American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC's segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.
Business Analysis of American Tower
The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how American Tower compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by American Tower to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of American Tower with an interactive chart.
- Revenue Growth: American Tower reported a revenue growth of 21.3% year-on-year during 2016. Communication Equipment Industry grew at 18.7% in the same period
- COGS share of Revenues: As a percentage of revenue, American Tower spent 31.0% of its total revenues on COGS. Communication Equipment industry average (COGS share of revenue) in the same period was 57.5%
- R&D share of Revenues: American Tower R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, American Tower spent 9.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Communication Equipment industry average SG&A spending in the same period was 15.2%
- Inventory share of Revenues: American Tower Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, American Tower invested 6.4% of its total revenues on Accounts Payable (A/P) Communication Equipment industry average Accounts Payable investment in the same period was 9.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, American Tower invested 19.9% of its total revenues on Accounts Receivable (A/R). Communication Equipment industry average Accounts Receivable investment in the same period was 18.1%
- PP&E share of Revenues: As a percentage of revenue, American Tower invested 181.8% of its total revenues on Property, Plants, and Equipments (PP&E). Communication Equipment industry average PPE investment in the same period was 48.2%
- Intangibles share of Revenues: As a percentage of revenue, American Tower invested 282.5% of its total revenues on Intangibles. Communication Equipment industry average Intangibles investment in the same period was 90.9%
- Net Margins: American Tower Net Margins in the year 2016 were 16.5%. Communication Equipment industry average Net Margins in the same period were 5.0%
Sector and Industry Association of American Tower
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
American Tower is associated with Telecommunications Sector and Communication Equipment Industry.
Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:
- Telecom Services industry includes providers of fixed-line and mobile telephone services.
- Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.
Industry Ranking of American Tower
With $5.8 billion revenues, American Tower ranked number 4 of all the companies in the US Communication Equipment industry. There were a total of 27 public companies in the US Communication Equipment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Communication Equipment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of American Towerand its peers on select key performance indicators by clicking the reports provided below