Two of the nation’s largest tower operators posted second-quarter losses despite increasing revenues as they continued to move toward a pending merger.
SpectraSite Inc. reported a net loss of $1.4 million, or 3 cents per share, during the quarter, compared with a net profit of $2.9 million, or 6 cents per share, last year. But sales for the period rose to $97.7 million, up more than 12 percent from last year’s $87.6 million.
The company said results were affected by $10.5 million in charges it took during the period, including a $6 million decrease in an investment and $4.5 million in expenses related to its proposed merger with American Tower Corp. SpectraSite didn’t offer specific guidance in the quarterly report due to the pending merger, but generally painted a rosy portrait for the rest of the year.
“While we clearly posted strong financial results during the second quarter, I am perhaps even more pleased with the current level of demand we are seeing on our towers,” said Stephen H. Clark, the company’s chief executive officer. “Our backlog of new lease applications continues to remain robust, which bodes well for the remainder of the year and into 2006.”
American Tower, meanwhile, halved its second-quarter loss from a year ago. The company reported a net loss of $31.8 million, or 14 cents per share, on revenue of $188 million-up 9 percent from last year.
Boston-based American Tower said it expects to trim its losses in the current quarter to between $13 million and $17 million on projected sales between $190 million and $194 million. The company’s $3.1 billion merger with SpectraSite is expected to close within the next few months, resulting in a 22,000-tower behemoth.
Standard & Poor’s Ratings Services Inc. upgraded ratings for both companies following the reports, and Wall Street greeted warmly the results. Shares of American Tower were up 40 cents to $22.50 in mid-day trading on the New York Stock Exchange Thursday; SpectraSite shares were up $2.42 to $80.24 on the NYSE.
