Altice USA(US:ATUS)2023-11-02 01:49Financial Data and Key Metrics Changes - In Q3 2023, total revenue declined by 3.2% year-over-year, primarily due to decreases in residential and news and advertising segments [40] - Residential revenue decreased by 3.4% year-over-year, attributed to cumulative video and broadband subscriber losses [40] - Adjusted EBITDA margin remained stable at 39.5%, with operating expenses declining approximately 1% year-over-year, marking the first year-over-year decline in 10 quarters [42] - Free cash flow for the quarter was $121 million, supported by higher operating free cash flow and working capital benefits [45] Business Line Data and Key Metrics Changes - Broadband customer net losses improved to 31,000 in Q3 2023 from 43,000 in Q3 2022, indicating better trends across the footprint [28] - Optimum Mobile saw significant growth with 24,000 net additions in Q3 2023 compared to 5,000 in Q3 2022, driven by improved sales training and promotional offers [32] - Fiber customer growth reached 295,000, with 45,000 new fiber customers added in the quarter [37] Market Data and Key Metrics Changes - The company gained 4 percentage points of win share quarter-over-quarter against competitors, particularly in the fiber market [29] - Churn rates improved, with nonpay churn decreasing by almost 10% year-over-year due to better customer collection practices [30] Company Strategy and Development Direction - The company is focused on simplifying pricing and enhancing customer experience through a new rate card strategy, aiming for transparency and predictability [48] - Plans to expand B2B offerings and improve product portfolios, particularly in voice solutions for SMB customers [22] - Continued investment in fiber infrastructure, with a goal of reaching approximately 600,000 fiber passings for the full year [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing broadband subscribers and improving customer experience metrics, despite macroeconomic challenges [50] - The company is committed to driving quality and value, with a focus on enhancing customer satisfaction and reducing churn [58] Other Important Information - The company has implemented AI-based programs to maximize customer lifetime value and improve pricing strategies [18] - A new marketing campaign featuring Derek Jeter has been launched, contributing to mobile growth [34] Q&A Session All Questions and Answers Question: Impact of the new rate card on subscriber trends - Management indicated that the new rate card aims to reduce complexity and improve customer offers, with expectations of maintaining subscriber growth [48] Question: Feasibility of stabilizing broadband subscribers in 2024 - Management is optimistic about improving trends and customer experience metrics, but acknowledges ongoing macroeconomic challenges [50] Question: Improvements in win share against competitors - Management confirmed improvements across the entire footprint, with new local market structures contributing to better performance [52] Question: Plans for fiber deployment in 2024 and beyond - Management is bullish on the fiber plan but will evaluate capital intensity and deployment pace moving forward [54] Question: Long-term view on video and programming contracts - Management acknowledged the need for a new model in video distribution that prioritizes customer value and simplifies access to content [66]