Core Insights - WOW! Internet, TV & Phone has recognized CEO Teresa Elder as an honoree in the annual "Cablefax 100" list for the seventh consecutive year, highlighting her influential leadership in the broadband industry [1][2]. Company Performance - Under Elder's leadership, WOW! has expanded its all-fiber footprint and introduced innovative broadband solutions, achieving operational excellence and strategic growth [2]. - The company secured a $200 million Senior Term Loan to support ongoing fiber buildouts, indicating strong financial backing for expansion efforts [2]. - WOW! has successfully passed an additional 100,000 homes through its Greenfield and Edge-out market expansion, moving towards a goal of passing 400,000 homes in new communities in the coming years [3]. Industry Position - WOW! serves nearly 2 million residential, business, and wholesale consumers across 19 markets, primarily in the Midwest and Southeast [5]. - The company is recognized for its commitment to providing high-quality services at affordable prices, alongside exceptional human resources practices, having won awards for being a Best & Brightest Company to Work For [5].

Company Overview - WOW! Internet, TV & Phone is a leading broadband services provider in the United States, serving nearly 2 million residential, business, and wholesale consumers across 19 markets, primarily in the Midwest and Southeast [6] - The company offers a wide range of services, including high-speed Internet, cable TV, home and mobile phone services, business data, voice, and cloud services, with a commitment to providing outstanding service at affordable prices [6] - WOW! has been recognized 11 times as a Best & Brightest Company to Work For in the Nation, winning the award for the last seven consecutive years [6] Leadership Appointments - Christine Simmons and Darius Clay have been appointed to the C2HR Advisory Board, which consists of distinguished telecommunications executives focused on shaping the future of the industry [1][4] - Simmons, as senior director of talent management, has extensive expertise in learning and development, emphasizing technology to create scalable training solutions and enhance employee engagement [2][3] - Clay, as senior director of total rewards, brings a strategic perspective and has led initiatives to improve employee experience and operational efficiency, focusing on work-life balance and data-driven strategies [3][4] Advisory Board Role - The C2HR Advisory Board, established in 2023, plays a crucial role in providing insights, fostering innovation, and supporting human resources professionals in the content and connectivity space [4] - The board aims to deliver relevant insights, industry-specific analytics, and meaningful networking opportunities to advance excellence across the telecommunications industry [4]

Core Insights - WOW! Internet, TV & Phone has expanded its fiber network, reaching over 100,000 additional homes, including more than 80,000 fiber-to-the-home passings, as part of its ongoing market expansion strategy [1][2][3] Group 1: Expansion Strategy - The company has significantly increased its presence in Greenfield markets and Edge-outs, activating customers in multiple counties across Michigan, Alabama, South Carolina, and Florida [2][3] - WOW! aims to pass 400,000 homes in new communities in the coming years, demonstrating strong momentum in its expansion efforts [1][3] Group 2: Customer Offerings - Residents and businesses in the newly served areas can access WOW!'s fiber network with simplified pricing, which includes fast Internet speeds, necessary Wi-Fi equipment, no annual contracts, and no data caps [3] - The company offers a Price Lock Promise, allowing customers to secure their Internet price for a low monthly fee [3] Group 3: Service Portfolio - WOW! provides a broad suite of services, including WOW! mobile powered by Reach, business internet solutions, and bundling options with YouTube TV [4] - The company serves nearly 2 million consumers across 19 markets, primarily in the Midwest and Southeast, with a focus on high-speed Internet, cable TV, home phone, and cloud services [5]

Broadband Network and Services - As of December 31, 2024, the broadband networks passed nearly 2.0 million homes and businesses, serving 478,700 customers, resulting in a customer penetration rate of approximately 24%[11] - The advanced network offers high-speed data (HSD) speeds up to 1.2 GIG (1200 Mbps) in approximately 99% of the footprint and up to 5 GIG (5000 Mbps) in greenfield expansion markets[13] - Approximately 81% of the customer base subscribed only to HSD services, with expectations for this percentage to rise as broadband utilization increases[22] - The company operates in 18 markets, with a total of 31,256 network miles, including 22,566 coaxial miles and 8,690 fiber miles[16] - Approximately 93% of new customers purchase HSD-only offerings, indicating strong demand for high-speed data services[20] - The company offers a full suite of business services, including fiber-based telephony services with data speeds of up to 10 GIG on the fiber network[27] - The subscription-based pricing strategy is centered around HSD offerings, allowing customers to lock in their internet service rates[29] - The company continues to invest in network enhancements to meet increasing capacity demands and improve customer experience[14] - The company operates under a broadband first strategy, offering HSD speeds up to 1.2 GIG (1200 Mbps) in approximately 99% of its footprint and up to 5 GIG (5000 Mbps) in greenfield expansion markets[201] Employee and Training - The company provided approximately 22,100 total training hours to its employees for the year ending December 31, 2024[58] - The company absorbs an average of 76% of the total premium cost for medical, dental, and vision coverage for all full-time employees[52] - The company has 1,320 full-time employees as of December 31, 2024[49] Competition and Market Dynamics - The company expects competition for telephony service subscribers to intensify due to rapidly evolving technology and various communications options[48] - The company faces increasing competition from over-the-top (OTT) services, which are expected to accelerate the movement away from traditional video subscription services[46] - The company is well positioned to benefit from the increasing demand for robust Internet connections as customers shift towards OTT content[46] - The company faces significant competition from larger telecommunications and cable companies, which may negatively affect its financial results and growth rates[102] - The demand for broadband communications services may be lower than expected, adversely impacting revenue generation[109] Regulatory Environment - The FCC's contribution factor for the fourth quarter of 2024 is set at 35.8% of gross assessable interstate and international telecommunications and interconnected VoIP revenues[90] - The Affordable Connectivity Program (ACP) was launched with a budget of $14 billion, which was exhausted in 2024, leading to the program's termination on June 1, 2024[92] - The FCC adopted rules in November 2023 to address broadband "digital discrimination of access," which went into effect on March 22, 2024[74] - The Infrastructure Investment and Jobs Act (IIJA) requires broadband service providers to display pricing and service information at the point of sale, effective April 2024[73] - The FCC's rules on net neutrality were reversed in April 2024, reclassifying broadband as a telecommunications service, but this decision is currently stayed by a federal appeals court[72] - The FCC has proposed rules to prohibit cable operators from imposing early termination fees and billing cycle fees, which could impact profitability[77] - The contribution to the Federal Universal Service Fund (USF) is not materially adverse to the company, as costs are recovered from end users[91] - The FCC has implemented regulations for VoIP services, including privacy obligations and E911 requirements, but the classification of VoIP remains unsettled[85] - The company is subject to various federal, state, and local regulations affecting its telecommunications services, which may change in the future[78] - The company has entered into local interconnection agreements with various telecommunications providers, which are subject to changes in laws and regulations[81] - The company is subject to numerous local, state, and federal taxes and regulatory fees, which could have a material adverse effect on its business if collection procedures are insufficient[97] Financial Performance and Strategy - The company experienced net losses in the past three years, primarily due to interest expenses, depreciation, and impairment charges[169] - The company has not declared or paid any dividends on its common stock and intends to retain all available funds for business operations[190] - The company purchased a total of 3,818 shares in the fourth quarter of 2024, with average prices ranging from $4.96 to $5.31 per share[196] - The company’s core strategy focuses on providing outstanding service at affordable prices, emphasizing customer experience[200] - The company has substantial indebtedness, which may limit its ability to pursue strategic alternatives and react to changes in the business environment[150] - The company is subject to complex tax laws and potential changes that could adversely affect its effective tax rate and financial condition[145] - The company may face challenges in accessing capital markets on acceptable terms, impacting its financing capabilities[158] Cybersecurity and Operational Risks - The company maintains insurance related to cybersecurity risks, but acknowledges that it may not be sufficient to cover all potential losses[165] - The company has an enterprise-wide information security program designed to manage cybersecurity risks and threats[176] - The company has not experienced a material cybersecurity incident to date, despite facing directed attacks[182] - The company is exposed to risks from cyber-attacks and disruptions in network systems, which could lead to significant operational impacts and customer dissatisfaction[162] Environmental and Natural Disaster Risks - The company is subject to environmental regulations that could impose liabilities or require costly compliance measures[98] - The company may incur significant costs related to environmental regulations and potential liabilities for contamination[129] - The company operates in regions vulnerable to natural disasters, which could disrupt services and harm business operations[161] Franchise and Programming Costs - The company operates under franchises that typically have fixed terms of 10 to 15 years, with many expiring in the coming years[122] - Local franchising authorities may impose regulatory constraints that could materially increase the company's operating expenses[123] - Changes in federal "must carry" rules could force the company to carry additional local broadcast signals, potentially increasing costs and impacting competitiveness[124] - Programming costs have been increasing rapidly, and the company may struggle to negotiate lower costs due to its relatively modest subscriber base[114] Market Expansion and Challenges - The company launched services in multiple new communities, including locations in Florida, Michigan, Alabama, and South Carolina, as part of its market expansion strategy[203] - The company’s greenfield market expansion strategy may encounter significant obstacles, including unanticipated expenses and competition, which could materially impact operations and financial results[111] - The company’s ability to compete effectively may be hindered by rapid technological changes and the need to invest in new technologies[107] - The company relies on interconnection arrangements mandated by the Communications Act, which could be negatively impacted by future regulatory changes[125] Shareholder Dynamics - As of December 31, 2024, approximately 37% of the company's outstanding common shares were held by Crestview Partners, LLC, which submitted an unsolicited acquisition proposal on May 2, 2024[210] - The company’s common stock is significantly held by Crestview, which may have interests that differ from other shareholders, potentially affecting corporate decisions[153]

Financial Data and Key Metrics Changes - In Q4 2024, high-speed data (HSD) revenue decreased by 3.5% year-over-year to $104.9 million, impacted by $1.9 million in revenue credits due to Hurricane Halide and Milton [9][17] - Adjusted EBITDA for Q4 2024 increased by 3.5% year-over-year to $73.7 million, with an adjusted EBITDA margin of 48.3% [9][18] - For the full year, high-speed data revenue decreased by 1.6% to $423.6 million, including $2.5 million in hurricane credits [10] - Total revenue for Q4 2024 decreased by 9.6% to $152.6 million, with video and telephony revenues dropping by 26.9% and 16.9%, respectively [17] Business Line Data and Key Metrics Changes - The company doubled its all-fiber footprint in 2024, passing an additional 31,500 homes, with penetration rates increasing from just under 10% at the end of 2023 to 16.6% at the end of 2024 in greenfield markets [8][11] - HSD subscribers decreased by 10,200 during the quarter, with approximately 5,400 losses attributed to hurricanes [13] - Traditional video business subscribers dropped to 60,600, a 33% decrease from the same period last year [15] Market Data and Key Metrics Changes - The company reported a high ARPU of $73.50, which increased by around 1% year-over-year despite a sequential decrease due to hurricane impacts [14] - The greenfield markets showed strong performance, with low churn rates and positive trends in ARPU driven by customer upgrades to high-value services [8][36] Company Strategy and Development Direction - The company is focused on expanding its greenfield fiber market, with plans to pass 400,000 new homes over the next few years [20] - A new super priority term loan of $200 million was secured to support this expansion strategy [20] - The transition to YouTube TV is expected to continue, with significant growth in subscribers [16][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2025, highlighting improvements in customer acquisition and retention strategies [35][49] - The company anticipates continued competition in the market but believes its pricing strategies and service offerings will help maintain customer satisfaction and reduce churn [37][40] Other Important Information - Total capital spend for Q4 2024 was $51.7 million, down from the previous year but up from the last quarter, primarily due to hurricane remediation efforts [21] - The company expects to spend between $60 million to $70 million on greenfield expansion CapEx in 2025 [22] Q&A Session Summary Question: Confirmation on acquisition proposal engagement - Management stated they have no updates regarding the unsolicited acquisition proposal from DigitalBridge and Crestview Partners [27] Question: Liquidity from new financing and CapEx goals - The company confirmed that the $200 million financing provides significant liquidity, with an additional $175 million available in 2025, which will support their expansion goals [30] Question: Anticipated broadband subscriber losses and competition - Management acknowledged competition but noted improvements in customer retention and ARPU, particularly in greenfield markets [36][37] Question: Performance of mobile product and convergence strategy - The company has a mobile product but does not prioritize it as aggressively as peers, focusing instead on reliable high-speed internet offerings [39] Question: Clarification on adjusted EBITDA and nonrecurring fees - Management explained that nonrecurring professional fees are part of their ongoing business strategy and are expected to decrease after 2025 [44][46] Question: Outlook for HSD net adds - Management is optimistic about regaining customers affected by hurricanes and expects improvements in HSD net adds for the full year [50][52]

WideOpenWest, Inc. (NYSE:WOW) Q4 2024 Earnings Conference Call March 14, 2025 8:00 AM ET Company Participants Andrew Posen - Vice President and Head, Investor Relations Teresa Elder - Chief Executive Officer John Rego - Chief Financial Officer Conference Call Participants Frank Louthan - Raymond James Chris Schoell - UBS Brandon Nispel - KeyBanc Matthew Harrigan - Benchmark Operator Thank you for standing by, and welcome to the WideOpenWest Fourth Quarter 2024 Earnings Conference Call. [Operator Instruction ...

WideOpenWest (WOW) came out with a quarterly loss of $0.13 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this cable TV company would post a loss of $0.15 per share when it actually produced a loss of $0.27, delivering a surprise of -80%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.WideOpenWest, which belongs to the Zack ...

Revenue Performance - Total Revenue for Q4 2024 was $152.6 million, a decrease of $16.2 million, or 9.6%, compared to Q4 2023[4] - Total Subscription Revenue for the year ended December 31, 2024 was $581.8 million, down $53.8 million, or 8.5%, compared to 2023[5] - Total revenue for the year ended December 31, 2024, was $630.9 million, a decrease of 8.1% from $686.7 million in 2023[25] - Subscription services revenue decreased to $581.8 million in 2024, down 8.5% from $635.6 million in 2023[25] - HSD Revenue for Q4 2024 totaled $104.9 million, a decrease of $3.8 million, or 3.5%, compared to Q4 2023[5] - First quarter 2025 guidance for Total Revenue is projected to be between $147.0 million and $149.0 million[20] Profitability and Loss - Net Loss for the year ended December 31, 2024 was $58.8 million, compared to a net loss of $287.7 million in 2023[11] - For the three months ended December 31, 2024, the company reported a net loss of $10.6 million, compared to a net loss of $43.5 million for the same period in 2023, resulting in a net profit margin of (6.9)% versus (25.8)%[36] - The company reported a basic loss per common share of $0.72 for the year ended December 31, 2024, compared to a loss of $3.53 in 2023[25] Cash Flow and Liquidity - Cash and cash equivalents increased to $38.8 million as of December 31, 2024, up from $23.4 million in 2023[26] - Operating cash flow for the year ended December 31, 2024, was $163.7 million, an increase from $135.1 million in 2023[26] Subscriber Metrics - Total Subscribers as of December 31, 2024 were 478,700, a decrease of 25,400 compared to December 31, 2023[13] - High-Speed Data (HSD) Revenue Generating Units (RGUs) decreased to 470,400 as of December 31, 2024, compared to 490,100 at the end of 2023[39] - Video RGUs declined to 60,600 as of December 31, 2024, down from 90,800 at the end of 2023[39] - As of December 31, 2024, the company passed 1,962,100 homes, an increase from 1,932,200 homes at the end of 2023[39] Capital Expenditures and Debt - Capital Expenditures for the year ended December 31, 2024 totaled $215.8 million, a decrease of $53.1 million, or 19.7%, compared to 2023[16] - Long-term debt and finance lease obligations increased to $997.4 million in 2024, up from $915.7 million in 2023[25] - The company had total capital expenditures of $215.8 million for the year ended December 31, 2024, down from $268.9 million in 2023[39] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $73.7 million, an increase of $2.5 million, or 3.5%, compared to Q4 2023[12] - Adjusted EBITDA for the year ended December 31, 2024, was $288.4 million, an increase from $275.4 million in 2023, with an adjusted EBITDA margin of 45.7% compared to 40.1%[36] Other Financial Information - The company incurred $25.3 million in non-recurring professional fees, M&A integration, and restructuring expenses for the three months ended December 31, 2024[36] - The company reported impairment losses on intangibles of $47.0 million for the three months ended December 31, 2023[36] Market Presence - The company operates in 18 markets, primarily in the Midwest and Southeast, serving nearly 2.0 million consumers[27] - The company passed approximately 31,500 new homes in Greenfield markets, increasing penetration rates to 16.6%[3] Strategic Initiatives - The company plans to continue reviewing subscriber information policies to ensure accuracy across different markets[35]

Core Insights - WideOpenWest, Inc. ("WOW!") reported a penetration rate increase to 16.6% in Greenfield markets, passing an additional 31,500 homes in 2024 [3][15] - The company experienced a year-over-year growth in Adjusted EBITDA of 4.7%, reflecting strong cost management and operational efficiencies [3][11] - Total revenue for the year ended December 31, 2024, was $630.9 million, a decrease of 8.1% compared to 2023 [4][11] Financial Performance - Total Revenue for Q4 2024 was $152.6 million, down $16.2 million or 9.6% from Q4 2023 [11][25] - Subscription Revenue for Q4 2024 was $140.3 million, a decrease of 9.8% year-over-year [5][11] - Adjusted EBITDA for Q4 2024 was $73.7 million, an increase of 3.5% compared to Q4 2023 [11][13] Subscriber Metrics - Total Subscribers as of December 31, 2024, were 478,700, a decrease of 25,400 from the previous year [14] - High-Speed Data (HSD) RGUs totaled 470,400, down 19,700 compared to December 31, 2023 [14] Market Expansion - The company passed approximately 61,900 homes in Greenfield initiatives, achieving a penetration rate of 16.6% [15] - Edge-out projects passed 8,300 new homes with a penetration rate of 39.8% as of December 31, 2024 [16] Capital Expenditures - Capital Expenditures for the year ended December 31, 2024, totaled $215.8 million, a decrease of 19.7% compared to 2023 [17] - Core Capital Expenditures represented 20.8% of Total Revenue for the year [17] Liquidity and Debt - As of December 31, 2024, total outstanding long-term debt was $1,017.4 million, with cash and cash equivalents of $38.8 million [19] - The company entered into a new Priority Credit Agreement during Q4 2024, refinancing prior debt and including $200 million in new borrowings [18] Acquisition Proposal - On May 2, 2024, WOW! received an unsolicited acquisition proposal from DigitalBridge Investments, LLC, which is currently under evaluation by a special committee [20]

Group 1 - WOW! Internet, TV & Phone will host a webcast and conference call on March 14, 2025, at 8:00 a.m. ET to discuss its financial and operating results for Q4 2024 [1] - A news release reporting the results will be issued prior to the call [1] - The conference call will be available for live broadcast on the company's investor relations website [2] Group 2 - WOW! is a leading broadband provider in the U.S., serving nearly 2 million residential, business, and wholesale consumers across 19 markets [3] - The company offers a range of services including high-speed Internet, cable TV, home phone, mobile phone, business data, voice, and cloud services [3] - WOW! has been recognized 11 times as a Best & Brightest Company to Work For in the Nation, winning the award for the last seven consecutive years [3]