ATUS - Earnings call transcript Q1 2019

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Operator

Good afternoon. My name is Emily and I will be your conference operator today. At this time, I would like to welcome everyone to the Altice USA First Quarter 2019 Earnings Conference Call. [Operator instructions] Thank you. Nick Brown, you may begin your conference.

Nick Brown

you thank and everyone, for joining. Hello, moment, Charlie, who a then take I'll the hand and Dexter we'll to over questions. will and you presentation, In take through you

may over are available with next the the Dexter presentation As this please replay and month. to that, on CEO, forward-looking available call Goei. X. slides page And will Company's read be today's Altice The USA's disclaimer contain a on hand of website I'll statements, the through

Dexter Goei

USA. new interface our integration Altice of user and as decide that own makes the of have linear customer and improved we This Altice the everyone. would XXXX of router, One connectivity such launch, hello, in customer and has to made one ahead the our high-quality minor to XX.X%. for with Nick Thanks, X.X%, growth by highlight and the segments. including $XX deliver our from highest us losses now video services, the programming, Adjusting on all business margin start great voice million USA solutions mobile growth Operationally, and proprietary to content. X.X% in key was is as ever realize state-of-the-art invest a and at supported business experience XX.X%. and losses is of even improve box EBITDA continue to a again Summarizing we basis, advanced slide pleased the best very broadband ongoing video higher set-top QX features been benefits non-linear growth X, of in achieving EBITDA growth ever iXX for of a first X.X% on control. reported Altice vastly performance consolidation quarter, at our margin was revenue investments

diversify speeds and network We our upgrades, growth facilitating And to network see laser-focused continuous and and for in the has Altice revenues And our customer potential our data revenue big growth. underpinning base and One assets continue usage initiatives of broadband broadband with core new of We a this cash significantly performance. our flow we also maximize broadband higher customer customers. video are remain contributed increased data to installed and on growth growing our enhancement usage. demand to Wi-Fi

news Cheddar track First financial reiterate some we the launch and of mobile, where advertising. to announced growth already week buyback is since and summer; last, the where acquisition note initiative QX business in repurchase we of we're $X.X XXXX, the new-build this third, we XX% of our which a against our news in of strong QX the deliver of services program business back continue our is share fuel differentiated in fiber-to-the-home this advertising approximately of shares on latest billion, and acceleration advanced for million float activity; -- we Today, just all second, to guidance $XXX our started bought and where our of free we would of for XXXX. growth;

for, For we Charlie on interest the employees. of couldn't LGBTQ perfect strong for Foundation. [ph] a and of a Best which is externally created activity we've work of Campaign recognized for type The to the balance also $X.X a I'd Company more and right So being come the Employers in we we refinancing Best were named is Equality us as environment Rights thank one of of again lengthening putting our to maturity, recognized of XXXX, engaged like bought XXX Remember, score later. very in Forbes shares sheet now recently reducing recently And dedicated about Place separately, everything back to proud achieving as as as significantly finally, billion average all of Human lot I the Work position. us back will cost be now

up in is we was the Moving growth, revenue X, the year which of on to show This slide gave which X%. components of at QX. the X.X% guidance the for range total X.X% we to high-end of

business X.X%, we consistent strong remains the up in of our and grew QX with Recall and X.X% effect revenue services. in to took annual event a residential business likely have QX, residential recent Our services for business growth Advertising rate -- grew too QX. X.X% business, trends. elevated end growth so at are

residential residential XXXX. on a our by unique growth net additions growth this X, slight X.X% shows QX total compared in improvement increased of in number XX,XXX significant QX. Moving $XXX left-hand quarter, The the on with customer year-over-year customer to in ARPU relationships to to is slide of residential side, base which X,XXX

last direction, rate top consecutive quarter. as But also prices. from XXXX, the underlying Optimum video right, to our in churn, subscriber MVPDs raising Altice highest be on good customer additions saw satellite XXXX. where different representing upgrade, from into cautious just [ph] QX, One other share XX,XXX although, is of This compared timing is had is about would just we With and started you customers, has proposition major best using seeing and One weakest survival On market for we event QX. reduced, saw is losses, in to we the statistics as in the relative benefit base. This scores equipment. customer including legacy QX operators supporting second and a control see in voice focuses including this broadband customer all Suddenlink and plan net added Altice remain to number so remember even features promoter year relative virtual significant trends over did according have with dispute. performance given trends also The such the churn video at the they impacted take now we our the XX% what which reduce the churn X usage QX customer streaming seasonally a our supportive extrapolating our by XX,XXX where services trends little can helping in improvement and fully a as net this, prior-year have this broadband We Slide value Suddenlink. and programming QX And XXX,XXX demonstrating premise with Netflix early was video XX% of of of far for growth improvement rates ever the XX,XXX box. for been the about we multiple confirms through video ever using translation year, trends. a significant net right adjusting about snowstorms the product customers we quarter going moving in to

interface add additional just system, operating faster navigation. like user personalized and the innovate launching our last features content including week to and continue We content X.X sports

a Our core customers, cost positions and content results. broadband us aggregator for well effective through very product service is in as convenient which our now really TV Altice One in coming

provide we've X, broadband our to Moving show and CPE consistently higher again, how for we been speeds customers following able slide on to higher network and upgrades.

you left, by see from over the increased XXX speed average has XX megabit every years, to can customers taken the quarter. megabits the consistently two On growing last

more us at this position are Jersey, launch we capacity broadband rollout on and services offer and plant coax DOCSIS Optimum gig adding year, services also the and X.X next Long later SMB well to Island, accelerating will broadband as New upgrading XX put This to the Suddenlink. gigabit we're smart up to our We XXG Wi-Fi expanding for in gigabit Connecticut. our of symmetrical fiber residential across to services Separately, are and network gigabit over as cable X track we're at still currently Optimum year.

per cable our the no wireless we these because for on be to now mobile expect streaming broadband summer. technology On mobile way month the average, X, in on video anytime usage small is growth XX a massive on given are particularly are fixed that do right-hand slide in other using average that and number per XX% twice side, commercial revenue We footprint. them To operators, still trends per and requirement moving see this with usage amount launches of On the next-generation over you deployments connected in our don't data our year. seen our usage pace plant. connected growing can per having still clear, and XX% see to and technical and video network top on And dense constraints launch the keeping of home We're over track driver of almost high-quality for a and full strategy. XX on with the soon, We now with data network for broadband any households have attractively average, is not of of devices don't our average. note a We broadband consuming business. would lower priced. devices as so gig see the cell is household gigabyte take XG the the we that for showing fiber data XXX service customers much is economic

Our the relatively In representing our has US full we performance have the compared deployed our other fastest of MVNOs. a approach and Sprint, led cells With year, XX,XXX significant to benefits. infrastructure-based we rollout number in kind partnership to one wholesale over MVNO with attractive less its of return, in in improvements footprint. than has network small this economics

customer Our manage control core full to giving traffic. allows the and network access infrastructure go, us experience to over is ready us better

provide for place our All in digital-first partnerships customers platforms positions developed this to proposition the handset mobile a great major value have market. We and our to have and us experience. IT

On highlight necessary heavy -- our acquisition a We this have success. USA's now to and Cheddar the testing the announced to Altice slide since of phase expertise news tools we in are all week. a I business business X, want mobile service right make news business in-house of and

advertising to remains News and Optimum watched most revenues. channel ratings XX grow on and continues our

main in area also the third-party among tri-state news adults to News XX study. is recent the a of according source local

million significant XXX focuses records major and now million of general We vMVPDs all per major news news young on MVPDs. news, into a our is and professionals households almost and year, over business of presence all on digital-first a on XX also month Altice video social has brought views which by international Cheddar carried network focused the last of Cheddar and iXXNEWS college USA distribution platforms. and millennials. approximately with is

is with USA national a So and management business. both of international business suite local, oversee now have our entrepreneurial of of The now Cheddar combination formats. with offerings news full linear and non-linear news great and hyper entire Altice we will fit this a across assets,

Cheddar provide grow our as with and shop we reach. strategy national growth. can distribution it our advertising well advertising revenue enhance as plug a with into here advertisers Our result, to for is business, content, also advanced fits really quality multi-platform one-stop our

in Charlie hand it and next the I'll approval. now, the in the close more detail. to to expect two financials Cheddar over And review We acquisition regulatory following months to guidance

Charles Stewart

slide XX, the were continued margin on On everyone. can reported right-hand adjusted that you hello, side where we summarize see Thanks. on first in quarter XX.X% Altice EBITDA and margin Dexter basis. USA's progression we a the at

impact Just note of following in to consolidating the that, that included the of iXX April $XX losses, want of XXXX. acquisition million

were Excluding higher on which as numbers, first of margin been mobile iXX substantial described and well operating would in quarter, revenue, million really demonstrating in can points which just level EBITDA supports growth tax-advantaged than cash dropping improved investments that trends which through improvement just basis. of done and all a last we ago forma sustainable costs, margin basis have to year's helping as we're and X,XXX is yet. and equity Every returns. XX.X% flow years high efficiency initiatives is a neither levered subscriber pro which that not for of our with free $X support certainly a This our higher is Dexter growth over three sustain are quarter we the

build, due of -- Turning and which in XX, X.X fiber, mobile a increased show investments growth our to in we new slide our home growth to spending. year-over-year our breakdown DOCSIS our CapEx,

it where would particular, home total XX.X% if addition intensity investment the In fiber or noting it first long-term just quarter see of worth and we revenues but was CapEx to you driving visit drive in even requirements, less been will our somewhat as fiber have lower CapEx level. , is network and Our build of customer power longer-term additional interactions well recurring medium-term service with which our that new incidents. technical network is resilient and fiber will operating This and more outages so help be maintenance and as significantly lower completely fewer service reduce will CapEx. The efficiencies, us it's less XX% strip XXXX, in mobile, out costs. passive

And an outflow available show of Our Dexter now to is even benefits fiber all-IP for to helping mentioning all upgrades the recent Optimum we lot equipment experience for have that that DOCSIS have network superfast the beyond same payments at fixed we mobile well the separately us in today. here, having larger and And we're broadband already infrastructure-based way, though anything light in are is that's in quarter regard. consumer a our to impact close prior expect mentioned, our upgrade but is of infrastructure. an it an development just the without The platform really cash IT first ready existing leverage launch. CapEx reflects costs. as really that we able mobile strategy, Even as

broadly the typically view the seasonally Turning in flow in quarter in million to with with that in free CapEx cash EBITDA detail. that by increase line in got slide which of first our the our cash of Remember programming our usually We flow in where reset offset some a generated year was growth January. free XX, quarter. we've lowest last in is quarter, the was for first more the adjusted costs $XXX EBITDA

activities We expect the to perspective interest also tax from in in peak and quarter. from $XX the We cost paid this in operating highlighted. financing Cash of and the last come we refinancing in notes full the and we be as expect cash a taxpayer back first million cash includes quarter year the activity, flows the repurchases don't to zero momentarily, than will the to half change coupon which of costs, I'll on year level less you financing million as the quarter refinance the recent be first come prior until was with a restructuring them. before January XX.XXX% Dexter $XXX that cash cash Other was the share XXXX. still included down

Turning XX. to slide

first very the refinancing more as at to the our well so comfortable activity quarter, continue the of sheet of following end we with completed the balance debt silo $X and We billion feel recent that as XXXX. even in combination

average cost year savings X.X%, weighted per now million of achieving debt over forward. is Our $XX of going

manage of less two life of BB you opportunistically rate next terms maturities at recapping million XXXX, we years forward. We'll corporate has and on going And XX% the X.X Our of S&P debt then reduce which a we're quarter, minus. is really slide to interest XX, -- the increase see our credit upgraded as average recently our debt moment. on only lastly, than an as And liquidity out we're and and rating certainly billion. first And costs our to almost $X.X weighted proactively $XXX lastly, and about the of have increased you years, continue to over track. of year. maturities We can which can for of fixed of in we're significant financial reiterating guidance

CapEx expect we've the costs; range billion percentage of the points. to And We we growth in expect any discussed mobile the XXXX $X.X billion mobile-related X.X% X.X ex expect we free of off X%, mobile of in initiatives to X.Xx revenue was billion Xx. excluding we're grow leverage and grow XXXX, expansion range cash to $X.X base EBITDA for range in $X.XX QX in EBITDA margin we of to a margin to reference, up of expect the including in targeting flow all of supporting year-end costs.

planned considering not asset will any under acquisition or our little for with cash, target impact has and activity. funded of sale buybacks. The acquisition Cheddar $XXX no XXXX potential buyback is billion, share million but that's share a $X.X Our merger on be

an of opportunistically QX are since the shares represents up as first the back Thank million Company I program to in $XX.XX. we XX% average it which now front-loaded equivalent mentioned, billion in year, And think the bought that, our $XXX at price of X.X we've float started with with the about Dexter last the in We nine repurchases free And for of past you. months. questions. open we'll quarter

Operator

Philip Cusick the line from comes JPMorgan. question first Your instructions] of [Operator with

Please Your is open. go line ahead.

Philip Cusick

thanks. Hey guys,

Let's the terms Any in price how as roll-out market similar launch? you in finance appreciate the willingness wireless talk on thinking and to telling to summer I and relative Thank you're be come BYOD we that of updated 'XX. should XQ you. get ready you going us or devices? CapEx about in launch. to with ready mobile views about the for Are expect subsidize it's of the to

Dexter Goei

Thanks, Phil.

Just on the launch we on launch, our mobile are marketing product plans. our completely focused and

product, until to We get we're have just disclose our distribute how price the to going know points, we that are we to closer actual launch. going not we

a in was CapEx of payments terms this cash have last In we in standpoint accrued from where to in from a similar really CapEx don't no, came That QX of expect year, CapEx year. QX roll-off CapEx, QX. to the QX the to

Philip Cusick

Thanks. Dexter.

Operator

comes question from next line Your Goldman Brett Frank Sachs. with the of

Your ahead. go line open. Please is

Brett Feldman

you. cases, you're where loss that about as would point it to takes it launched be many positions the year-and-a-half. way then the Sachs. of thanks strategic update there's would Goldman we might would good proceeds just accretive think an with you how modeling product I could helpful, Two, to could for some know about not sort Feldman think net having review framework apply giving for Brett guidance do you around if we if Thank if get in in on question. still products, helpful But something. could mobility, be just really this taking be we And to are And up about would but Lightpath, this, get cable these in about the peers anything a question of Phil's especially specific you, your on that following what a out. you your say

Dexter Goei

love help model, you Brett. to I'd Sure. your with

as we has multiple this this reports There review Lightpath, on very so that process been about review some can I there, these that. have And we're toward second that. the launched, so quarter been closely. more that think open you results suspect news strategic wanted have say to is having something to we'll the that not quarter, I I sometime know maybe but processes or that we've take confirm the of to the something do On of beginning third the maybe M&A close time, been end

clearly, proceeds terms shares. back the we find some that size to I first full, our sheet well. or use to of instinct probably whether of extent in used the balance liquidity, may do But buy to as on is some think the deleverage it's the of partial be or depending proceeds, sell more

In question, box. points think but that that terms to pretty with terms Sprint, of traffic. also time control MVNOs to us have of similar infrastructure-based your mobile also right in we of price the doing better with profitable of I agreement our the last out allows been in other the terms our of price we've that MVNO upfront the out not the only economics, MVNO we managing a be if said point were of that would the there,

be here said I the a first are if more we price to marginal XX utilized be what flow think in that. the question be We on aggressive cash more impact were to the lot it would that points. could is, do we aggressive, a months if

Brett Feldman

Thank you.

Operator

comes question Craig the Moffett line with of from MoffettNathanson. next Your

go ahead. Your open. line is Please

Craig Moffett

obligatory video Dex, ask Hi. I'm to the question. going

economics. is wonder important I views you churn in talk video from video about investments in think in and video. a obviously of You you've talk in if talked reducing isn't video role and plays bundle? of could or lot about your operators about different there's you just Can own just you some overall about talk the for made how that the the broadband

Dexter Goei

regularly, question Sure. I asked we've think been this mean, I pretty Craig.

is core continue to we So a product. that video believe

of base churn, and to business in has to and it It shapes a for terms to it sizes customers. our our lot benefits continues We customer in a but retention will us. be to continue of offer profitable multiple

TV are in market. video high and differentiated a a footprint. subscribers little we've very Optimum of video We have of the highlighted penetration bit we pay a One,

to and under-penetrated have the our grow very, we're opportunity to that video seen see if on for losses that continue so the footprint, historically. an rates video We high Suddenlink us we historically stemmed product, subscribers very anything in becomes selling our

And so, that we on Suddenlink. have specifically seen

the seen row we've net the think we I video in have last this is quarters, a our sixth positive quarter two numbers. In outpaced year-over-year RGU.

that we've we the a with on a September last of unification had and highlighted the that impact top longer quite TV of US as the adding the marketing a as area seeing Altice space, that in our vMVPD Viacom, well think pay The the as no content aggressive year, of really So that better positive of of our has has a launch as of and as of of subscriber One impact products and to losses positive platform lot seen satellite penetration there. was base. of

product net may in And well. plus the on different more there, be Suddenlink we've targeted, and platform in a see the big seeing Cheddar are So the tremendous analytics out regional of a to the advertising to Optimum strong we've That's but helped well. opportunity amount advertising very from standpoint now done on positive a operators other particularly from on digital to performance a of a data terms national, than That out excelled that's as out video the looking video. for there our footprint really standpoint, we're and that us continue linear with local product of and very product do video. as addressable and that we side, what

Operator

comes next UBS. Your with John from question the line of Hodulik

Your open. Please is ahead. go line

Dexter Goei

John?

Operator

mute, line on is unmute. please your John if

Dexter Goei

can question Operator, get and maybe next to we we back John to the come can please.

Operator

Certainly.

is of from Jason Bazinet with the line Citi. Your question next

is line ahead. go Your Please open.

Jason Bazinet

stock part Thanks. this of qualitatively Could supply reemerge of looking describe years what a any? narrative consolidating has faded cable had the you of for as going like, idea was you a assets of could the if to sort just names, of about a all talking narrative forward? question. see words, -- other could I your sort Maybe Thanks. this are And in the background. and sort the quick during two ago, of that to your cable big IPO, just without

Dexter Goei

I'm to Yeah, that if interesting, there Jason, you I mean, is know do. ready

look We think We we integrating good will the job USA. buying be our it. of and companies that raise people hands very a first them to at within do Altice and

So much so organic today. for today, we But lack platform on it's not focused of have. that we've the appetite been

That's We drive free to customers. flow really so today. growth initiatives to great continue growth great going great cash great have many our growth, for for organic top-line and experiences

So a I basis, feel the future there different think about it team, no to and for on said we there next we we sector have view and hidden great think roll appetite an there we've take This there, for control very and management to repeatedly shareholders telecoms consolidate that secret. of that -- that think consolidation. your is long as the as other companies. will out will potentially include you is that continue stand-alone and to I if our that's the a time I in supply, a are the Everyone terms out other knows the new assets products, out infrastructure-based

think decision I to everyone in consolidation think next decides sector. merger months or change couple is do or expectations. we for are the that something all think about in I to for before But may occur and waiting that dampen the is awaiting more that anyone our of

Jason Bazinet

That's helpful. Thank you.

Operator

from Hodulik line question of with the Your next comes UBS. John

ahead. open. is line Please Your go

John Hodulik

you hear Can Thanks. me? guys Okay.

Dexter Goei

can. we Now

John Hodulik

perfect. Okay,

how from million $XXX this and at mean of $XXX and any the a of share that I following deal in guess, as anything on should think of investment business synergies of tell repurchases. to that existing get And on I or are other putting with time. the another assets? guys Second sort can lastly, Thanks. the maybe one-off million should sort of we us growth last in sort return you of -- compared Cheddar I content advertising together that for, of the sort rate guys the deal, you or then think sort said of media we up characteristics news maybe you is market your businesses? of sort

Dexter Goei

a drive acquiring This value very interested in to more business. first. one-off. in is of a second our asset with Let's the more not divisions and news start This assets. value the help media We're underscore targeted advertising the one and is acquisition

the on But synergies Altice an the the just some cost tremendous line we a longer always M&A I Cheddar. think importantly, bit mean all on itself, top do, business, into financial we the little tail the a it hopefully a there's accretive stand-alone as that us going flow one's for what's anything we call acquisition Cheddar got itself. is other This Cheddar because more underlying this drive, in side operational growth and with to be accretive as it's let's a than break-even than Cheddar statistics I business called But cable are I to terms amount else. year cash going cash think of mean, of not doing flow of on for got where financial integration potential the year of is a find immediate significant business significantly growth. that return. this it, significant going other next businesses, news you've performance top-line similar with to,

digital, team which tremendous is national here amount the but is on advertising top something -- Altice just USA. terms a of to his what Jon really table over in of hyper skill a the aX strategically brings going win-win that, success the local, we're at acquisition business full news to which market, linear create. that suite in So experience not and of complementarity this of terms at sets, and national in nascent got for of is Steinberg of content and only international, content, We've a and is us

could we all just terms it in So ticks outpaces of boxes done in have think terms the shareholder what of we returns far and buybacks.

Operator

with Evercore. line from of Ratcliffe James question the next Your comes

Your line is open. Please go ahead.

James Ratcliffe

could. Thanks. Two, if I

how beyond video, any competitive particularly you had DIRECTV to of refinancing And secondly, of changes First all, on any the at you you attribute strength particular? done Suddenlink environment what within by much in XQ? do see strategy and that further the opportunities in Thanks.

Charles Stewart

of higher Hey. cost really said, there, but average immediately It's time that cost are I so. have can criterias first continue terms think meets bring for Charlie. out sort one, refi maturities to actionable some And opportunities, answer bonds over To we materiality. that's as doing down. nothing no financing of actual we our in our the necessarily we obviously return any of There

I $XXX years. got think couple That's it's just in a the little we've of next million April. over all next

at pull opportunities that's imminent And present the themselves, currently. necessarily So we -- look nothing closely. When we but it trigger.

there think we full do think we of sector. we a On the in have through I thing, a priced other of customer and Suddenlink that we performance, the have repeating we're TV now -- video from operators the Altice positive it's is, believe, have, impact the content, the I performance One obviously available. pay is platform attractively been But suite experience best same which the consistently is what

three losses a of combination historically. penetration the the video grow in Suddenlink seen low of going slow things, forward, plus that stem footprint, quite that platform or the subscribers to makes the hopefully have for real it fact So that we the those we've if anything opportunity us down losses

Operator

comes Research. of Ryvicker Your Wolfe from next with line the question Marci

go ahead. open. is line Your Please

Stephan Bisson

afternoon. Stephan Good Marci. for on It's

there from increase else? guys accelerating will you seemingly the from just are you came going something exceed guide is presumably, at growth revenue reason growth in of So headwind of the in have price or to end at QX. the Is the end top it and there why advertising QX

Dexter Goei

this are Well, to now second relative continue additional very things the listen, -- have the that guidance we until end which of to the half advertising, see mobile, the there given today. We, additional obviously focus such year, political wait we XXXX good be to second about right felt to commentary, I we've the our we half feel very, launching high as guidance. at we the think going going extent to won't in but the good Cheddar you're and think going of have on acquisition to I three closing about We're months, now we're commentary. guidance we give

Stephan Bisson

Great. Thanks much. so

Operator

New question line Jonathan next Your the comes Chaplin of Street with Research. from

is Please line Your go open. ahead.

Jonathan Chaplin

question. for taking Thanks Great. the

are of little have and the XX buying, it a that that Is tapping on still play that exactly the today, you unique to it there the they into putting hard another a And little together you've little out? poorly what's then you're your of it business. get acquisitions love that yourselves, course given just I love on replicate content bit Dexter, of here? seem better delve would -- just about last perspective, more. asset content a news the with the acquisition What tapping and I is companies Cheddar? say what's a cost million is investments over made have is this into is how I'd from into So the of telcos bit what's the you it turned out couple And and the that so unique all bit hear households understanding a revenue millennials but a there the that, skepticism that synergies creating touched synergy capability cable digital unique Cheddar couldn't years to

and asset be of If between synergies the a more you a bit great. I'm question. there in could that other lot -- aren't go but would yeah, little would be this business whole my that detail, into that cable And assuming

Dexter Goei

a lot of It's questions.

that, a Just founding right. on look identified And for video has let's mousetrap, older statistic that today, years terms on actual on are old a XX TV. I average it where is CNBC number watch Cheddar standpoint over and as of is in primarily from CNBC news very on management Cheddar's businesses millennial. Those is focus viewership. which Bloomberg the at is the on is small. today, to believe demographics assume much demographics, you it team what of business if And households the Jonathan,

growing news wealth it, loyalty that's attention pace, and to revenues it particularly for and and traditional up advertise on with CMOs are generates, that lucrative is CNBC the the very let's cheddar way the assets millennials of has at demographic. on punches a XXX because recreate more first Twitter basis, brand premium What CNBC. business been cash user-friendly, above its span last have the Snap, also terms the a flow for all weight success years but and don't it going their do on news ratings provide to power platform in a able business people and digital-first and the call Facebook that fast very Fortune However, and X.X in

and able revenue he those to advertising drive drive with sponsorship has And across so national revenue advertisers that same to been Cheddar.

are get million going need a every not so, more realized views And incremental but drive you back only be viewership video month, he top be we successful, was happy even he the drive into to and advertising. we that, XXX on getting if it linear of to pivot to to new the world

all news that vMVPDs reaches. product, he's XX the Cheddar on there the Cheddar buying he million as of business He been of major product of now, to launch Cheddar general has into and households So there's and well. MVPDs the on a able out top that product top

triple So profitability, we into continues. interesting He at a are up -- as in of economics XXXX be the and close of going ease for itself. very is inflection to the stand-alone which us revenue a exceptional XXXX, the digits of driving growing year dynamics to clip as the points go is business

dollars, business. are an So investment news [indiscernible] in content and a tenants cost a space not very in impact lower the with sports, for is new high actually content stand-alone high very is which it's space and to which the the very good other advertising of that and On it's fickle go anchor we invested which that's cost the terms stand-alone the bundle, attractive rights where year-over-year. because the we is business perspective, like same

nowhere hyper nowhere. outside rated Number being of pivoting stand-alone to the it great on have choiced local news is absolutely area, which which but point, side, the digital which business, going is we the X business, today second in is so a the And local channel a

the the can in show can have this we drive because brands. bringing because more XX also Jon business But on advertising platform market. business, he under-utilized the that brand. on can do some add you the moment bring best lastly, and side iXX able people we News -- help good And in unique today, distribution local so drive like of And market content a basis. to product national what his products. brand to advertising probably News locks is is been there table that with scale, a and And But we is very product more is very going then team get iXX that exceptionally advertising digital and at And that out advertisers sales the he side experts much expand that cost-effective small it in a Cheddar unique do Steinberg the been national and to think the the have are to there monetized is we and well. It's that has the which that probably XX that is nascent. not because into it and

have where better You even where and sense. a exactly is News for in those it, great you, basis iXX that is experience a there, and on add user on regional more hopefully a experts that's national of things interface its mouthful which are if makes local a and the a local a business team digital platform national into to expertise is and and lack analytics mousetrap data national today, provides call fuel on took which is aX That on. so better clients can let's you Cheddar and basis. and -- it a local and growing that a local, with remember basis. of digital And sales we linear we and ad out And turned targeting an distribution penetration a for and for we all sudden business better XX, mousetrap Cheddar, allow on management linear digital a all on further presence better

Jonathan Chaplin

helpful. Thanks Yeah. No, that really Dexter. was

Operator

comes Mike Guggenheim McCormack the of Partners. next from question with Your line

line open. is Your ahead. Please go

Mike McCormack

I frame your about you comments elaborate synthetic broadband much points. price We double the your the wrote your regarding stand-alone uptick promotional in vMVPD can play just thanks. guys, Hi landscape, that a plus there Dexter, regarding on making more really comments than to recently that pricing. price the know product vMVPD competitive expensive

what basis? a Thanks. secondly, you the on about going maybe then fiber-to-the-home think pacing on of build, what that? Ad dictates forward that the So just

Dexter Goei

is on world. the watching first the question, we're our we're you peers being So published vMVPD guys, that in the statistics [indiscernible] which are by like

it, like us. get But we subscribers, a $XX.XX boxes, in the ourselves. as $XXX single a now and taxes at look set-top point With anywhere higher of a Internet I can't people even at some the at to than subscriber synthetic double losses with addition you for $XX. slowed bundle, which But the to to YouTube video to average we the today down offering in vMVPDs ARPU play The $XX, subscribers and $XX seeing in TV tell the of subscribing satellite MVPDs are if is look play is call we're if go to DIRECTV to reduction -- onboarding $XX $XX that that have by it's to a seeing range and that. you vMDPDs and but right. the one certain to TV, statistically what that product. to [ph] $XXX $XX.XX And on so we're today, land let's from to lot fruits slowdown VMVPD we of clear vMVPD is going now is penetration that And staying that. who your the helping

$XXX you a good for what are that on you range vMVPD, to having that Altice we user be user and content believe So the you as the experience experience less a add depending what to in as to $XXX less, and are One today. not

many -- the it data reality that cable is, to on the a go product little very relative So it plus is for of a people sense to bundle. to vMVPD makes single

Mike McCormack

pace just in fiber-to-the-home, Okay Dexter? the on the and

Dexter Goei

to an very fiber Yes, all the from the driving new accretive think listen, perspective. that and of homes build build-out MVPD is standpoint that we we're

accretive about the as -- CapEx opportunities we even term potential very think savings or fiber accretive investment. on we that we've is are side really of platforms that the contiguous fiber-to-the-home itself. footprints what's on and to opportunities existing Authorizations OpEx opportunities. we our build spoken revenue built that think churn things driving talk is the authorizations are have on the new So on reduction homes and the pace about before And side We and mid-to-longer new and side. significantly a fiber-to-the-home, homes are

Mike McCormack

you. thank Great,

Operator

Cowen Williams next of question the line from comes Your Company. & Greg with

open. is go line Please Your ahead.

Greg Williams

fixed alluding millimeter type. the wireless. I rather are small their specifically, are Great, thanks think questions. the wireless. question taking wave dismissive you [indiscernible] the two. of touch towers traditional technologies, just but solution I I fixed on T-Mobile for One had know cell that's to my you the macro using I mentioned to on want was

Suddenlink niche On their It $XX to your thoughts because call, rural suburban I the reach pops. think a seems like they [ph] could have they fringe territory. million play, could pertains it said here

your just a going question, difficulty behind of while, take I'm about More back why gears Islands, changing talk even the mentioned that? could you Second specifically, The done in Cabinet the to the supports connect to is Lightpath and this it part cable and unwinding long? not or I'm early complexity but Lightpath late IR QX XQ. process, used this Thanks. wondering hurdle work to process so the take equipment. what? the it of who already owns Is might the

Dexter Goei

dismissive challenge, not out of fixed listen wireless the there. challengers On service potential side, we're the

product a in clear US. be footprint the product a that think is, larger more more it initial I relative broader, think we across what's a it's a could deeper anticipation much niche the to of

potentially So do that think our impact could we with quite are applications T-Mobile whether there attractive of of potential actually XG footprint someone else to standpoint time. over from there rural that or your point, some a out

center on in the are that of our the the side but we expect be way just think are think of quite don't allocation, the overbuild to We some about just how we for we given think XG. today. don't capital us about and the dispersed from we at attention time, for saying world we Suddenlink center are side today that We attention that footprint, the of secondly, the Optimum, one

it's got not complexity way. complexity of is, separating its identifiable, On complex. will, the its it, the very It's the listen, is employees. clear it the assets, separate and separate there's side, business. It's question got there's Lightpath really not a and a separating so a because financial is Where of it so

And And is buyer a complexity a of the I at do whether then or to to would with but hand... is us. question really probably wrong that deep or the partner is, is issue like acquire the XXX% think provide we buyer very like up word, who probably -- question is, the is it SLA the a not. really

Charles Stewart

Variables.

Dexter Goei

we're the going terms to transaction. the That variables on of do to have in

Greg Williams

thank helpful, Very you.

Operator

comes question Andrew last your today from And Research. Arete from Beale

Your line ahead. is open. Please go

Andrew Beale

carriage with can of timeline just carriage yet. you Hi. obviously MVPDs, is compare get level. at approach if first network a profile future, with the MVNO might and just but dual help on full I'm -- the become things? you losses Could on profit? SIM And the Thanks. and second to wondering mean, way question, tradition of top acceleration got MVNO Cheddar? one. the the the us You've will That's get come is taking advertising hybrid major MVNO broad [indiscernible] to quite and spoke of iXX alternative Will call SIM a scale Cheddar then, revenues and quite your testing And haven't down in What what from have contrast I it then doing break on to combine even? their what They approach. haven't they that the that? you

Charles Stewart

well iXX we distribution year as the and of a a it very is, start pleased on direction of I'll time, Charlie. we've been the growth, that terms over acquired less as say than It's question with little hi. which in Andrew, ago, will I audience both revenue.

last direction. to right the in that online. We added come started headed the certainly some distribution in and we're quarter partners big just So

expect continue, trends to we very a and start-up. we recognize it's are -- obviously, the So we

product, which we have do. a have believe we high-quality to You

Cheddar keep driving Dexter News apprised going direction itself. we're iXX go. true XX everything as is is absolutely with just keep I as into in you to and elaborated it think in Certainly, as regard Cheddar to we with as that we'll that so And update going or on you exploring Cheddar the at acquisition But also of opportunities iXX. those very and it and enhance we have opportunity only the have developed get forward. certainly acquisition moving focused closed accelerate the those I plans kind to we think on once will to and be we'll We're

first things innovations everyone. good first, -- regarding good is I on -- comments think the for to listen, point dual your SIM, first mean think I we

the today. difference I one relating that the have. that But in today MVNO between forward, dual today, for work, light works technology understand secondly, light existing to but comments don't it it and in approach SIM, that is that as the terms a execute for key of MVNOs, on of SIM it seems help just dual it infrastructure-based does think they not have MVNO dual the fantastic all authorization, terms as SIM But understand partners MVNOs we today, we we like, today. light the going with we think We're better pure if does right. the

Operator

questions We turn will time, their back at for have over presenters call to further I closing our now no remarks. this the

Nick Brown

and joining know us to in any We follow-up next you forward for up catching the let Thank you you have look do if with questions. few you. weeks. everyone Thank

Operator

today's This conference. concludes

Have disconnect. now a may You day. great

Altice USA (ATUS) 5 May 192019 Q1 Earnings call transcript