• Revenue Growth: Domestic same tower revenue growth was 5.3% gross and 2% net, including 3.3% churn.

• International Revenue Growth: International same-tower recurring cash leasing revenue growth was 3.1% net, including 4.3% churn.

• Brazil Revenue Growth: Same-tower gross organic growth in Brazil was 6.5% on a constant currency basis.

• Services Revenue Increase: Services revenue was up over 23% from the second quarter.

• Gross Profit Increase: Gross profit increased by over 33% from the second quarter.

• Adjusted EBITDA: Full year adjusted EBITDA outlook increased due to strong results.

• Debt Transactions: Issued $2.07 billion in tower revenue securities with interest rates of 4.654% and 4.831%.

• Interest Expense Savings: Repriced $2.3 billion term loan, saving approximately $6 million annually.

• Leverage Ratio: Current leverage of 6.4 times net debt to adjusted EBITDA.

• Dividend Increase: Fourth quarter dividend of $0.98 per share, a 15% increase over the previous year.

• Warning! GuruFocus has detected 7 Warning Signs with SBAC.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SBA Communications Corp (NASDAQ:SBAC) reported leasing results in line with expectations and services results slightly ahead, leading to an increased full-year 2024 outlook across key financial metrics.

• The company announced a significant acquisition of over 7,000 sites in Central America from Millicom International Cellular, enhancing its scale and positioning as the largest tower company in the region.

• SBA Communications Corp (NASDAQ:SBAC) experienced an increase in domestic new carrier activity and a shift towards more new lease locations, indicating potential for future growth.

• The company successfully executed three positive capital markets transactions, demonstrating strong access to attractively priced capital and maintaining leverage near historical lows.

• SBA Communications Corp (NASDAQ:SBAC) reported a strong performance in its services business, with revenue up over 23% from the second quarter and gross profit up over 33%.

Negative Points

• The international market presents challenges due to customer consolidations and network rationalization, although SBA Communications Corp (NASDAQ:SBAC) sees potential for future growth.

• The company is facing elevated churn in its international markets, primarily due to previously announced customer consolidations.

• SBA Communications Corp (NASDAQ:SBAC) is exiting the Philippines market due to a lack of scale and limited path to growth, highlighting challenges in certain international markets.

• The shift towards more new lease locations may result in a delay from when revenue is signed up to when it commences, compared to amendments.

• The company faces limitations in new spectrum availability, which may challenge customers to meet network demands through incremental equipment deployment and site densification.