BOCA RATON, Florida, United States-Feeling financial pressure as wireless carriers continue to slash capital expenditures, wireless tower owner and operator SBA Communications has lowered its third-quarter guidance for earnings before interest, taxes, depreciation and amortization (EBITDA).
SBA now expects to report EBITDA between US$18.5 million and US$20 million, down from its previous US$21 million to US$23 million expectation. About US$2 million of the difference stems from lower services gross profit, and US$1 million represents higher leasing costs than expected. Outside of EBITDA, the company expects to report expenses of about US$1.5 million related to abandoned tower building projects, employee layoffs and office closings that occurred in the third quarter.
SBA reaffirmed it expects total revenues for the third quarter to be US$65 million-below the previous quarter’s US$69.6 million-with net loss per share between 60 U.S. cents and 70 U.S. cents. SBA will release official third-quarter results 5 November.
SBA shares were down 26.25 percent, trading at 59 U.S. cents per share, by late morning Friday.
