In This Article:
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Revenue: $2.2 billion in Q3 2024.
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Adjusted EBITDA: $862 million in Q3 2024.
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Cash CapEx: $359 million in Q3 2024.
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Free Cash Flow: Approximately $100 million year-to-date.
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Operating Expenses: Reduced from over $2.7 billion to closer to $2.6 billion.
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Capital Expenditures: Expected to be $1.5 billion for the year, a reduction of $400 million from 2022.
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Residential ARPU: Sustained above $135 each quarter.
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Fiber Net Additions: 47,000 in Q3 2024, ending with 482,000 fiber customers.
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Mobile Line Additions: 36,000 new mobile lines, reaching 420,000 lines by the end of Q3 2024.
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Gross Margin: Expanded by 50 basis points year over year.
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Debt Repayment: Reduced revolving credit facility by $100 million in Q3 2024.
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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
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Altice USA Inc (NYSE:ATUS) achieved a significant reduction in operating expenses and capital expenditures, delivering over $500 million in improvements.
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The company reported strong fiber net additions, with 47,000 new fiber customers in Q3, reaching a total of 482,000 fiber customers.
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Altice USA Inc (NYSE:ATUS) achieved its strongest mobile performance in four years, adding 36,000 new mobile lines.
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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.
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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
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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.
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The company experienced broadband subscriber net losses of 50,000 in the quarter, attributed to competitive pressure and the sunset of the ACP program.
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Residential ARPU declined 1.9% year over year, primarily due to video cord cutting and timing of rate actions.
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Altice USA Inc (NYSE:ATUS) continues to face challenges from video declines, impacting overall revenue performance.
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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.