Altice USA has announced its third-quarter results for the period ended September 30, 2023, showcasing significant growth in revenue and subscribers.
Dennis Mathew, Altice USA’s Chairman and Chief Executive Officer, in its earnings report, expressed his satisfaction with the company’s progress over the past year and its focus on delivering an exceptional customer experience and expanding its network.
Key Operational Highlights for the Quarter:
Broadband Growth: Altice USA showed improvement in Total Broadband Primary Service Units (PSUs) with broadband net losses decreasing from -43k in Q3 2022 to -31k in Q3 2023, representing a 13k improvement in broadband net add performance trends.
Fiber Expansion: The company experienced its best quarter for fiber net additions, adding +45k Fiber (FTTH) customers in Q3 2023. This growth was driven by higher fiber gross additions and increased migrations of existing customers, reaching a total of 295k fiber broadband customers by the end of Q3 2023.
Optimum Mobile Growth: Optimum Mobile achieved robust growth, adding +24k mobile net additions in Q3 2023. The service now accounts for 6.3 percent of the company’s total broadband customer base, up from 5.1 percent in Q3 2022.
Improved Customer Experience: Altice USA’s focus on customer experience led to notable improvements, with a 22-point increase in tNPS in Q3-23 compared to Q3-22 and a 71 percent increase in self-install rates for qualified new customers. Fewer truck rolls and inbound calls further highlighted the enhanced customer satisfaction.
Network Expansion: Altice USA continued to expand its fiber network, adding +61k new FTTH passings in the quarter, reaching a total of 2.72 million passings. They also launched Optimum 8 Gig symmetrical Fiber to the entire East Fiber footprint, providing high-speed internet services to a broader customer base.
Continued Demand for Speed: Altice USA observed a continued demand for speed and data usage among its customers. Broadband speeds nearly doubled in the past three years, and broadband-only customers averaged 659 GB per month, reflecting a 23 percent increase compared to the average usage of the entire customer base.
New Build Activity: The company continued to expand its network, adding +30k passings in Q3 2023 and witnessing strong customer penetration in new-build areas.
Financial Overview for the Third Quarter:
Total Revenue: Altice USA reported total revenue of $2.32 billion, reflecting a decrease of -3.2 percent. This included a decline in Residential revenue of -3.4 percent, Business Services revenue growth of +0.1 percent, and News & Advertising revenue decline of -10.8 percent (excluding political revenue, News & Advertising revenue grew by +4.9 percent).
Residential Revenue: Residential revenue was $1.83 billion, down -3.4 percent. This decline was mainly due to the loss of higher ARPU video customers over the past year.
Business Services Revenue: Business Services revenue reached $366.9 million, growing by +0.1 percent. This figure includes Lightpath revenue growth of +2.3 percent.
News and Advertising Revenue: News and Advertising revenue was $107.5 million, down -10.8 percent. Excluding political revenue, News & Advertising demonstrated a growth of +4.9 percent.
Net Income: Net income was $66.8 million ($0.15/share on a diluted basis).
Capital Expenditures: Cash capital expenditures reached $353.2 million, which accounted for 15.2 percent of revenue (8.8 percent of revenue excluding FTTH and new builds), and saw a decline of -28.4 percent.
Altice USA’s strong performance in subscriber growth, improved customer experience, and network expansion signals a positive trajectory for the company’s financial health and strategic objectives. The company remains committed to delivering the best customer experiences and enhancing its network infrastructure, making it well-positioned for future growth and profitability.
