Altice USA(US:ATUS)2025-05-08 21:08Revenue Performance - Total revenue for the three months ended March 31, 2025, was $2,152,282, a decrease of $98,653 compared to $2,250,935 in the same period of 2024[134]. - Residential revenue accounted for approximately 77.6% of total revenue, totaling $1,668,240, down from $1,768,446 in the prior year[134]. - Broadband revenue decreased by $17,433 to $899,561, while mobile revenue increased by $11,806 to $36,699[134]. - For the three months ended March 31, 2025, the net loss was $71,271, compared to a net loss of $12,896 for the same period in 2024[135]. - Adjusted EBITDA for the three months ended March 31, 2025 was $799,014, down from $846,555 in 2024, representing a decrease of 5.6%[135]. - Video revenue decreased by $90,026 (12%) to $665,568 for the three months ended March 31, 2025, attributed to declines in video customers and higher customer credits[139]. - Telephony revenue decreased by $4,553 (6%) to $66,412 for the three months ended March 31, 2025, due to declines in telephony customers[140]. - Other revenue increased by $6,184 (52%) to $18,087 for the three months ended March 31, 2025, mainly due to higher mobile equipment sales[146]. Customer Metrics - Approximately 4.5 million residential and business customers are served across 21 states, with a total of 9.9 million passings as of March 31, 2025[119]. - Total customer relationships as of March 31, 2025 were 4,505.9 thousand, a decrease from 4,550.3 thousand in 2024, indicating a decline in customer base[137]. - Broadband revenue decreased by $17,433 (2%) to $899,561 for the three months ended March 31, 2025, primarily due to declines in broadband customers[138]. - Mobile service revenue increased by $11,806 (47%) to $36,699 for the three months ended March 31, 2025, driven by an increase in mobile customers[141]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025, was $343,458, down from $393,154 in the same period of 2024, reflecting a decrease of $49,696[134]. - Programming and other direct costs were $670,531, a decrease of $73,356 from $743,887 in the same period of 2024[134]. - Other operating expenses increased by $23,936 (4%) to $698,186 for the three months ended March 31, 2025, driven by higher labor-related costs and marketing expenses[150][153]. - Restructuring, impairments, and other operating items for Q1 2025 totaled $21,622, a decrease of 58% from $51,253 in Q1 2024[154]. - Depreciation and amortization increased by $30,094 (8%) to $418,485 in Q1 2025 compared to $388,391 in Q1 2024, driven by asset additions and accelerated depreciation[155][156]. Cash Flow and Debt - Free Cash Flow (Deficit) was $(168,641) in Q1 2025, a decrease of $232,207 from $63,566 in Q1 2024, attributed to increased interest payments and capital expenditures[160][161]. - Net cash flows from operating activities were $189,707 in Q1 2025, down from $399,662 in Q1 2024[171]. - Net cash provided by operating activities decreased to $187,483 for the three months ended March 31, 2025, compared to $399,661 in 2024, reflecting a decrease of $212,178[199]. - Net cash used in investing activities increased to $363,549 for the three months ended March 31, 2025, compared to $335,777 in 2024[201]. - Financing activities generated net cash of $198,727 for the three months ended March 31, 2025, a significant improvement from $(80,876) in 2024[202]. - As of March 31, 2025, total outstanding debt for CSC Holdings and Lightpath is $25,299,643, with interest expense for the quarter amounting to $430,658[179]. - Total amounts payable related to outstanding obligations for CSC Holdings and Lightpath are projected to be $31,647,534, with significant payments due in 2027 totaling $8,716,046[180]. Future Outlook - The company is investing in its FTTH network to deliver multi-gig broadband speeds to meet growing data needs[127]. - The company expects programming costs to increase in the future, impacting operating expenses[126]. - The company expects to utilize free cash flow and revolving credit facilities to manage debt obligations and capital expenditures[176][177]. - Existing cash balances and operating cash flows are projected to support the company's operating plan and debt service requirements for the next twelve months[177]. Financial Controls - The company reported no changes in internal control over financial reporting that materially affected its operations during Q1 2025[212]. - The evaluation of disclosure controls and procedures concluded that they were effective as of March 31, 2025, according to the Chief Executive Officer and Chief Financial Officer[211].