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This statistic highlights American Tower’s Revenue by Segment, reported on a quarterly basis from Q1 2016 onwards, split between Property and Services segments.
American Tower’s Revenue by Segment
|Segment||Q3 2020||Q2 2021||Q3 2021||Revenue Contribution in Q3 2021|
(All figures in millions, except percentages)
American Tower’s revenue in Q3 2020 was $2,012.9 million, which increased by nearly 22% to $2,454.3 million in Q3 2021. The company even observed a revenue rise of 6.8% as compared to $2,298.9 million in Q2 2021.
The revenue is bifurcated into the following segments:
The company’s primary business provides leasing space on communication sites for wireless service providers, television and radio companies, wireless ISPs (or data providers), municipalities, tenants, and government agencies in several other industries. These primary operations are referred to as the company’s “property operations.”
The tenants lease space on the communications real estate, which is the place where tenants install and maintain their equipment. Rent costs usually consist of power and fuel costs, ground rent (primarily fixed through long-term agreements involving annual price escalations) and property taxes or repairment and maintenance expenses. Other factors might include amount, type or position of tenant equipment on the tower, tower location, and remaining tower capacity.
Trends Observed in the Property Segment
Apart from property operations, the company even offers tower-related services in the US, which are called “service operations.” These involve zoning, permitting, site application and structural analysis as well. These services aid the company’s main site in leading business apart from adding new tenants and equipment.
The company engages in site application services on its own as well as the tenant’s behalf, connecting the tower development projects. As a part of services operations, American Tower works with the tenant’s engineer to figure out regions where fresh communication sites will best cater to the tenant’s needs and meet the coverage objectives.
In structural analysis, the company provides services to wireless carriers connected to installing the communications equipment on towers. American Tower has a team of engineers who evaluate whether a specific tower structure will be able to support the additional burden of new equipment, or some upgradation is required. This helps the tenants to assess potential sites before installing anything.
Trends Observed in the Services Segment
Established in 1995 by Steven Dodge, American Tower Corporation is a U.S.-based real estate investment trust and one of the leading independent owners, operators, and developers of multi-tenant communications real estate. It is among the list of Fortune 500 companies and has its headquarters in Boston, Massachusetts. The company is also listed on S&P 500.
The company is a global leader in wireless infrastructure and claims to have the most cell towers in America (41,886). The company has great international outreach that helps them achieve impressive tenant diversification. Customers at American Tower include firms including AT & T, Verizon, and Sprint.
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* Local taxes extra.