Altice USA Q2 2023 Results Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation 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 presentation, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future ...

Altice USA, Inc. (NYSE:ATUS) Q2 2023 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Sarah Freedman - Director, Corporate Finance Dennis Mathew - Chief Executive Officer Marc Sirota - Chief Financial Officer Conference Call Participants Brett Feldman - Goldman Sachs Phil Cusick - JPMorgan Chase & Co. Benjamin Swinburne - Morgan Stanley Craig Moffett - MoffettNathanson LLC John Hodulik - UBS Group AG Jonathan Chaplin - New Street Research LLP Kutgun Maral - Evercore Inc. Bryan Kraft - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission File Number Registrant; State of Incorporation; Address and Telephone Number IRS Employer Identification No. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-38126 38-3980194 Altice USA, Inc ...

Altice USA, Inc. (NYSE:ATUS) Q1 2023 Results Conference Call May 3, 2023 4:30 PM ET Company Participants Nick Brown - EVP, Corporate Finance and Development Dennis Mathew - CEO Marc Sirota - CFO Conference Call Participants Phil Cusick - JPMorgan Brett Feldman - Goldman Sachs Craig Moffett - MoffettNathanson Doug Mitchelson - Credit Suisse John Hodulik - UBS Ben Swinburne - Morgan Stanley Jonathan Chaplin - New Street Kannan Venkateshwar - Barclays Peter Supino - Wolfe Research Michael Rollins - Citi Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number Registrant; State of Incorporation; Address and Telephone Number IRS Employer Identification No. 001-38126 38-3980194 Altice USA, In ...

Financial Data and Key Metrics Changes - Full year revenue declined 4.4% year-over-year, primarily due to pressure in residential and advertising businesses, and the loss of air strand revenue from the previous year [11][21] - Adjusted EBITDA decreased 12.7% year-over-year with a margin of 40.1%, reflecting revenue declines and higher operating expenses [11][21] - Free cash flow was $453 million in 2022, which would have exceeded $500 million without the impact of a legal settlement payment of approximately $65 million in Q4 [11][36] Business Line Data and Key Metrics Changes - Residential broadband customer net losses totaled 103,000 for 2022, with a significant improvement in Q4, reporting only 8,000 net losses [12][23] - Business services revenue declined 7.1% year-over-year, but was up 0.6% excluding air strand revenue [33] - News and advertising revenue decreased 5.5% year-over-year for the full year and down 10.8% in Q4, with political revenue not sufficient to offset market slowdown [22] Market Data and Key Metrics Changes - The company ended the year with nearly 2.2 million optimum fiber homes passed, adding just under 1 million new passings in the year [13][27] - Fiber broadband customer net additions exceeded 100,000 in the last year, with a significant increase in sales distribution channels [13][27] - The New York tri-state area showed improved trends, with fiber investments contributing positively to broadband customer additions [26] Company Strategy and Development Direction - The company aims to redefine its mission to become the connectivity provider of choice, focusing on broadband and mobile business growth [14][15] - A balanced approach to capital expenditure is planned, with a target of adding at least 900,000 fiber passings in 2023 [29] - The strategy includes enhancing customer experience, accelerating go-to-market strategies, and investing in network quality [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery signs and emphasized the importance of disciplined strategy and capital allocation [10][21] - The company is focused on improving customer experience metrics, with significant improvements in customer care and technical support [24][25] - Management is cautious about extrapolating from one quarter's performance but remains optimistic about future growth opportunities [26] Other Important Information - Management announced several leadership changes to strengthen the executive team and drive growth [6][9] - The company successfully extended approximately 50% of its term loans due in 2025 and 2026 to 2028, improving its debt maturity profile [13][39] - The company unwound a Comcast collar position, resulting in a gross debt reduction of about $1.7 billion [40] Q&A Session Summary Question: Fiber plans and network upgrade strategy - Management discussed the different competitive profiles in the East and West, emphasizing a commitment to fiber expansion in the East while taking a more measured approach in the West [42][43] Question: Importance of mobile offering - Management highlighted the need for a compelling broadband and mobile offering, with plans to evolve pricing and packaging to enhance customer value [47][48] Question: Expectations for customer growth in 2023 - Management expressed optimism about returning to overall customer growth, driven by improved customer experience and branding efforts [50][52] Question: Pressure on residential ARPU - Management acknowledged the decline in ARPU and emphasized the need for a disciplined approach to pricing and customer lifetime value [67][70] Question: Business services market pressure - Management noted increased competition in the SMB market and the need to expand the product portfolio to remain competitive [78][79]

Altice USA Q4 and Full Year 2022 Results February 22, 2023 Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation 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 presentation, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Altice USA provides broadband, video, and telephony services to approximately 4.9 million customers across 21 states, actively upgrading its network with FTTH technology - Altice USA provides broadband, video, and telephony services to approximately **4.9 million** residential and business customers across 21 states, primarily under the Optimum brand[8](index=8&type=chunk) - The company is executing an ongoing fiber-to-the-home (FTTH) network build, which passed over **2.1 million** homes and businesses as of December 31, 2022, enabling the delivery of multi-gigabit broadband speeds[8](index=8&type=chunk)[11](index=11&type=chunk)[35](index=35&type=chunk) Key Financial and Customer Metrics (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Customer Relationships (thousands) | 4,879.7 | 5,014.7 | 5,024.6 | | Revenue (billions) | $9.65 | $10.09 | $9.89 | | Adjusted EBITDA (billions) | $3.87 | $4.43 | $4.41 | | Net Income (millions) | $194.6 | $990.3 | $436.2 | [Our Products and Services](index=5&type=section&id=Our%20Products%20and%20Services) The company's offerings are segmented into Residential Services, Business Services, and News and Advertising, providing broadband, video, telephony, and mobile services, alongside enterprise fiber connectivity and various news channels Residential Customer Relationships (thousands) | Service | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Total Residential Customers** | **4,498.5** | **4,632.8** | **4,648.4** | | Broadband | 4,282.9 | 4,386.2 | 4,359.2 | | Video | 2,439.0 | 2,732.3 | 2,961.0 | | Telephony | 1,764.1 | 2,005.2 | 2,214.0 | Residential Revenue | Service | 2022 (billions) | 2021 (billions) | 2020 (billions) | | :--- | :--- | :--- | :--- | | Broadband | $3.93 | $3.93 | $3.69 | | Video | $3.28 | $3.53 | $3.67 | | Telephony (millions) | $332.4 | $404.8 | $468.8 | - The company offers a mobile service delivered over a nationwide network through an MVNO agreement with T-Mobile, utilizing its own core network for control over data offloading and product flexibility[18](index=18&type=chunk) - Lightpath, the enterprise fiber business, serves approximately **13,500** locations with a network of about **20,200** route miles, with Altice USA retaining a **50.01%** controlling stake after selling a **49.99%** interest in December 2020[21](index=21&type=chunk) [Competition](index=12&type=section&id=Competition) Altice USA faces intense competition across all service lines from fiber, satellite, wireless, and internet-based providers, impacting customer retention and market share - The company faces intense competition from fiber-based providers, with Verizon's Fios network covering over two-thirds of households in its New York metropolitan service area and other fiber providers serving over one-quarter of households in its south-central US markets[46](index=46&type=chunk) - Video services compete with direct broadcast satellite (DBS) providers and a growing number of internet-delivered streaming services like Netflix, Hulu, Disney+, and YouTube TV, adversely affecting demand for traditional video packages[47](index=47&type=chunk) - Mobile broadband providers like T-Mobile and Verizon are increasingly offering 5G Fixed Wireless Broadband (FWB) services that can substitute for the company's fixed broadband service[81](index=81&type=chunk) [Regulation](index=14&type=section&id=Regulation) The company's services are subject to extensive federal, state, and local regulations, including franchise agreements, net neutrality debates, and comprehensive privacy laws - Cable operators must obtain non-exclusive franchises from state or local authorities, typically requiring franchise fees of up to **5%** of cable service revenues and imposing various service quality and operational requirements[29](index=29&type=chunk)[58](index=58&type=chunk) - The regulatory classification of broadband internet access service remains a key issue, reclassified as a less-regulated 'information service' in 2017, but subject to change with states enacting their own 'net neutrality' rules[64](index=64&type=chunk)[118](index=118&type=chunk) - The company is subject to comprehensive privacy laws like the California Consumer Privacy Act (CCPA) and similar legislation in other states, which increase disclosure requirements and consumer rights regarding personal data[73](index=73&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business risks including intense competition, rising programming costs, and high leverage of approximately **$26.6 billion**, alongside regulatory and concentrated stock ownership risks - The company operates in a highly competitive environment, facing pressure from fiber, satellite, wireless, and internet-based providers, which affects customer retention and pricing[80](index=80&type=chunk) - Programming and retransmission costs are a large and increasing expense category, and disputes with programmers can lead to channel blackouts and customer losses[83](index=83&type=chunk) - The company is highly leveraged, with total aggregate indebtedness of approximately **$26.6 billion** as of December 31, 2022, which exposes it to risks related to debt service, refinancing, and interest rate fluctuations[87](index=87&type=chunk) - The tri-class stock structure concentrates approximately **95%** of voting power with Next Alt, controlled by Patrick Drahi, limiting public stockholders' ability to influence corporate matters[123](index=123&type=chunk)[124](index=124&type=chunk) [Properties](index=45&type=section&id=Item%202.%20Properties) The company's principal assets include its cable operating plant, fiber optic and coaxial distribution systems, and customer premise equipment, with headquarters leased in Long Island City, NY - The company's main physical assets are its cable operating plant, including headend facilities, fiber and coaxial networks, and customer premise equipment like set-top boxes and modems[130](index=130&type=chunk) - Headquarters are leased in Long Island City, New York, with an owned administrative office in Bethpage, New York, alongside various other owned or leased properties for operations[130](index=130&type=chunk) [Legal Proceedings](index=45&type=section&id=Item%203.%20Legal%20Proceedings) The company's legal matters include a **$112.5 million** patent infringement settlement with Sprint and an ongoing copyright infringement lawsuit regarding internet subscriber activity - The company settled a patent infringement lawsuit with Sprint for **$112.5 million**, with **$47.5 thousand** remaining payable as of year-end[476](index=476&type=chunk) - In December 2022, BMG and other music companies filed a complaint alleging contributory and vicarious copyright infringement related to the actions of Altice USA's internet subscribers[476](index=476&type=chunk) Part II [Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=46&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Altice USA's Class A common stock trades on the NYSE under 'ATUS' with no current plans for cash dividends, and the stock significantly underperformed market and peer indices from 2017 to 2022 - Class A common stock is listed on the NYSE under **'ATUS'**; Class B common stock is not listed[134](index=134&type=chunk) - The company has no current plans to pay cash dividends and did not repurchase any equity securities in the fourth quarter of 2022[135](index=135&type=chunk)[137](index=137&type=chunk) Stock Performance Comparison ($100 Investment on 12/31/2017) | Index | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Altice USA Class A** | **$100.00** | **$86.74** | **$143.55** | **$198.84** | **$84.96** | **$24.15** | | S&P 500 Index | $100.00 | $93.76 | $120.84 | $140.49 | $178.27 | $169.45 | | 2022 Peer Group Index | $100.00 | $90.71 | $120.40 | $125.01 | $118.46 | $100.72 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Altice USA's 2022 revenue decreased by **4.4%** to **$9.65 billion** and Adjusted EBITDA fell by **12.7%** to **$3.87 billion**, driven by customer losses, increased operating expenses, and a significant rise in capital expenditures for FTTH network build Consolidated Results of Operations (2022 vs. 2021) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue (billions) | $9.65 | $10.09 | (4.4%) | | Operating Income (billions) | $1.80 | $2.52 | (28.6%) | | Net Income (millions) | $220.9 | $1,010.9 | (78.1%) | | Adjusted EBITDA (billions) | $3.87 | $4.43 | (12.7%) | Cash Flow and Capital Expenditures (2022 vs. 2021) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities (billions) | $2.37 | $2.85 | (17.1%) | | Capital Expenditures (cash, billions) | $1.91 | $1.23 | 55.4% | | Free Cash Flow (millions) | $452.6 | $1,622.4 | (72.1%) | - The company experienced a net loss of **135,000** total customer relationships in 2022, driven by declines in residential video (**-293.3k**) and telephony (**-241.1k**) customers, and a modest decline in broadband customers (**-103.3k**)[158](index=158&type=chunk) - FTTH passings nearly doubled, increasing by **987,800** to reach **2,158,700** homes, with FTTH customer relationships growing by **102,100** to **171,700**, representing a penetration rate of **8.0%**[158](index=158&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) In 2022, total revenue decreased by **$443.2 million** due to customer losses and lower business services, while operating expenses rose significantly, leading to a **$722.0 million** decline in operating income - Video revenue decreased by **$244.9 million (7%)** in 2022 compared to 2021, primarily due to a decline in video customers[164](index=164&type=chunk) - Business services and wholesale revenue decreased by **$112.2 million (7%)**, with **$121.6 million** of the decline attributed to the recognition of deferred revenue and termination fees from a contract termination in 2021[166](index=166&type=chunk) - Programming and other direct costs fell by **$176.5 million (5%)**, mainly due to a **$117.2 million** reduction in programming costs from having fewer video customers[171](index=171&type=chunk)[172](index=172&type=chunk) - Other operating expenses increased by **$355.7 million (15%)**, driven by higher labor costs (**$157.9 million**), share-based compensation (**$61.7 million**), and repairs, maintenance, and marketing costs related to the rebranding of Suddenlink services to Optimum[175](index=175&type=chunk)[176](index=176&type=chunk) - Restructuring and other operating items increased to **$130.3 million** from **$17.2 million**, primarily due to a **$112.5 million** litigation settlement with Sprint[177](index=177&type=chunk)[178](index=178&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash and credit facilities, with total debt of **$26.6 billion** as of year-end 2022, and significantly increased capital expenditures to **$1.91 billion** for FTTH network build Debt Outstanding as of December 31, 2022 | Debt Category | Carrying Amount (billions) | | :--- | :--- | | Credit facility debt | $9.06 | | Senior guaranteed notes | $7.64 | | Senior secured notes (millions) | $443.0 | | Senior notes | $7.32 | | Collateralized indebtedness | $1.75 | | Other (Finance leases, etc., millions) | $372.2 | | **Total Debt** | **$26.59** | Capital Expenditures (Cash Basis) | Category | 2022 | 2021 | | :--- | :--- | :--- | | Customer premise equipment (millions) | $316.2 | $227.3 | | Network infrastructure (billions) | $1.15 | $642.5 | | Support and other (millions) | $270.1 | $235.3 | | Business services (millions) | $174.1 | $126.6 | | **Total Capital Purchases (billions)** | **$1.91** | **$1.23** | - The company targets a year-end leverage ratio of **4.5x to 5.0x** for its main debt silo, CSC Holdings[201](index=201&type=chunk) - As of December 31, 2022, the company had approximately **$1.19 billion** of availability remaining under its share repurchase program, with no shares repurchased during the year[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages equity price risk from Comcast stock holdings, fully settled in January 2023, and mitigates interest rate risk on variable-rate debt through interest rate swap contracts - The company's exposure to equity price risk from its Comcast stock holdings was fully settled in January 2023 through the delivery of shares and related derivative contracts[228](index=228&type=chunk) - To manage interest rate risk, the company uses interest rate swap contracts, with a total notional amount of **$3.3 billion** as of December 31, 2022[232](index=232&type=chunk)[433](index=433&type=chunk) - At December 31, 2022, the estimated fair value of the company's fixed-rate debt was **$12.54 billion**, which was **$4.73 billion** lower than its carrying value of **$17.28 billion**[231](index=231&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[235](index=235&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was effective as of December 31, 2022, a conclusion audited and affirmed by KPMG LLP[237](index=237&type=chunk)[238](index=238&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Accountant Fees](index=69&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for these items, covering directors, executive compensation, security ownership, related transactions, and principal accountant fees, will be incorporated by reference from the company's definitive proxy statement - Information for Items 10 through 14 is incorporated by reference from the company's forthcoming definitive proxy statement[240](index=240&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=69&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index to the financial statements and a comprehensive list of exhibits filed with the report, including corporate governance documents and material contracts - This section provides an index to the financial statements and lists all exhibits filed as part of the Form 10-K report[241](index=241&type=chunk)

Financial Data and Key Metrics Changes - Revenue declined 2.1% year-over-year, primarily due to the residential business [6][9] - Adjusted EBITDA decreased 8.8% year-over-year, with a margin of 40.9% [6][22] - Free cash flow generated was $191 million in Q2 and approximately $400 million year-to-date [6][24] Business Line Data and Key Metrics Changes - Residential broadband customer net losses were 40,000 for Q2, with a total residential business decline of 3% [6][9] - Business Services revenue was flat, down 1.1% year-over-year, but grew 1.3% excluding air strand revenue [9][20] - News and advertising revenue grew 1.1% in Q2, with expectations of political benefits in the second half of the year [9][21] Market Data and Key Metrics Changes - The company reported a net loss of 48,000 residential customer relationships, with a broadband net loss of 40,000 [10] - The average download speeds for customers were just under 400 megabits per second, with fiber customers averaging significantly higher speeds [17][18] - The Optimum mobile business reached 231,000 customers, representing 5.1% penetration of the residential customer base [10][19] Company Strategy and Development Direction - The company is focused on accelerating fiber network deployment, targeting 6.5 million fiber to the home passings by the end of 2025 [12][16] - A rebranding effort from Suddenlink to Optimum aims to unify telecommunications brands and enhance customer experience [8][11] - The company is expanding sales distribution channels and has opened seven more Optimum stores [8][20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in returning to broadband customer growth in the second half of the year, despite current challenges [29][30] - There are ongoing discussions regarding asset sales, but no further details were provided [30] - Management noted mild pressure from inflationary costs but indicated that operational costs are not significantly impacted [36][37] Other Important Information - The company has received $35 million in subsidy grants for broadband expansion, focusing on underserved areas [16] - Capital expenditures are expected to remain between $1.7 billion to $1.8 billion for 2022, with a significant portion allocated to fiber investments [23][24] - The company has a well-structured debt profile with no annual bond maturities greater than $1 billion before 2025 [25][26] Q&A Session Summary Question: Is there still a potential return to growth in broadband subscribers this year? - Management is confident in returning to growth, expecting improvements in the second half of the year [29] Question: Can you provide details on the number of subscribers at Suddenlink versus Optimum? - Management refrained from discussing specific subscriber numbers but confirmed interest in Suddenlink assets [32][33] Question: How are inflationary cost pressures affecting the company? - Mild pressure is noted, particularly in utilities, but overall operational costs remain stable [36][37] Question: What is the impact of wireless on broadband and churn? - Wireless is seen as a churn enhancer, with ongoing efforts to improve mobile offerings [39] Question: How does the company view the competitive threat from fixed wireless? - Management believes fiber will outperform fixed wireless in the long term, reinforcing their investment strategy [60][61] Question: What are the expectations for fiber rollout and customer penetration? - The company aims to exceed initial targets for fiber passings and expects continued strong penetration rates [72][74]