SBA Communications (SBAC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income rose to $255.9 million ($2.40 per share), up over 100% year-over-year, driven by a $93.3 million benefit from extending tower asset lives and currency gains.

• Total Q3 2024 revenues were $667.6 million, down 2.2% year-over-year; site leasing revenue was $625.7 million, with domestic up 0.6% and international down 5.1% (up 2.8% constant currency).

• Adjusted EBITDA for Q3 2024 was $472.6 million (margin 70.9%), down 2% year-over-year; AFFO per share was $3.32, down 0.6% (up 1.8% constant currency).

• Announced $975 million acquisition of over 7,000 Millicom sites in Central America, expected to add $129 million in revenue and $89 million in tower cash flow in the first full year post-closing, with a 15-year leaseback and 7-year build-to-suit exclusivity.

• Board declared a $0.98 per share quarterly dividend, up 15% year-over-year.

Financial highlights

• Q3 2024 site leasing revenue was $625.7 million, nearly flat year-over-year; site development revenue fell 7.1% to $41.9 million.

• Adjusted EBITDA for Q3 2024 was $472.6 million, with a margin of 70.9%.

• AFFO was $358.3 million, AFFO per share was $3.32, and Tower Cash Flow was $507.6 million (margin 81.3%).

• Net income for Q3 2024 was $255.9 million, up from $85.4 million in Q3 2023.

• Net cash interest expense decreased 5.7% to $88.7 million.

Outlook and guidance

• Raised full-year 2024 guidance across all key metrics: total revenue expected at $2.66–$2.68 billion, AFFO at $1.43–$1.45 billion, AFFO per share at $13.20–$13.45, Adjusted EBITDA at $1.89–$1.90 billion, and Tower Cash Flow at $2.04–$2.05 billion.

• Guidance assumes only contracted acquisitions closing by year-end and no additional share repurchases or new debt in 2024.

• Organic site leasing revenue in both domestic and international segments is expected to increase over 2023 levels on a currency-neutral basis.

• 2024 non-discretionary capex projected at $51–$57 million, discretionary capex at $490–$500 million.

• Pro forma for Millicom, 80% of cash site leasing revenue and 84% of Adjusted EBITDA will be U.S. dollar denominated.