American Tower Quarterly Profits Hit by Currency Losses
Published on: 25th Feb 2014
By: Ian Mansfield
USA based American Tower says that its revenue for the fourth quarter of last year rose by 22 percent although its net profits dropped due to foreign exchange rate changes.
The company posted revenue of USD942 million for the three months to the end of 2013. Adjusted EBITDA increased 19.9% to $600.1 million. Core Growth in Adjusted EBITDA was 27.3%, and Adjusted EBITDA Margin was 64%.
Net profit however fell by 26.3% to $100.0 million, which was primarily attributable to the company's recognition of unrealized non-cash losses of $60 million associated with fluctuations in foreign currency exchange rates related to intercompany loans and similar unaffiliated balances.
Cash provided by operating activities increased 52.6% to $454.6 million.
Jim Taiclet , American Tower's Chief Executive Officer stated, "In 2013, our global sales and operations teams delivered record levels of new leasing business. Collocations, amendments and annual escalators, net of churn, drove Organic Core Growth of 8.7% domestically and 13.5% in our international markets. In addition, we added over 10,000 towers to our portfolio via acquisitions, predominantly in our three largest markets, the U.S., Mexico and Brazil ."
The international division now represented 32% of the company's revenues.