Towers operator SBA Communications said it will pay its first cash dividend after reporting solid second-quarter results. The company’s leasing revenue was up 6.8 percent to USD 459 million, and the net result moved to a profit of USD 32 million from a loss of USD 57.3 million a year ago. It also announced a new acquisition in South Africa.

Adjusted EBITDA was up 8.9 percent to USD 347.2 million in Q2, and AFFO increased 12.5 percent to USD 240.1 million or USD 2.09 per share. SBA said it will pay a dividend of USD 0.37 per share.

The company acquired 82 new sites and built 87 towers during the quarter, for a total of 29,845 communication sites owned or operated. Another 59 sites were bought since the end of the quarter, and the company agreed to buy 125 more by Q1 2020.

SBA also announced that it intends to exercise its option to acquire all but 6.0 percent of a previously unconsolidated joint venture in South Africa. Atlas Tower South Africa owns and operates around 900 sites throughout South Africa and has a substantial new tower development backlog. SBA plans to invest USD 140 million in the company, and Atlas is expected to generate annual revenues and adjusted EBITDA during its first full year of operation after the closing of USD 31 million and USD 21 million, respectively.

The company’s 2019 outlook has been updated to include the acquisition. It now expects annual revenues of USD 1.974-2.014 billion, adjusted EBITDA of USD 1.395-1.415 billion and AFFO of USD 943-989 million.

Source: Telecompaper.com