CLAIM #6852 · American Tower Corp (AMT) · 2024Q2 earnings call · Jul 30, 2024

“we do think it appropriate to work that percentage down over time by focusing on our developed markets.”

Steven Vondran · CEO

How to check this claim

Look at: Emerging market revenue or property/CapEx exposure as a percentage of total company revenue or CapEx, as disclosed

It came true if: Emerging market exposure percentage lower than the figure reported as of the quarter ended 2024-07-30

Where: Company disclosures on segment/geographic revenue mix (10-K/10-Q or earnings call commentary)

Knowable after: 2026-07-30

In context

“f the macroeconomic conditions, particularly the FX headwinds that we've been seeing, that's kind of given us the choice to start pivoting a little bit more away from the exposure into those emerging market economies, given what we're seeing in the macroeconomic conditions today. So what we're doing is pivoting more of our discretionary CapEx to the developed markets. This isn't a new thing. We've been doing that for the last several years, and we haven't done an emerging market transaction in quite a few years now. And the bulk of our CapEx has been going toward developed markets. What that will do if that trend continues, and we expect it to, is it will reduce that emerging market exposure over time. We're not setting a kind of line in the sand a day for where we think it should be, but we do think it appropriate to work that percentage down over time by focusing on our developed markets. Having said that, we will continue to support our Tier 1 MNOs in those markets. We'll make some discretionary CapEx investments where it makes sense or where they meet the return criteria that we set out for markets. But in terms of expanding in those markets are looking to double down or anything. That's not something you're likely to see us do given our desire to reduce the exposure we have to that -- those emerging market economies. Rod Smith: Hey, Matt, Rod here. So on one of the charts, you can see on the adjusted EBITDA, we're showing roughly a $50 million benefit to outlook on cash gross margins. The way to think about that is much of that is driven, almost all of that is driven by benefits or improvements in that direct expense line. From a high level, think about it as 50/50 mix”

Verify independently

SEC filings for AMT ↗ · Quote is verbatim from the 2024Q2 earnings call.