Altice (ATUS) Q4 Earnings Miss Estimates on Lower Revenues

Core Insights - Altice USA, Inc. reported mixed fourth-quarter 2023 results, with revenue exceeding estimates but net income falling short [1][2] - The company experienced a year-over-year revenue decline due to weak demand in Residential, News, and Advertising segments, although mobile line net additions and network upgrades are positive indicators [1][3] Financial Performance - Net loss for the quarter was $117.8 million, or 26 cents per share, an improvement from a loss of $193.1 million, or 43 cents per share, in the prior-year quarter [2] - Total revenues for the quarter were $2.3 billion, down from $2.36 billion year-over-year, but beat the consensus estimate by $13 million [3][5] - In 2023, net income was $53.2 million, a decrease from $194.6 million in 2022 [2] Revenue Breakdown - Residential revenues, including Broadband, Video, and Telephony, were $1.79 billion, down from $1.83 billion year-over-year, primarily due to the loss of higher ARPU video customers [5] - Business services and wholesale revenues increased to $372 million from $368.4 million in the year-ago quarter, driven by growth in Lightpath revenues [4] - News and Advertising revenues fell to $128.1 million from $151.8 million year-over-year, attributed to lower political advertising revenues [4] Customer Metrics - FTTH broadband net additions exceeded 46,000 in the quarter, with total fiber broadband customers reaching 341,000 [4] - Residential average revenue per user (ARPU) improved marginally by 0.1% year-over-year to $136.01 [4] - Optimum Mobile subscriber growth reached 322,000 customers, representing a 7.1% penetration of the total broadband customer base [6] Operational Highlights - Operating income improved to $302.3 million from $301.1 million in the prior-year quarter, while adjusted EBITDA was $903.3 million compared to $913.3 million [6] - Altice's total passings grew to 9.6 million by the end of 2023, with solid customer penetration typically reaching about 40% within a year of rollout in new-build areas [6] Cash Flow and Debt - In 2023, Altice generated $1.82 billion in cash from operating activities, down from $2.36 billion in 2022 [7] - As of December 31, 2023, the company's net debt stood at $24.82 billion [7]