Altice USA Q3 2024 result shows its strategies on fiber business are driving customer addition in fiber broadband and mobile segment in the third-quarter.
The target of Altice is aimed at improvement in its broadband performance and growth in total revenue. Senior management team at Altice is focusing on several strategic initiatives centered on network enhancement, customer migration to fiber, and product convergence.
Altice team behind
Dennis Mathew (CEO)
Marc Sirota (CFO)
Lisa Gonzalez Anselmo (Chief Diversity Officer)
Shuvankar Roy
Dexter Goei (former CEO of Altice USA)
Patrick Drahi (founder of Altice USA and current Director)
Charles Stewart (former CFO and current Board of Directors member)
Dennis Okhuijsen (Director and advisor to Altice France and Altice International)
Raymond Svider (Director)
Mark Mullen (Director)
David Drahi (Director)
Here are some key elements of Altice’s broadband strategy aimed at enhancing broadband performance for better customer experience.
Network Expansion and Fiber Migration
Altice is investing in expanding its fiber infrastructure, adding 52,000 new fiber passings in Q3 2024 and targeting nearly 3 million fiber passings by the end of the year.
It has achieved strong growth in its fiber customer base, with a 63 percent increase year-over-year, reaching 482,000 customers. Nearly three-quarters of new fiber activations came from migrations of existing customers, showing Altice’s success in transitioning users to its upgraded fiber offerings.
The fiber network penetration reached 16.6 percent in Q3 2024, a significant rise from the previous year.
Enhanced Broadband and Mobile Convergence
Altice is advancing its go-to-market strategy by promoting the convergence of its broadband and mobile services. As of Q3 2024, 5.2 percent of its broadband base had mobile services bundled, up from 3.2 percent in Q3 2023. This strategy is designed to drive customer loyalty and increase ARPU (average revenue per user) by offering more comprehensive service packages.
Mobile subscriptions have grown significantly, with 36,000 mobile additions in Q3 2024, representing the highest net increase in four years. Altice’s mobile customer base now stands at 420,000.
Investment in Network Quality and Customer Service
Altice has improved its service call rate by 11 percent year-over-year and reduced service visit repeats by 28 percent, indicating enhancements in customer service efficiency. Additionally, proactive maintenance measures have brought the network’s node health up to 99 percent, ensuring a more stable service for customers.
Altice is also upgrading its hybrid fiber-coaxial (HFC) network by deploying DOCSIS 3.1 digital modulation technology to improve speed and reliability for its 3 million HFC network customers.
Targeted Customer Retention and Simplified Offers
Facing competition, Altice is focused on improving customer retention, particularly in income-sensitive segments. Altice has simplified its product offerings to enhance value and is streamlining its base management strategy to keep customers from leaving.
While Altice did see a decline of 50,000 broadband customers in Q3 2024, it is aiming to stabilize this trend by creating better product alignment with customer needs and addressing disconnects, particularly among prior Affordable Connectivity Program (ACP) participants.
Controlled Capital Expenditure
Altice has allocated $1.5 billion for capital expenditures in 2024, a $200 million decrease from 2023, highlighting a balanced approach to spending as it advances its fiber network and customer experience initiatives. Its capital intensity increased to 16.1 percent in Q3 2024 (13.1 percent excluding fiber), indicating a focus on high-value investments without excessive spending.
Altice is also exploring growth through alternative revenue streams. In Q3 2024, its news and advertising revenue increased by 9.5 percent.
Through these initiatives, Altice aims to solidify its market position, retain more customers, and improve service quality to better compete in a challenging broadband landscape.
Dennis Mathew said: “We’ve made progress in strengthening our networks, stabilizing our operations, and setting a strong foundation for growth. These efforts have resulted in positive momentum across our fiber and mobile product lines in Q3.”
Altice USA’s total revenue fell 3.9 percent to $2.2 billion for the third quarter ended September 30, 2024. Residential revenue dropped 5.6 percent to $1.7 billion. Residential revenue per user (ARPU) decreased1.9 percent to $135.77. Business Services revenue dipped 0.1 percent to $366.4 million.
Baburajan Kizhakedath
