Altice USA Reports Second Quarter 2024 Results
Altice USA (NYSE: ATUS) reported Q2 2024 results, highlighting a revenue of $2.2 billion, a 3.6% decline YoY. Residential revenue fell by 4.4%, while business services saw a minor increase of 1.3%. ARPU declined by 1.1% to $135.95. The company saw a net income of $15.4 million, a significant drop from $78.3 million in Q2 2023. Adjusted EBITDA was $867.2 million, down 5.9% YoY.
Operational highlights include a 40k increase in fiber net additions and a 33k increase in mobile line net additions. Optimum's new low-cost internet TV package, Entertainment TV, launched in July 2024. Capital expenditures were $347.7 million, marking a 26.6% decrease YoY.
Despite network quality recognition, the company faces challenges with a net loss of 51k broadband subscribers and a 7.2x consolidated net leverage. The company aims to reach 3 million fiber passings by year-end and continues to focus on operational improvements and financial discipline.
Altice USA (NYSE: ATUS) ha riportato i risultati del secondo trimestre 2024, evidenziando un fatturato di 2,2 miliardi di dollari, una declino del 3,6% rispetto all'anno precedente. Il fatturato residenziale è diminuito del 4,4%, mentre i servizi business hanno registrato un lieve aumento del 1,3%. L'ARPU è calato dell'1,1% a 135,95 dollari. L'azienda ha registrato un utile netto di 15,4 milioni di dollari, una significativa diminuzione rispetto ai 78,3 milioni di dollari nel secondo trimestre 2023. L'EBITDA rettificato è stato di 867,2 milioni di dollari, con un calo del 5,9% rispetto all'anno precedente.
I momenti salienti operativi includono un aumento di 40k nelle nuove aggiunte di fibra e un aumento di 33k nelle nuove aggiunte di linee mobili. Il nuovo pacchetto TV internet a basso costo di Optimum, Entertainment TV, è stato lanciato a luglio 2024. Le spese in conto capitale sono state di 347,7 milioni di dollari, segnando un decremento del 26,6% rispetto all'anno precedente.
Nonostante il riconoscimento della qualità della rete, l'azienda affronta sfide con una perdita netta di 51k abbonati alla banda larga e un leverage netto consolidato di 7,2x. L'azienda punta a raggiungere 3 milioni di passaggi in fibra entro la fine dell'anno e continua a concentrarsi su miglioramenti operativi e disciplina finanziaria.
Altice USA (NYSE: ATUS) informó los resultados del segundo trimestre de 2024, destacando ingresos de 2.2 mil millones de dólares, una disminución del 3.6% interanual. Los ingresos residenciales cayeron un 4.4%, mientras que los servicios empresariales vieron un ligero aumento del 1.3%. El ARPU disminuyó un 1.1% a 135.95 dólares. La compañía registró un ingreso neto de 15.4 millones de dólares, una caída significativa respecto a los 78.3 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado fue de 867.2 millones de dólares, con una disminución del 5.9% interanual.
Los aspectos operativos destacados incluyen un aumento de 40k en nuevas adiciones de fibra y un aumento de 33k en nuevas adiciones de líneas móviles. El nuevo paquete de televisión por internet de bajo costo de Optimum, Entertainment TV, se lanzó en julio de 2024. Los gastos de capital fueron de 347.7 millones de dólares, marcando una disminución del 26.6% interanual.
A pesar del reconocimiento de la calidad de la red, la empresa enfrenta desafíos con una pérdida neta de 51k suscriptores de banda ancha y un apalanque neto consolidado de 7.2x. La compañía pretende alcanzar 3 millones de pasajes de fibra para fin de año y continúa enfocándose en mejoras operativas y disciplina financiera.
알티스 USA (NYSE: ATUS)는 2024년 2분기 실적을 보고하며, 매출이 22억 달러에 달하고 있으며, 이는 전년 대비 3.6% 감소한 수치입니다. 주거용 매출은 4.4% 감소했으나, 비즈니스 서비스는 1.3% 증가했습니다. ARPU는 1.1% 감소하여 135.95달러에 이르렀습니다. 회사는 1540만 달러의 순이익을 기록했으며, 이는 2023년 2분기의 7830만 달러에서 상당히 감소한 수치입니다. 조정된 EBITDA는 8억6720만 달러로, 전년 대비 5.9% 감소했습니다.
운영 하이라이트로는 4만 개의 광섬유 순 추가와 3만3000개의 모바일 라인 순 추가가 있습니다. 옵티머스의 저렴한 인터넷 TV 패키지인 Entertainment TV는 2024년 7월에 출시되었습니다. 자본 지출은 3억4770만 달러로, 전년 대비 26.6% 감소했습니다.
네트워크 품질에 대한 인식에도 불구하고, 회사는 51,000명의 초고속 인터넷 가입자의 순 손실과 7.2배의 통합 순 레버리지라는 어려움에 직면해 있습니다. 회사는 연말까지 300만 개의 광섬유 통과를 목표로 하고 있으며, 운영 개선과 재무 절약에 계속 집중할 것입니다.
Altice USA (NYSE: ATUS) a rapporté les résultats du deuxième trimestre 2024, mettant en avant un chiffre d'affaires de 2,2 milliards de dollars, soit une diminution de 3,6% par rapport à l'année précédente. Les revenus résidentiels ont chuté de 4,4%, tandis que les services aux entreprises ont connu une légère augmentation de 1,3%. L'ARPU a diminué de 1,1% pour atteindre 135,95 dollars. L'entreprise a enregistré un bénéfice net de 15,4 millions de dollars, un chiffre significativement inférieur aux 78,3 millions de dollars du deuxième trimestre 2023. L'EBITDA ajusté s'élevait à 867,2 millions de dollars, en baisse de 5,9% par rapport à l'année précédente.
Parmi les points forts opérationnels, on note un augmentation de 40 000 nouvelles connexions en fibre et une augmentation de 33 000 nouvelles lignes mobiles. Le nouveau paquet de télévision internet à bas prix d'Optimum, Entertainment TV, a été lancé en juillet 2024. Les dépenses en capital se sont élevées à 347,7 millions de dollars, marquant une diminution de 26,6% par rapport à l'année précédente.
Malgré la reconnaissance de la qualité du réseau, l'entreprise fait face à des défis avec une perte nette de 51 000 abonnés à large bande et un effet de levier net consolidé de 7,2x. L'entreprise vise à atteindre 3 millions de passages en fibre d'ici la fin de l'année et continue de se concentrer sur les améliorations opérationnelles et la discipline financière.
Altice USA (NYSE: ATUS) berichtete über die Ergebnisse des zweiten Quartals 2024, wobei ein Umsatz von 2,2 Milliarden US-Dollar hervorgehoben wurde, was einem Rückgang von 3,6% im Jahresvergleich entspricht. Der Umsatz im Wohnbereich fiel um 4,4%, während die Geschäftsdienstleistungen einen geringfügigen Anstieg von 1,3% verzeichneten. Der ARPU fiel um 1,1% auf 135,95 US-Dollar. Das Unternehmen erzielte einen Nettogewinn von 15,4 Millionen US-Dollar, was einen signifikanten Rückgang gegenüber 78,3 Millionen US-Dollar im zweiten Quartal 2023 darstellt. Das bereinigte EBITDA betrug 867,2 Millionen US-Dollar, ein Rückgang von 5,9% im Jahresvergleich.
Zu den operationellen Höhepunkten gehören ein Zuwachs von 40.000 bei den Glasfaser-Neuzugängen und ein Zuwachs von 33.000 bei den mobilen Neuzugängen. Das neue kostengünstige Internet-TV-Paket von Optimum, Entertainment TV, wurde im Juli 2024 eingeführt. Die Investitionen beliefen sich auf 347,7 Millionen US-Dollar, was einem Rückgang von 26,6% im Jahresvergleich entspricht.
Trotz der Anerkennung der Netzwerkqualität sieht sich das Unternehmen mit Herausforderungen konfrontiert, darunter ein netto Verlust von 51.000 Breitband-Abonnenten und einem 7,2-fachen konsolidierten Nettoschulden. Das Unternehmen hat sich das Ziel gesetzt, bis zum Jahresende 3 Millionen Glasfaseranschlüsse zu erreichen und legt weiterhin Wert auf betriebliche Verbesserungen und finanzielle Disziplin.
- Business services revenue increased by 1.3% YoY.
- Recognized for network quality by PCMag and Ookla.
- 40k increase in fiber net additions.
- 33k increase in mobile line net additions.
- Capital expenditures decreased by 26.6% YoY.
- Total revenue declined by 3.6% YoY.
- Residential revenue declined by 4.4% YoY.
- ARPU declined by 1.1% YoY.
- Net income dropped to $15.4 million from $78.3 million YoY.
- Adjusted EBITDA decreased by 5.9% YoY.
- Net loss of 51k broadband subscribers.
- Consolidated net leverage increased to 7.2x.
Insights
Altice USA's Q2 2024 results reveal a mixed financial picture with some concerning trends:
- Total revenue declined
3.6% year-over-year to$2.2 billion , driven by a4.4% drop in residential revenue. - Net income attributable to stockholders fell sharply to
$15.4 million ($0.03 per share) from$78.3 million ($0.17 per share) in Q2 2023. - Adjusted EBITDA decreased
5.9% to$867.2 million , with margin compression to38.7% from39.7% a year ago. - Free Cash Flow turned negative at
($40.9) million , partly due to$57 million in higher cash taxes.
On a positive note, the company showed discipline in capital expenditures, reducing cash capex by
The declining revenue and profitability metrics are concerning, especially given the high leverage ratio of 7.2x net debt to L2QA EBITDA. However, the company's focus on operational improvements and new product offerings could help stabilize performance if successful.
Altice USA's Q2 results highlight both challenges and opportunities in their core business:
- Broadband subscriber losses accelerated to 51,000 in Q2 2024, compared to 37,000 in Q2 2023, indicating increased competitive pressure.
- However, fiber customer growth remains strong, with 40,000 net additions, reaching 434,000 total fiber customers - a
74% year-over-year increase. - Mobile line net additions accelerated to 33,000, double the pace of Q2 2023, reaching 385,000 total lines.
- Video and telephony subscribers continued to decline, in line with industry trends.
The company's focus on fiber expansion and mobile growth is showing results, but isn't yet offsetting losses in traditional services. The launch of "Entertainment TV" and other planned product enhancements could help improve customer retention and acquisition.
Notably, Altice USA has made significant strides in customer experience, with transactional Net Promoter Scores improving by 34 points over two years. This, combined with operational efficiencies like increased self-install rates and reduced truck rolls, could lead to improved customer satisfaction and potentially lower churn in the future.
The recognition for network quality by PCMag and Ookla Speedtest in key markets is also a positive sign for the company's competitive positioning.
Growth in Fiber Customer Net Adds and Mobile Line Net Adds
Positive Trends in Customer Experience, Network, and Operations
Optimum Portfolio Evolution Roadmap to Deliver More Value to Customers
Recognized with Network Quality Rankings by PCMag®(1) and Ookla® Speedtest®(2)
Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "In the second quarter our company achieved significant improvements in operational metrics and customer satisfaction, growth in our fiber, mobile, and B2B businesses, and continued stabilization of ARPU across our base. We elevated product and network quality, introduced refreshed go-to-market strategies, which are starting to gain traction, and launched Entertainment TV, Optimum's new low-cost internet TV package available exclusively on Optimum Stream, providing more choice and flexibility for customers. Looking ahead, we have an innovative roadmap of future product and experience enhancements that we are eager to bring to current and prospective customers this year and beyond, and we remain focused on advancing network and service quality, driving profitable customer relationships, and maintaining financial discipline.”
Second Quarter 2024 Financial Overview
-
Total revenue of
$2.2 billion 3.6% year over year). -
Residential revenue of
$1.8 billion 4.4% year over year). -
Residential revenue per user (ARPU)(3) of
$135.95 1.1% or ($1.49 -
Business Services revenue of
$369.3 million 1.3% year over year). -
News and Advertising revenue of
$105.3 million 7.2% year over year). -
Net income attributable to stockholders of
$15.4 million $0.03 $78.3 million $0.17 -
Net cash flows from operating activities of
$306.8 million $438.8 million -
Adjusted EBITDA(4) of
$867.2 million 5.9% year over year), and margin of38.7% . -
Cash capital expenditures of
$347.7 million 26.6% year over year) and capital intensity(5) of15.5% (12.9% excluding FTTH and new builds). We have remained disciplined on capital spend in the first half of this year and now anticipate cash capital expenditures under$1.6 billion -
Free Cash Flow (Deficit)(4) of
( , including$40.9) million $57 million
Second Quarter 2024 Key Operational Highlights
-
Significant Growth in Net Promoter Scores (NPS) Driven by Improved Customer Experience (CX)
- Transactional NPS (tNPS)(6) grew +34 points in the last 2 years from Q2 2022 to Q2 2024.
-
Continued CX Improvement with a Focus on Operations and Base Management:
- >700k customers speed rightsized in the last 8 months.
- ~1.7 million fewer inbound calls(7) LTM Q2 2024.
- ~235k fewer truck rolls(8) LTM Q2 2024.
-
+
56% increase in self-install rate(9) Q2 2024. - Hyper-local go-to-market approach leveraging our brand platform, Where Local is Big Time, bringing the reach of a large national provider with the attention of a local business.
-
Optimum Portfolio Evolution to Deliver More Value: Medium-Term Roadmap
- Introduce Value Added Services to create new revenue streams with existing customers, including Direct-to-Consumer partnerships, Total Care and Mobile Device Protection, among others.
- Continue enhancing the broadband experience: Grow fiber penetration, increase HFC broadband capacity, and enhance customer value and experience with speed rightsizing.
- Increase customer stickiness by amplifying mobile across residential and business channels, and expanding the company's suite of smart devices and offerings.
- Expand B2B product portfolio and Lightpath enterprise business by continuing to grow subscribers and ARPU.
-
Evolve the video business to give customers more options through innovative video packages, improved programming agreements, and the continued expansion of Optimum Stream.
- Launched Entertainment TV in July 2024, Optimum's new low-cost internet TV package, available exclusively on Optimum Stream, and offering 80+ top-rated channels.
-
Strong Fiber Net Adds Reaching 434k Fiber Customers, a +
74% Increase in Total Fiber Customers Compared to Q2 2023- Fiber customer growth continued in Q2 2024 with +40k fiber net additions, driven by migrations of existing customers and fiber gross additions.
-
Penetration of the fiber network reached
15.3% at the end of Q2 2024, up from9.4% at the end of Q2 2023.
-
Mobile Line Net Adds of +33k in Q2 2024; 2.0x Acceleration Year Over Year; Reaching 385k Lines
- Optimum Mobile line net additions of +33k in Q2 2024, compared to +16k in Q2 2023.
-
Mobile customer penetration of the broadband base was
5.8% at the end of Q2 2024, up from3.8% at the end of Q2 2023.
-
Total Broadband Primary Service Units (PSUs) Net Losses of -51k
- Broadband net losses were -51k in Q2 2024, compared to -37k in Q2 2023.
- Broadband subscriber net losses in the quarter were principally driven by seasonal university disconnects, continued competitive and macro pressures, and less activity in the low-income segment which is partially attributable to the impact of ACP sunsetting.
-
Continued Progress in Building Quality Broadband Network Experiences
-
Externally recognized for network performance: In New York and
New Jersey , Optimum Fiber was named the best and fastest Internet provider by PCMag®(1) and having the fastest and most reliable Internet speeds by Ookla® Speedtest®(2). -
Capital intensity(5) of
15.5% in Q2 2024 compared to20.4% in Q2 2023. - Fiber passings additions of +62k in Q2 2024, reaching 2.8 million fiber passings, and targeting approximately 3 million fiber passings by year-end 2024.
- Total passings additions of +67k in Q2 2024, reaching 9.7 million total passings, and targeting over 175k additional passings in full year 2024.
- Continued investment in network enhancements: Increasing broadband speeds, node splits at lower costs, and proactive network maintenance.
-
Externally recognized for network performance: In New York and
Balance Sheet Review as of June 30, 2024
-
Net debt(10) for CSC Holdings, LLC Restricted Group was
$23,167 million -
The weighted average cost of debt for CSC Holdings, LLC Restricted Group was
6.6% and the weighted average life of debt was 4.6 years.
-
The weighted average cost of debt for CSC Holdings, LLC Restricted Group was
-
Net debt(10) for Cablevision Lightpath LLC was
$1,413 million -
The weighted average cost of debt for Cablevision Lightpath LLC was
5.4% and the weighted average life of debt was 3.6 years.
-
The weighted average cost of debt for Cablevision Lightpath LLC was
-
Consolidated net debt(10) for Altice USA was
$24,566 million -
The weighted average cost of debt for consolidated Altice USA was
6.5% and the weighted average life of debt was 4.6 years.
-
The weighted average cost of debt for consolidated Altice USA was
Shares Outstanding
As of June 30, 2024, we had 460,583,380 combined shares of Class A and Class B common stock outstanding.
Customer Metrics |
|
|
|
|
|
|
|
(in thousands, except per customer amounts) |
|||||||
|
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
FY-23 |
Q1-24 |
Q2-24 |
Total Passings(12) |
9,512.2 |
9,578.6 |
9,609.0 |
9,628.7 |
9,628.7 |
9,679.3 |
9,746.4 |
Total Passings additions |
48.4 |
66.4 |
30.4 |
19.7 |
164.9 |
50.6 |
67.2 |
Total Customer Relationships(13)(14) |
|
|
|
|
|
|
|
Residential |
4,472.4 |
4,429.5 |
4,391.5 |
4,363.1 |
4,363.1 |
4,326.8 |
4,272.3 |
SMB |
380.9 |
381.0 |
381.1 |
380.3 |
380.3 |
379.7 |
379.7 |
Total Unique Customer Relationships |
4,853.3 |
4,810.5 |
4,772.6 |
4,743.5 |
4,743.5 |
4,706.5 |
4,652.0 |
Residential net additions (losses) |
(26.1) |
(42.9) |
(38.0) |
(28.4) |
(135.4) |
(36.3) |
(54.5) |
Business Services net additions (losses) |
(0.3) |
0.1 |
0.1 |
(0.8) |
(0.9) |
(0.7) |
0.0 |
Total customer net additions (losses) |
(26.4) |
(42.7) |
(37.9) |
(29.2) |
(136.2) |
(37.0) |
(54.5) |
Residential PSUs |
|
|
|
|
|
|
|
Broadband |
4,263.7 |
4,227.0 |
4,196.0 |
4,169.0 |
4,169.0 |
4,139.7 |
4,088.7 |
Video |
2,380.5 |
2,312.2 |
2,234.6 |
2,172.4 |
2,172.4 |
2,094.7 |
2,021.9 |
Telephony |
1,703.5 |
1,640.8 |
1,572.7 |
1,515.3 |
1,515.3 |
1,452.1 |
1,391.1 |
Broadband net additions (losses) |
(19.2) |
(36.8) |
(31.0) |
(27.0) |
(113.9) |
(29.4) |
(51.0) |
Video net additions (losses) |
(58.6) |
(68.3) |
(77.6) |
(62.2) |
(266.7) |
(77.7) |
(72.8) |
Telephony net additions (losses) |
(60.6) |
(62.7) |
(68.1) |
(57.4) |
(248.9) |
(63.1) |
(61.1) |
Residential ARPU ($)(3)(15) |
135.32 |
137.44 |
138.42 |
136.01 |
136.80 |
135.67 |
135.95 |
SMB PSUs |
|
|
|
|
|
|
|
Broadband |
349.0 |
349.1 |
349.4 |
348.9 |
348.9 |
348.5 |
348.8 |
Video |
95.3 |
93.7 |
91.9 |
89.6 |
89.6 |
87.3 |
85.4 |
Telephony |
210.0 |
208.0 |
205.9 |
203.2 |
203.2 |
200.7 |
199.2 |
Broadband net additions (losses) |
(0.1) |
0.1 |
0.3 |
(0.5) |
(0.2) |
(0.4) |
0.3 |
Video net additions (losses) |
(2.0) |
(1.6) |
(1.8) |
(2.3) |
(7.7) |
(2.3) |
(1.9) |
Telephony net additions (losses) |
(2.3) |
(2.0) |
(2.1) |
(2.6) |
(9.1) |
(2.6) |
(1.4) |
Total Mobile Lines(16) |
|
|
|
|
|
|
|
Mobile ending lines |
247.9 |
264.2 |
288.2 |
322.2 |
322.2 |
351.6 |
384.5 |
Mobile ending lines excluding free service |
223.3 |
257.9 |
288.1 |
322.2 |
322.2 |
351.6 |
384.5 |
Mobile line net additions |
7.6 |
16.3 |
24.1 |
34.0 |
82.0 |
29.3 |
33.0 |
Mobile line net additions ex-free service |
14.6 |
34.6 |
30.3 |
34.1 |
113.5 |
29.3 |
33.0 |
Fiber (FTTH) Customer Metrics (in thousands) |
|
|
|
|
|
|
|
|
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
FY-23 |
Q1-24 |
Q2-24 |
FTTH Total Passings(17) |
2,373.0 |
2,659.5 |
2,720.2 |
2,735.2 |
2,735.2 |
2,780.0 |
2,842.0 |
FTTH Total Passing additions |
214.2 |
286.6 |
60.7 |
14.9 |
576.4 |
44.8 |
62.0 |
FTTH Residential |
207.2 |
245.9 |
289.3 |
333.8 |
333.8 |
385.2 |
422.7 |
FTTH SMB |
2.7 |
3.9 |
5.7 |
7.6 |
7.6 |
9.4 |
11.4 |
FTTH Total customer relationships(18) |
209.9 |
249.7 |
295.1 |
341.4 |
341.4 |
394.6 |
434.1 |
FTTH Residential net additions |
37.2 |
38.6 |
43.4 |
44.5 |
163.8 |
51.4 |
37.5 |
FTTH SMB net additions |
0.9 |
1.2 |
1.9 |
1.8 |
5.8 |
1.9 |
2.0 |
FTTH Total customer net additions |
38.1 |
39.8 |
45.3 |
46.3 |
169.7 |
53.2 |
39.5 |
Altice |
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(in thousands, except per share data) |
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(Unaudited) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue: |
|
|
|
|
|
||||||||||
Broadband |
$ |
914,989 |
|
|
$ |
965,865 |
|
|
$ |
1,831,983 |
|
|
$ |
1,922,910 |
|
Video |
|
739,445 |
|
|
|
775,138 |
|
|
|
1,495,039 |
|
|
|
1,545,739 |
|
Telephony |
|
71,703 |
|
|
|
76,069 |
|
|
|
142,668 |
|
|
|
153,750 |
|
Mobile |
|
27,479 |
|
|
|
18,147 |
|
|
|
52,372 |
|
|
|
33,673 |
|
Residential revenue |
|
1,753,616 |
|
|
|
1,835,219 |
|
|
|
3,522,062 |
|
|
|
3,656,072 |
|
Business services and wholesale |
|
369,290 |
|
|
|
364,704 |
|
|
|
734,151 |
|
|
|
728,345 |
|
News and Advertising |
|
105,280 |
|
|
|
113,465 |
|
|
|
211,005 |
|
|
|
212,202 |
|
Other |
|
12,569 |
|
|
|
10,886 |
|
|
|
24,472 |
|
|
|
21,633 |
|
Total revenue |
|
2,240,755 |
|
|
|
2,324,274 |
|
|
|
4,491,690 |
|
|
|
4,618,252 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Programming and other direct costs |
|
719,460 |
|
|
|
762,280 |
|
|
|
1,463,347 |
|
|
|
1,533,999 |
|
Other operating expenses |
|
670,542 |
|
|
|
656,128 |
|
|
|
1,344,792 |
|
|
|
1,307,373 |
|
Restructuring, impairments and other operating items |
|
(46,599 |
) |
|
|
5,178 |
|
|
|
4,654 |
|
|
|
34,850 |
|
Depreciation and amortization (including impairments) |
|
395,770 |
|
|
|
418,705 |
|
|
|
784,161 |
|
|
|
834,917 |
|
Operating income |
|
501,582 |
|
|
|
481,983 |
|
|
|
894,736 |
|
|
|
907,113 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(442,955 |
) |
|
|
(406,709 |
) |
|
|
(880,096 |
) |
|
|
(795,987 |
) |
Gain on investments and sale of affiliate interests, net |
|
— |
|
|
|
— |
|
|
|
292 |
|
|
|
192,010 |
|
Loss on derivative contracts, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(166,489 |
) |
Gain on interest rate swap contracts, net |
|
13,574 |
|
|
|
61,165 |
|
|
|
55,877 |
|
|
|
46,736 |
|
Gain (loss) on extinguishment of debt and write-off of deferred financing costs |
|
— |
|
|
|
— |
|
|
|
(7,035 |
) |
|
|
4,393 |
|
Other income (loss), net |
|
(1,486 |
) |
|
|
(1,570 |
) |
|
|
(3,031 |
) |
|
|
8,635 |
|
Income before income taxes |
|
70,715 |
|
|
|
134,869 |
|
|
|
60,743 |
|
|
|
196,411 |
|
Income tax expense |
|
(49,013 |
) |
|
|
(48,725 |
) |
|
|
(51,937 |
) |
|
|
(79,097 |
) |
Net income |
|
21,702 |
|
|
|
86,144 |
|
|
|
8,806 |
|
|
|
117,314 |
|
Net income attributable to noncontrolling interests |
|
(6,341 |
) |
|
|
(7,844 |
) |
|
|
(14,638 |
) |
|
|
(13,149 |
) |
Net income (loss) attributable to Altice USA stockholders |
$ |
15,361 |
|
|
$ |
78,300 |
|
|
$ |
(5,832 |
) |
|
$ |
104,165 |
|
Basic net income (loss) per share |
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
(0.01 |
) |
|
$ |
0.23 |
|
Diluted net income (loss) per share |
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
(0.01 |
) |
|
$ |
0.23 |
|
Basic weighted average common shares |
|
459,995 |
|
|
|
454,688 |
|
|
|
458,682 |
|
|
|
454,687 |
|
Diluted weighted average common shares |
|
459,995 |
|
|
|
454,688 |
|
|
|
458,682 |
|
|
|
455,139 |
|
Altice |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
Six Months Ended June 30, |
|||||||
2024 |
|
2023 |
|||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
8,806 |
|
|
$ |
117,314 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization (including impairments) |
|
784,161 |
|
|
|
834,917 |
|
Gain on investments and sale of affiliate interests, net |
|
(292 |
) |
|
|
(192,010 |
) |
Loss on derivative contracts, net |
|
— |
|
|
|
166,489 |
|
Loss (gain) on extinguishment of debt and write-off of deferred financing costs |
|
7,035 |
|
|
|
(4,393 |
) |
Amortization of deferred financing costs and discounts (premiums) on indebtedness |
|
11,123 |
|
|
|
18,359 |
|
Share-based compensation |
|
30,181 |
|
|
|
13,253 |
|
Deferred income taxes |
|
(9,818 |
) |
|
|
(113,402 |
) |
Decrease in right-of-use assets |
|
22,701 |
|
|
|
22,925 |
|
Allowance for credit losses |
|
45,932 |
|
|
|
43,946 |
|
Other |
|
3,674 |
|
|
|
9,188 |
|
Change in operating assets and liabilities, net of effects of acquisitions and dispositions: |
|
|
|
||||
Accounts receivable, trade |
|
(8,230 |
) |
|
|
(10,611 |
) |
Prepaid expenses and other assets |
|
(119,050 |
) |
|
|
(58,842 |
) |
Amounts due from and due to affiliates |
|
(49,742 |
) |
|
|
31,213 |
|
Accounts payable and accrued liabilities |
|
(20,954 |
) |
|
|
(22,816 |
) |
Deferred revenue |
|
(835 |
) |
|
|
6,649 |
|
Interest rate swap contracts |
|
1,763 |
|
|
|
(6,492 |
) |
Net cash provided by operating activities |
|
706,455 |
|
|
|
855,687 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(683,816 |
) |
|
|
(1,056,342 |
) |
Payments for acquisitions, net of cash acquired |
|
(2,025 |
) |
|
|
— |
|
Other, net |
|
(52 |
) |
|
|
(1,578 |
) |
Net cash used in investing activities |
|
(685,893 |
) |
|
|
(1,057,920 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from long-term debt |
|
3,775,000 |
|
|
|
1,900,000 |
|
Repayment of debt |
|
(3,635,449 |
) |
|
|
(1,739,493 |
) |
Proceeds from derivative contracts in connection with the settlement of collateralized debt |
|
— |
|
|
|
38,902 |
|
Principal payments on finance lease obligations |
|
(68,788 |
) |
|
|
(76,100 |
) |
Payment related to acquisition of a noncontrolling interest |
|
(7,261 |
) |
|
|
— |
|
Additions to deferred financing costs |
|
(17,553 |
) |
|
|
— |
|
Other, net |
|
(5,638 |
) |
|
|
(7,974 |
) |
Net cash provided by financing activities |
|
40,311 |
|
|
|
115,335 |
|
Net increase (decrease) in cash and cash equivalents |
|
60,873 |
|
|
|
(86,898 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(817 |
) |
|
|
548 |
|
Net increase (decrease) in cash and cash equivalents |
|
60,056 |
|
|
|
(86,350 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
302,338 |
|
|
|
305,751 |
|
Cash, cash equivalents and restricted cash at end of year |
$ |
362,394 |
|
|
$ |
219,401 |
|
Reconciliation of Non-GAAP Financial Measures
We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.
Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.
We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management’s effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with
We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.
Reconciliation of Net Income to Adjusted EBITDA |
|||||||||||||||
(in thousands) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
21,702 |
|
|
$ |
86,144 |
|
|
$ |
8,806 |
|
|
$ |
117,314 |
|
Income tax expense |
|
49,013 |
|
|
|
48,725 |
|
|
|
51,937 |
|
|
|
79,097 |
|
Other loss (income), net |
|
1,486 |
|
|
|
1,570 |
|
|
|
3,031 |
|
|
|
(8,635 |
) |
Gain on interest rate swap contracts, net |
|
(13,574 |
) |
|
|
(61,165 |
) |
|
|
(55,877 |
) |
|
|
(46,736 |
) |
Loss on derivative contracts, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
166,489 |
|
Gain on investments and sale of affiliate interests, net |
|
— |
|
|
|
— |
|
|
|
(292 |
) |
|
|
(192,010 |
) |
Loss (gain) on extinguishment of debt and write-off of deferred financing costs |
|
— |
|
|
|
— |
|
|
|
7,035 |
|
|
|
(4,393 |
) |
Interest expense, net |
|
442,955 |
|
|
|
406,709 |
|
|
|
880,096 |
|
|
|
795,987 |
|
Depreciation and amortization |
|
395,770 |
|
|
|
418,705 |
|
|
|
784,161 |
|
|
|
834,917 |
|
Restructuring, impairments and other operating items |
|
(46,599 |
) |
|
|
5,178 |
|
|
|
4,654 |
|
|
|
34,850 |
|
Share-based compensation |
|
16,424 |
|
|
|
15,876 |
|
|
|
30,181 |
|
|
|
13,253 |
|
Adjusted EBITDA |
|
867,177 |
|
|
|
921,742 |
|
|
|
1,713,732 |
|
|
|
1,790,133 |
|
Adjusted EBITDA margin |
|
38.7 |
% |
|
|
39.7 |
% |
|
|
38.2 |
% |
|
|
38.8 |
% |
Reconciliation of net cash flow from operating activities to Free Cash Flow (Deficit) |
||||||||||||||
(in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
|
|
|
|
|
|
|
|
|||||||
Net cash flows from operating activities |
$ |
306,794 |
|
|
$ |
438,841 |
|
|
$ |
706,455 |
|
$ |
855,687 |
|
Capital Expenditures (cash) |
|
347,721 |
|
|
|
473,445 |
|
|
|
683,816 |
|
|
1,056,342 |
|
Free Cash Flow (Deficit) |
$ |
(40,927 |
) |
|
$ |
(34,604 |
) |
|
$ |
22,639 |
|
$ |
(200,655 |
) |
Consolidated Net Debt as of June 30, 2024 |
|||||
($ in millions) |
|||||
CSC Holdings, LLC Restricted Group |
Principal
|
|
Coupon /
|
|
Maturity |
Drawn RCF |
|
|
SOFR+ |
|
2027 |
Term Loan B-5 |
2,873 |
|
L+ |
|
2027 |
Term Loan B-6 |
1,977 |
|
SOFR+ |
|
2028(20) |
Guaranteed Notes |
1,310 |
|
|
|
2027 |
Guaranteed Notes |
1,000 |
|
|
|
2028 |
Guaranteed Notes |
1,000 |
|
|
|
2028 |
Guaranteed Notes |
2,050 |
|
|
|
2029 |
Guaranteed Notes |
1,750 |
|
|
|
2029 |
Guaranteed Notes |
1,100 |
|
|
|
2030 |
Guaranteed Notes |
1,000 |
|
|
|
2031 |
Guaranteed Notes |
1,500 |
|
|
|
2031 |
Senior Notes |
1,046 |
|
|
|
2028 |
Legacy unexchanged Cequel Notes |
4 |
|
|
|
2028 |
Senior Notes |
2,250 |
|
|
|
2030 |
Senior Notes |
2,325 |
|
|
|
2030 |
Senior Notes |
500 |
|
|
|
2031 |
CSC Holdings, LLC Restricted Group Gross Debt |
23,484 |
|
|
|
|
CSC Holdings, LLC Restricted Group Cash |
(318) |
|
|
|
|
CSC Holdings, LLC Restricted Group Net Debt |
|
|
|
|
|
|
|
|
|
|
|
CSC Holdings, LLC Restricted Group Undrawn RCF |
|
|
|
|
|
Cablevision Lightpath LLC |
Principal Amount |
|
Coupon / Margin |
|
Maturity |
Drawn RCF(21) |
$— |
|
SOFR+ |
|
|
Term Loan |
579 |
|
SOFR+ |
|
2027 |
Senior Secured Notes |
450 |
|
|
|
2027 |
Senior Notes |
415 |
|
|
|
2028 |
Cablevision Lightpath Gross Debt |
1,444 |
|
|
|
|
Cablevision Lightpath Cash |
(31) |
|
|
|
|
Cablevision Lightpath Net Debt |
|
|
|
|
|
|
|
|
|
|
|
Cablevision Lightpath Undrawn RCF |
|
|
|
|
|
Net Leverage Schedules as of June 30, 2024 |
|||||||
($ in millions) |
|||||||
|
|
|
|
|
|
|
|
|
CSC Holdings
|
|
Cablevision
|
|
CSC Holdings
|
|
Altice USA
|
|
|
|
|
|
|
|
|
Gross Debt Consolidated(24) |
|
|
|
|
|
|
|
Cash |
(318) |
|
(31) |
|
(362) |
|
(362) |
Net Debt Consolidated(10) |
|
|
|
|
|
|
|
LTM EBITDA |
|
|
|
|
|
|
|
L2QA EBITDA |
|
|
|
|
|
|
|
Net Leverage (LTM) |
7.0x |
|
5.8x |
|
7.0x |
|
7.0x |
Net Leverage (L2QA)(11) |
7.3x |
|
5.9x |
|
7.2x |
|
7.2x |
WACD (%) |
|
|
|
|
|
|
|
Reconciliation to Financial Reported Debt |
|
|
Actual |
Total Debenture and Loans from Financial Institutions (Carrying Amount) |
|
Unamortized financing costs and discounts, net of unamortized premiums |
52 |
Gross Debt Consolidated(24) |
24,928 |
Finance leases and other notes |
335 |
Total Debt |
25,263 |
Cash |
(362) |
Net Debt |
|
| (1) | PCMag is a trademark of Ziff Davis, LLC. Used under license. Reprinted with permission. © 2024 Ziff Davis, LLC. All Rights Reserved. |
|
| (2) | Based on analysis by Ookla® of Speedtest Intelligence® data, median download speeds, consistency score, NY, NJ, Q1–Q2 2024. Ookla trademarks used under license and reprinted with permission. |
|
| (3) | Average revenue per user (ARPU) is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period and excludes mobile-only customer relationships. ARPU amounts for prior periods have been adjusted to include mobile service revenue. |
|
| (4) | See “Reconciliation of Non-GAAP Financial Measures” beginning on page 7 of this earnings release. |
|
| (5) | Capital intensity refers to total cash capital expenditures as a percentage of total revenue. |
|
| (6) | Transactional Net Promoter Score (tNPS) represents the average monthly satisfaction metric across Care, Field, Retail and Sales within Fixed, Mobile, and Advanced Support. |
|
| (7) | Compares technical, care and support calls in the last twelve months (LTM) at the end of Q2-24 compared to the LTM period at the end of Q2-23. |
|
| (8) | Compares service visits or truck rolls, excluding employee initiated special request orders in the last twelve months (LTM) at the end of Q2-24 compared to the LTM period at the end of Q2-23. |
|
| (9) | Self set-up % increase is the change in percentage of residential installs at eligible addresses choosing self-install, excluding fiber installs. |
|
| (10) | Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes. |
|
| (11) | L2QA leverage is calculated as quarter end net leverage divided by the last two quarters of Adjusted EBITDA annualized. |
|
| (12) | Total passings represents the estimated number of single residence homes, apartments and condominium units passed by the HFC and FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand total passings and telephony services were not available to approximately 500 thousand total passings. |
|
| (13) | Total Unique Customer Relationships represent the number of households/businesses that receive at least one of our fixed-line services. Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our hybrid-fiber-coaxial (HFC) and fiber-to-the-home (FTTH) network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel. |
|
| (14) | Total Customer Relationship metrics do not include mobile-only customers. |
|
| (15) | Beginning in the second quarter of 2023, mobile service revenue previously included in mobile revenue is now separately reported in residential revenue and business services revenue. In addition, mobile equipment revenue previously included in mobile revenue is now included in other revenue. Prior period amounts have been revised to conform with this earnings release. |
|
| (16) | Mobile ending lines include lines receiving free service. Mobile ending lines excluding free service exclude additions relating to mobile lines receiving free service from all periods presented, and includes net additions from when customers previously on free service start making payments. |
|
| (17) | Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network. |
|
| (18) | Represents number of households/businesses that receive at least one of our fixed-line services on our FTTH network. FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel. |
|
| (19) | These loans use Synthetic USD LIBOR, calculated as Term SOFR plus a spread adjustment. |
|
| (20) | The Incremental Term Loan B-6 is due on the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of such date, any Incremental Term Loan B-5 borrowings are still outstanding, unless the Incremental Term Loan B-5 maturity date has been extended to a date falling after January 15, 2028. |
|
| (21) |
Under the extension amendment to the Lightpath credit agreement entered into in February 2024, |
|
| (22) | CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Cablevision Lightpath LLC and NY Interconnect, LLC. |
|
| (23) | CSC Holdings Consolidated includes the CSC Holdings, LLC Restricted Group and the unrestricted subsidiaries. |
|
| (24) | Principal amount of debt excluding finance leases and other notes. |
|
| Certain numerical information is presented on a rounded basis. Minor differences in totals and percentage calculations may exist due to rounding. | ||
About Altice USA
Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in
FORWARD-LOOKING STATEMENTS
Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future financial conditions and performance, our revenue streams, results of operations and liquidity, including Free Cash Flow; our strategy, objectives, prospects, trends, service and operational improvements, base management strategy, capital expenditure plans, broadband, fiber, video and mobile growth, product offerings and passings; our ability to achieve operational performance improvements; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including, without limitation, the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “project”, “should”, “target”, or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q. You are cautioned to not place undue reliance on Altice USA’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.
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Investor Relations
John Hsu: +1 917 405 2097 / john.hsu@alticeusa.com
Sarah Freedman: +1 631 660 8714 / sarah.freedman@alticeusa.com
Media Relations
Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com
Janet Meahan: +1 516 519 2353 / janet.meahan@alticeusa.com
Source: Altice USA
FAQ
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