Core Viewpoint - Altice USA, Inc. reported disappointing first-quarter 2025 results, with both net income and revenues falling short of expectations, primarily due to weak demand in key segments, although there were positive developments in mobile and fiber customer growth, network upgrades, and customer care improvements [1][2]. Financial Performance - The company recorded a net loss of $71.3 million, or 16 cents per share, compared to a loss of $12.3 million, or 5 cents per share, in the same quarter last year, indicating a wider loss due to declining revenues [2]. - Total revenues for the quarter were $2.15 billion, down from $2.25 billion year-over-year, missing the consensus estimate of $2.16 billion, primarily due to reduced net sales from broadband and video customers [2]. - Operating income decreased to $343.5 million from $393.2 million in the prior-year quarter, while adjusted EBITDA fell to $799.01 million from $846.5 million [7]. Customer Metrics - FTTH (Fiber to the Home) broadband net additions exceeded 68,500 in the quarter, with total fiber broadband customers reaching 606,700 [4]. - Residential average revenue per user (ARPU) declined to $133.93 from $135.67 a year ago, reflecting a loss of higher ARPU video customers [4][6]. Segment Performance - Residential revenues, which include Broadband, Video, and Telephony, were $1.66 billion, down from $1.76 billion year-over-year, missing the estimate of $1.71 billion [6]. - Business services and Wholesale revenues slightly declined to $363.5 million from $364.9 million in the prior-year quarter, but net sales exceeded the revenue estimate of $341.8 million [5]. Growth Strategies - The company is making progress in its growth strategies by enhancing network capabilities and improving customer experience, with 2.99 billion FTTH passings at the quarter-end [3]. - Altice is on track to achieve its goal of adding 1 million fiber customers by the end of 2026, supported by new offerings like Whole Home WiFi and Total Care [2]. Cash Flow and Outlook - In the first quarter, Altice generated $187.4 million in cash from operating activities, down from $399.6 million a year ago, with a net debt of $24.9 billion as of March 31, 2025 [8]. - For 2025, the company expects revenues in the range of $8.6-8.7 billion and adjusted EBITDA of approximately $3.4 billion, with capital expenditures projected at $1.2 billion [10].

Altice USA (ATUS) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Company Participants Sarah Freedman - VP - IRDennis Mathew - CEO & ChairmanMarc Sirota - Chief Financial OfficerRobert Palmisano - Senior Equity Research Associate Conference Call Participants Michael Rollins - AnalystJonathan Chaplin - Lead AnalystCraig Moffett - Partner & Senior AnalystSam McHugh - Analyst Operator Greetings, and welcome to the Altice USA Q1 twenty twenty five As a reminder, this conference is being recorded. It is now my pl ...

Altice USA (ATUS) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Speaker0 Greetings, and welcome to the Altice USA Q1 twenty twenty five As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Friedman, Vice President of Investor Relations. Speaker1 Thank you. Welcome to the Altice USA Q1 twenty twenty five earnings call. We are joined today by Altice USA's Chairman and CEO, Dennis Matthew and CFO, Mark Sarota, who together will take you through the presentation ...

Financial Data and Key Metrics Changes - The company generated $4.1 billion in revenue, with a gross profit of $724 million and a gross profit margin of 17.5% [12] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $6.82 [12] - Adjusted net income for Q1 2025 was $134 million, excluding certain non-cash items [21] - Adjusted SG&A as a percentage of gross profit was 64% [22] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles was up 6% year over year, with units up 4% [14] - New average gross profit per vehicle was $3,449 [14] - Used vehicle unit volume was down 8% year over year, with used retail gross profit per unit at $15.87 [15] - Parts and service gross profit was up 5% for the quarter, with a gross profit margin of 58.3% [17] Market Data and Key Metrics Changes - Approximately 56% of new vehicle units sold in Q1 were produced in America, insulating them from tariffs [7] - The company experienced a wide range of approaches from OEMs regarding tariff impacts, making predictions challenging [7] Company Strategy and Development Direction - The company is focused on a disciplined growth strategy, highlighted by the pending acquisition of the Herb Chambers Automotive Group [10] - Plans to reduce leverage over the next 18 to 24 months following the acquisition [11] - The implementation of Techeon is expected to improve productivity and guest experience [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter faced challenges due to weather-related disruptions and tariff uncertainties [42] - The company remains optimistic about long-term growth, particularly in parts and service due to an aging vehicle fleet [19] - Management emphasized the importance of focusing on gross profit rather than volume during uncertain market conditions [42] Other Important Information - The company expects to close the Herb Chambers acquisition by the end of Q2 2025, pending OEM approval [10] - Free cash flow for Q1 2025 was $166 million, with liquidity at $964 million [25] Q&A Session Summary Question: Regarding TCA and tariff impacts - Management indicated that tariffs could slow down deferral impacts, affecting future earnings [30] Question: Integration of Techeon and SG&A savings - The rollout of Techeon is progressing well, with expectations of significant SG&A savings through reduced software costs and improved productivity [32] Question: Gross profit performance compared to peers - Management acknowledged weather impacts and emphasized a focus on maximizing returns rather than chasing volume [42] Question: Impact of tariffs on the Herb Chambers acquisition - The asset purchase agreement does not include a breakup fee for the company, and management sees no reason to walk away from the deal [50] Question: Front end gross outlook - Management believes the company is reaching a floor on front end gross, focusing on profitability rather than volume [56] Question: Parts and service growth outlook - Management maintains a mid-single-digit growth outlook for parts and service, with expectations of increased traffic as weather conditions improve [60] Question: Techeon and revenue opportunities - The integration of Techeon is expected to enhance communication and marketing efficiency, leading to potential revenue growth [66]

Altice USA (ATUS) Q4 2024 Earnings Call February 13, 2025 08:30 AM ET Company Participants Sarah Freedman - Senior Director, Corporate Finance and Investor RelationsDennis Mathew - CEO & ChairmanMarc Sirota - Chief Financial OfficerSebastiano Petti - Executive Director - Equity ResearchKutgun Maral - DirectorFrank Louthan - Managing DirectorMaryAnne Zhao - Vice President, Equity Research Conference Call Participants Michael Rollins - AnalystBryan Kraft - AnalystJonathan Chaplin - Lead AnalystCraig Moffett - ...