Financial Data and Key Metrics Changes - In the second quarter, the company reported high-speed data (HSD) revenue of $104.8 million, a slight year-over-year decrease [8] - Total revenue for the second quarter decreased by 9.2% to $144.2 million, primarily due to declines in video and telephony revenue, which dropped by 39% and 10.3% respectively [13] - Adjusted EBITDA increased by 0.4% year-over-year to $70.3 million, with an adjusted EBITDA margin of 48.8% [13][14] - The company ended the quarter with total cash of $31.8 million and total outstanding debt of $1.05 billion, resulting in a leverage ratio of 3.5 times [15] Business Line Data and Key Metrics Changes - The traditional video business saw a significant decline, with subscribers dropping to 42,500, a 40.6% decrease from the previous year [11] - The company maintained a strong penetration rate of 16% in its greenfield markets, passing an additional 15,500 homes during the quarter [7][8] - The 2025 Edge Out vintage increased its penetration rate to 28%, while the 2024 vintage reached 45.8% [9] Market Data and Key Metrics Changes - The company reported a record high average revenue per user (ARPU) of $75.3, reflecting a 4.9% year-over-year increase [10] - 76% of new HSD connections were for speeds of 500 megabits or higher, a 4% increase year-over-year [10] Company Strategy and Development Direction - The company announced a definitive agreement for acquisition at $5.2 per share, representing a 37.2% premium to the unaffected price prior to the offer [5] - The focus remains on executing the business effectively while navigating the necessary approvals for the acquisition [19] - The company plans to continue its greenfield and edge-out expansion initiatives without changes to the current CapEx plan [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of greenfield expansion and the effectiveness of pricing strategies, which have led to improvements in subscriber trends [11][10] - The company will not provide guidance for the third quarter due to the ongoing acquisition process [16] Other Important Information - The company has amended its revolving credit facility, extending it for six months beyond the current term, with further extensions conditional on the acquisition closing [6] Q&A Session Summary Question: What is the plan for greenfield builds or edge outs going forward? - Management indicated that the focus is on running the business well while going through the necessary approvals for the acquisition, leaving future plans to the acquiring companies [19] Question: Are there any potential regulatory concerns that could delay the acquisition? - Management stated that there are no known concerns at this time, with an estimated closing timeframe of late this year or early next year [20] Question: Can you provide more details on the strategic review process? - Management referred to the thorough process conducted by a special committee of the board, which unanimously recommended the acquisition offer [22][23] Question: Will the CapEx plans for this year change? - Management confirmed that there will be no changes to this year's CapEx plans, continuing with the current strategy [24] Question: What percentage of homes passed are directly fiber to the home? - Management noted that all 91,100 homes passed in the second quarter are fiber to the home, with additional fiber within the legacy footprint [25]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $381.1 million, down from $394.5 million in Q2 2024, primarily due to a $9 million (15.8%) decrease in residential video revenues and a $1.1 million (0.5%) decrease in residential data revenues [20][21] - Adjusted EBITDA was $203.2 million, representing 53.3% of revenues, compared to $212.4 million (53.8% of revenues) in the prior year [22][23] - Capital expenditures were $68.4 million, a decrease of $3.2 million (4.5%) year over year [23] Business Line Data and Key Metrics Changes - Residential broadband revenue increased by 1.9% sequentially, driven by a $2.39 increase in ARPU, despite a decline of 13,000 residential data customers in Q2 [6][10] - Business data revenue was $57.4 million, consistent with Q1 levels, with a year-over-year growth of 1.2% driven by high-value fiber and carrier segments [7][21] Market Data and Key Metrics Changes - Fiber to the home overbuilds now represent approximately 53% of the company's passings, indicating increased competitive pressure [12][13] - The company expects total residential broadband revenue for 2025 to be flat or decrease modestly compared to 2024 [13] Company Strategy and Development Direction - The company is focusing on innovation to simplify customer experience and enhance operational efficiency, including the rollout of AI-powered tools and a unified billing platform [14][15] - A pilot program for mobile services is being launched to complement wired broadband offerings, aiming to enhance customer lifetime value and reduce churn [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged competitive headwinds and seasonal softness in college markets but noted early signs of positive impact from new products and pricing strategies [6][13] - The company does not expect to grow total residential broadband customers in 2025 but is optimistic about long-term growth through strategic actions [13][18] Other Important Information - The company expects to realize approximately $40 million in cash tax savings in 2025 due to recent tax legislation [25] - A non-cash impairment charge of $586 million was recognized during the quarter, which does not impact cash flows or operational strategy [22] Q&A Session Summary Question: Competitive overlap with fiber - Management confirmed that competitive overlap with fiber increased from 50% to 53% and noted that losses are primarily due to competition from cell phone Internet [33][34] Question: Promo roll-off and customer retention tactics - Management indicated that promo roll-offs are expected to remain elevated and that retention tactics are being implemented to mitigate churn [40][42] Question: Priority between subscribers and ARPU - Management stated that both subscriber growth and ARPU stability are priorities, with expectations for ARPU to remain stable for the rest of the year [47][49] Question: Mobile service strategy - Management clarified that the mobile service pilot is not only economically viable but also aligns with the company's brand image, aiming to enhance customer convenience and profitability [57][60] Question: Billing system conversion - Management confirmed that the billing migration is complete and has gone through all necessary cycles without significant issues [63][65]

Financial Data and Key Metrics Changes - High-speed data (HSD) revenue decreased by 0.8% year over year to $105.4 million [8][12] - Total revenue for the quarter decreased by 7.1% to $150 million, driven by declines in video and telephony revenue [12] - Adjusted EBITDA increased by 13.8% year over year to $76.7 million, with a record adjusted EBITDA margin of 51.1% [8][12] - ARPU reached a record high, increasing by 3.7% year over year to $75 [10] Business Line Data and Key Metrics Changes - The company passed an additional 13,700 homes in greenfield markets, bringing the total to 75,600 homes passed [9] - Penetration rates in greenfield markets remained strong at 16.3% [9] - The traditional video business saw a 38% decrease in subscribers, now at 48,900 [10] Market Data and Key Metrics Changes - The 2025 Edge Out Vintage passed 1,500 new homes with a penetration rate close to 27% [9] - The 2024 Edge Out Vintage increased its penetration rate to 44.6%, while the 2023 vintage increased to 31.4% [9] Company Strategy and Development Direction - The company is focusing on fiber to the home expansion initiatives while maintaining cost discipline [11] - The strategy includes migrating customers off the video platform and aligning with YouTube TV, which has seen significant growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in greenfield markets and emphasized the importance of simplified pricing in reducing churn [6][27] - The company anticipates continued growth in the second half of the year, despite some expected churn from video rate increases [29] Other Important Information - Total cash at the end of the quarter was $28.8 million, with total outstanding debt of $1.03 billion and a leverage ratio of 3.4 times [12][14] - Capital expenditures for the quarter were $38.9 million, with expectations to spend between $60 million and $70 million on greenfields in 2025 [14][16] Q&A Session Summary Question: Can you discuss the pace of capital spending and its impact on new Greenfield homes passed? - Management indicated that while $10.8 million was spent in the first quarter, they expect to spend the full $60 million to $70 million for the year, with spending back-end loaded due to weather delays [25][26] Question: What does the competitive landscape look like and how are you thinking about net adds? - Management noted that competition remains similar, with low churn aided by simplified pricing, and they expect to maintain net adds similar to the first quarter [27][28] Question: Can you provide insights on mobile products and their impact on churn or HSD subscribers? - Management stated that mobile offerings are not a significant driver for acquisition or churn reduction, focusing instead on core broadband and YouTube TV services [30]

Group 1 - The offeror, China Mobile Hong Kong Limited, has entered into a share purchase agreement with TPG Wireman, L.P. to acquire 144,966,345 shares of Hong Kong Broadband Network Limited, representing approximately 10.39% of the company's total issued share capital, for a total consideration of approximately HKD 758 million, equating to a purchase price of HKD 5.23 per share [1] - The seller has agreed to convert all seller loan notes into shares, amounting to 83,661,106 new shares, which will also be sold to the offeror for approximately HKD 437.5 million [1] - Upon completion of the transaction, the offeror and its concert parties will collectively own approximately 228.6 million shares, representing about 15.46% of the enlarged issued share capital of the company [1] Group 2 - On December 2, 2024, the offeror and the seller entered into an irrevocable commitment, whereby the seller irrevocably agrees to accept the share offer and the seller loan note offer [2] - From the completion date, the offeror will waive and release any rights or claims that the seller and its affiliates may have against the offeror due to the transactions under the share purchase agreement [2]