Altice USA(ATUS) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 2024 was $2.2 billion, a decrease of 3.6% year over year[3] - Residential revenue was $1.8 billion, down 4.4% year over year, with ARPU at $135.95, a decline of 1.1% or $1.49 year over year[3] - Business Services revenue increased to $369.3 million, up 1.3% year over year[3] - Net income attributable to stockholders was $15.4 million ($0.03/share) in Q2 2024, compared to $78.3 million ($0.17/share) in Q2 2023[3] - Net income attributable to Altice USA stockholders for Q2 2024 was $15,361, compared to $78,300 in Q2 2023, reflecting a decrease of 80.4%[15] - The diluted net income per share for Q2 2024 was $0.03, down from $0.17 in Q2 2023, reflecting an 82.4% decrease[15] - Net income for Q2 2024 was $21,702 thousand, a decrease from $86,144 thousand in Q2 2023, while net income for the first half of 2024 was $8,806 thousand compared to $117,314 thousand in the same period last year[20] Cash Flow and Expenses - Free Cash Flow deficit was ($40.9) million, impacted by $57 million in higher cash taxes year over year[3] - Free Cash Flow for the first six months of 2024 was $706,455, down from $855,687 in the same period of 2023, indicating a decrease of 17.4%[16][18] - Total operating expenses for Q2 2024 were $1,739,173, a decrease of 3.4% from $1,800,408 in Q2 2023[15] - Net cash flows from operating activities for Q2 2024 were $306,794 thousand, a decline from $438,841 thousand in Q2 2023, while for the first half of 2024, it was $706,455 thousand compared to $855,687 thousand in the same period last year[21] - Free cash flow for Q2 2024 was a deficit of $40,927 thousand, worsening from a deficit of $34,604 thousand in Q2 2023, while for the first half of 2024, free cash flow was $22,639 thousand compared to a deficit of $200,655 thousand in the same period last year[21] Capital Expenditures and Debt - Capital expenditures were $347.7 million, a decrease of 26.6% year over year, with a capital intensity of 15.5%[3] - Capital expenditures for the first six months of 2024 were $683,816, a decrease from $1,056,342 in the same period of 2023, representing a reduction of 35.3%[16] - Consolidated net debt for Altice USA was $24,566 million, representing a consolidated net leverage of 7.2x L2QA[8] - Consolidated net debt as of June 30, 2024, was $23,167 million, with gross debt consolidated at $24,928 million[23] - The net leverage ratio (LTM) was 7.0x as of June 30, 2024, consistent with the previous quarter, while the weighted average cost of debt (WACD) was 6.6%[25] Customer Metrics - Fiber customer net additions reached 434k, a 74% increase in total fiber customers compared to Q2 2023[5] - Mobile line net additions were +33k in Q2 2024, a 2.0x acceleration year over year, reaching a total of 385k lines[5] - Total broadband primary service units (PSUs) experienced net losses of -51k in Q2 2024, compared to -37k in Q2 2023[5] Strategic Focus and Future Outlook - The company is focusing on market expansion and new product development to drive future growth, although specific details were not disclosed in the earnings call[28] - Altice USA emphasizes its commitment to future financial performance, including revenue streams and operational improvements[34] - The company is focused on growth in broadband, fiber, video, and mobile services as part of its strategic objectives[34] - Altice USA's forward-looking statements include expectations for Free Cash Flow and capital expenditure plans[34] - The company acknowledges risks and uncertainties that could affect actual results compared to its forward-looking statements[34] - Altice USA plans to enhance its product offerings and base management strategy to improve operational performance[34] Media and Advertising - Altice USA serves approximately 4.7 million residential and business customers across 21 states through its Optimum brand[33] - The company operates Optimum Media, providing audience-based, multiscreen advertising solutions to various businesses[33] - The company provides hyper-local, national, and international news through its News 12 and i24NEWS networks[33]