Crown Castle (CCI) Q4 2023 earnings summary

Executive summary

• 2023 results were in line with expectations: site rental revenue rose 4%, Adjusted EBITDA and AFFO each rose 2%, tower organic growth was 5%, and Fiber Solutions organic growth returned to ~3% in Q4 excluding Sprint cancellations.

• 2024 outlook remained unchanged from October 2023, forecasting lower revenue, Adjusted EBITDA and AFFO at the midpoint, alongside continued organic growth across towers, small cells and fiber.

Financial highlights

• FY 2023 site rental revenue was $6,532M, up 4% YoY.

• Adjusted EBITDA was $4,415M, up 2%; AFFO was $3,277M and AFFO/share was $7.55, both up 2%.

• GAAP net income was $1,502M and diluted EPS was $3.46, each down 10%; net income included $85M in restructuring charges related to the July 2023 plan.

• FY 2023 operating cash flow was $3,126M; capital expenditures were $1,424M.

Outlook and guidance

• FY 2024 site rental revenue outlook was $6,347M–$6,392M, with a 2% midpoint decline YoY; outlook unchanged from October 18, 2023.

• FY 2024 net income outlook was $1,213M–$1,293M and diluted EPS $2.79–$2.97, implying 17% midpoint declines YoY.

• FY 2024 Adjusted EBITDA outlook was $4,138M–$4,188M, down 6% at the midpoint; AFFO was $2,980M–$3,030M, or $6.85–$6.97/share, down 8% at the midpoint.

• Site rental billings growth excluding Sprint cancellations was forecast at 5%: towers 4.5%, small cells 13%, and Fiber Solutions 3%.

• Organic contribution to site rental billings was forecast at $70M–$110M including Sprint effects versus $245M–$285M excluding them; AFFO growth excluding Sprint effects and prepaid-rent amortization was forecast at $40M–$90M.