Crown Castle raises annual site rental revenue forecast on strong data demand

Site rental revenue came in at $967 million for the quarter ended June 30, below analysts' expectation of $997 million, according to data compiled by LSEG.

Crown Castle reported adjusted funds from operations of $1.13 per share for the quarter, higher than the estimate of $0.99 per share.

The company, which has over 40,000 cellular towers across the U.S., is looking to transition into a pure-play tower operator.

In February, Crown Castle had announced it would cut 20% of its workforce, following the sale of its fiber assets last year for $8.5 billion amid pressure from activist investor Elliott Investment Management to boost its financials.

Telecom infrastructure company Crown Castle raised its annual site rental revenue forecast on Wednesday, betting on strong demand for data consumption and wireless infrastructure services.

Companies like Crown Castle that own and lease cell towers to wireless carriers are benefiting from a surge in data consumption that is driving demand for network infrastructure.

The company, whose clients include AT&T, T-Mobile US, and Verizon Communications, now sees annual site rental revenue — or income from leasing of properties — in the range of $3.83 billion to $3.88 billion, slightly above the range of projected previously.