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Total income: Sales were reported at $2.3 billion, down 1.9% from the same period last year, exceeding expectations of $2.238 billion.
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Net income: It posted a loss of $21.2 million, down sharply from its profit of $25.9 million a year earlier and well below its estimated net income of $3.13 million.
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Earnings per share (EPS): The company reported a loss of $0.05 per share, missing estimates of EPS of $0.00.
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Operating free cash flow: This was a significant increase of 78.8% year-on-year to $510.5 million, demonstrating strong cash generation capabilities.
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Adjusted EBITDA: Sales decreased 2.5% year-over-year to $846.6 million, reflecting several operational issues.
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Housing Revenue Per User (ARPU): It generated stable customer revenue with a slight increase of 0.3% year over year to $135.67.
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Increase in fiber customers: The number of fiber optic customers increased by 88% year-on-year, with a net addition of 53,000 in the first quarter of 2024, highlighting the successful expansion of fiber optic services.
On May 2, 2024, Altice USA Inc (NYSE:ATUS) released its 8-K report detailing its financial results for the first quarter ended March 31, 2024. The company reported total sales of $2.3 billion, slightly below expectations. 2,238 million dollars, down 1.9% from the same period last year. Notably, net income attributable to shareholders showed his loss of $21.2 million, a significant deviation from his expected net income of $3.13 million and his $25.9 million profit reported in the same period last year. It was a complete contrast.
Altice USA, a leading company in the U.S. telecommunications sector, primarily serves the New York City metropolitan area and smaller markets throughout the United States through its Optimum brand. The company also owns his News 12 Networks and i24News, increasing its media and content distribution capabilities.
Operational and financial highlights
In the first quarter, Altice USA focused on increasing customer profitability, as evidenced by a slight increase in residential revenue per user (ARPU) of $135.67. Business services revenue increased modestly by 0.3% year-on-year, with Lightpath revenue in particular increasing by 3.6%. However, the company faced challenges in the SME sector, which experienced a 0.8% decline. News and advertising revenue he increased by 7.1%. However, political advertising revenue increased 1.8% year over year.
Despite these gains, Altice USA reported a net loss, primarily due to lower operating income and higher interest expense, which jumped to $437.1 million from $389.3 million in the year-ago period. The company’s debt management strategy was evidenced by significant activity in refinancing and effectively managing debt maturities.
Strategic initiatives and customer metrics
Altice USA’s strategic efforts to improve network quality and customer service are showing positive signs. The company reported that the total number of fiber optic customers increased by 88% and the penetration rate of Optimum’s fiber optic network reached 14.2%. Mobile services also experienced significant growth, with a net addition of 29,000 mobile lines, a significant year-on-year increase.
The company’s focus on operational efficiency resulted in approximately 1.7 million fewer incoming calls and approximately 235,000 fewer truck trips compared to the previous year. These improvements are part of his Altice USA’s broader strategy to improve the customer experience and streamline operations.
Financial stability and outlook
Altice USA’s consolidated net debt is $24.458 billion, which corresponds to L2QA’s net leverage of 7.0x, and its financial stability is under scrutiny. The company’s cash flow picture presents a mixed picture, with operating free cash flow up a notable 78.8% year over year, but free cash flow modest at $63.6 million.
Looking forward, Altice USA expects to continue investing in growth initiatives, with full-year 2024 cash capital expenditures expected to be approximately $1.6 billion to $1.7 billion. These investments are critical to sustaining long-term growth and improving the robustness of the services Altice USA provides. .
conclusion
Altice USA’s first quarter of 2024 reflects a period of strategic realignment and operational adjustments amid financial challenges. Although the company faces headwinds in its financial performance, particularly in the loss of net income, continued investments in network quality and customer service improvements are laying the foundation for future profitability and potential market competitiveness. There is.
For further insight and additional information, we encourage you to read Altice USA Inc.’s full 8-K filing.
For more information, see Altice USA Inc’s full 8-K earnings release here.
This article first appeared on GuruFocus.
