Crown Castle (CCI.N) has adjusted its full-year 2024 net income forecast downward, citing a slowdown in tower leasing activity as wireless carriers tighten their budgets. The announcement came on Wednesday, revealing a projected net income of $1.02 billion, reduced from the previously estimated $1.16 billion.
The company reported it has canceled plans for 7,000 greenfield small cell nodes, which is expected to result in an asset write-down charge of $125 to $150 million in the fourth quarter. This financial revision reflects the ongoing pressures of inflation and rising interest rates, which have constrained the budgets of wireless carriers following the initial rollout of the 5G network.
Despite the revised income forecast, Crown Castle maintained its outlook for site-rental revenue and adjusted funds from operations (AFFO). The telecommunications infrastructure provider owns approximately 40,000 towers and generates the bulk of its revenue from long-term leases to major wireless carriers such as AT&T, T-Mobile US, and Verizon Communications.
Additionally, Crown Castle is currently facing competition for its fiber and wireless assets. Zayo Group, a fiber network owner, and the buyout firm TPG are reportedly in discussions to acquire these assets in a deal valued at nearly $10 billion, according to sources familiar with the matter.
For the third quarter, Crown Castle reported site rental revenue of $1.59 billion, which aligned with analysts’ expectations. However, the company’s net income for the quarter reached $303 million, surpassing analysts’ predictions of $290.4 million.
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