Altice USA(US:ATUS) ZACKSยท2024-08-02 14:01Core 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 $2.24 billion, a decrease from $2.32 billion year-over-year, missing the consensus estimate by $10 million [3]. - Residential revenues, which include Broadband, Video, Telephony, and Mobile, declined to $1.75 billion from $1.83 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 $364.7 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 $78.3 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 $481.98 million due to lower operating expenses, while adjusted EBITDA was $867.2 million compared to $921.7 million in the prior-year quarter [5]. - Cash generated from operating activities was $306.8 million, down from $438.8 million a year ago, with cash and cash equivalents at $362.1 million and long-term debt at $24.89 billion [6].