Reaches 1.9 Million Fiber Passings and More
Than 135K Fiber Customers
Altice USA (NYSE: ATUS) today reports results for the third
quarter ended September 30, 2022.
Dexter Goei, Altice USA Executive Chairman, said: “In the
third quarter, we made significant progress in delivering against
our Optimum Fiber broadband strategy. We saw a further acceleration
in our fiber network deployment, achieving our highest ever level
of incremental fiber passings and now reaching 1.9 million total
fiber passings. With fiber broadband net additions of 31k, we
reached 135k fiber customers at the end of the quarter. Our
multi-gig speed tiers continued to roll out across our Optimum
Fiber footprint, offering faster fiber speeds to more customers
across the Tri-State. While we are operating in a very competitive
environment and are starting to see some macroeconomic pressures
across our business, we are confident that we have the right
strategy to return to sustainable growth. We are very pleased to
welcome Dennis Mathew as our new CEO and have the utmost confidence
in him to build on our current momentum and deliver on our growth
plan.”
Dennis Mathew, Altice USA Chief Executive Officer, said:
"I am delighted to join Altice USA and see enormous potential for
the company. In my first 30 days, I have been extremely impressed
with Altice’s leadership team and the passion, energy, and
dedication of our thousands of employees across our connectivity,
news, and advertising businesses. Looking ahead, we remain laser
focused on executing against our fiber broadband strategy, laying
the foundation to provide the best products and customer experience
for the long term, as well as providing viewers and customers with
the best news and advertising solutions in the marketplace.”
Key Financial Highlights
- Total Revenue declined -7.0% YoY in Q3 2022 to $2.39
billion (-4.3% excluding air strand revenue(1)), including
Residential revenue decline of -4.4% YoY, Business Services revenue
decline of -16.8% YoY (+0.1% excluding air strand revenue(1)) and
News & Advertising revenue decline of -16.1% YoY.
- Net income attributable to stockholders was $85.0
million in Q3 2022 ($0.19/share on a diluted basis) compared to net
income of $266.9 million in Q3 2021 ($0.58/share on a diluted
basis).
- Net cash flows from operating activities were $629.2
million in Q3 2022, compared to $698.3 million in Q3 2021.
- Adjusted EBITDA(2) declined -18.1% YoY in Q3 2022 to
$954.4 million (-12.7% excluding air strand revenue(1)) with a
margin of 39.9%.
- Cash capital expenditures of $493.6 million in Q3 2022
represented 20.6% of revenue and were up 59.6% YoY mainly driven by
accelerated fiber-to-the-home (FTTH) rollout and new builds (10.5%
of revenue excluding FTTH and new builds).
- Operating Free Cash Flow(2) decreased -46.1% YoY to
$460.8 million in Q3 2022.
- Free Cash Flow(2) decreased -65.2% YoY to $135.6 million
in Q3 2022.
Q3-22 Summary
Financials
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands)
2022
2021
2022
2021
Revenue
$2,393,552
$2,574,882
$7,278,463
$7,569,711
Net income attributable to Altice
USA, Inc. stockholders
84,951
266,853
387,676
738,649
Adjusted EBITDA(2)
954,390
1,164,804
2,953,188
3,344,211
Capital Expenditures (cash)
493,559
309,172
1,371,056
845,067
Revenue Growth and Adjusted EBITDA
Detail
Q3-22
Total Revenue YoY
(7.0)%
excl. air strand revenue(1)
(4.3)%
Residential Revenue YoY
(4.4)%
Business Services Revenue YoY
(16.8)%
excl. air strand revenue(1)
+0.1%
News & Advertising Revenue YoY
(16.1)%
Adjusted EBITDA YoY
(18.1)%
excl. air strand revenue(1)
(12.7)%
Adjusted EBITDA Margin
39.9%
Residential unique customer
relationships(3), broadband subscribers and organic net additions
(losses)(4)
Subscribers (in thousands)
Q1-21
Q2-21(5)
Q3-21
Q4-21
FY-21(5)
Q1-22
Q2-22
Q3-22
Residential ending customer
relationships
4,647.4
4,670.7
4,646.0
4,632.8
4,632.8
4,612.1
4,564.2
4,514.7
Residential customer organic net
losses
(1.0)
(11.9)
(24.7)
(13.2)
(50.8)
(20.7)
(47.9)
(49.5)
Broadband ending subscribers
4,370.8
4,401.3
4,388.1
4,386.2
4,386.2
4,373.2
4,333.6
4,290.6
Broadband organic net additions
(losses)
11.5
0.2
(13.1)
(1.9)
(3.3)
(13.0)
(39.6)
(43.0)
Key Operational
Highlights
- Fiber Broadband Primary Service Units (PSUs): Quarterly
FTTH broadband net additions were +31k in Q3 2022, more than double
the growth compared to Q3 2021 (+12k), driven by both higher fiber
gross additions and increased migrations of existing customers.
Total fiber broadband customers reached 135k as of the end of Q3
2022.
- Total unique Residential customer relationships declined
-2.8% YoY in Q3 2022. Unique Residential customer net losses in the
quarter were -50k, compared to -25k in Q3 2021.
- Residential Broadband PSUs: Quarterly total Residential
broadband net losses were -43k in Q3 2022, compared to -13k
broadband net losses in Q3 2021.
- Residential Video PSUs: Quarterly video net losses were
-82k in Q3 2022, compared to -67k video net losses in Q3 2021.
- Residential revenue declined -4.4% YoY in Q3 2022 to
$1.88 billion:
- Residential revenue per customer relationship in Q3 2022
declined -1.9% YoY to $138.12, mostly due to the loss of higher
ARPU video customers.
- Business Services revenue of $366.6 million was down
-16.8% YoY in Q3 2022 due to the early termination of a backhaul
contract for air strands which resulted in the recognition of
deferred revenue and termination fees over the amended term in the
prior year period. Excluding air strand revenue in the prior
period, Business Services revenue grew +0.1% YoY(1). SMB / Other
revenue was down -21.6% YoY in Q3 2022, or down -0.1% YoY excluding
air strand revenue(1). Lightpath revenue grew +0.5% YoY in Q3
2022.
- News and Advertising revenue was down -16.1% YoY to
$120.5 million in Q3 2022, or down -20.7% YoY excluding political
revenue.
- Optimum Mobile has approximately 236k mobile lines(6) as
of September 30, 2022 (+5k net additions in Q3 2022), reaching 5.5%
penetration of the Company's residential broadband customer
base.
Fiber Rollout, Launch of Multi-Gig
Fiber Internet and Network Expansion Update
- Fiber (FTTH) rollout update: As of Q3 2022, the Company
has 1.9 million FTTH passings, adding +321k new FTTH passings in
the quarter, representing the highest number of quarterly
incremental passings to date (vs. +44k new passings in Q3 2021, and
+270k new passings in Q2 2022).
- Rollout of Optimum 5 Gig and 2 Gig Fiber Internet
service: The Company recently introduced Optimum 5 Gbps (5 Gig)
Fiber Internet, with symmetrical speeds up to 5 Gig. In addition to
the new 5 Gig internet speed tier, the Company also introduced
Optimum 2 Gbps (2 Gig) Fiber Internet. The new 5 Gig and 2 Gig
Optimum Fiber Internet tiers are now available across Long Island
and Connecticut in our fiber footprint. At the end of Q3 2022, 41%
of the Company’s fiber passings had multi-gig speeds available and
all of the Company’s fiber passings are expected to be multi-gig
enabled by Q1 2023.
- 1 Gbps (1 Gig) broadband speed sell-in to all new customers,
where 1 Gig or higher services are available, was 35% in Q3
2022. Approximately 19% of the residential customer base
currently take 1 Gig speeds, representing a significant growth
opportunity for the Company.
- Broadband speed taken by the Company’s customer base on
average has nearly doubled in the past three years to 391
Mbps in Q3 2022. Approximately 42% of the Company’s broadband
customers remain on plans with download speeds of 200 Mbps or less,
representing a sizable opportunity to continue to upgrade speeds.
Broadband-only customer usage averaged 576 GB per month in Q3 2022,
which is 23% higher than the average usage of the entire customer
base (467 GB per month).
- New build activity update: the Company has been
accelerating the pace of its network edge-outs, adding +52k total
passings in Q3 2022, and a total of +202k total passings in the
last twelve months (LTM). The Company continues to see strong
momentum in growing customer penetration, typically reaching
approximately 40% within a year of rollout in new-build areas. The
Company is on track to add an incremental 175k+ new passings in FY
2022.
- Infrastructure subsidies update: the Company has applied
for subsidies for rolling out FTTH to over 222k homes and has been
awarded subsidy grants for a total of 35k homes year-to-date,
totaling $44 million. These subsidy grants will enable the Company
to bring high speed broadband connectivity to unserved and
underserved communities in Arizona, Louisiana, West Virginia, and
North Carolina.
FY 2022 Capex Guidance
Reiterated
- The Company expects to continue to accelerate investments in
key growth initiatives, reiterating cash capex guidance of
approximately $1.7 billion to $1.8 billion in FY 2022.
Additional Highlights and
Announcements
Altice USA Appoints Dennis Mathew Chief
Executive Officer; Names Dexter Goei Executive Chairman of the
Board
Altice USA announced that its Board of Directors appointed
Dennis Mathew to the position of Chief Executive Officer, effective
October 3, 2022. Mr. Mathew assumed the CEO role from Dexter Goei
who was named Executive Chairman of the Board of Directors, also
effective October 3, 2022. Altice USA Founder Patrick Drahi remains
a Director of the Board.
Optimum’s Retail Expansion Continues in
Texas, New Jersey, and West Virginia
Optimum recently announced the opening of new retail stores in
Texas (Abilene, Midland, and Lake Conroe, Prosper, a second
location in Georgetown, and a second location in Tyler), New Jersey
(Bayonne, Edison), and West Virginia (Parkersburg).
Balance Sheet Review
As of September 30, 2022:
- Net debt for CSC Holdings, LLC Restricted Group was
$22,710 million at the end of Q3 2022(7), representing net leverage
of 6.0x Adjusted EBITDA on a LTM basis, or 6.2x Adjusted EBITDA on
a Last 2 Quarters Annualized (L2QA) basis. The weighted average
cost of debt for CSC Holdings, LLC Restricted Group was 5.1% as of
the end of Q3 2022 and the weighted average life was 5.8 years. The
Company expects to return to a leverage target of 4.5x to 5.0x net
debt / Adjusted EBITDA on a L2QA basis for its CSC Holdings, LLC
debt silo over time.
- Net debt for Cablevision Lightpath LLC was $1,362
million at the end of Q3 2022(7), representing net leverage of 6.2x
LTM (6.0x L2QA). The weighted average cost of debt for Cablevision
Lightpath LLC was 5.1% as of the end of Q3 2022 and the weighted
average life was 5.3 years.
- Consolidated net debt for Altice USA was $24,037
million(7), representing consolidated net leverage of 6.0x LTM
(6.1x L2QA at the end of Q3 2022).
Shares Outstanding
As of September 30, 2022, the Company had 454,668,428 combined
Class A and Class B shares outstanding.
Altice USA Consolidated
Operating Results
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenue:
Broadband
$
981,842
$
989,410
$
2,970,039
$
2,952,136
Video
816,001
877,422
2,499,437
2,675,861
Telephony
83,097
99,943
252,952
310,298
Residential revenue
1,880,940
1,966,775
5,722,428
5,938,295
Business services and wholesale
366,554
440,813
1,105,579
1,180,039
News and Advertising
120,522
143,625
368,447
380,462
Mobile
22,837
20,456
73,312
60,355
Other
2,699
3,213
8,697
10,560
Total revenue
2,393,552
2,574,882
7,278,463
7,569,711
Operating expenses:
Programming and other direct costs
782,121
843,909
2,429,925
2,545,645
Other operating expenses
694,390
590,519
2,009,760
1,760,132
Restructuring and other expense
4,007
1,885
10,058
10,958
Depreciation and amortization (including
impairments)
445,769
447,958
1,327,243
1,327,142
Operating income
467,265
690,611
1,501,477
1,925,834
Other income (expense):
Interest expense, net
(340,989
)
(319,001
)
(954,564
)
(954,684
)
Gain (loss) on investments
(425,686
)
(46,821
)
(902,060
)
151,651
Gain (loss) on derivative contracts,
net
323,668
43,385
643,856
(109,020
)
Gain on interest rate swap contracts
105,945
5,521
268,960
59,600
Loss on extinguishment of debt and
write-off of deferred financing costs
—
—
—
(51,712
)
Other income, net
3,245
2,280
8,196
7,606
Income before income taxes
133,448
375,975
565,865
1,029,275
Income tax expense
(35,827
)
(105,226
)
(152,563
)
(279,053
)
Net income
97,621
270,749
413,302
750,222
Net income attributable to noncontrolling
interests
(12,670
)
(3,896
)
(25,626
)
(11,573
)
Net income attributable to Altice USA
stockholders
$
84,951
$
266,853
$
387,676
$
738,649
Basic net income per share
$
0.19
$
0.59
$
0.86
$
1.61
Diluted net income per share
$
0.19
$
0.58
$
0.86
$
1.59
Basic weighted average common
shares
453,239
454,049
453,233
460,023
Diluted weighted average common
shares
453,390
457,163
453,284
465,349
Altice USA Consolidated
Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended September
30,
2022
2021
Cash flows from operating activities:
Net income
$
413,302
$
750,222
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization (including
impairments)
1,327,243
1,327,142
Loss (gain) on investments
902,060
(151,651
)
Loss (gain) on derivative contracts,
net
(643,856
)
109,020
Loss on extinguishment of debt and
write-off of deferred financing costs
—
51,712
Amortization of deferred financing costs
and discounts (premiums) on indebtedness
61,447
69,176
Share-based compensation expense
114,410
80,277
Deferred income taxes
(89,240
)
97,046
Decrease in right-of-use assets
33,315
32,694
Provision for doubtful accounts
65,281
46,448
Other
(492
)
1,434
Change in assets and liabilities, net of
effects of acquisitions and dispositions:
Accounts receivable, trade
389
(35,077
)
Prepaid expenses and other assets
15,730
33,381
Amounts due from and due to affiliates
(1,732
)
12,804
Accounts payable and accrued
liabilities
17,776
(121,503
)
Deferred revenue
(5,508
)
(24,829
)
Liabilities related to interest rate swap
contracts
(304,409
)
(100,817
)
Net cash provided by operating
activities
1,905,716
2,177,479
Cash flows from investing activities:
Capital expenditures
(1,371,056
)
(845,067
)
Payment for acquisitions, net of cash
acquired
(2,060
)
(340,444
)
Other, net
(2,985
)
(2,285
)
Net cash used in investing activities
(1,376,101
)
(1,187,796
)
Cash flows from financing activities:
Proceeds from long-term debt
1,565,000
3,310,000
Repayment of debt
(1,942,428
)
(3,483,026
)
Proceeds from collateralized indebtedness
and related derivative contracts, net
—
185,105
Repayment of collateralized indebtedness
and related derivative contracts, net
—
(185,105
)
Principal payments on finance lease
obligations
(97,165
)
(60,257
)
Purchase of shares of Altice USA Class A
common stock, pursuant to a share repurchase program
—
(804,928
)
Other
(207
)
2,698
Net cash used in financing activities
(474,800
)
(1,035,513
)
Net increase (decrease) in cash and cash
equivalents
54,815
(45,830
)
Effect of exchange rate changes on cash
and cash equivalents
51
(140
)
Net increase (decrease) in cash and cash
equivalents
54,866
(45,970
)
Cash, cash equivalents and restricted cash
at beginning of year
195,975
278,686
Cash, cash equivalents and restricted cash
at end of period
$
250,841
$
232,716
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, 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, interest expense, net, depreciation and amortization
(including impairments), share-based compensation expense,
restructuring expense, and transaction expenses.
We believe Adjusted EBITDA is an appropriate measure for
evaluating the operating performance of the Company. 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 the Company’s 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 GAAP.
Since Adjusted EBITDA is not a measure of performance calculated in
accordance with GAAP, this measure may not be comparable to similar
measures with similar titles used by other companies.
We also use Operating Free Cash Flow (defined as Adjusted EBITDA
less cash capital expenditures), and Free Cash Flow (defined as net
cash flows from operating activities less cash capital
expenditures) as indicators of the Company’s financial performance.
We believe these measures are two of several benchmarks used by
investors, analysts and peers for comparison of performance in the
Company’s industry, although they may not be directly comparable to
similar measures reported by other companies.
Reconciliation of net income to
Adjusted EBITDA and Operating Free Cash Flow (unaudited):
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net income
$
97,621
$
270,749
$
413,302
$
750,222
Income tax expense
35,827
105,226
152,563
279,053
Other income, net
(3,245
)
(2,280
)
(8,196
)
(7,606
)
Gain on interest rate swap contracts,
net
(105,945
)
(5,521
)
(268,960
)
(59,600
)
Loss (gain) on derivative contracts,
net
(323,668
)
(43,385
)
(643,856
)
109,020
Loss (gain) on investments
425,686
46,821
902,060
(151,651
)
Loss on extinguishment of debt and
write-off of deferred financing costs
—
—
—
51,712
Interest expense, net
340,989
319,001
954,564
954,684
Depreciation and amortization (including
impairments)
445,769
447,958
1,327,243
1,327,142
Restructuring and other expense
4,007
1,885
10,058
10,958
Share-based compensation
37,349
24,350
114,410
80,277
Adjusted EBITDA
954,390
1,164,804
2,953,188
3,344,211
Capital Expenditures (cash)
493,559
309,172
1,371,056
845,067
Operating Free Cash Flow
$
460,831
$
855,632
$
1,582,132
$
2,499,144
Reconciliation of net cash flow from
operating activities to Free Cash Flow (unaudited):
Net cash flows from operating
activities
$
629,162
$
698,314
$
1,905,716
$
2,177,479
Capital Expenditures (cash)
493,559
309,172
1,371,056
845,067
Free Cash Flow
$
135,603
$
389,142
$
534,660
$
1,332,412
Customer Metrics(10) (in
thousands, except per customer amounts)
Q1-21
Q2-21(5)
Q3-21
Q4-21
FY-21(5)
Q1-22
Q2-22
Q3-22
Total Passings(8)
9,067.6
9,195.1
9,212.5
9,263.3
9,263.3
9,304.9
9,363.1
9,414.9
Residential
4,647.4
4,670.7
4,646.0
4,632.8
4,632.8
4,612.1
4,564.2
4,514.7
SMB
375.8
380.7
381.6
381.9
381.9
382.9
383.1
382.5
Total Unique Customer
Relationships(3)
5,023.2
5,051.4
5,027.6
5,014.7
5,014.7
4,995.0
4,947.3
4,897.2
Residential Customers:
Broadband
4,370.8
4,401.3
4,388.1
4,386.2
4,386.2
4,373.2
4,333.6
4,290.6
Video
2,906.6
2,870.5
2,803.0
2,732.3
2,732.3
2,658.7
2,574.2
2,491.8
Telephony
2,161.2
2,118.4
2,057.1
2,005.2
2,005.2
1,951.5
1,886.9
1,818.9
Residential ARPU ($)(9)
142.24
142.24
140.73
137.79
141.08
137.92
140.13
138.12
Fiber (FTTH) Customer Metrics (in
thousands)
Q1-21
Q2-21
Q3-21
Q4-21
FY-21
Q1-22
Q2-22
Q3-22
FTTH Total Passings(10)
921.4
982.5
1,026.6
1,171.0
1,171.0
1,316.6
1,587.1
1,908.2
FTTH Total customer
relationships(11)(12)
35.9
47.3
58.9
69.7
69.7
81.0
104.4
135.3
FTTH Residential
35.9
47.3
58.7
69.3
69.3
80.4
103.7
134.2
FTTH SMB
0.0
0.1
0.2
0.3
0.3
0.6
0.7
1.2
Consolidated Net Debt as of September 30,
2022
CSC Holdings, LLC Restricted Group (in
$m)
Principal
Amount
Coupon /
Margin
Maturity
Drawn RCF
$1,300
S+2.350%
2027
Term Loan
2,843
L+2.250%
2025
Term Loan B-3
1,230
L+2.250%
2026
Term Loan B-5
2,925
L+2.500%
2027
Guaranteed Notes
1,310
5.500%
2027
Guaranteed Notes
1,000
5.375%
2028
Guaranteed Notes
1,750
6.500%
2029
Guaranteed Notes
1,100
4.125%
2030
Guaranteed Notes
1,000
3.375%
2031
Guaranteed Notes
1,500
4.500%
2031
Senior Notes
750
5.250%
2024
Senior Notes
1,046
7.500%
2028
Legacy unexchanged Cequel Notes
4
7.500%
2028
Senior Notes
2,250
5.750%
2030
Senior Notes
2,325
4.625%
2030
Senior Notes
500
5.000%
2031
CSC Holdings, LLC Restricted Group
Gross Debt
22,833
CSC Holdings, LLC Restricted Group
Cash
(123)
CSC Holdings, LLC Restricted Group Net
Debt
$22,710
CSC Holdings, LLC Restricted Group
Undrawn RCF
$1,043
Cablevision Lightpath LLC (in
$m)
Principal
Amount
Coupon /
Margin
Maturity
Drawn RCF
$—
L+3.250%
2025
Term Loan
590
L+3.250%
2027
Senior Secured Notes
450
3.875%
2027
Senior Notes
415
5.625%
2028
Cablevision Lightpath Gross
Debt
1,455
Cablevision Lightpath Cash
(92)
Cablevision Lightpath Net Debt
$1,362
Cablevision Lightpath Undrawn
RCF
$100
Net
Leverage Schedules as of September 30, 2022 (in $m)
CSC Holdings
Restricted
Group(14)
Cablevision
Lightpath LLC
CSC Holdings
Consolidated(15)
Altice USA
Consolidated
Gross Debt Consolidated(13)
$22,833
$1,455
$24,287
$24,287
Cash
(123)
(92)
(248)
(251)
Net Debt Consolidated
$22,710
$1,362
$24,039
$24,037
LTM EBITDA
$3,808
$220
$4,036
$4,036
L2QA EBITDA
$3,686
$228
$3,923
$3,923
Net Leverage (LTM)
6.0x
6.2x
6.0x
6.0x
Net Leverage (L2QA)
6.2x
6.0x
6.1x
6.1x
WACD (%)
5.1%
5.1%
5.1%
5.1%
Reconciliation to Financial Reported
Debt
Actual
Total Debenture and Loans from
Financial Institutions (Carrying Amount)
$24,247
Unamortized financing costs and discounts,
net of unamortized premiums
13
Fair value adjustments
27
Gross Debt Consolidated(13)
24,287
Finance leases and other notes
369
Total Debt
24,656
Cash
(251)
Net Debt
$24,405
(1)
Excludes all air strand revenue
and related costs from Business Services for all periods.
(2)
See “Reconciliation of Non-GAAP
Financial Measures” on page 7 of this release.
(3)
Total Unique Customer
Relationships represent the number of households/businesses that
receive at least one of the Company’s 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 family 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.
(4)
Customer metrics do not include
Optimum Mobile customers.
(5)
Since Q2-21, figures include
Morris Broadband, LLC acquired subscribers.
(6)
Mobile lines includes
approximately 33.4k lines receiving free service.
(7)
Net debt, defined as the
principal amount of debt less cash, and excluding finance leases
and other notes and collateralized debt.
(8)
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.
Total passings include approximately 89k total passings acquired in
the Morris Broadband acquisition in Q2-21.
(9)
ARPU is calculated by dividing
the average monthly revenue for the respective quarter (fourth
quarter for annual periods) derived from the sale of broadband,
video and telephony services to Residential customers by the
average number of total Residential customers for the same
period.
(10)
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.
(11)
Represents number of
households/businesses that receive at least one of the Company's
fixed-line services on our FTTH network.
(12)
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 family 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.
(13)
Principal amount of debt
excluding finance leases and other notes and collateralized
debt.
(14)
CSC Holdings, LLC Restricted
Group excludes the unrestricted subsidiaries, primarily Cablevision
Lightpath LLC and NY Interconnect, LLC.
(15)
CSC Holdings Consolidated
includes the CSC Holdings, LLC Restricted Group and the
unrestricted subsidiaries.
Numerical information is
presented on a rounded basis using actual amounts. 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 the United States,
delivering broadband, video, mobile, proprietary content and
advertising services to nearly 5.0 million residential and business
customers across 21 states through its Optimum brand. The Company
operates a4, an advanced advertising and data business, which
provides audience-based, multiscreen advertising solutions to
local, regional and national businesses and advertising clients.
Altice USA also offers hyper-local, national, international and
business news through its News 12, Cheddar News and i24NEWS
networks.
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, results of
operations and liquidity; our strategy, objectives, prospects,
capital expenditure plans, fiber deployment and network expansion
and upgrade plans, distribution channel expansion plans and
leverage targets; 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 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, 2021 and subsequent 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221102005917/en/
Investor Relations Nick Brown: +1 917 589 9983 /
nick.brown@alticeusa.com Sarah Freedman: +1 631 660 8714 /
sarah.freedman@alticeusa.com
Communications Lisa Anselmo: +1 516 279 9461 /
lisa.anselmo@alticeusa.com Janet Meahan: +1 516 519 2353 /
janet.meahan@alticeusa.com
Altice USA (NYSE:ATUS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Altice USA (NYSE:ATUS)
Historical Stock Chart
From Apr 2023 to Apr 2024