Summary
Crown Castle Inc. (CCI) operates as a Real Estate Investment Trust (REIT) focused on owning, operating, and leasing shared wireless infrastructure across the United States and Puerto Rico. As of December 31, 2016, the company possessed approximately 40,000 towers and 26,500 route miles of fiber, primarily supporting small cell networks. The core business model relies on long-term leases for space or capacity on this infrastructure, generating recurring site rental revenues. This segment accounted for 82% of consolidated net revenues and 89% of gross margin in 2016. A significant majority of these revenues come from a few major wireless carriers, namely AT&T, T-Mobile, Verizon Wireless, and Sprint, which collectively represented 90% of site rental revenues in 2016. The company's strategy centers on growing cash flows from its infrastructure portfolio, returning a significant portion of operating cash flow to stockholders via dividends, and investing capital efficiently for future growth. In 2016, CCI completed the significant $1.5 billion FiberNet Acquisition, expanding its fiber assets, and continued to increase its quarterly dividend. The company's infrastructure is strategically located, with a substantial portion in the top 50 and 100 U.S. basic trading areas, positioning it to benefit from the ongoing growth in wireless connectivity demand.
Financial Highlights
52 data points| Revenue | $3.92B |
| Cost of Revenue | $417.00M |
| Gross Profit | $3.50B |
| SG&A Expenses | $371.00M |
| Operating Expenses | $2.97B |
| Operating Income | $949.00M |
| Interest Expense | $501.00M |
| Net Income | $356.97M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 340.00M |
| Shares Outstanding (Diluted) | 341.00M |
Key Highlights
- 1Crown Castle operates as a REIT, focusing on wireless infrastructure (towers and small cells) with a significant recurring revenue base from long-term leases.
- 2The company owns and operates approximately 40,000 towers and 26,500 route miles of fiber as of December 31, 2016.
- 3Site rental revenues, comprising 82% of net revenues, are generated primarily from four major wireless carriers (AT&T, T-Mobile, Verizon, Sprint) who accounted for 90% of site rental revenue in 2016.
- 4In 2016, Crown Castle completed the $1.5 billion FiberNet Acquisition, expanding its fiber network capabilities.
- 5The company's strategy emphasizes growing cash flow, returning capital to shareholders through dividends, and reinvesting in the business.
- 6A substantial portion of towers are located in key U.S. metropolitan areas, aligning with demand for wireless connectivity.
- 7The leases for land interests under towers have long remaining terms, averaging over 30 years, providing revenue stability.