiss

Okay.

Tom Bartlett

year and And mean this the international expect has business outperformance much you, I levels. XXXX. generated in new pulled the year's in our to second forward for of revenue was But from only of just year, far new And are a as remind record which to business Ric, first-half from we expectations as we perspective. our believe the a goes, perspective

it's said, So ebbs carriers and that as deploying their flows are they're when Jim And year. been there tremendous a timing; it's will experience networks.

Ric Prentiss

indoor Makes noting the indoor were a do now kind Tower your the you CBRS, opportunity of talking sense. interest of scheduled your what's what XXXX. role to particular sheet comment. is systems about XG And June what's of and How level ability would that happening see There's lot right the in for play, systems, and what then balance the the work? America there. you a other auction put appreciate question, obviously And Jim,

Jim Taiclet

Ric. Sure,

So properties similar got States. whether we've up countries. we've DAS India, and in DAS and indoor We've portfolios kind the -- of XXX United rights other thousands in, traditional And running got of systems got today. indoor it's for Brazil,

the architecture installed got be we've host So in a goal with regime to addressable there fiber traditional, conventional neutral we under station the XG independent kind even wire licensed It's base has market the what on building, such most the have put position buildings our today technology. system. indoor to market have leading carriers a a spectrum, actually throughout. the support can of to we use a expensive proposition in fairly expand using that you're of systems. is that of When is The to a economically think

the necessarily in and be down back the gigahertz as What deployed operating ways situation, the it I backhaul interior X.X outdoors to CBRS talked then, about coming And had fiber once and it doesn't important, operators' and do, the will of there's the installing are and transmissions phones drive increasingly have these indoor networks through station. base will cost get that mobile other to indoors, are systems. cost is their to earlier,

scaling, addressable rapidly in with buildings ramp as ultimately be cost have number kind And XG the The because to dramatically United technology fairly so of can of a therefore and costs building the CBRS, the we lower. per dropped. to will hope, the States you can get

Ric Prentiss

concept? would Okay. of And host neutral you be guys kind the

Jim Taiclet

correct. That's

back work operate back networks. out of there'd different then do be the and system, landlord, the and we'd to part install, ways of the out with So to mobile the the connectivity the shared cloud

Ric Prentiss

guys. Thanks, good. Very

Operator

you. Thank

Atkin then next come line question Please Jonathan Our the RBC. from will from of go ahead.

Jonathan Atkin

Thanks.

So would I wanted that, I maybe capital much on for further innovation bracketed you think although an investments look related to kind terms and annual to of to And appetite but ask would prospectively the separately, rough in ranges in be of America Latin it program deploy basis. how fiber Asia? in about or

Tom Bartlett

Hey, Jonathan.

to some date, Room know, South billion to over largely as Latin You Me America we've in that as that of in States as Atlanta. in made as had we've United we've billion $X on the we've relative Africa, slightly $X made well the investments well spent datacenter investments that probably in Meet the -- the

depend that So the I over And these profiles would probably a dollars. billion upon each initiatives. of say return future will of the

Jim Taiclet

and there's solve increase the countries. bring in our to, most of U.S. return-based. tower, to get and the fiber in referred funding, cable for XG assets that again markets these ourselves back it fiber not of But of those to cloud. because other we've value to is macro vibrant the when our a it's the Jon, Tom America whether got lease comes deployments signal up real some And tower unlike bringing goal viable a to doing of in fiber in industry the it's markets, into to going rate the be And Latin the ATC fiber to to issue optic partners added

in the just started, XXX of goal the we've with investments. XX wired fiber Brazil in towards literally we've Mexico, in That's So and India real XX as about got fiber that we're getting so far.

to that Olivier along is neighborhoods, MNO, nothing our international which and by provider running be we're but between do in to fiber that countries and enterprise anyway business Now, we tend the that the passing probably this as what passing. and want do going the to that mobile our to with we're by with neutral fixed for we our development, runs brilliant to working do we're is get now a those to operators that, home that commercial they're that tower. to or Puech enterprise, fiber the arrangement led have wireless with us pretty of from we're tower, enterprises has some And we we're which the and host running or comes leasing run are the consumer,

too. to in great to started first, it's to It's So Latin we're think that. in work places and America really we other try going and scale a combination,

Jonathan Atkin

around a of towers wondering portfolios thousand you. related just puts how about still prospectively the carrier-built Thank or to having AT&T in with takes the so, And the traded, the exist? recently view and towers then that either purchase other that U.S. you or

Tom Bartlett

what together. our kind that our development to and of a process good we a being of know of use business good see You -- capital. put investment we'll be at could continue at smaller available them might whether created, look hard there normal in part that's value And committee and take can just are be and And we States. as portfolios that Jon, everything are some look United the

Jim Taiclet

of by or And States the those there going in private really anywhere sized that. even after, smaller worth continue augmented Tom portfolio of accomplished We our definitely aren't They're transactions we'll nicely, sort said. United carriers game-changing one any left as year, this portfolios do companies. already and to held and

Jonathan Atkin

operating Africa that Finally, now fuel other in calls, this are on on you've or side the the but the of in India. in operationally? and around somewhat mentioned innings later And management earlier improvements you realizing efficiencies

Tom Bartlett

initiatives, a in the and Jon, the very able newer of like with in these base innings that. that. Africa being gensets, technology, that, and say success, I terrific we've of the really the things benefits we at enjoy able early innings future But to much I mean I think, earlier lot in particularly achieved of we're some still would of markets. to we're those be started

Jim Taiclet

any customers, of all cost attractiveness to our and beyond pass the of it the site and that's to new We're that more again, in reasons are viability, they're and and do less speaking third site. the into competitors the our those country. use important for it. we our the up, that of we investments And two them, It's and their the energy get the in performance and for of uptime in so that comes part the the to the management, reduces country when to And they of the footprint it designed fuel carbon that the you're also industry the customer, increase down tenants above we of. therefore designed very that we Yes. less goes put customer-focused in why efficient existing sites, through stickiness is down

use pursue described, and we So investment. other every three ROI with that to just Tom what we reasons use criteria same the we've great got

Tom Bartlett

of roughly just $XX million-$XX emphasize, last solar million are million about coming. to we're this million-$XX spent we a And And enhancements lot probably year, these $XX battery really year. excited that

Jonathan Atkin

you. Thank

Operator

question will from Thank JP line Phil from Cusick come our next of you. And Morgan. go the Please ahead.

Phil Cusick

guys, Hey, thanks.

reason that run get rate guidance us should guess can in First, to in XXXX? a is the acceleration with an with exit in XQ, not into X% there that help but I we U.S. a consider yet, you

Tom Bartlett

the until February carriers upwards The that by is last billion couple through a really the guidance being for that years of we'll In we February. we're of we're Phil, -- the reason the talk $XX spent in we're customers. in billion. do markets our markets have delivered that's looking know, of that that the You to lot over spending $XX wait that

that's to of investors the it, to real in be our out actually who so sure would going really clarity really we are we want spending then we terms make year. where on to is spending to going expect spending, understand what And to be for to they be give what to come going

would we'll question address for that off clearly a and months, in February. So few it hold I

Phil Cusick

the the should put know, that on I India that's, you more impact but the of one we maybe surprised anything a pay there's early, stretch. I'm about of know ruling, to that value I it's think quarter, And have this tax there? no

Jim Taiclet

Phil, with Tata the as to price, complete and put goes, a others pre-negotiated transaction. we're working far floor and as that that's

going of it's asset through will We of that, Rupee-based we're a that with ownership payment. pleased upwards this XX% now and we're actually to go have forward, going

is So the currency benefit is today. us, it actually to given a where

will will up get we it, be where want and business. market, foot keep Macquarie ownership the grow the the in with working So we our accomplished

Phil Cusick

Got it. Thanks, guys.

Operator

you. Thank

from ahead. Our Bank Barden America. of of from now go David next line Please question comes

David Barden

Hey, one. A guys, I first could the questions thanks. few if just

the Following I I of situation ruling XXXX. the course have this think capital current all speed up Supreme Court the India to think doesn't mean, tougher ruling Supreme that network of on the the with I and Court or Vodafone continue with gets without Idea, spending through it on

doing be base kind that of particular, this then their do to been conceivable itself? of And capital see about comfort think some It travel when you, level is tower kind the capital go for of of you of benchmark happened how do that use. the year. So ruling that second the the Navy of Comcast, deployment terms kind to any you demand. could helpful. will resolving case changing one include last where you the movement strand have the architecture. again, innovative to that's XXXX, question big at how the network to of that impact, tower Where a in board, Court to be actually have sense your question, be, Navy things kind spend? of intensity with And approach families benchmarks is their terms mount there been its In there's it's And grow things charter. And the sit in about increase network Sprint's to in LTs hierarchy? will in towers. could have of that fun impacting perch see Could do macro expectation normal from guess, go some That'd sectors funniest question talk Thanks, terms that situation And you Jim, guys. at that, you I irrespective with kind first the of you rate. Idea, is the get Supreme Vodafone going

Jim Taiclet

Sure.

will catch So, time. one a at we

David Barden

Sorry.

Jim Taiclet

to Vodafone mid-term CapEx they three department part tax XXXX. did or period, able forward, and we will to mobile we purpose get with and They also we There's top-level to we billion competitive to the be And short operators to with whose has require off. compete And to think in expect in through. healthy they've merged something going that Vodafone capital Idea to at over player. India government, interest, their India, program Idea Digital I be be going know together, to issues is pull everything will Indian work work of this is now expect a Airtel as progress. which an place of a the called least to with political and continue XG spend their got is a be four imagine are to be some Jio Digital through work will in the wherewithal all time and are a will we our. Vodafone, plans and Meanwhile, and, through on moving to we Idea, $X.X X they would work and they've three continue plus pace regime and a to to billion continue raise. take issues. which It through in customer BSNL, the matched resolve

forward industry that So we'll go structure. with

Tom Bartlett

what a of I quarter normalized we was want said kind expected. even Jim we high I that, mean third remind in single-digit, quarter, the double-digit Before basis, pitch, growth growth just the X% next on we to the generated takes but low and in

quarter. So we're the there already within

delivered the you the spend of sense that's level gives market. it So in some of being

Jim Taiclet

mountings REIT affect cell visible, fun type are there, type assets. continue of but their transmitters solutions with they're the the industry, it's think they'll in think in is firms Vanguard moving feet, these they've don't buy is there's site or more. real-estate small business. voting should not one be capacity macro the own coverage, be, foundation investor macro great employed, ancillary number their always getting niche And going been that's and materially of repeaters, a The to be networks, technology, on out kinds then we leaders when then, they'll, And with always a know, and side all you the of or with real-estate including as our been these type towards and benchmarking, but has essentially most of we to the forward the moving of benchmarks, filling

decisions As have will when include those it's Navy far RMZ access to I their as it discussions. the and the index don't or

David Barden

Okay, thank you.

Operator

you. Thank

the from Our Please next question ahead. Del line will MoffettNathanson. come of from Deo Nick go

Nick Del Deo

taking Hey, questions. thanks my for

well-capitalized a a Following still up stakes that tower you five player like other over carriers financially discussed there, really described bear make create towers not couple they some time, it's if moves on valuation value times you think or for believe India's really does in India, present big loose, we get opportunity Bharti big mind? future, yourself shaken distressed in in own and a there, to might considerations should an EBITDA, like Infratel this

Jim Taiclet

that with very that's Vodafone's Idea's aggressively think true, owned. haven't of moved with absolutely some We we've and XX joint towers, percent the and towers, the venture Tata we

we're we going as looked at short portfolios still want integrate of around. we where at the it back to moment, all have and keep footprint the tower our organically India. those open as along, far look and to small we've there grow current something course, as to in at down strategic, we We'll positioned track be but to we've going assets relatively those, all we're term so, deals what operate in and And And go very some happy everything exactly off that kind gets more eyes on is larger brought we're with of our of for road. and as get we

Tom Bartlett

we just year, for a spending Nick, our there, for we're in new And in terms capital of quarter, that's India. exclusively capital, the the and builds increased

more where on day double-digit. are get programs, returns spending there we're so And build-to-suit one capital those

expand us seems effective our to be to a really able be to way that footprint market. increase exposure and So our for the in

Nick Del Deo

said in you Okay, U.S. support X% out you then of density are cells. locations your small think in your prepared than to that with noted that's sites sufficient helpful. Jim, to less population And remarks, I

you density a sites threshold the on of small actually bucket? was share cells that leasing I interesting on X% into rooftops using really business, any might small statistic, And define pretty those those have new fall a understand impact what sites know it's to population that manage I areas? you're due to specific. in your you What's that of observed it's So or

Jim Taiclet

that rooftop of impact to it's urban, the of to rural answer second part on away this sort deployment needs no, any on or be site tried our to or or The base be going taken business. no be is there, Remember management to there's layer up. chopped been in macro not suburban

You use approach that of actually with a mile X,XXX about network square up as really the current per to mile. we tested costs. able it And XX,XXX you be people taking current cut we But deployment. square are the half, the metric stress just instance, ends economic if shouldn't on technology first in threshold per being input to that costs and

XX% of than in live So per mile. even as a X,XXX places X,XXX people square person lower level, Americans

that is small to U.S. people network X,XXX there just with And people no in so, based way there, the per architecture million going fundamental be XXX mile cells technically. at on cover economically to square or continue under that's is the even macro that to right topologies

Nick Del Deo

guys. you, Got it. Thank

Operator

Thank you.

the ahead. line Flannery Please from come go of Simon Our next Morgan Stanley. from will question

Simon Flannery

C-band XXX report Great. they're in within few five Thank you of the If take think do months can deployment. last you, looking I XG, having talked from growth runway you alliance to XX proposals this good think morning. When kick-off? the free-up megahertz now XX-year a of that order. On you days, C-Band about really to and of

So that the potentially timeframe. XXXX in gives leasing you

carriers the think it, So terms you the see in to feasible, interest fairly looking to that some around in that? particularly you Big you. volume I of at you CBRS, and if if around then are potentially seeing goes decent might what is it carriers, Thank deploying near and beyond term. wanted that multiple Four just get

Jim Taiclet

commercial years the couple as Simon. activity a early thanks, expected you've described bill, XXXXs, And we and it'll to Yes, have or be even of next some long-term

actually. property We've up some moment and really got running with ago. now interesting a ones some owners trials,

management building those piece things. estate - side buildings. of building, or warehouse is office whole kinds without what could technology, a as manage of about just owner an we So the of sports you far factory, are, and leverage type who X could of retail, And any venue they again disclosing leverage think in whether Those in, of potentially venue entertainment they're operating venue. a cost XG or kind think if it's there commercial what real specific of –- business as down a what to owner

kinds are and of the that to So, those initiatives on with so speak we verticals that are other working now. trials right

or and And you may some of them are in it, certain but may -- they technology and not license already. running up XG not trial may know actually on are sites

we is of Tom, course, financial projects, methodical, watches there and counsel has got to very the run we that has sustainability side, sizeable comes that's innovation and are over have viability going actually the proposal a down. is through when investment that our our committee business ROIs CTO these the fantastic after and and and So, Ed Knapp on this, cases everything. for

we to will go take it, out. and real going play prospect that's years think there, we So how about are there some is to

Simon Flannery

And of activity a in lot this CBRS? is there

Jim Taiclet

especially unlikely general you in controlling you if network unless it's within commercial of it's that that license Not access that once like to can things here. necessarily the access your serve that it be will is building spectrum priority use both trialing because it. the right kind And described up setups the LTE will with the that general at again we you sides moment then because CBRS be private burdened general that that XG a access now, spectrum, to building of you becomes access But it, available auctioned. are have is but and when and the frees as

scale. on we would So, to the again own time that take devices point that's take pace. think going it's a and say is I that's wide as to some last rollout And again available going the need and well to its

Simon Flannery

Thanks lot. Great. a

Operator

you. Thank

We Rollins have a ahead. question Please of the from go Citi. line Michael from

Michael Rollins

Good morning. Thanks.

Thanks. change are seeing thinking pick churn past from there on anything Can that what you on integration is up to that's side? of? it mentioned events the part there domestic the we of And the is just expand site churn. XQ leasing is a should you You mergers horizon or be that on in

Tom Bartlett

from it's mean from but a bit up I QX, Michael, above it's de X%. It's minimis.

to X.X% we that up QX. so the gets something like from it had or or in think I X.X% that

So it's we that de the just United minimis footprint the across States. have in

Jim Taiclet

it's just nothing It's verticals or mostly in Tom that as the come timing said, we X% other had X% and networks, we have -- -- when our and certain due contract XX years, are other for things consolidating really to different. so the within

Michael Rollins

Thanks.

Operator

& question go line Please Company. Colby Thank you. from final will the Cowen And of then ahead. from our come Synesael

Colby Synesael

Great, thank you.

thing. one back India would question go ask around thought the to But Sorry I to more I that. just

of bankruptcy, currently to Rick to question through up and the to to in flows, from response was paid in date law if India giving back how are of relates for all secondly, and T-Mobile And then you it going anticipate ebbs see of of long bill process? that declare moderation in guess at you slowdown one into your rate your customers the you providers, be just think book a that actually some tenants as the that be will you it enough India you U.S. being you would local would to extent given about length materially in expect to might just And your go summer could would we first for terms payment? I your be Just of now measured if a what growth of you. that because as are result some to when the as Thank quarters in XXXX? seeing time period will we you from of

Jim Taiclet

Okay.

the is that going, pictures sort other here, one a to bill in Colby, years, will the essentially still served. network time. there to operate international had subscribers - If and the that's they a as the bankruptcy take restructuring, again, lease nationwide. network to law and networks be finish up There electric to keep in going we still what markets Tom is of couple a that was and ago put We we tend the needed, have be selected to happens. need are be India getting a going over of other but And, financial model at again to pay to the years is

on. there So that that's a when goes experience historical financial our is restructuring

in as India not Our by been is is which that will, customers what their our is expect. a the past on materially than it's and up doing. and smallest I has different if time, typically payment catch But, in it to customer, bit you as market. behind think BSNL, far little schedules going in that's large we

bit T-Mobile it's merger back and is then still got the to a to T-Mobile, adding rate data with the is year. not, XX% going look, cycling trying or its usage a to U.S. usage. delay take and up And of data relevant stay share, thirdly, if to trying customers

guidance. to we So, a be answer cycle our long XXXX, to it's don't that will look customers there CapEx that going as of Tom up said, going question. from for to them hiatus But, will sort expect but be we into of the any

in up in what as and we We will from force we you and create the February. we with there in applications go for see will will and far add guidance as field our interest look the for public statements, operations and our sites, the sales

Colby Synesael

Great, thank you.

Jim Taiclet

Okay, Colby.

Jim Taiclet

you day. this for right, joining and great morning have everybody a All well, thank

Tom Bartlett

Yes, good everybody Bye-bye. happy and all. Halloween weekend to to

Operator

Thank participation Thank using does today. gentlemen, and you. our teleconference. Ladies for executive conclude conference AT&T and that for you

now You may disconnect.

American Tower (AMT) 31 Oct 192019 Q3 Earnings call transcript