WOW(US:WOW)2025-03-14 19:35Financial Data and Key Metrics Changes - In Q4 2024, high-speed data (HSD) revenue decreased by 3.5% year-over-year to $104.9 million, impacted by $1.9 million in revenue credits due to Hurricane Halide and Milton [9][17] - Adjusted EBITDA for Q4 2024 increased by 3.5% year-over-year to $73.7 million, with an adjusted EBITDA margin of 48.3% [9][18] - For the full year, HSD revenue decreased by 1.6% to $423.6 million, including $2.5 million in hurricane credits [10] Business Line Data and Key Metrics Changes - The traditional video business saw a significant decline, with subscribers dropping to 60,600, a 33% decrease from the previous year [15] - The company added 31,500 new homes in its greenfield markets in 2024, doubling its all-fiber footprint [8][11] - ARPU increased by approximately 1% year-over-year to $73.50, despite a sequential decrease due to hurricane impacts [14] Market Data and Key Metrics Changes - The company experienced a loss of 10,200 HSD subscribers in Q4, with approximately 5,400 losses attributed to hurricanes [13] - The penetration rate in new markets improved from under 10% at the end of 2023 to 16.6% at the end of 2024 [11] - The Edge-Out vintage penetration rate increased to 30.8%, while the 2022 vintage remained strong at 31% [12] Company Strategy and Development Direction - The company is focused on expanding its greenfield fiber market, with plans to pass 400,000 new homes over the next few years [20] - A new super priority term loan of $200 million was secured to support this expansion strategy [20] - The transition to YouTube TV is expected to continue, as it has shown significant growth and is anticipated to help reduce churn [16][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2025, highlighting improvements in customer acquisition and retention strategies [35][36] - The company noted that competition remains, primarily from traditional cable companies and fixed wireless, but feels well-positioned to compete [37] - Management is optimistic about the impact of simplified pricing and the transition to YouTube TV on customer satisfaction and churn rates [36][52] Other Important Information - Total capital spend for Q4 was $51.7 million, down from the previous year but up from the last quarter, primarily due to hurricane remediation efforts [21] - The company expects to spend between $60 million to $70 million on greenfield expansion CapEx in 2025 [22] - The leverage ratio at the end of the quarter was 3.5x, with total outstanding debt of $1.02 billion [19] Q&A Session Questions and Answers Question: Can you confirm that both Crestview and DigitalBridge are still engaged with the offer for the acquisition? - Management stated that there are no updates regarding the acquisition proposal from DigitalBridge and Crestview Partners [27] Question: How much liquidity does the new financing provide, and how long will it take to reach the goal of 400,000 homes passed? - The $200 million financing provides significant liquidity, with an additional $175 million available in October 2025, which will help progress towards the goal [30] Question: What are the anticipated impacts on broadband subscriber losses in Q1, and what competition is being observed? - Management acknowledged competition in the market but noted improvements in customer retention and lower churn rates due to pricing strategies [36][37] Question: How is the mobile product performing, and will it be pushed more aggressively in 2025? - The mobile product exists but is not a primary focus; management believes the current offerings are sufficient to drive customer satisfaction and retention [39][40] Question: Can you clarify the nonrecurring professional fees impacting adjusted EBITDA? - Management explained that these fees are related to integration and restructuring costs, which are expected to decrease as the company moves forward [44][46]