Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $380.6 million, down from $404.3 million in Q1 2024, representing a decrease of 5.5% year over year [19] - Residential data revenues decreased by $10.7 million or 4.5% year over year, with residential data subscribers and ARPU both declining by 1.1% [19] - Net income for Q1 2025 was $2.6 million compared to $37.4 million in Q1 2024, driven by lower income from operations and increased non-cash equity method accounting loss [21] - Adjusted EBITDA was $203 million in Q1 2025, representing a 53.3% margin compared to $217 million and a 53.7% margin in Q1 2024 [21] - Capital expenditures were $71.1 million in Q1 2025, an increase of $5.2 million or 8% compared to Q1 2024 [21] Business Line Data and Key Metrics Changes - Business data revenues grew by 1.2% compared to Q1 2024, with strong performance in carrier and enterprise fiber businesses [20] - Residential video revenues decreased by $9.6 million or 15.8% year over year due to losses in video subscribers [19] Market Data and Key Metrics Changes - The company reported a historically low churn rate, with proactive measures in place to maintain customer retention [10][11] - The introduction of new products like FlexConnect and Internet Lift is expected to enhance customer acquisition and retention [12][13] Company Strategy and Development Direction - The company is executing a multiyear plan aimed at achieving sustained profitable growth in a competitive environment [6] - A decision was made to suspend the quarterly cash dividend to accelerate debt reduction and invest in organic growth initiatives [18][24] - The focus remains on long-term residential broadband customer and revenue growth while maintaining financial discipline [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to broadband revenue growth in 2025, despite a challenging first quarter [9][37] - The company is implementing a comprehensive plan to improve customer connects and retention, with early signs of improvement noted [11][46] - Management highlighted the importance of data-driven decision-making and strategic marketing to enhance customer acquisition [46][49] Other Important Information - The company has a debt balance of approximately $3.6 billion, with a commitment to reducing leverage below four times [25] - The anticipated monetization of investments is expected to generate over $100 million in after-tax proceeds [27] Q&A Session Summary Question: What led to the decision to eliminate the dividend? - Management clarified that the decision was based on capital allocation strategies and not due to any going concern or debt covenant issues [32] Question: When can the company expect to see broadband subscriber growth? - Management indicated that while they cannot specify an exact timeline, they believe they will deliver broadband revenue growth in 2025 [37] Question: What were the unusual churn events in the quarter? - Management identified several factors including billing migration activities and weather-related events as contributors to unusual churn [43] Question: What is the ARPU for the new products FlexConnect and Lyft? - Management stated that while specific ARPU figures are not available yet, they are seeing positive customer uptake in trials [55] Question: What percentage of the footprint is overbuilt with fiber? - Management confirmed that just over 50% of their footprint is overbuilt with fiber, consistent with previous reports [56]

Financial Data and Key Metrics Changes - For Q1 2025, total revenues were $380.6 million, down from $404.3 million in Q1 2024, representing a decrease of 5.6% year over year [18] - Residential data revenues decreased by $10.7 million or 4.5% year over year, with residential data subscribers and ARPU both declining by 1.1% [18] - Net income for Q1 2025 was $2.6 million, compared to $37.4 million in Q1 2024, driven by lower income from operations and increased non-cash equity method accounting loss [20] - Adjusted EBITDA was $203 million in Q1 2025, representing a 53.3% margin, compared to $217 million and a 53.7% margin in Q1 2024 [20] - Capital expenditures were $71.1 million, an increase of $5.2 million or 8% from Q1 2024 [20] Business Line Data and Key Metrics Changes - Business data revenues grew by 1.2% compared to Q1 2024, with strong performance in carrier and enterprise fiber businesses [19] - Residential video revenues decreased by $9.6 million or 15.8% year over year, driven by losses in video subscribers [19] Market Data and Key Metrics Changes - The company reported a churn rate that remained historically low, despite unusual churn events in Q1 2025 [7][8] - The company is experiencing competitive pressure from mobile operators in nearly all markets, which has not changed significantly [57] Company Strategy and Development Direction - The company is executing a multiyear plan aimed at achieving sustained profitable growth in a competitive environment [5] - A revised capital allocation strategy has been implemented, including the suspension of the quarterly cash dividend to accelerate debt repayment and invest in organic growth initiatives [17][22] - New product offerings such as FlexConnect and Internet Lift are being piloted to attract value-conscious customers and drive growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to broadband revenue growth in 2025, despite a slow start in Q1 [36] - The company is focused on improving customer acquisition and retention through enhanced strategies and new product offerings [9][12] - Management highlighted the importance of a disciplined and strategic approach to customer engagement and retention [46] Other Important Information - The company has a debt balance of approximately $3.6 billion, with a weighted average cost of debt at 3.9% [24] - The company plans to maintain a balanced approach to capital allocation while focusing on long-term growth initiatives [22] Q&A Session Summary Question: What led to the decision to eliminate the dividend? - Management clarified that the decision was based on capital allocation strategies and not due to any going concern or debt covenant issues [31] Question: When can the company expect to see broadband subscriber growth? - Management indicated that while they cannot specify an exact timeline, they believe they will deliver broadband revenue growth in 2025 [36] Question: What were the unusual churn events in the quarter? - Management explained that the unusual churn was due to several factors, including billing migration activities and weather-related events [43] Question: What is the ARPU for the new products FlexConnect and Lyft? - Management stated that while they cannot provide specific ARPU figures yet, they are seeing positive trends in customer satisfaction and data usage for these products [55]