Crown Castle Swings to a Profit on Revenue Increase, Boosted by AT&T Deal

By Maria Armental 

Crown Castle International Corp. swung to a profit in the fourth quarter as the cell-tower owner reported a sharp increase in revenue.

The results benefited from the company's $4.85 billion deal with AT&T , which closed in December.

For the current quarter, Crown Castle expects net income between $111 million and $144 million and funds for operations, excluding certain items, of between $1.09 and $1.10 a share. For the year, the company expects net income of $445 million to $529 million and adjusted funds from operations of between $4.33 and $4.39.

AFFO is a closely watched measure of performance for real-estate investment trusts, or REITs, that measures a trust's net income.

Founded in 1994, the Houston company started trading publicly in 2001 and converted to a REIT last year.

Companies like Crown Castle--which buy or build portfolios of cell towers, which they then rent to carriers--have grown amid a wave of investment driven by increased demand for wireless Internet.

In December, Crown Castle more than doubled its dividend to $3.28 a share, from $1.40, following pressure from hedge fund Corvex Management LP.

For the latest period, Crown Castle reported net income of $148.1 million, or 41 cents a share, compared with a year-earlier loss of $23.5 million, or 11 cents a share. Those figures include dividends on preferred stocks. The company had expected profit of 29 cents to 39 cents.

Net revenue rose 21% to $967.6 million, topping the Wall Street consensus of $931.8 million.

Adjusted funds from operations were $1.04 a share, up 14% from the year-ago period, but on the low end of the company's projection of $1.04 to $1.05.

Shares rose 1.16% to $82.30 in recent after-hours trading.

Through Wednesday's closing, the company's stock had risen 9% over the past 12 months.

Write to Maria Armental at [e-mail]

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