Boston, MA 10/24/2013 (wallstreetpr) – Wireless infrastructure provider Crown Castle International Corp. (NYSE:CCI) third-quarter earnings have risen by 9% due to an increase in the company’s cell-tower rental revenues, according to its earnings report declared earlier this week.
Crown Castle (CCI) reported profits of $45.8 million for the third quarter, up from $42 million for the same quarter a year earlier. Revenue went up by 21% to $749 million, exceeding investor and analyst expectations of $731 million. Site rental revenue, which is the main contributor to CCI’s overall revenues, has surged by 15% to $620.8 million.
The earnings report comes in the wake of Crown Castle and AT&T Inc. (NYSE:T) concluding an exclusive rights deal involving transfer of 9,700 AT&T cell towers to Crown Castle for about $4.85 billion in cash, empowering Crown Castle to lease and operate the towers for about 28 years.
A year ago, in September 2012, CCI had similarly acquired rights to lease and operate 7,180 cell towers of telecom player T-Mobile USA for $2.4 billion in cash. Crown Castle forecasts a further 25% to 30% revenue spike from new leases in 2014, arising from increasingly dense networks and future network upgrades.
Meanwhile, CCI plans to obtain Real Estate Investment Trust (REIT) status by early 2014, followed by plans to initiate a dividend of about 35 cents a share. REIT conversion is expected to provide a host of benefits like significant tax advantages, expansion of the cell-tower company’s potential investor base and a noteworthy increase in its trading opportunities, among others. The dividend distribution plans following the planned REIT conversion are expected to be based on investment opportunities around CCI’s core business, apart from other aspects.
Crown Castle’s shares closed at $74 on October 23, down by 1.16% from its previous close of $74.87. After-hours trading saw a slight increase by 0.08% to $74.06.