Core Viewpoint - JPMorgan Chase & Co. is providing Altice USA with approximately $1.1 billion to refinance debt, aiming to alleviate creditor concerns following an antitrust lawsuit and controversial debt maneuvers [1]. Group 1: Refinancing Details - The funds from JPMorgan will allow Altice to refinance a $1 billion asset-backed facility obtained from Goldman Sachs and TPG Angelo Gordon in July at par value [2]. - The refinancing is urgent as the debt's call protection period is about to begin, which would require Altice to pay a premium above par for refinancing [2][6]. Group 2: Creditor Relations - Efforts to preserve Altice's cash are expected to appease creditors, as the company has been struggling with a heavy debt load and has engaged advisers to explore options [3]. - Altice's lenders have faced turmoil due to the company's recent actions, including a lawsuit against creditors alleging the formation of an "illegal cartel" [4]. Group 3: Recent Financial Moves - In November, Altice, recently rebranded as Optimum Communications Inc., raised $2 billion from JPMorgan for early refinancing of a loan due in 2028, which had strict investor safeguards [5]. - The refinancing is strategically timed to avoid a premium that could allow lenders to recover up to 116 cents on the dollar [6].

Summary of Optimum Communications Conference Call Company Overview - **Company**: Optimum Communications - **Industry**: Telecommunications Key Points and Arguments 2026 Priorities - The company is focused on stabilizing broadband as its first priority, which includes enhancing base management and leveraging AI and automation for better customer communication and service delivery [4][5] - Elevating customer experience and operational efficiency through AI investments is a significant focus area [6] - Continued investment in network infrastructure, including mid-splits and expanding fiber capabilities, is planned [6][7] - A major priority is to optimize the capital structure for sustainable long-term growth [7] Competitive Landscape - The competitive environment has intensified, particularly in Q4, with aggressive pricing strategies from competitors, including offers for gigabit services below $40 and various promotional incentives [13][14] - The company is testing new pricing and packaging strategies to stabilize broadband performance [14] - The macroeconomic environment is affecting customer mobility, with many consumers hesitant to move due to attractive mortgage rates [18] Financial Structure and Debt Management - Recent financing from JPMorgan has provided financial flexibility and a leverage-neutral position [10] - The company is focused on meaningful debt reduction and resetting its balance sheet to support long-term objectives [11][23] - The potential use of Asset-Backed Securities (ABS) for funding is being explored [12] Fiber Deployment and Market Position - The company has made progress in fiber deployment, with 3 million passings and 700,000 customers on its fiber network [26][34] - The focus is on driving fiber growth while managing capital constraints [22][23] - Improved Net Promoter Score (NPS) and reduced churn rates are observed in fiber markets [26] Mobile and Video Products - Mobile penetration is currently at 7%, with expectations for growth as the product matures [29][34] - The new video packages have achieved a 13% penetration rate, offering customers flexibility and choice [41][42] - Partnerships with streaming services like Netflix and Disney are enhancing the video offering [42] Operational Efficiency and Cost Management - The company has implemented a 5% workforce reduction aimed at improving efficiency without impacting frontline staff [56] - Significant reductions in call volume and service visits have been achieved, contributing to operational efficiency [56] Future Outlook - The company expects to see year-over-year EBITDA growth for the first time in 16 quarters, with a guidance of $3.3 to $3.4 billion for Q4 [55][56] - Continued focus on leveraging AI and automation to enhance customer experience and operational efficiency is planned [59] - The company remains open to value-accretive transactions but is primarily focused on its transformation efforts [60] Lightpath Opportunity - The Lightpath segment is expected to generate over $100 million in sales, with ongoing efforts to expand its footprint beyond the current service areas [48][50] - The team is actively pursuing new business opportunities in various locations, indicating a strong growth potential [50] Additional Important Insights - The company is committed to advocating for customer interests in negotiations with programming partners to manage video costs effectively [42] - The overall strategy emphasizes quality and value, aiming to simplify customer interactions and enhance service delivery through digital and automated solutions [46][47]

Core Insights - Lightpath is expanding its AI-grade fiber network in Greater Columbus, Ohio, adding approximately 150 route miles of high-density fiber, which more than doubles its fiber footprint in the region [1][2][3] Group 1: Expansion and Infrastructure - The expansion reinforces Lightpath's presence in the Midwest and aims to deliver next-generation network infrastructure tailored for AI-driven workloads [2][3] - Engineering and construction for the new network are already underway, with phased completion expected from the end of 2026 through mid-2027 [2] Group 2: Market Position and Strategy - Columbus is recognized as a leading U.S. destination for data center and AI investment, highlighting the scale of hyperscale demand that Lightpath is committed to meeting [3][4] - The expanded network will utilize new underground, multi-conduit systems with high-count fiber capacity to support both metro and regional long-haul applications [3] Group 3: Customer Engagement and Connectivity - Lightpath aims to strengthen its position as a trusted partner for hyperscale, carrier, and large enterprise customers across the Midwest, setting the stage for growth and new AI-grade connectivity opportunities [4] - The company operates dense metro and regional fiber systems across major U.S. markets, connecting nearly 200 data centers to support next-generation workloads in the AI economy [4]

Core Insights - Altice USA Inc. reported disappointing third-quarter 2025 results, with both net income and revenues falling short of the Zacks Consensus Estimate, primarily due to weak demand in Residential, Business Services, and Wholesale segments [1] Financial Performance - The company recorded a net loss of $1.62 billion, equating to a loss of $3.47 per share, compared to a net loss of $42.9 million or 9 cents per share in the same quarter last year [2] - Total revenues for the quarter were $2.1 billion, down 5.4% year over year, missing the consensus estimate of $2.14 billion [3][10] - Adjusted earnings per share were reported as a loss of 12 cents, missing the Zacks Consensus Estimate by 8 cents [2] Revenue Breakdown - Residential revenues, which include Broadband, Video, and Telephony, decreased to $1.62 billion from $1.73 billion year over year, missing the estimate of $1.68 billion [7] - Business Services and Wholesale revenues fell to $361.9 million from $366.3 million in the prior year, but exceeded the revenue estimate of $339.6 million [6] - News and Advertising revenues declined to $105.9 million from $117.7 million year over year, missing the estimate of $106.7 million [6] Customer Metrics - Fiber broadband net additions exceeded 40,400 in the quarter, with total fiber broadband customers reaching 703,400 [5][10] - The company had 3.05 billion FTTH (Fiber to the Home) passings, with approximately 29,600 added during the quarter [4] - The average revenue per user (ARPU) for residential customers declined to $133.28 from $135.77 a year ago [5] Operational Highlights - The company reported an operating loss of $1.16 billion compared to a net income of $444.9 million in the prior year [8] - Adjusted EBITDA was $830.7 million, down from $861.9 million in the same quarter last year [8] - Mobile line net additions were 38,000 during the quarter, contributing to overall growth [8] Cash Flow and Debt - Altice generated $147.5 million in cash from operating activities, a significant decrease from $436 million a year ago [11] - As of September 30, 2025, the company's net debt stood at $25.3 billion [11]

Customer Base and Services - The company serves approximately 4.4 million residential and business customers across 21 states, with a total of 9.9 million passings as of September 30, 2025[142]. - For the nine months ended September 30, 2025, residential broadband, video, telephony, and mobile services accounted for approximately 41%, 31%, 3%, and 2% of consolidated revenue, respectively[144]. - The company derives 17% of its consolidated revenue from business services, including broadband, telephony, networking, video, and mobile services[146]. - Total customer relationships as of September 30, 2025, were 4,400.5 thousand, down from 4,462.2 thousand as of June 30, 2025[158]. - Total mobile lines as of September 30, 2025, increased to 584.4 thousand from 546.4 thousand as of June 30, 2025[158]. - Penetration of total passings for residential customers was 44.3% as of September 30, 2025, down from 45.1% as of June 30, 2025[158]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,108.1 million, a decrease of 5.4% compared to $2,227.7 million in the same period of 2024[156]. - Net loss attributable to Altice USA, Inc. stockholders for the three months ended September 30, 2025, was $1,625.9 million, compared to a net loss of $42.97 million in the same period of 2024[156]. - Adjusted EBITDA for the three months ended September 30, 2025, was $830.7 million, a decrease of 3.6% from $862.0 million in the same period of 2024[157]. - Total revenue for the nine months ended September 30, 2025, was $6,407.6 million, a decrease of 4.6% from $6,719.4 million in the same period of 2024[156]. - Operating income for the three months ended September 30, 2025, was $(1,164.8) million, compared to an operating income of $444.6 million in the same period of 2024[156]. - Adjusted EBITDA decreased by $31,319 (4%) to $830,657 for Q3 2025, and by $142,225 (6%) to $2,433,483 for the nine months ended September 30, 2025, compared to the same periods in 2024[182]. Revenue Breakdown - Broadband revenue decreased by $39,968 (4%) to $873,449 for Q3 2025, and by $87,251 (3%) to $2,658,149 for the nine months ended September 30, 2025, compared to the same periods in 2024[159]. - Video revenue decreased by $69,910 (10%) to $645,207 for Q3 2025, and by $238,841 (11%) to $1,971,315 for the nine months ended September 30, 2025, compared to the same periods in 2024[160]. - Telephony revenue decreased by $8,086 (12%) to $61,791 for Q3 2025, and by $19,709 (9%) to $192,836 for the nine months ended September 30, 2025, compared to the same periods in 2024[161]. - Mobile service revenue increased by $11,714 (38%) to $42,277 for Q3 2025, and by $33,662 (41%) to $116,597 for the nine months ended September 30, 2025, compared to the same periods in 2024[162]. - Business services and wholesale revenue decreased by $4,469 (1%) to $361,886 for Q3 2025, and by $13,287 (1%) to $1,087,219 for the nine months ended September 30, 2025, compared to the same periods in 2024[165]. - News and advertising revenue decreased by $11,819 (10%) to $105,863 for Q3 2025, and remained relatively stable for the nine months ended September 30, 2025, at $327,044[167]. - Other revenue increased by $2,948 (20%) to $17,637 for Q3 2025, and by $15,274 (39%) to $54,435 for the nine months ended September 30, 2025, compared to the same periods in 2024[168]. Cash Flow and Capital Expenditures - Free Cash Flow (Deficit) for the three months ended September 30, 2025, was $(178.1) million, compared to a positive Free Cash Flow of $76.9 million in the same period of 2024[157]. - Free Cash Flow (Deficit) was $(178,072) and $(318,267) for the three and nine months ended September 30, 2025, respectively, a decrease of $254,937 and $417,771 compared to the same periods in 2024[186]. - Net cash flows from operating activities were $148,108 for the three months ended September 30, 2025, compared to $333,595 in the same period of 2024[196]. - Capital expenditures for the three months ended September 30, 2025, were $325,520, compared to $359,159 in the same period of 2024[196]. - Net cash provided by operating activities for CSC Holdings was $750,819 for the nine months ended September 30, 2025, down from $1,040,051 in the same period of 2024[238]. - Capital expenditures on a cash basis for the nine months ended September 30, 2025, totaled $1,065,163, compared to $1,042,975 in 2024[234]. Debt and Financial Obligations - Total debt outstanding as of September 30, 2025, was $26,237,618, which includes credit facility debt of $7,549,952 and senior guaranteed notes of $10,679,227[205]. - Interest expense for the nine months ended September 30, 2025, was $1,346,621, which includes $1,252,279 from credit facility debt and senior notes[205]. - The company expects to utilize Free Cash Flow and revolving credit facilities to manage debt obligations and capital expenditures in the upcoming year[201]. - Total amounts payable related to outstanding obligations, including interest, are projected to be $32,310,872, with significant payments due in 2026 and 2027[207]. - Future refinancing transactions will depend on market conditions, which may impact the company's ability to manage its debt obligations[201]. - The net leverage ratio for CSC Holdings is calculated as net debt to L2QA EBITDA, indicating a focus on managing leverage effectively[200]. Operational Challenges and Outlook - The company faces competition from various broadband and telephony providers, impacting customer demand and service selection[148]. - Future performance is influenced by economic conditions, competition, and the ability to manage operations effectively[143]. - The company emphasizes the importance of managing capital expenditures to avoid delays and disruptions in network and service development[150]. - The ongoing FTTH network build aims to deliver multi-gig broadband speeds to meet growing data needs, alongside investments in HFC network upgrades[150]. Miscellaneous - The company recorded a gain of $55,114 from the sale of certain tower assets for $59,908 in July 2025[231]. - Commitments and contingencies decreased to approximately $4,300,000 as of September 30, 2025, down from approximately $4,900,000 as of December 31, 2024[244]. - The company reported no changes in internal control over financial reporting that materially affected its financial reporting during the nine months ended September 30, 2025[247]. - The evaluation of disclosure controls and procedures concluded that they were effective as of September 30, 2025[246].

Financial Performance - Altice USA reported total revenue of $2.11 billion for Q3 2025, representing a 5.4% decrease year-over-year and slightly below forecasts [1] - The company posted a GAAP loss per share of $3.47, a significant decline from a loss of $0.09 in the same quarter last year, and worse than the consensus estimate of a $0.05 loss [1] - Free cash flow was negative $178.1 million, a sharp reversal from a positive $76.87 million in the same quarter of the previous year [1] Subscriber Trends - The broadband subscriber count for Altice USA fell by 167,300 year-over-year, indicating ongoing operational challenges [1] Market Reaction - Shares of Altice USA fell 5.5% in the morning session following the disappointing financial results, reflecting the market's perception of the news as significant but not fundamentally altering its view of the business [3] - The stock has shown extreme volatility, with 41 moves greater than 5% over the last year, suggesting a pattern of overreaction to news [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $2.1 billion, a decline of 5.4% year-over-year, primarily driven by video cord cutting, which accounted for nearly 6% of total declines [15][16] - Adjusted EBITDA was $831 million, down 3.6% year-over-year, but showed a 3.3% sequential improvement compared to Q2 2025 [18][22] - Gross margin reached an all-time high of 69.7%, expanding by 160 basis points year-over-year, reflecting a shift away from video [17][24] - Adjusted EBITDA margin improved to 39.4%, the highest in two years, indicating progress in operational efficiency [18][22] Business Line Data and Key Metrics Changes - Video revenues declined close to 10%, contributing significantly to overall revenue declines, while mobile service revenue grew by 38% [7][15] - LightPath revenue increased by almost 6%, and underlying news and advertising revenue, excluding political ads, grew nearly 9% [7][15] - The company lost 58,000 broadband subscribers in Q3, reflecting ongoing competitive pressures [9][10] Market Data and Key Metrics Changes - Competitive intensity increased significantly in September, with competitors ramping up marketing spend and aggressive offers [5][30] - The market remains characterized by historically low growth and heightened competition, particularly from fixed wireless and fiber overbuilders [9][10] Company Strategy and Development Direction - The company is focused on evolving its go-to-market and base management strategies to improve broadband performance and revenue trajectory [6][10] - A disciplined approach prioritizing financial stability and margin protection over subscriber growth is being emphasized [5][30] - The company plans to enhance its product offerings and customer experience to rebuild trust and drive long-term growth [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by competitive pressures and macroeconomic conditions but expressed confidence in achieving the full-year adjusted EBITDA target of approximately $3.4 billion [4][22] - The company expects to see a path to slowing revenue decline in core residential and B2B businesses, with a focus on disciplined R2 management and value-added services [18][43] - Management highlighted the importance of maintaining discipline in subscriber acquisition costs and avoiding low-value gross ads [30][34] Other Important Information - The company announced a rebranding from Altice USA to Optimum Communications, effective November 7, 2025, with a new ticker symbol OPTU [28][29] - Capital expenditures for 2025 are projected to be approximately $1.3 billion, reflecting increased investment in LightPath and network upgrades [25][26] Q&A Session Summary Question: Broadband subscriber trends and competitive pressures - Management acknowledged the widening net losses in broadband subscribers due to increased competitive intensity and aggressive offers from competitors [30][31] Question: Cost structure and EBITDA guidance - Management provided insights on operating expense moderation and emphasized the importance of maintaining discipline in subscriber acquisition costs [31][37] Question: Pricing environment and competitive dynamics - Management discussed the need for a balanced approach to pricing and volume, emphasizing the importance of quality and value in their offerings [56][58] Question: Update on low-end product for rural areas - Management reported double-digit improvement in sales and connect rates for the income-constrained product and plans to scale it further [48][49] Question: 2027 debt maturity wall - Management refrained from discussing specific capital structure details but emphasized a disciplined approach to managing financials [52][53]

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Financial Performance - Altice USA's Q3 2025 Adjusted EBITDA was $831 million, a decrease of 3.6% year-over-year but an increase of 3.3% quarter-over-quarter[16, 31] - The Adjusted EBITDA margin expanded by 70 basis points year-over-year and 200 basis points quarter-over-quarter, reaching 39.4%[16, 31] - Gross margin reached an all-time high of 69.7%[16] - Total revenue decreased by 5.4% year-over-year to $2108 million[50] - The company reiterates its outlook of approximately $34 billion of Adjusted EBITDA for the full year 2025[10] Subscriber Trends and Revenue Streams - Broadband net additions decreased, with a loss of 58,000 subscribers in Q3 2025 compared to a loss of 50,000 in Q3 2024[18] - Mobile service revenue increased by 38% year-over-year[16] - Lightpath revenue increased by 5.6% year-over-year[16] - News & Advertising revenue, excluding political advertising, increased by 8.9% year-over-year[16] Operational Efficiency and Network Enhancements - Other Operating Expenses decreased by 2.4% year-over-year and 6.2% quarter-over-quarter[16] - The company is deploying mid-split upgrades on its HFC network to deliver multi-gig speeds[16, 40] - Total new passings increased by 51,000 in Q3 2025, with 30,000 being fiber passings[40]

Core Insights - Lightpath announces a major network expansion adding approximately 100 route miles of new fiber across Long Island, southern Connecticut, northern New Jersey, and Westchester County, enhancing its regional footprint and supporting a leading U.S. wireless carrier [1][2]. Group 1: Network Expansion - The expansion is part of a multi-phase deployment that utilizes roughly 70% of existing on-net infrastructure built over the past three years for other national carriers, showcasing the company's ability to scale quickly and cost-effectively [2]. - The newly added routes are designed to support 5G and AI-driven network deployments, providing high-capacity backhaul and aggregation for bandwidth-intensive applications [3]. Group 2: Customer Offerings - Customers in the expansion areas will gain access to Lightpath's full portfolio of all-fiber connectivity solutions, including Optical Transport up to 800 Gbps, Ethernet, Internet Access, Private Networks, Dark Fiber, SD-WAN, Security Solutions, Voice Services, and other Managed Services [4]. Group 3: Strategic Positioning - Lightpath's CEO, Chris Morley, emphasizes the company's execution excellence and deep fiber presence, positioning it as a preferred network partner for both domestic and international carriers expanding in the Northeast [3]. - The announcement follows a series of network investments across the New York Metro region, Phoenix, Eastern PA, and Columbus, OH, as Lightpath builds an "AI-grade" fiber platform for hyperscalers, carriers, and cloud providers [5].