Altice USA Inc (ATUS) Q3 2024 Earnings Call Highlights: Strategic Cost Reductions and Strong ...

In This Article:

  • Revenue: $2.2 billion in Q3 2024.

  • Adjusted EBITDA: $862 million in Q3 2024.

  • Cash CapEx: $359 million in Q3 2024.

  • Free Cash Flow: Approximately $100 million year-to-date.

  • Operating Expenses: Reduced from over $2.7 billion to closer to $2.6 billion.

  • Capital Expenditures: Expected to be $1.5 billion for the year, a reduction of $400 million from 2022.

  • Residential ARPU: Sustained above $135 each quarter.

  • Fiber Net Additions: 47,000 in Q3 2024, ending with 482,000 fiber customers.

  • Mobile Line Additions: 36,000 new mobile lines, reaching 420,000 lines by the end of Q3 2024.

  • Gross Margin: Expanded by 50 basis points year over year.

  • Debt Repayment: Reduced revolving credit facility by $100 million in Q3 2024.

  • Leverage Ratio: 7.1 times the last two quarters annualized adjusted EBITDA.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Altice USA Inc (NYSE:ATUS) achieved a significant reduction in operating expenses and capital expenditures, delivering over $500 million in improvements.

  • The company reported strong fiber net additions, with 47,000 new fiber customers in Q3, reaching a total of 482,000 fiber customers.

  • Altice USA Inc (NYSE:ATUS) achieved its strongest mobile performance in four years, adding 36,000 new mobile lines.

  • The company demonstrated gross margin expansion of 50 basis points year over year and delivered free cash flow of approximately $100 million year-to-date.

  • Altice USA Inc (NYSE:ATUS) has made significant strides in strengthening its networks and operations, leading to marked improvements in service call and visit trends.

Negative Points

  • Altice USA Inc (NYSE:ATUS) reported a decline in total revenue of 3.9% year over year, driven by a 5.6% decline in residential revenue.

  • The company experienced broadband subscriber net losses of 50,000 in the quarter, attributed to competitive pressure and the sunset of the ACP program.

  • Residential ARPU declined 1.9% year over year, primarily due to video cord cutting and timing of rate actions.

  • Altice USA Inc (NYSE:ATUS) continues to face challenges from video declines, impacting overall revenue performance.

  • The macroeconomic environment and increased competition from fixed wireless and overbuilders continue to weigh on the company's results.

Q & A Highlights

Q: Your larger peers saw some improvement in broadband. Did you see a similar trend, and do you think your broadband ARPU is now competitively priced for sustainable growth? A: Dennis Mathew, CEO: We observed a decline in gross add activity and disconnects across the industry. Despite the expansion of fixed wireless and fiber overbuilders, we are improving our win-loss percentage with hyperlocal strategies. Our ARPU stabilization journey has been successful, and we are confident in continuing to stabilize and grow broadband ARPU with new products and value-added services.

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