Financial Data and Key Metrics Changes - Total revenue declined by 4.2% year over year, remaining relatively flat quarter over quarter, primarily impacted by video cord cutting, which accounted for about 85% of total revenue declines [28][29] - Adjusted EBITDA of $840 million declined 7.3% year over year but grew slightly sequentially, reflecting continued operating discipline and efficiency [31] - Adjusted EBITDA margin decreased by 130 basis points to 37.4%, but improved sequentially by 30 basis points [31] Business Line Data and Key Metrics Changes - Broadband subscriber net losses improved to 35,000, a year-over-year improvement of 16,000 or 31% [8][12] - Video business saw 58,000 subscriber net losses, marking the best subscriber trends in the last ten quarters [5][12] - Fiber network added approximately 56,000 customers, with a penetration rate of 22% across the fiber network [14] Market Data and Key Metrics Changes - In the East footprint, the company delivered its best net add trend in ten quarters, driven by stronger win share performance against ILECs and fixed wireless [9] - In the West, competition remained strong, but performance improved year over year, including fewer seasonal disconnects [9] - The company reported a 10% lift in sales volume in income-constrained markets compared to control markets [11] Company Strategy and Development Direction - The company is focused on unlocking revenue opportunities, driving operational efficiency, enhancing networks, and ensuring a sustainable capital structure [3][7] - The introduction of new product tiers in video and the expansion of value-added services are aimed at increasing customer stickiness and driving long-term ARPU growth [16][20] - The company is leveraging AI to enhance customer experience and operational efficiency, including the deployment of AI tools in sales and customer care [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver continued operational and financial improvements over time, despite headwinds from competition and macroeconomic factors [26][32] - The company anticipates that adjusted EBITDA will improve sequentially over the next two quarters, with significant impacts expected in the fourth quarter [33][92] - Management highlighted the importance of maintaining a balanced approach to subscriber growth and ARPU management [77][92] Other Important Information - The company completed a $1 billion asset-backed loan, marking a significant milestone in capital structure management [38][39] - The recent tax reform is expected to yield savings of $250 million to $350 million over the period of 2025 to 2027 [40] Q&A Session Summary Question: Can you expand on the trajectory and opportunity in mobile? - Management highlighted improvements in mobile line net adds, with a focus on quality sales and increased penetration, aiming for a million lines by 2027 [46][49] Question: What is the typical profile of a new mobility subscriber? - Approximately 50% of new mobility subscribers are new customers, with a strong focus on fiber subscribers due to better NPS and ARPU [52][53] Question: How is the company competing against larger, well-capitalized competitors? - The company is seeing improvements in win share against larger telcos and fiber overbuilders, particularly through hyper-local strategies [59][60] Question: What subscriber or ARPU results are needed in the back half of the year? - Management reaffirmed guidance for revenue and EBITDA, expecting improvements driven by subscriber performance and operational efficiencies [91][92]

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].

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was approximately $2.2 billion, a decline of 4.4% year over year, driven by a 5.7% decrease in residential revenue [32] - Adjusted EBITDA for Q1 was $799 million, down 5.6% year over year, impacted by revenue decline but offset by programming savings [33] - Total gross margin expanded by 180 basis points year over year to 68.8%, reflecting a positive trend despite some non-recurring items [34] - Residential ARPU declined by 1.3% to $133.93, while broadband ARPU grew by 2.4% to $75.31, indicating stabilization efforts are taking effect [35][36] Business Line Data and Key Metrics Changes - Broadband subscriber net losses improved to 37,000 in Q1, with churn reaching the lowest levels in three years, showing effective base management [4][6] - Fiber net additions reached an all-time high of 69,000, with over 600,000 fiber customers and 20% penetration of the fiber network [5] - Mobile line net additions were 49,000, surpassing 500,000 mobile lines, indicating strong growth in mobile services [5] Market Data and Key Metrics Changes - The competitive landscape remains intense, particularly in the East with competition from established telcos and fixed wireless solutions [45] - In the West, gross additions remain challenged due to elevated competition from fiber overbuilders, but churn has improved year over year [31][49] - The company is focusing on income-constrained segments, with 75% of surveyed customers indicating challenges with monthly expenses [46] Company Strategy and Development Direction - The company aims to unlock revenue opportunities, drive operational efficiency, and enhance network capabilities while aligning capital structure with long-term goals [7] - A new income-constrained product was launched to address affordability challenges, targeting specific demographics in both East and West markets [46] - The company is enhancing its go-to-market strategies, particularly in multi-dwelling units (MDUs), to improve penetration and customer engagement [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stabilizing broadband subscriber trends and achieving approximately $3.4 billion in adjusted EBITDA for 2025 [7][26] - The company is optimistic about the impact of new product offerings and improved customer experience on future performance [19][25] - Management acknowledged the challenges posed by macroeconomic factors but emphasized the effectiveness of their strategic initiatives [46][70] Other Important Information - The company is focused on optimizing programming agreements and has achieved nearly 69% gross margin in Q1 [6][27] - A partnership with Google Cloud was announced to enhance customer experience through AI technologies [23] - The company is actively managing its debt profile, with no maturities until 2027 and a liquidity of approximately $700 million [41] Q&A Session Summary Question: Can you provide context on the competitive landscape for your broadband business? - Management noted intense competition from established telcos and fixed wireless solutions, with a focus on addressing affordability challenges for customers [45][46] Question: What updates can you provide on the low-end product and insurance statistics for wireless subscribers? - The low-end product is being rolled out to 500,000 homes, with early data being monitored for effectiveness. Mobile device protection has achieved 10% penetration in the mobile base [54][56] Question: What drove the pause in discussions with bondholders? - Management indicated that negotiations concluded without an agreement, but they remain proactive in managing debt maturities [60][62] Question: How competitive is your pricing, and have you fully optimized your broadband pricing? - Management expressed confidence in their pricing strategies, leveraging AI for better local competition and product offerings [67][70]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was approximately $2.2 billion, a decline of 4.4% year over year, driven by a 5.7% decrease in residential revenue [32] - Adjusted EBITDA for Q1 was $799 million, down 5.6% year over year, with a total gross margin expanding by 180 basis points to 68.8% [33][34] - Residential ARPU declined by 1.3% to $133.93, while broadband ARPU grew by 2.4% to $75.31 [35][36] Business Line Data and Key Metrics Changes - Broadband subscriber net losses improved to 37,000, with churn reaching the lowest levels in three years [4][6] - Fiber net additions reached an all-time high of 69,000, with over 600,000 fiber customers and 20% penetration of the fiber network [5] - Mobile line net additions were 49,000, surpassing 500,000 mobile lines [5] Market Data and Key Metrics Changes - The competitive landscape remains intense, particularly in the East with competition from Verizon and fixed wireless providers [46] - In the West, gross additions faced challenges due to elevated competition from fiber overbuilders, but churn improved year over year [30][51] Company Strategy and Development Direction - The company aims to unlock revenue opportunities, drive operational efficiency, and enhance network quality while aligning capital structure with long-term goals [7][9] - A focus on hyper-local strategies and tailored offers is being implemented to address customer affordability challenges and competitive intensity [8][12] - The company is enhancing its product offerings, including Whole Home WiFi and new video packages, to strengthen its competitive profile [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stabilizing broadband subscriber trends and achieving approximately $3.4 billion of adjusted EBITDA in 2025 [7][26] - The company is proactively managing debt maturities and exploring options to support long-term sustainability [42][43] Other Important Information - The company has entered into agreements to sell certain tower assets for approximately $60 million and the i24 news business to NEXT Alt [9][10] - Significant investments in technology and automation are being made to enhance operational efficiency and customer experience [21][23] Q&A Session Summary Question: Competitive landscape for broadband business - Management noted intense competition from telcos and fixed wireless providers, with a focus on new income-constrained products to address customer needs [45][46] Question: Updates on low-end product and insurance statistics - The low-end product is being rolled out to 500,000 homes, with mobile device protection achieving 10% penetration in the mobile base [56][58] Question: Status of bondholder discussions - Management confirmed that discussions with bondholders concluded without an agreement, but they are proactively managing debt maturities [63][65] Question: Competitiveness of pricing and broadband bundles - Management highlighted progress in pricing strategies and the ability to compete locally, with a focus on new hyper-local playbooks and income-constrained products [70][72]