SBA Communications Corp (SBAC) Reports 8.5% Increase in Site Leasing Revenue for Q3 2023
SBA Communications Corp (NASDAQ:SBAC) reports an 8.5% increase in site leasing revenue for Q3 2023, reaching $637.5 million.
The company's net income for the quarter was $85.4 million, a decrease of 14.4% compared to Q3 2022.
SBAC declared a quarterly cash dividend of $0.85 per share, payable on December 14, 2023.
The company repurchased $100 million of its common stock during the quarter.
On November 2, 2023, SBA Communications Corp (NASDAQ:SBAC) released its earnings report for the third quarter of 2023. The company reported strong financial results, exceeding estimates and its own expectations. The report highlighted solid growth in site leasing revenue, Tower Cash Flow, and Adjusted EBITDA. Despite higher interest expense, the company generated solid AFFO in the quarter, providing ample cash for discretionary spending and strong dividend coverage.
Financial Highlights
SBAC's site leasing revenue for Q3 2023 was $637.5 million, an increase of 8.5% compared to Q3 2022. Site development revenue, however, decreased by 48.9% to $45.1 million. The company's net income for the quarter was $85.4 million, a decrease of 14.4% compared to the same period in the previous year. Earnings per share diluted were $0.80, a decrease of 12.2%.
The company's Adjusted EBITDA for the quarter was $482.1 million, a 7.9% increase over the prior year period. AFFO for the quarter was $364.1 million, a 7.3% increase over the prior year period, and AFFO per share was $3.34, a 7.7% increase over the prior year period.
Investing and Financing Activities
During Q3 2023, SBAC acquired 45 communication sites for a total cash consideration of $40.8 million and built 86 towers. The company ended the quarter with $12.6 billion of total debt and $228.9 million of cash and cash equivalents. SBAC also repurchased $100 million of its common stock during the quarter.
Outlook
Based on the Q3 results and current expectations for the remainder of 2023, SBAC has adjusted its full year outlook in several areas, including increases to Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, AFFO, and AFFO per share.
SBAC's CEO, Jeffrey A. Stoops, commented on the results:
We posted strong financial results for the third quarter, exceeding estimates and our own expectations. We continue to execute very well, making the most of varying demand. Long-term, the quality of our assets and our operational execution position us well to capitalize on the continuing growth in wireless data consumption and the resulting necessary investment of our carrier customers into the development and expansion of their 5G networks."
Explore the complete 8-K earnings release (here) from SBA Communications Corp for further details.
This article first appeared on GuruFocus.
