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American Tower (AMT) to Buy CyCSA, Eyes Argentina Market
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Shares of leading international wireless tower operator, American Tower Corp. (AMT - Free Report) have had a more or less favorable run on the bourses over the past one year. Year to date, the company’s gain of 5.42% is higher than the Zacks categorized Reit-Eqty Trust Retail Market’s growth of 1.56%.
American Tower recently announced the acquisition of Argentina-based Comunicaciones y Consumos, SA (CyCSA). Per the deal, American Tower will buy 1,000 urban wireless sites and a 2,500 km fiber optic network. Through this deal, American Tower will also gain the rights to deploy mobile infrastructure in various localities across the country. However, the deal amount has been kept under wraps.
The buyout will add to the company’s already existing portfolio of around 144,000 sites. American Tower’s officials further claim that this acquisition will open up avenues to enter a larger and attractive market and thus help the company to generate more revenues. American Tower has been engaged in expanding its footprint in Argentina. In Nov 2016, the company entered into an agreement to buy several wireless sites, equipment and fiber assets on infrastructure owned by Argentinian utilities along with several indoor wireless sites across Latin America.
Winding Up
Mobile subscriber growth has significantly boosted the wireless tower industry. Major U.S. telecom behemoths – Verizon Communications Inc. (VZ - Free Report) , Sprint Corp. (S - Free Report) , T-Mobile US (TMUS - Free Report) and AT&T Inc. – are all moving ahead with their 5G plans and aim to launch their 5G networks in the upcoming years. They have either tested or are in the process of testing 5G technology.
In order to support the rising demand for 4G LTE and 5G deployment, American Tower plans to construct nearly 2,500 sites globally in 2016. Going forward, American Tower’s acquisition of a 51% stake in Viom Networks and the tower deal with Bharti Airtel’s Tanzania unit will increase the company’s tower count and help it to build stronger ties with mobile network operators such as Bharti Airtel, Vodafone, Idea, Tata, Reliance and Aircel. American Tower’s Indian, EMEA and Latin American operations together accounted for nearly 50% of its organic core revenue growth.
The company has even managed to perform impressively in the third quarter of 2016 wherein both adjusted funds from operations (AFFO) and revenues improved significantly from the year-ago quarter and outpaced the Zacks Consensus Estimate.
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American Tower (AMT) to Buy CyCSA, Eyes Argentina Market
Shares of leading international wireless tower operator, American Tower Corp. (AMT - Free Report) have had a more or less favorable run on the bourses over the past one year. Year to date, the company’s gain of 5.42% is higher than the Zacks categorized Reit-Eqty Trust Retail Market’s growth of 1.56%.
American Tower recently announced the acquisition of Argentina-based Comunicaciones y Consumos, SA (CyCSA). Per the deal, American Tower will buy 1,000 urban wireless sites and a 2,500 km fiber optic network. Through this deal, American Tower will also gain the rights to deploy mobile infrastructure in various localities across the country. However, the deal amount has been kept under wraps.
The buyout will add to the company’s already existing portfolio of around 144,000 sites. American Tower’s officials further claim that this acquisition will open up avenues to enter a larger and attractive market and thus help the company to generate more revenues. American Tower has been engaged in expanding its footprint in Argentina. In Nov 2016, the company entered into an agreement to buy several wireless sites, equipment and fiber assets on infrastructure owned by Argentinian utilities along with several indoor wireless sites across Latin America.
Winding Up
Mobile subscriber growth has significantly boosted the wireless tower industry. Major U.S. telecom behemoths – Verizon Communications Inc. (VZ - Free Report) , Sprint Corp. (S - Free Report) , T-Mobile US (TMUS - Free Report) and AT&T Inc. – are all moving ahead with their 5G plans and aim to launch their 5G networks in the upcoming years. They have either tested or are in the process of testing 5G technology.
In order to support the rising demand for 4G LTE and 5G deployment, American Tower plans to construct nearly 2,500 sites globally in 2016. Going forward, American Tower’s acquisition of a 51% stake in Viom Networks and the tower deal with Bharti Airtel’s Tanzania unit will increase the company’s tower count and help it to build stronger ties with mobile network operators such as Bharti Airtel, Vodafone, Idea, Tata, Reliance and Aircel. American Tower’s Indian, EMEA and Latin American operations together accounted for nearly 50% of its organic core revenue growth.
We believe American Tower’s efforts to drive its top line and its competitive edge over its rivals have helped it to maintain a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has even managed to perform impressively in the third quarter of 2016 wherein both adjusted funds from operations (AFFO) and revenues improved significantly from the year-ago quarter and outpaced the Zacks Consensus Estimate.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>