American Tower Reports Mixed Q3 Results, Significant Loss from Discontinued Operations

American Tower Corporation (ATC) reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total operating revenues reached $2,522.3 million, slightly up from $2,521.1 million in the same period of 2023. Operating income increased to $1,139.2 million from $913.0 million year-over-year. However, net income from continuing operations fell to $428.1 million, down from $774.8 million in the prior year. The company reported a net loss of $(780.4) million for the quarter, contrasting sharply with a net income of $577.3 million in Q3 2023. This loss was primarily attributed to a significant loss from discontinued operations related to the sale of its subsidiary, ATC Telecom Infrastructure Private Limited (ATC TIPL), which resulted in a loss of $(1,245.5) million.

For the nine months ended September 30, 2024, total operating revenues were $7,579.6 million, a slight increase from $7,556.1 million in the same period of 2023. Operating income rose to $3,436.4 million from $2,512.7 million. However, net income attributable to American Tower common stockholders decreased to $1,025.4 million from $1,398.4 million in the previous year.

The company’s strategic developments included the completion of the ATC TIPL sale on September 12, 2024, for approximately $2.2 billion, which was classified as discontinued operations. This divestiture is expected to impact future financial results significantly, as ATC TIPL accounted for a notable portion of the company's international revenue. Additionally, ATC entered into agreements to sell its subsidiaries in Australia and New Zealand for approximately $78.2 million.

American Tower's cash and cash equivalents increased to $2,150.3 million as of September 30, 2024, compared to $1,753.7 million at the end of 2023. Total current assets decreased to $3,399.6 million, while total current liabilities also saw a reduction to $7,069.5 million. Long-term obligations decreased to $33,367.8 million from $35,734.0 million.

The company reported a comprehensive income of $642.4 million for the three months ended September 30, 2024, compared to $(47.3) million in the same period of 2023. For the nine months, comprehensive income was $1,630.5 million, up from $947.7 million in the previous year.

In terms of segment performance, the U.S. & Canada property segment saw a slight revenue decline, while the Asia-Pacific and Europe segments reported growth. The Data Centers segment also experienced revenue growth, reflecting the company's ongoing investment in expanding its data center capabilities.

Overall, American Tower's financial results for the third quarter and nine months of 2024 reflect a complex interplay of revenue growth in certain segments, significant losses from discontinued operations, and strategic divestitures aimed at optimizing its portfolio.