Altice USA(US:ATUS)2025-02-13 14:30Financial Data and Key Metrics Changes - Total revenue for 2024 was $9 billion, a decline of 3.1% year over year, an improvement from prior year declines [27] - Adjusted EBITDA for 2024 was $3.4 billion, down 5.4% year over year, with a normalized adjusted EBITDA margin of 38.7% [28][29] - Free cash flow grew by 23% year over year to $149 million despite increased cash interest [31] Business Line Data and Key Metrics Changes - Mobile service revenue grew by 52%, while residential revenue declined by 4.6% [27] - Fiber net additions reached 57,000 in Q4, a 22% increase year over year, with mobile line net additions of 40,000, the best performance in five years [8] - LightPath's revenue grew to $414 million, a 5.5% increase year over year, driven by footprint expansion and increased net bookings [32] Market Data and Key Metrics Changes - Broadband subscriber net losses were 39,000 in Q4, influenced by external factors such as hurricanes and low home sales [9] - Churn improved year over year in the East footprint, while the West faced challenges from increased competition [10] - The West market has seen a 45% overbuild, while the East remains around 70% [41] Company Strategy and Development Direction - The company is focused on a Phase two transformation aimed at business acceleration and maximizing customer value [8] - Plans include expanding fiber networks, enhancing customer experience, and launching new income-constrained programs [10][18] - The company aims to achieve a gross margin target of 70% by 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compete effectively in both East and West markets despite competitive pressures [42] - The company anticipates continued improvements in EBITDA trends and free cash flow growth in 2025 [52][75] - Management highlighted the importance of customer-centric strategies and the need for flexibility in pricing and offerings [80][94] Other Important Information - The company reduced capital expenditures to $1.4 billion in 2024, a 16% improvement year over year [29] - The total footprint grew by over 2%, adding 210,000 passings, with a focus on fiber expansion [14][36] - The company has a strong liquidity position with approximately $1 billion in undrawn revolver capacity [37] Q&A Session Summary Question: Can you discuss broadband performance in different regions and the competitive environment? - Management noted increased competition in the West, with a 45% overbuild, and emphasized improvements in the East due to better go-to-market strategies [41][42] Question: Can you elaborate on the pressure on EBITDA in Q4? - Management acknowledged one-time costs related to storms and transformation efforts but expressed optimism about future EBITDA stabilization [49][52] Question: What are the plans for improving the capital structure? - Management is actively exploring options to address debt maturity profiles while focusing on operational and financial metrics [56][58] Question: How do you expect CapEx to trend after 2025? - Management indicated that while they expect to maintain a capital target of $1.3 billion, they are optimistic about driving efficiency [60][61] Question: Can you comment on the competitive dynamics in the West and East? - Management highlighted the need for tailored strategies in the West due to low pricing from competitors and emphasized the importance of customer-centric approaches [92][94]