ATUS - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Cheryl and I will be your conference operator today. At this time, I would like to welcome everyone to the Altice USA Q4 2017 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Mr. of Head Investor Brown, Relations. Nick

begin may your conference. You

Nick Brown

and joining to earnings through Altice Hello, to In everyone. full-year the welcome for you Dexter over we’ll hand XXXX Thank presentation, USA’s and take take and and moment, I’ll who then Charlie, would a questions. you call. QX

for may and statements, The available please presentation Dexter available on next a are will slides of the the the call disclaimer today’s USA’s, Goei. with my As website And read contain forward-looking company’s replay this over CEO, X. that, on to pleasure month. Page to be it’s Altice hand

Dexter Goei

up Nick, Page relationships revenue with in XX.X% Thanks, grew deleveraging, jump on growing growth X by can services with advertising multiscreen starting cash further we flow seeing investment has realize strong growth been in with savings, both we as grew customer X.X%, continue operating takeaways. We efficiency Maybe solid This growth hello, ARPU. the by by and free was above the of be underpinned and if Growth free to XXXX, residential targeted presentation right of reform. our in we revenue generation this our capabilities. supported level. which we’re into And flow. as will saw business the key and business X.X%, revenue audience everyone. supported In cash SMB tax

network; to services our able rollout full as commencing products speeds; agreement to our in broadband launch the experience, of expanding and new of expanding investments well includes: One; improve our Altice strategic and This integrated availability be entertainment significant made platform, line-up; launching content customer customers. have MVNO we the services. a a fiber decisions signing mobile as for Lastly, to our ultra-fast state-of-the-art our

further some the month details independent announced Altice Moving on are transaction the of market appendix this groups. in NV in I resulting two is Altice just last Slide a of X from of key separate to There presentation, to but summarize capital we reminder proposed to the USA want considerations.

significantly focus more increase to of to for times a down float to the A distinct transparency value leverage is owned the structure technically the of while simplify XX% as lower Altice investors. about free of strength. about $X.X special target greater between transaction USA allocation And Altice spin-off Back of of results, for Europe, The Altice breaks about EBITDA. X have teams and on by the and The dividend expected total the ambiguity The financial is XX%. enabled each a to the the will be to spin-off, in growth. a management separate debt operates upon still will as shares creation, U.S. opportunities spin-off QX NV. group the U.S. cash shareholders of will in XXXX. First, USA way Prior group without and dividend balance kind of will conditional distribute distribution sheet completion from Altice shares is This billion. a Altice to NV to now X ensure the which European net USA revenue any capital separation, maintaining clear of components lastly, X.X Side the well we or

and Business XX% digits. quarter. the over of X.X% revenue, in services fourth mid Our total residential business XXXX in growing single in is growing X.X% is just

advertising we and come in data position targeted this and revenue you and mainly that. and our look Advertising in growing market in advertising driven is as seen start and with a with growth is back an X.X% X.X% I’ll growth faster digital shows growth ARPU in acceleration we by more if than overall some slight X at capabilities client grew of to QX much to contributing it the business linear in our X.X%. the Slide how well, Although analytics. performing revenue larger of a residential of national have base. contracts to land And SMB, customer XXXX really strong investments year-over-year growth base XXXX, X% diversified in to residential

committed we USA attractive residential a trends. within Altice profitable grew are products QX, investing. quick $XXX. broadband in residential to video RGU Specifically of where that our is additions BXC and X.X% saw X and I net to customer relationship repeat X,XXX summary is to at our ARPU to unique we’re delivering customers bundles this of want Slide

USA’s losses in Altice prior see significantly better pay broadly can line is which than is going not changed. have very you and with well quarters footprint QX With left, XXXX in XX,XXX the month, in full of in We commercial One the seen QX, which our XXXX. overall video had in Altice last trends improving the net XX,XXX On launch losses far. TV video significantly Optimum’s product, the so

Suddenlink contribute commercial Viacom end the are One full customer adding the streamlined, had Suddenlink’s offers see to you introducing additions in our of QX of back X,XXX – additions Suddenlink’s quarterly These growth XXXX, and XX,XXX Altice similar to On below bundle QX broadband RGU is been XXXX, this XXXX, QX across with more and the content the the we improve mattresses due since broadband can have of as and XXXX. broadband continuous launch mainly XXXX. XX,XXX right, to slowdown which localized in at year. expected QX net well the slightly in offerings rationalized expected Together to network. in additions upgrades and to QX new pricing later with at QX observed back

many approximately in of Proportionally, we the X.X%. than the from division. business year summary our of growing at revenue we X BXB to Slide SMB Carrier have business The to fiscal in grew the inherited BXB & is growth mainly Overall, Business BXB total one-third Moving year-over-year X.X% represents Enterprise total larger superior due peers, of & SMB Services two-thirds driven Cablevision. about XXXX, by of Carrier a X.X% a represents Enterprise revenue. other Lightpath XXXX. of

services and enterprise we enterprise-grade managed reminder, as connectivity a which fiber business. to As Altice Lightpath bandwidth customers, provides market

Slide X business. and small advertising addressable to in Media XXXX, targeted Partners Place enables we Turning and advertising in national Recall, businesses multiscreen capabilities. acquired Audience called which two our

marketing are the DMA with now. Separately, now area internal advertising. our in to announced unit this New into a and a TV sophisticated single of We reach We’ve households. very us. targeted new million advertising reach strong million with and digital XXX a U.S. for video customer-facing a a combined now households X.X one-stop households is over we Interconnect advertising can recently We will provide solution driver Internet growth all also that formation York capabilities and targeted

selecting advertising our QX increasing News division, data cable on speeds. growth is So strong. in data build our just that network, broadband the growth comp wanted impacting showing particular, news legacy businesses year-over-year on fiber But at XX which Suddenlink supporting I’ll enhanced to an USA within number its in our its analytics that to to reporting first political minute. remains but currently. a to fastest rollout are existing we’re customers increased business, Slide very we continues Altice services coax new consumers turn advertising that highlight is market of ratings revenue XX, tougher which in I In in the the had channel our a local

XXX could the XX% to higher Cablevision, speeds. Optimum upgraded speeds, could download end offer base up over than footprint Before megabits which we speeds. megabit the had of we then and At took XX% only footprint the XXX total customer Suddenlink broadband USA of these to meant of total the Altice XXXX, receive whole receive

more additions faster of the Altice customer XXXX, of to Suddenlink and customer now allowed XX% upgrades the continue to megs. These to megabit And are to doubled with up with higher meet than speeds. are taken XXX the total usage end using gross end same USA our this now widen now up USA’s footprint have services for broadband XX% speeds can network customer or of we the than footprint, broadband we’ll of Altice As availability receive to our us further with taking gig. footprint average more. receive and the Optimum XXX even speeds, reaching per XX% we to speed of total faster demand XXX X we this XXXX, base of average able of about not and megs At had broadband as stopping and continue footprint customers XX% at our the the to more speeds. daily Altice by of USA of gigs, upgrade XXX greater the taken here time, as But XX%

innovative services. XX, I investments want in new to Slide go on through new Now our the

capacity including video box, and new First, an entertainment It’s change Altice activated up The as Wi-Fi strategy for around many upgrades they ongoing the and enhancing the of become service Wi-Fi the of part an integrated a and Netflix with TV, for such improved Wi-Fi, of from includes control. double key and as a as been all offerings a initial experience experience one our boxes as app This there received is the voice apps to compared platform Internet, high-speed One. TV we repeaters have service are home. customers the has broadband we’ll great. new previous feedback is available. addition customer remote step in the our This

commercialization on accelerating FTTH the rollout. in FTTH later of with this fiber new first services our plan rollout Second, year. the We XXXX

helping well benefit As and the costs and FTTH enabling network and experience. operation faster connected network by a new our home delivering customers will reduce high-quality service speed by to as a more customer further, for

we agreement Sprint. MVNO have signed with full the Lastly,

in our can the be ARPU. to group of and a by area commencing that, CFO launch run over and This are core XXXX commercial position bundles expertise now to this we to through more in customers growth Charlie our will how some new Altice and to financial us figures. churn this help of I’ll reduce leverage And to Stewart for planned our drive XXXX. We network and development a turn the with Co-President, within with

Charles Stewart

are XX, margin EBITDA with hello, the at fourth see margin Dexter, summarized XX.X%. we quarter, On or in everyone. XX.X% Altice USA’s flow operating adjusted Thanks, margin progression, can free the you and Slide cash we at

worth in as here while flagged to maintaining it’s can month, be that take investment have and recent fourth won’t Tivo Dexter which we settlement do just organization more that recurring. the on And areas basis. look quarter, at is substantially flow content. in adding expense the higher, you from margins Viacom higher we XX.X% XX.X% where growth If new were Dexter the all started a We even were fourth had which historical simplified an last pro noting back our cash margins margin in when in we was from the operating on our figures mentioned. at the Note Suddenlink the impacted of XXXX quarter, forma free reported that left, we XXXX, year-over-year than full-year

cash be Slide agreement, increase average to of mentioned XXXX in view before, also CapEx cash we’ll our see paid change just of the we a budget. the in after per M&A, but Turning home over In that CPE in we’re costs year. to one of you breakdown new summary our of investment we flow, flow out generated our our $XXX this began of reform XXXX see Slide can rollout, to underlying to can of $XXX recent can the the network increase $X into equipment of activities, network infrastructure And XX spend restructuring some – you legacy impact. we free just full Audience tax CapEx, will in in will start our our Other Partners, Dexter investment activities as slightly support billion although in lot full-year MVNO financing the referenced. One million in in consolidating over XX, allocate left, lower we our box the that to related it’s now. which into shows not is acquisition as free our on will cash XXXX, to accommodate connected investing in dividends FTTH and where as which million includes the CPE new further such rollout. XXXX. you a And Altice cash see XXXX cost significantly of generation itself that

million $XXX to approximately proceeds, received as $XX in which was the of as benefit which were debt. million of year were taxes Cash the used we from we that, the to IPO our NOLs, addition end billion primary of $X.X repay year. In

new the which cash and XXXX, thereafter. previously. to reform, including tax until payer now significantly non-cash benefit different now And tax In addition, be income a the we’ve Altice following from our in USA XXXX rate federal in expected tax reduce $X.X lower significant of recognized of tax the not will is deferred is reduction cash billion. taxes – XXXX rate, not XXXX is

can a USA’s down even otherwise just of the Slide to have been months, $XXX basis Turning million end X.X come see to XX, reported out cash were approximately continues XX would on Altice right of I rapidly is as LTM This of to XXXX. that you last leverage lower. that the the paid after mentioned times on in dividends, which the leverage

You may X.X when the time Cablevision Suddenlink leverage recall approximately of times. X at that started had acquisition, of we a to the in level

debt in cash at for $X.X dividend to X.X we’re within dividend in got separation back our XXXX. further clearly, Altice cash paid X spin-off the forma very growth, and end expect given time Pro to XXXX paid, EBITDA U.S., We be target of the $X.X position flow But confident USA’s the be actually be by strong us of the which we’re have later reduced giving our the we’ve billion. about end comfortable the when range target by pace Altice shareholder year, leverage of options with times was the out times, our again. we’ll to leverage we for liquidity special the lower a returns. X.X leverage of conjunction with is to billion And to the of

our summary XXXX. is of pro X.X%. maturity billion average basis, dividend our Turning to average of X.X the a forma of recent in life refinancing our we Slide January for years, weighted weighted show this debt and XX, with debt $X.X On cost a profile

end This to was of likely of we timing finally, no have our billion that and our XX than at approximately outlook. major at last to growth rate $X.X maturities lower maturities until much we’ve turning XXXX. a more Altice and be X% XXXX of near-term We planned of second-half XXXX revenue Suddenlink a compared total also for And Slide event is by the event. XXXX, our medium-term as the for guidance covered our credit are implemented XXXX, X.X% weighted to to our rate In Optimum we’ve facility. and revolving year’s XXXX adjusted expect USA

we comparison the disruption addition, point some QX will In favorable in elections, valued midterm given per which the dispute. this likely be the programming includes in programming low Starz recent advertising of our from more believe contained to the growth mind, we expect mutually and a attractive With be be With the the digits year. single renewal is Starz, inflation with political for year, partner we got the later temporary to annual of customer. to rates high overall

margins. XXXX, guidance efficiency confident Over due Altice expand realization growth we’re current that time to this savings medium the that EBITDA including it I’ll $X.X give go not regulatory expect to we’ve in this lastly, we’re please and billion with further presentation. up to that, further and able back to for XXXX outlined it we and Nick revenue all can at And and you around open stop of new adjusted growth flow to projects note USA’s long-term, Q&A. And the ahead. with cash profit to turn Operator, of Please annual we be processes. for over CapEx, the

Operator

Bank. Your from comes of first Instructions] Bryan the Kraft Deutsche question ahead. go of Please [Operator line

open. is line Your

Bryan Kraft

that I meaningful? margin on stock correlated if you to guess, want opinion I guidance there I price guess, did wouldn’t had an a of you the USA’s you price on Thank why ask I Secondly, first on you long-term. separation? what the give guidance interpretation? the give to And if quick stock to been in mean then after the to Hi, you. can’t might extent for the was be I Altice guess, good XXXX, interpret could being so video profit wrong you ones. quarter outage lastly, announced impact Charles, you has expansion highly Should it’s NV even margin question. or subscribers is to on I in wanted for But ask that about the I have the to know medium Thanks the said you taking expansion that Starz be of One, I we afternoon. wondering comment just XXXX. couple

Dexter Goei

of hand I’ll then couple and take to first the I’ll questions Charlie. Maybe it

giving first-half them discussion in we’re because will that in Starz mutually at really listen, months. attractive a six York don’t rate the little the be bit in particular but really into first first the dispute, day. protracted that secondly, the year second-half taken with events clearly just about It we but And of I not this of only prevalent year, our But to On very that six the Charlie’s by the market. first a do the a guidance one, a within bit end Starz both blip But the political on outage, of the the dispute very guidance of couple relative was year New account little a we that the came weaker quarter for we I quarter the have of probably the first driven to and the for had weeks. think here us in Tri-State on think advertising any into that’s was area. transaction weeks in thankfully, of translates timing which impact.

understand think On I Altice smart any enough this. the of price, to we’re USA stock

it’s USA plays I at played the think small Altice clear role. that that – free a float

are N.V. play stock to European USA another interplay the stock who Altice Altice isolate between the implied stock here. is and I price think, for trying those

just some a by much very float, thereafter couple is we’re for attractive right? think, time, and standard focused a very free much regulatory on driven shareholder independent in very very bigger spin-off, remuneration speaks structure just I have program then a place, which that processes and itself, the take completing which we’ll really

Charles Stewart

in is or Yes, those just Europe implementation to our because made build revenue how FTTH and to medium on the in separation can we are the our our of growth, our focused out the adjusted course, we’re maybe note serve things regarding of required One to that our Bryan, just investment growth in targets a just bit EBITDA just we to with I in elaborate the expand be further filings N.V., we all statements of margins margins, on that margins will now public strategy innovation medium-term really of which All like Altice But restricted think And improve complete to things given will goals. little that and long-term. KPIs, really and our would in efficiencies and starting MVNO. connection specific we in the over are efficiency securities previously near-term. from maybe those our medium-term Altice be changed haven’t have planned

Bryan Kraft

follow-up? specificity the quick – give close? in Can thanks. can the as think you second Any just one you to I Okay, quarter when ask will any spin-off

Dexter Goei

I The the in time are various got transaction. don’t regulatory processes the mind. think on and both aligned much in various Europe very U.S. a agencies, from all the deadlines to who need date based we’ve review pure in

maybe been that than QX clear bit earlier event. guesstimate I early were June, I would we’ve is a that. pretty that think, a little this

Bryan Kraft

Okay. very Thanks much.

Operator

from of Brett comes the ahead. question line Goldman Feldman of Sachs. Please next go Your

Your line is open.

Brett Feldman

mind. question, you two, taking if for don’t Thanks and the

how year. some fiber point to at be about you’re this commercializing talked You going

we’re acknowledged to you your up differentiated been win will have fiber you that you like going a think already we��ve make target to does are lost to you’re FiOS, question this you so are And in going sure just, show fiber against you you able is, might then above previously? when be and it provider be how rollout getting markets like some consumer complete to probably the And I that spin. you’ve when the leverage seem back customers you

completed targeted on Your advantage it, spin-off range that you regardless need your going discretion could Thanks. your be believe, Do where it is any to of day? take start leverage buyback use using or to buyback at is you of when in to spin. once the effective, become to given the is your you I leverage complete

Dexter Goei

to the I network, X.X maybe out what a but right? differentiate the environments, speed the as in X.X point that with it’s competitive what’s our we markets rollout, So FiOS. competitively is on and clearly maybe available fiber in know So just fiber a a think our could service certain purely we’re I of analogy versus rolling on starting which don’t relative right is,

to haven’t standpoint. do capabilities, hand competition. to decision speeds ability than as commercial We the But from leverage don’t the to speed terms issue. we’ll do on in a Why made higher to Charlie be we’re going a it at the of I what the

Charles Stewart

facility target restriction obviously, so function out a about put leverage Hi, quite and consideration. There’s use the a as delever goes buyback ability the specific But of it’s Yes. quickly. to reason, Brett. no a We there our for leverage. we

and so point using a to at We back why so have continue often the why it’s consider do – in at time separation, given our be free and is why an moment the we – partly but put of which technical place expect we’ve buyback, the to And effective that to generation. that opportune course, to time. the in flow of reasons time cash flow there’s on of

answer question your So specific to leverage restriction specifically. vis-à-vis no

Brett Feldman

Great. Thanks taking questions. the for

Operator

line Please ahead. go comes Ben question next from Your Morgan of Swinburne Stanley. of

Your open. line is

Ben Swinburne

mentioned year afternoon. pricing the Thank not you, guys. changes, of you XXXX. of the Dexter, only heading changes, strategy sort fewer into Good towards but last a some end

about implemented? tings or how we XXXX versus have Thanks. of when associated when modest thinking relatively business? that the your until if, you’re are just will if if adjustments launch? rate about are Just And it’s being significant, past, or And of you into of maybe the in changed? up in that should thinking there with Is sort get today XXXX in for any wireless expenses why, then Charlie, talk scaling things be we of so that sort about be timing

Dexter Goei

thanks. Ben,

across as basis and last broadcast over but boxes the footprints. harmonize and onboarding how What On both that’s approaches of billing harmonization type the were as question, pricing an led moving practices years had just the the different it well about we working to the or and such not two simple both the the And bases about right But and customer that across to IT are standpoint as rate doing many Suddenlink policies practices we’ve first spent basis, the thought surcharges, two pricing in know, packages need footprint changes to be five as were. you itself two years and what people some surcharges, set-top customer different basis. from as practices the may the a things. technological six thing that last sport billing between those to That and various in in base. the customer harmonized, as

of harmonizing different not as activity probably variables anticipated the we to was all easy. wanted that than more ever is All or that

which do we’re to which strategy quarters, to through we’ll change comfortable in we has been feel We the is comparisons event on But year. different But year-over-year be those. really that bases made a very happened what going usual both a various price the than XXXX, XXXX, kind implement over guidance changes actually going of comp for them. and we it’s all effort it also weaker giving historically. the in given rate And to drive the the when customer the increase to be so concerted of will end will we a as That’s not that or why us like at guidance. with QX talk industry harmonize the

timing terms based events. the on how you we on the We’re rate set expenses? in up just heads of up And giving

Charles Stewart

we’ve by Yes, MVNO, that on XXXX. said we the expect the launch commercial Ben,

So of launch. we’re this on core work advance in that year, beginning really network the

get spend sort And of – we’ll expected the that and update targets at point. part levels to an perhaps. heavy as our give heavier we not our So launch, any of certainly, that on cost closer

Ben Swinburne

you, Thank great. guys. Okay,

Operator

next line ahead. MoffettNathanson. comes of from of Please Moffett Craig question the Your go

line is open. Your

Craig Moffett

I for if I of guess, a Dexter, it’s could. sort XX,XXX-foot question

you cutting down. with I rate has for been the whole now for court has IPO, the the been what running past than the unit since you industry running, have video the You’ve you decelerated clearly specific company have you’ve you that’s growth nine that’s both learned industry in of been accelerating and the than your expected? and broadband expected slowed to months, guess, for you’ve what Suddenlink And different What what find market and U.S. growth learned Optimum since different what Cablevision?

Dexter Goei

that there’s learned think to Listen, things Number in think opportunities up in took lot most attractive I we’ve we barely Cablevision from I of the, flow when a it that least large have market of less of a that an which seen XXX,XXX one, and also That’s standpoint growth the cable U.S. part Craig. drive many over of feet, not – probably not moved is take because But think, a believe last that, I Cablevision attractive And north revenue on that say to is the years. couple face to I was that over last growing, free valuable X% decelerating revenue the areas truly years. us. have of of behind that and to we opportunities And hitting make all the if one at competitive were we most future, it U.S., we footprints business the we’ve one, significant. obviously, a probably the consistently the or the CapEx footprint. thought, couple the the secondly, and of which OpEx it competition, was cash if

allows to behind as expect so that’s attractive it lot different of us quick but we And a most such which of – got the terms advertising and the us order. competition only and kind of things streams, didn’t demographics, mobile in drive we’ve probably such also not in revenue ancillary

in a been probably So we’ve that’s things real that winner realized. XX-plus terms us of for unexpected

– that in convergence that this and on right, with parts think just cable we in can standpoint, of down the to up is terms side and foreseen, think various consolidation is side? and market impacts great no the a dynamics and one the something both the real on have business. I the on overall of Suddenlink it, there’s which acceleration probably I think, have And overall our really deal side is I the the how business,

We infrastructure. have great

it’s One, upgraded year a position drive terms transformative to the looking and to national, from a have have targeted flexible a to so But been And heavily would continue about was have for and be up from decision-making as into a and of get markets. enough in digital are poll addressable real got investing in full our we with more allocate really We bandwidth, that things consume never it’s capital and we’ve get to XXXX signing of networks advertising consumers standpoint so our than appropriately. to linear expected that competitive MVNO with organization us nimble launching done position stronger we much that standpoint, more an quickly Altice FTTH, to in all financials quickly. expected. and launching our

X So you. I’d two a versus say last enough U.S. cable a that years over high-level positive that’s the from has Hopefully, our for the unforeseen. to running on been X experience probably that side was anything

Craig Moffett

up growth, is despite at thought, has product growth price face a your a Suddenlink, helpful. strong could would – turning the market? in out I If that expected low penetration. ask slower in it quick point better is Suddenlink with we remaining surprisingly bit we observation elastic about follow-up. consistent why be have have example, a has than this is of competition penetration Certainly, territory. or for Cablevision. To the sense But at your would Why stubbornly Is held than very being been in broadband broadband That’s sort Cablevision reasonably that of to more low that? our

Dexter Goei

we my I factors sector as investing in at their areas, it that coming of the on I the have is side, year. gaining to both the remember benefits wireless price also if overall low, call in this market you first speeds broadband couple the also, like do issue, OTP we’re from addressed quarter here the competitors think convergence are the a there’s I of economic think rate, in players networks but there. on quarter aggressive them, we an to issue economic an competitive the the which seeing demographic. think And at are super aggressive. aggressive very elasticity fourth points that price video, with coupled being do in coming there driven less and and to in comment attractive share a less even think obviously I in some be of has

basis points so where triple come a price us. competition lots not between up teams the we’re video sizes the and all or attractive which to sports difficult it, here Tri-state very particularly dense, here most relative a for makes demographic, are standpoint, equal York And come in footprint, parties area, from attractive and see we really being an in differences let’s healthy New a it multicultural, to with of these call on the the rich, third a play basis highly in live overbill makes and either us into very and proposition FiOS, even on markets an the

countries we’re single where XX, here are need in we just just grades to of depending of XX our there we much local markets nimble be country. opposed as certain say and we different internally, different one shades are. So U.S. – in to And more the like to in It’s

Craig Moffett

you. Thank That’s helpful.

Operator

[Operator next Barclays. Instructions] comes of Venkateshwar the line go ahead. of question Your from Please Kannan

open. is line Your

Kannan Venkateshwar

suggesting base Thanks. think the just that and with whether is pressure quarter. country? exposed purely of to on wireless-only footprint? wanted So, homes of that been base, to I of parts following other than sense this growing quarter little a more trend within is wireless-only there Dexter, that when demographic at subscriber And this there base So up the data more your of perspective Is was the highlighted growing. just has that some some lines you get bit you you’re look from perspective of that in something last a seeing Suddenlink, from pressure

Dexter Goei

No, I don’t think movement a we’re concerted way. seeing that

think starting levels good of the I we’re the having over fourth quarter. the being quarter bear are – course various first adjusted fruition the our footprint to the of more offers competitive seeing across to in

are the over when your see saw on that dispute, our QX Optimum of with first in timing depending footprint to not quarter, XXXX, FiOS that box we’re QX subs or we we with first Starz just seeing impact of Suddenlink see that’s launch financial degradation volume advantage though shape we’re where like numbers various trend trends right? return of the the in and Altice in really we and saw impact the we in came should volume of coupled very of think Univision, the the XXXX, partners. or in we Suddenlink, to zones balancing over the So on KPIs due the even the and I that pressure the subscriber much good we’re footprint, don’t One attractive from in more the form in no, of So off, standpoint. looks base, much an competitive a which zones and in months couple on versa vice a focused year took point footprint – seeing much our driving over right? Optimum-only some in the But Starz KPIs the Optimum on versus the the not to penetration the started very ping that ponging right? the financial our much in effect already very The the FiOS competitive of today. our any Suddenlink But an in was on disputes dropped was we

Kannan Venkateshwar

Altice And one to that? be is What What new from kind a when link? of follow-up expect point the question supposed should we add kind of deal, on ARPU price products an One.

Dexter Goei

or box – equipment. a footprint, in footprint. top. on additional the on footprint Optimum set-top mini-box in the Suddenlink which you these set-top additional footprint your have, you are Altice $X and effectively, the a Effectively many pay the be on at Suddenlink $XX But depending comes ARPUs about gross Optimum to have a is one how you TV’s we’re And One in modem. impact and price in then today depending boxes the have whether for all $XX box, and for tag on on you’re or in add Well, you going based $XX

one you’d have you TV, So ARPU adds. $XX a had just effectively, if change on the gross

Kannan Venkateshwar

you. Thank right. All

Operator

ahead. comes of of Your of Merrill question next go America Jessica the Bank line Please from Lynch. Reif

Your line is open.

Jessica Reif Cohen

have I two questions. Thanks.

You some of marketing offering can and – people XXX at speeds? reasons how give second of and to in you’re offerings Viacom that different on that your of the coming talk impact on Suddenlink? fully those And say you’re Can you that in all of what on back topic, or subs that kind upside – had does your megabit. just us you homes how advertising? then and speeds it about Is any like – why slides release XX% those color on speed the you’re you on

Dexter Goei

Sure, Jessica.

and too it type speeds, far On in fiber coax footprint, a which X.X have limit. or its as network it architecture and the dropping deeper we can go listen, we to spending money investment we our as DOCSIS either CMTSs cycle, or we to push of without the Optimum much and push take

been penetration over really And losing FiOS. really I depending so better megs network, market almost upper a to good counter than that effectively to think we have gone we up and the a not fundamentally, not any it on which X penetration there, of so megs big has But today, at relative is ability value higher levels wide. an why to probably and or offer speeds of the Optimum service seeing gig FiOS, we’re limit gig, we’ve to customers the we’re have XXX the X a have our amount share current on XXX system FiOS

of meg at onboarding of discussion. more XXX really level mind-share bigger Optimum. a the So XXX is it’s on chunk our The and

On the of that. hand it so maybe in Charlie, I’ll to all Viacom, terms just

Charles Stewart

on Suddenlink selling Sure, that the and that Viacom see available things XX% in Jessica. thing. We video sort days, now Yes. adding of quarter. anecdotally, the And like Hi, it’s levels video during customers much positive. of early and certainly, been it’s happened is over fourth non-video markets but some improvement

it’s So, But but is that in not just we’re note with Suddenlink advertising. – feel agreement received we areas well. includes just our with which also partnership that’s the a something that, certainly Viacom, pleased opportunity reach that like broader and we’re some I think that being able really programming, with to

Jessica Reif Cohen

can follow-up, in bit a involved Okay. agreement? talk that about little advertising as just And you a what’s

Dexter Goei

can the chunk of blowing are business to And think in a here market, interconnect in but those. obviously, New year So mentioned data linear we as all about products digital, we’re local tiny particularly the nationally our suite do on the formation the think go there Well, IP out that a of focus we’ve a million and to the in on campaigns really where there year doing and the local we national hand to of this go Media last really business tiny, in business our it’s the I here ad the national because – for stronghold winning drive national on some linear themselves, out of strengthened really basis, Place national local national market now, as ability both it’s out The well-positioned advertisers right? and just have $X and to agency, DMA, our well the revenue as many a muscle compete, have with we targeted to presentation, DMA, of people products and to you you think, out a a booked to on kind addressable as advertise larger have the our there a right? well capabilities. in from as of and So contracts big right< of down on of having where to there, the think the direct new some years was because coordinated advertising with people revenue covering we’re other products, way, entire of the So $X markets quarters I million York of we on through million, literally, – offer of the and organized both able got our the trend the down host all or these that can see we’re able York because are advertising, and $X the it advertisers our very basis. we’ve sector digital, of expectations basis, on New we suite access those of

Jessica Reif Cohen

to expand in companies? helping those would is Viacom if try you efforts, content other But to that

Dexter Goei

absolutely We Yes. have already.

into on drive both multiple and campaigns, advertising our using products a are are existing political data analytics borne the largest national managed full across platform programmers analytics historically was can have we’ve base, things or national So and do. you things. on on services, One, we are to the all ad healthcare, national financial optimize really linear advertise But and all many think this a international So secondly, our MVPD’s by looking currently technology well So which largest who are U.S., into on agencies, would with with and relationship different had really working basis services basis, dialogues relationships it’s in having we dialogues with that with more in right? we the to advertising board, in in that and of were target the the programmers. the diversified as data basis, a Other terms turned client right? the advertising two we’ve of organizations just guys space. programmatic that and are addressable now

just have all second But And first to quarter early year. of to in signs more pieces investment this and starting little look some investment together put and drive and a these attractive. force the so sales headcount talk having is about put very the in to we’ll

Jessica Reif Cohen

Thank you.

Operator

of Cusick line Your next Philip go question JPMorgan. of comes from ahead. Please the

open. Your is line

Philip Cusick

Hey, a guys, lot. thanks

You versus expectations? about that doing back looking your now talk through heard fiber bids have what What where versus And to of rollout rollout in of – the ATS and price terms Can you of original you fiber? rollout yourself talked you earlier. for about the outsource? in are terms

Dexter Goei

couple there’s So of questions.

price one expected number are our is, delivering on think, we I points.

So attractive market it had the think cost. which are to as what to would expectations relative very the we

almost been which self-contained thing only being that change supplier off. of probably XX how would of But in as is, But quarters real couple we I has to which moved by AT the the and is you done been into years U.S. That think when know, now a division. again. terms something owned know-hows does in the And business, ATS probably a my not have behind, operating with dynamics workforce. it’s start drive existing a do. unit in-house the Secondly, least I XXX% behind the we’re is think ATS of we’re this it’s our of tensions by Altice, in

to a piece So little takes processes, of all place, bit that the – getting the things. it the trucks, in place, getting pains machine always getting moving, those all right permits the in know growing get the we getting are

Now we are moving at a very nice pace.

a have we’ll secular so would product, fiber be but third the in for year And us more idea talk of to about, commercialize to quarter a right? this

Philip Cusick

impact a remind rolling opportunity, of the that’s of the Charlie, us to into financials Maybe out good of P&L? ATS back

Charles Stewart

Yes.

said, last in January. was what million the amount – three completed we range. just build Dexter that Altice on through to of a had the is And in acquisition first September of So the quarters XX% for impact mid-$XX in nominal in the SX year we announced our

it’s in to ATS it’s And when a we – it. we then XXXX, publish full-year, profitable been would in our USA. our you’ll number that and have the as more expect that is For XX-K accretive see Altice actually like that low-$XXs,

Philip Cusick

Charlie. Thanks,

Operator

the are presenters. to There will the I at turn further this call no questions back over time.

Dexter Goei

if And you. us joining. in for and you have know, any to we much do few forward questions, very up follow-up you Thank let next Thank weeks. look the catching

Charles Stewart

Thank you.

Operator

conference concludes call. This today’s

disconnect. now may You

Altice USA (ATUS) 27 Feb 182017 Q4 Earnings call transcript