BOCA RATON, Fla.-SBA Communications Corp., the nation’s fourth-largest tower owner, posted second-quarter losses of $75.6 million despite increased revenues of $87.4 million. Last year in the same quarter the company recorded $63.2 million in revenues and a loss of $26.2 million.
The company said results were impacted by integration expenses related to its $1 billion acquisition of AAT Corp.’s 1,850 towers in April. For the quarter, AAT contributed $16.2 million in site leasing revenue and $11.7 million in tower cash flow. “The integration is substantially complete, ahead of schedule and below budget,” commented Jeffrey Stoops, SBA chief executive.
SBA reported total site leasing revenues of $62.3 million, a 60.1-percent increase from last year’s leasing revenues of $38.9 million. Operating expenses climbed to $84.5 million from last year’s $63.4 million.
Looking forward, SBA said it expects to post third-quarter revenues of between $93 million to $96.5 million.
“We were pleased to see an increase in guidance for discretionary capex, as SBA Communications’ ability to increase the size of its portfolio is a significant part of the story,” said Raymond James Equity Research.
As of June 30, SBA owned approximately 7,131 towers, including sites formerly owned by AAT. Since then, the company has built 3 additional towers and purchased 128.
SBA’s stock remained flat after the news at $23.71 per share.
