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Altice (ATUS) Q2 Earnings Miss Estimates, Top Line Falls Y/Y
ATUSAltice USA(ATUS) ZACKS·2024-08-02 14:01

Core Viewpoint - Altice USA, Inc. reported disappointing second-quarter 2024 results, with revenue and net income falling short of expectations due to weak demand in key segments, although there were positive developments in mobile and fiber customer growth, network upgrades, and AI integration [1][2]. Revenue Performance - Total revenues for the quarter were 2.24billion,adecreasefrom2.24 billion, a decrease from 2.32 billion year-over-year, missing the consensus estimate by 10million[3].−Residentialrevenues,whichincludeBroadband,Video,Telephony,andMobile,declinedto10 million [3]. - Residential revenues, which include Broadband, Video, Telephony, and Mobile, declined to 1.75 billion from 1.83billion,primarilyduetothelossofhigherARPUvideocustomers,alsomissingestimates[4].−Businessservicesandwholesalerevenuesincreasedto1.83 billion, primarily due to the loss of higher ARPU video customers, also missing estimates [4]. - Business services and wholesale revenues increased to 369.3 million from 364.7million,drivenbygrowthinLightpathrevenues,surpassingestimates[4].NetIncomeandEarnings−Thecompanyreportedanetincomeof364.7 million, driven by growth in Lightpath revenues, surpassing estimates [4]. Net Income and Earnings - The company reported a net income of 15.4 million or 3 cents per share, down from 78.3millionor17centspershareintheprior−yearquarter,missingtheconsensusestimateby5cents[2].CustomerMetricsandGrowthStrategies−Fibernetadditionswereapproximately40,000inthequarter,withtotalfibercustomersreaching434,000[3].−Thecompanyhad2,842millionFTTHpassings,withabout62,000addedintheApril−Juneperiod[3].−OptimumMobilesawsubscribergrowth,reaching384,500customers,representinga5.878.3 million or 17 cents per share in the prior-year quarter, missing the consensus estimate by 5 cents [2]. Customer Metrics and Growth Strategies - Fiber net additions were approximately 40,000 in the quarter, with total fiber customers reaching 434,000 [3]. - The company had 2,842 million FTTH passings, with about 62,000 added in the April-June period [3]. - Optimum Mobile saw subscriber growth, reaching 384,500 customers, representing a 5.8% penetration of the total broadband customer base [5]. Operating Income and Cash Flow - Operating income increased to 501.6 million from 481.98millionduetoloweroperatingexpenses,whileadjustedEBITDAwas481.98 million due to lower operating expenses, while adjusted EBITDA was 867.2 million compared to 921.7millionintheprior−yearquarter[5].−Cashgeneratedfromoperatingactivitieswas921.7 million in the prior-year quarter [5]. - Cash generated from operating activities was 306.8 million, down from 438.8millionayearago,withcashandcashequivalentsat438.8 million a year ago, with cash and cash equivalents at 362.1 million and long-term debt at $24.89 billion [6].