ATUS - Earnings call transcript Q2 2019

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Operator

Good afternoon. My name is Jesse and I'll be your conference operator today. At this time, I would like to welcome everyone to the Altice USA Q2 2019 Earnings Presentation. 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

of you Head conference. begin Investor Brown, may Relations, your Nick

Nick Brown

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

today's and statements, read a made the will on contain replay the available on available. forward-looking slides be X. of The are may the presentation disclaimer As please Page company's website call

USA's And now hand Dexter I'll Altice CEO, to Goei. over

Dexter Goei

our is I'm guidance to execute saw expect network our Altice we summarize report performing everyone. from approved strategic USA X.X% very to continuous year. an excellent We as X, increased improved video Altice accelerated X.X% To Hello, quarter for of had have in is QX data better Much attributable are investments, continue performance previously. X.X%, and Nick. customer which Thanks, than the revenue this we XXXX, pleased trends. growth on now growth for improved Slide to to priorities. up driving to against and expected that both revenue company second X% as in successfully to we One our the X%

possible We execution while is are before demonstrating of initiatives. to that the our profitability. And achieve is consistently this growth complete enhancing higher it still this new growth

to advertising positive to fuel advertising, to news month, at really results. accelerated our Last position multiple handset of partnerships acquisition completed and build unique deliver imminent and platform we the in The network of the and continues us home launch with is putting in Cheddar in activity continued Mobile network an The a now Altice new wireless fiber our place, roll-out enter advanced and growth market. pace.

authorized billion QX, end to billion authorization Finally, to year's $X work authorization, year-to-date our off of had commitment three new such underscoring we've now. of total X.X dedicated on to I'd we're USA's to million is company's again the in coming like return of thank all bringing the the our XXX as great buyback of capital right again, of momentum to we $X hard billion. Board and as a repurchase original all Altice their paying incremental has share executed shareholders. year Once last a employees

of Slide the On X, QX. growth, was we in show up revenue breakdown X.X% which total

event Our services grew consumption the ex-mobile. half, residential growth likely X.X%. benefit rate Remember, of the will and business rate the significant a rate and XX% up supported higher QX, will data revenue speeds of so grew in divisions business customer broadband show the broadband at recent from we increase We normal and these lap in plus the data X.X% event slower QX. trends, last end later from take than year which second

be continues with up advertising the by in QX. of X.X% advertising driven in our revenue Growth success advanced to platform AX

offset with Although second XX% a this Cheddar drag to we be would in our half a in Political advertising recent also although expect off mostly growth to be have year-over-year. been revenue at political without the will this drop acquisition. higher

show base customer hand the in year-over-year Slide in on of growth residential side left the with of X.X% we On $XXX to residential growth X QX. X.X% ARPU

last had the been this to compared better with again One loss Altice has losses Since top you consecutive see a sixth better of customer quarter trends. could right, we year. just QX, net our On XX,XXX XX,XXX video in launching video trends of

of quality One's last the It's network XX,XXX ongoing investment XX,XXX with noting Altice experience year. also well as improved to the of residential Wi-Fi supported quarter, trends our additions worth broadband and in that compared net

increased video representing penetration progress had at just base, of end we quarters over service just XXX,XXX ahead and One we've of up customers. our us additions take market reduce and highlights more of QX, deliver share many our had differentiated from it a X, to and runway more our and the video churn, of year of Altice ago. Wi-Fi customers Altice XX% gross where Slide with us of is to On more the One helping X% penetration as we about

services. a the to On our Altice is delivering a know quality integration our marketplace. solution of One linear the video side content and from effective seamless we of that are partners aggregator experience others OTT relative as in and convenient cost including we better non-linear And

our our is evolve more and pipeline broadband than and we're we to side Wi-Fi enhancements. we've about seeing transition of features add One's Altice on excited customers. perfect customers in thanks This the is router, a data platform XX% This new to and future a built Slide advanced On One consume legacy average are to Altice X. designed products

but reduce well. improved offers they this network benefits, such we you One less we speeds when These technical and more networks, reflect consider we efficiencies give customers data. are superior to Not prepares and Wi-Fi this does to of know benefits only how using instance they are customer the trends major on Here and capabilities. about with our will will see capacity. customers done we business show walk taking trends as you higher based churn work 'build attractive what come' to broadband mentality additional as consistently and is a We strategy upgrade I'm our there quality broadband Altice and the more and we've and it service the approach its our the specifically gain through, need working with business strategy

our the the left, years take increased to has megabits customers our the peers. services, ahead are in with [ph] see of upgrade you network XXX past be before XX our can per gigabits well second. fiber over fourfold won't offering Remember about What we three On of we of are average it speed seeing? long

an you XX% in average household with devices. XXX see month On home over can XX right of to per usage grow connected data to the continues year-over-year gigabytes

per usage to to point data average note of XX are The just connected an of top an is with a customers forward that more that using And data indicator. megabits than customers use month this take is is XXX terabyte as which one driven our speed, devices, by XXX data example, most correlated incredible in-home that data of being less than key streaming with One megs. is usage close XX% take average on of than XX% customers for services. video more

for the our customer These utility rapidly is sustainable that growth of have mentioned we customers residential improving in and the usage but data is usage U.S. usage to real the As delivered growth trends data driver customers. us structural month the is of I much broadband average and broadband business. networks with our seven being gigs only wireless about earlier deliver lower our By average imply mobile can what our network. by contrast, patterns than increasing are per for the speeds been

gigabyte value of the comes where getting means the per is words, customers money for current XX revenue average operators for usage about than mobile In much higher are This Mobile in. Altice times providers, mobile is with less offers. our other which

assets our where as Altice full and update recently track Slide exclusively summer is employees. US X to Altice launch for the commercial we're gives on in still we Mobile unique this an a own launched small Altice Mobile, upgraded on us Altice Mobile public infrastructure. access shared fiber USA's infrastructure customer will network, partners. its it own has roaming full the also it's Wi-Fi, and experience control strategic leverage over cell core and

DOJ will to this conditions well expanded partnership Altice Separately, including has signed integrating as with AT&T T-Mobile to other as mobile multiple our new It's By with mobile coverage us USA's core services with new and that noting also the be it extension roaming network, complementary infrastructure contract nationwide quality Sprint with offload made we own international have and roaming as allows worth new Wi-Fi partners. maximize to the merger network, the T-Mobile FCC. commitments contract with of that contracts service. XG a

which successful latest set an factors up nationwide and mobile Altice This The coverage speed a excellent coverage across technologies customers. now these long-term for US XX% complete, the superior and international experience deliver and quality. network demonstrating the Mobile for access Mobile nationwide additional and can differentiate strategy for launch coverage. aggregate phase a a by will and is All Altice testing ensure Altice

to And take more Charlie, financials who detail. this over will in us now through some hand I'll

Charles Stewart

basis Hello, on reached included Slide Great, and Dexter second mentioned very Altice X, of that our everyone. thank million the points Cablevision $X losses that to quarter. and much, Dexter. and USA's last if That continue EBITDA second quarter XXX was we we were completed than margins XX.X% been year in it our that, in mobile every you just in the points also you acquisition. show would than the XX% margin in as year, have EBITDA our X.X% grew by adjusted expand higher when three the to XXX ago That's alone. see exclude And can quarter. years basis the EBITDA higher you

That as are the always, supporting substantial The ingrained Further. and continue growth in often initiatives we'll of for as is our improvement margin cost really ways point. structure. investments efficiency look higher optimize in company's to mindset discussed we this our to our practices all culture in at

year-over-year of Turning Docsis expenditures, and home page. which course, build our in investment on got due our to a to and capital as X.X breakdown Fiber, We've growth some increased our of spend the mobile. next new planned

new revenues XX.X% what was you a but total of our out you'll strip have that's in below percentage CapEx recurring our intensity we is as level. build, home been that CapEx see XX% Our quarter that recall the and long-term would Fiber, if percent

already only upgrading we number will small a our limited relatively completed it's Mobile is build product Our a have core that first we've CapEx when very of digital focus of network since given and that stores launch. certainly the more were

Slide XX. to Turning

an the free in usual $XXX saw which in and from our completed generated million was million repurchases average you'll quarter, Here, activities cash we of cash of $XX showing for the that which waterfall we acquisition $XXX share. that financing absorbed quarter free Cheddar flow June. at we're share in flow of by and some our note of per cash was the We price outflow

cash down XX expect come to recent taxes remained very we XX as Our activity, to the to we've done able expect what months. and the do well this cash with limited over year refinancing next to we as be interest,

for the sheet. our issued we the maturity in of summarizes is our to And that our X.XX% cost used repay recent worth at and strong in XX financing note unsecured credit senior it's at that we $X credit from that pro to lowest This ever certainly was profile balance continued was that which forma speaking end that XX that markets. note the full our billion the of July. underscores issuance, And the receiving was mainly support facility XX quarter. debt an are noting revolving for Slide

is debt of And recap just life for our years. to you X.X average weighted

is rate. Our weighted debt And that with our of as balance well our lastly, the in we billion. undrawn approximately average of have is cost facility fixed and X.X% currently sheet, liquidity $X.X cash of as credit XX% revolving

We have sheet. balance be in near no major and we how to maturities you've as expect, our come proactive we'll in continue manage to term the

finally XXXX. just on financial then XX And Slide for our recaps guidance

As X%. X.X%. Year-to-date, we've our the that to revenue for to Dexter X.X% of outlook we're prior grown growth to revenues and to compares mentioned, guidance upgrading X% X.X%

lastly, initiatives cash growth And year-end $X.X year up and So grow certainly the in range to mobile-related and at of $X.X to all we and We points and expect mobile we're billion new the includes costs that continue to year-to-date any really we've today. as CapEx, the EBITDA regard. this that in expect that free target X.Xx leverage discussed. billion margin target our X.X that remains expect of expansion flow we were Xx. still of our excluding supports range in middle to costs percentage

$X.X Our target XXXX billion. for share buyback is

Although, first the the as repurchases opportunistically we've share of half. we've program executed and year you the $X.X given can front-end this price lower billion loaded see in

about around repurchase So you second of is just $X that that slower to market two-thirds of repurchases if our cap the calculate somewhat running. a the potential billion And which in M&A impact were pace half float returns about levels, of XX% equivalent expect authorization new the share the note any free activity. three-year equity share the are you really price excluding that recent we illustrates should just incremental model and of to levered

for it And with any and think remarks we that, our close questions. formal up I open will

Operator

[Operator Barclays. Instructions] first with Venkateshwar Kannan question from you. comes Thank Your

Your line is open.

Kannan Venkateshwar

big about think looks quarter. us couple anytime Thank may. again how in the if when how just One lower guess we transaction you every an that surprise trajectory. on soon? buyback the to in I see give you it was And be going is is the do this OpEx and that the quarter I you. secondly, if context, you and expense A path, non-programming Lightpath of completed came update like is if could your process

trend could how if So main are. could the the understand go Thank just there drivers and and you on help you. line us what long this

Dexter Goei

we Thanks. must the we to review a do On as our situation clear an process this is This were continue is entered And respects. all us. very Lightpath alternatives when there. we in not opportunistic strategic for

And look to that. tremendous have here. so at continuing Obviously a of done work we're amount

We continue of to the like business. the trajectory

we you've make the If buyback, to something about don't seen the perform do like to enterprise I earnings well. how announce Lightpath. to we're think the so clear we're to up extent We'll should continues necessary going going it's over do we that? our that to as release, is business something very it on X%, think something

focused trajectory you but we OpEx also wait of to is on the operating mentioned it's the basis continues that non-programming expenses. line we're positive. allocation a do terms obviously that on to be that On sure on revenue a very that clear capital comes don't that And good the growth, it nomenclature our anymore, on because when interesting making we focused daily something in trend expense everything is it's but

guided to doubles initiatives not us singles which to on think but good to uptick the an before, why I for quarter-over-quarter I necessarily from a list feel our growth in embark runs, mentioned We out continue margin home lots those and any different margins market but our makes sense we've to year-over-year perspective. upon. is it all that you we of see, don't we as about

discussion, the right it's quarter-over-quarter, upward. think that I we're which So but just line on is continue trajectory have we'll to

Kannan Venkateshwar

Thank you.

Operator

next JP Cusick Philip Your Morgan. question comes with from

Your open. line is

Philip Cusick

thanks. Hey guys,

sounds to is you than now? it First end second on for wireless Is partner? launch be process on remains place any more in done you everything pretty And still packaging this preview discussions the you. is to can give a closer one the are still is a like Thank pricing It you there? us potential launching? it then or 'imminent'. said or follow-up what getting has Or and Lightpath. much ongoing with on in and before little ended

Dexter Goei

Lightpath, parties. On we is speak have opportunity to multiple still still the it's ongoing, here to

available amount a takes about do it there's that as The party think and sure make process separate on are not than the of to sure the providing much have we talk interested. information to we that work more the right I that the work business that. network one, making third any to is materials lengthy a an example are all to and tremendous

Phil, when to think, update timely the we market. point, the that update I market some So is will on it

On the means wireless imminent launch, imminent.

to making to conditions so. here do on need just to the think we practical what price. us as So we're do we soon watch do? indication for else the and We're hang tape. looking I on, best within possible sure as launch launching that No

we're think ready. not I

launch. when I see think that you'll we

Philip Cusick

the extended Sprint. out that your options with you Does T-Mobile or else transaction renewal anything change like part of your footprint of MVNO As rates?

Dexter Goei

extended clear, agreement. decree, seven be haven't as saw [ph] expected closing. of agreement But to life to years to DOJ's existing you get our Well, from is consent extended the the consent the from through we which is decree, our

really extension four-year of our that or that Other So yet. is a we to than closed because minus about as deal that space more plus hasn't deal. that there view nothing say existing

we'll So that closes. I see once think

not. We if time it, your one more about terms think to the we questions. of think how of clearly that's things, In change absolutely have about

in in are ancillary mobile some successfully businesses, what hopefully come. we other our and to driving from and standalone the our see launching to launching focused and we benefiting currently -- think is business on years I momentum internally then will benefits good just reconvene the path

Philip Cusick

Thanks, Dexter.

Operator

Your Feldman Sachs. next Goldman Brett comes with question from

Your line is open.

Brett Feldman

And thanks. Yes, more MVNO. questions on a few the

of one broadband. just too opinion your much for consumer sounds listening pay for comments, is it points we paying Just is like key Dexter's that the mobile the

would something so imagine it to much address you're the secret. like And of a and keep can't you sounds certainly product that's with want I to hoping that

give And want just you subscribers? of us And much the for to ramps the so keep that can business. products which value? generate the launch? to impact how the and sure on extension question. upfront to an has you see on key is driving on assets Should track right be flow? allows believe one, of then of what's you're understand just cash the about operations. Phil's to we any it we make as thinking sense MVNO grading you us you you I how I kind you to make then has a investment you And to on where quickly that grating the of way sort product guess it EBITDA as how have we successful market to is be Should services want last the

that or Thank ability If your you. were MVNO to grow grow base? your inorganically, does the to organically with leverage asset business

Dexter Goei

Sure. I'm experience, have of consistently we too us. pay their we not see our in that whether have can business profitable we going we to you'll front mobile much in that consumers a pine as for model think said pricing standalone we but be believe where on

behind upfront In investments. to back-to-school our Clearly going terms as the dollars of our we put enter we're right the launch marketing season.

very track managing very, profitable to subscribers how we of focused are in about of thoughtful subscribers obviously the very making that by subscribers, terms are being very, traffic. number this, In sure the

is subscribers subscribers. important. negative believe the with this will KPIs you walk number and marketing but be be business gross key the Nick can We model of terms ever to in of offline we through profit I think obviously take tracking, don't

to we EBITDA question there. positivity months, deliver the EBITDA quickly publicly relatively to we up whole can we within we near-term we'll do XX in be basis can which have historically then positivity, how think as we so a ramp said that is, And able believe

our to places terms market more In operations. assets of or where Clearly us and broadly, MVNO we allow inorganically expansion organically geographies. market an contract, to can in we do yes have more will

Brett Feldman

Thank you.

Operator

Craig Your next question with comes Moffett MoffettNathanson. from

is line Your open.

Craig Moffett

larger last just they're and this not subscribers that I have video? about about on doesn't your you on calls and video over peers, thinking thoughts the their And earnings stickier of could if outspoken or think quarters if the importance of it Your does I whether been willingness wonder couple round of quite Hi. to bundle make your is broadband let video profitable. Where about in of go thing? sort the and comment

Dexter Goei

Craig. Thanks, us; for one, stickiness other number obviously, video consistent good a have which We've mainly two, was product been broadband. it here, profitable to relative does is products,

to to resources product. in continue we're So going video invest the the

fixed-rate see video better continue a We you've to as year-over-year here. seen performance quarters,

market secondly, the video taking One market and launch, bundle and Suddenlink Altice a video very able been guys other we to is So consumption high is of that share also York I is for don't strong a I to of be the you're been unique a think this we be success; one, share somewhat of may from. area, market, very Suddenlink some in which maybe providers, the some a under-penetrated Tri-state product very, we're think the take our hearing footprint which namely, very, a the other of peers video difficulties of and very which the that core from continues advantage us. which we've New have comments consistent very

we're continued both the product. in on good footprint of seeing market video and our So, momentum

strategy. core that very, very to remains our So

Craig Moffett

when in for wireless, importance the the way customers come the Dexter would video about a it time think there it? you and of might substitutes the of bundle sort imagine

Dexter Goei

here. we all words, substitution way creation about those Craig. sure incremental not so use things. think is We're about the wouldn't I'm I value

the So We mobile, is us. positive the experience number effects, for it's but bundling of one get that from is a our also the for not obviously mobile company substitution. sees adding some Number benefit, a peers clearly in can our two, think product. our cake a to in has effects that who been standalone in sister icing us. it's commentary a we itself It product profitable on extent bundling of but from great

here profitable going in new where attractive We telecom not great We're point our across services to products are those is very lineup in just and a at advertising, space, time. try be there in in it's continue adding pure to and and just and to until less a deliver the know. things multiple point it space, that as is online also may the value you profitable decisions time will shareholder make in additional

Craig Moffett

Dexter. Thanks,

Operator

comes with question Evercore James Ratcliffe next ISI. from Your

is line Your open.

James Ratcliffe

one mobile video, on I on one if could. Hi, and

you of clearly exposure out to financing? seeing Thanks. video On on and can about if a how the standalone. will regional probably cost start at of handset versus Optimum the side, how you networks the turmoil for sports and for the take your those explore about the And of the and Mobile BYOD at front, your expect we're lot the it all? long be value moment talk some extensive to gate to to has of How on around ABS the is business most view expensive you networks

Dexter Goei

at simplicity itself on handsets handset have the got offer big going available side, acquire BYOD. our BYOD we Listed good people We as great will to the partnerships a the we've to lend providers experience. lineup But to same we'll of it for a well. and launch think time, the we're when with offer obviously BYOD

mobile. our types be form. clear we it be very But structures, very In launch of going not that's consumers. terms features in will as Those discussion when core and of we provide clear advantageous handset handset our terms and to our subsequent financing, when capital will are financing we but do different to look and products in very, new what to working continue quarters financing add at necessarily services of to today in we to

but you the terms consumers. continue that necessarily our right viewership this the On New of to is we the see, York Tri-state really negotiations can Suddenlink personal believe can't that not you're [indiscernible] and have of for contract my experience, side York cost and to New I them [indiscernible] ratings good area, as give to the with to partners of other very parts [indiscernible] those have video side And continue think be with pertinent we networks, you contracts we important area particularly do going that the of in I Tri-state those that good value relationship flag do numbers perspective but look to that the on the video renew we'll in the the maybe forward.

James Ratcliffe

Thank Great. you.

Operator

question from Andrew Your next comes Beale with Arete Research.

Your line is open.

Andrew Beale

Hi. questions to few try I'm MVNO. going just a more on the

finally seem and this if it like qualitatively any the and draw do the your the as to them? if different you managed one as the Just infrastructure it growth-aggressive how discussions versus near agreement get between what way you talk about or new Sprint national this mobile that of could just And just picture to something [indiscernible]. you in use looked your you trying and reciprocal then was what just from the are when Sprint to could MVNOs? What made like gig roaming do be? Secondly wondering you I'm and with AT&T, some the network. a time front remedy price that more I'm the asking use out is you per and on when T-Mobile could new on GAAP. much network Thanks. has wondering you've progress distinction

Dexter Goei

things. of couple Thanks, Andrew. a There's

obvious, is own what clear. to than sure per network. we're are. that the focused I offload mean maximize It's on openly network points but have price on probably think and we very don't I those our not our discussion, cheaper think, be MVNO pandering onto Sprint AT&T. Sprint spoken cheaper is we than So price Right? making gig to I about the

second primary of that's contract, does becomes to really a roaming where which lastly, not of call your Sprint The were the the for network business then coverage. good edge is the the And AT&T, side point which our have Sprint tighter on network, port is obviously which network to.

lot are be usage the fraction to AT&T the We be obviously the network waterfall our in usage. quantums, as relative one. to a such. to Wi-Fi of And very significantly Sprint sequencing, economics of obviously So the than the Sprint similarly, a the very, expect the large terms in own usage less

So to we the for be continue compelling economics very overall, think us.

with through price points, see point and we about will those price more openly, can you economics, as we more our You talk our walk clearly.

seen guys consent really more you terms remedy the have as new to of and on This been On with the talk T-Mobile we T-Mobile has consent the as the what have than in in decree FCC. We commitments seen they've that's I to remedies in with received. has that about very information. in specific position of public discussions about we dish with received you really have published the we as much detail in to dish the with one-on-one domain and decree that nor talk what Sprint side, public these received has details any have the FCC. and because been know the discussion and in not DOJ is we had types what out the never do the directly some in what's can't of terms has outside been anything of what's done been

Andrew Beale

more One It's and dish have there a in would out of a a like wireless. could possibility if that permissive question thoughts this they as apply queue. strategic describe was that's the as Okay, about one. in great. as is to you carve additional It agreement but the investor the something as is same know it just technical at was you that you ask the this no or I reading my yours. time? Is don't seem

Dexter Goei

incentivized potential dish control I read it with when advantageous sense value and a a strategic may as have from time parties co-investment periods parties. of more third I into it think progressively has which or make Andrew, by I with feature I that's thoughts, third at becomes where a discussions this is for have memory and quarterly things more comes then of them or there a do a to top the my think more to and head, but the incentivized lot probably years strategic change here, of off point decree consent permitted shift three not the

think today launch because if just seven-year transaction consent about have makes thought decree. an have fund time do The far existing of on let's closed a focused we given from process that so obviously product. and right it discussions What at us do away the sense. seven-year consent so that? think plus, are that degree the hasn't it, opportunity in it's again, closing. we're the I We call our the our those to are things But

a existing So plus there as to all sense. parties the to MVNO time and and think of product step potentially next out and lifeline that of evolution and relevant to network, our the seven-year makes the extent the we've speak got our to to

Andrew Beale

Thank you. Great.

Operator

comes next Your Credit question Mitchelson Doug Suisse. with from

is line open. Your

Doug Mitchelson

Hi, are discussed if York not so the and of fiber or building fiber past think you Wi-Fi big target a plan. to of strategy a questioning and nodes New I area? still main there's made continue Altice, sure lot questions investor the the for your comments on there on mobile much. other strategy thank other this but have differentiator coverage you've Dexter in metric get an I addition line the out you is in City you I'm the then to

through us achieve. below So substantially U.S. walk in if been have is other per home maybe just the you cost able to could the again companies pass what

to a homes sort proof how fiber when of in And think the passed sauce do secret just if have? part points speeds back second many could of fiber be certain in then faster a the So question the those benefits the and you to first previously to to report in just, product remarket see Is what's launch sort geography we Anything Thanks. lines start end on against of will upsells the there and is potential or in you there you the outs outlined? confirm frame? market cost able CapEx might you've of time would help. buy a to

Dexter Goei

and all fast writing furiously Doug, questions. of I'm your down

usage, mobile so, continue do we is SMB through That access and our we'll are So, let Wi-Fi and obviously Wi-Fi will budget go Tri-state in not network do expenditure the Yes, to residential as enhancing but area. get annual for continuously, for network. one our capital and these me an that commitment our of our clients to regularly who just part try by we one.

In of to plan. strategy. is Yes, core the it fiber our terms

communities. local have, to ourselves years which the probably terms is that at the in roll-out some we from not as probably large other to benefit and relative fiber here out to that many, US the of done providers the home don't much the unique such rolling relationships and footprint an as for think have that sauce the than Europe who secret really quantities, fiber between as our as density our that have features Altice sister more sauce an very we example, working I core have which and other with and have strategy have with the and with USA. and think strategy our the infrastructure many, is Altice relationships Altice Europe we of Altice many Labs all and been of fiber attractive globally we is in geographic But company importantly, we're none I very, have is we the secret

are to homes, million think been talking terms about we footprint, is of Optimum number entire the the fiberize Tri-state the which that. looking consistent five In We've I area, homes. of

homes become or at million ready for currently We investment. passed continue XXX,XXX cabled about are service we today as about which our a will homes drive to service obviously and ready then for

gig are X.X. X of on interim, very Docsis of a things. In is one Optimum terms points footprint the also we've and our been proof upgrading clear that to couple Number we

almost complete. It end by will the completed this So is of that be year.

footprint of this X our end year. much pretty ready be by the will gig So entire

delivering of relative So file before will competition X-gig a competition that product, be terms to year-end. a we in

we're relevant the the proof next to think we that is point relative most home gig year. I to of fiber, as believe our first the XX early going as Secondly, be half ready

market the and will a half to we be at able up XXXX. within market, product. XX-gig XX-gig expecting We're product So first to down of

alternatives of terms to our advanced best create out that there. to to point ambitions you for also I the differentiated more customers, experience is file a any relative probably with think proof of but in product provide our for our other customers our competitors in for

Doug Mitchelson

so Thanks much Dexter. right. All

Operator

Marci Your with next Wolfe Research. question comes Ryvicker from

open. line Your is

Marci Ryvicker

two. have I Thanks.

the driving to else mobile, advertising your raise also day across The guide, to are then footprint something one. on is entire your first launching question, you my that? for related second just or And from all revenue that

Charles Stewart

footprint launch On mobile, on entire the yes, across the race.

from I of well expected. than or better doing all confluence a it's divisions our think of

You have to remember, in the second Marci, also that we are launching mobile half.

So produce given some feel that comfortable that revenue. that also we are on imminently we launching will that,

it's So se. per not advertising

a in given that part third were last quarters. and year, today of political advertising year-over-year will fourth the I on the quarter our think presentation softer be basis flagged that heavy discussion I

advertising driving to that. BXB the side Advertising a on than The business better done clearly extremely performance. BXC there. the So well. our given se is basis seen expectations least beat we've in of the business peers, terms expectations Really continues do doing investments of business not per of it's our at relative that the is our

and which going it's be zero. Cheddar contribution. not obviously deliver has will come And incremental revenue mobile some to then online as

So the be to it will top-line. and will just be higher also that zero than contributing

our good see and out. So pans [indiscernible] that new we about there feel we'll how

Marci Ryvicker

Thank you.

Operator

question from open. with Ben Stanley, is next Morgan Your line your Swinburne comes

Ben Swinburne

Good afternoon. Thanks.

the Just, you've operating back but expecting you level. implication at end as below Charlie, your or that because you level or above sheet, we the by Should I of on year? balance of are five going expect to slide, That's the times specifically just of be the guidance know, wanted to the sort been, to slide. ask

there. to wanted start just I So

Charles Stewart

that were likewise this of expectation the guidance also an same that a know, Ben, of be we'll the we why year. But of QA yes, at we're quarters and where end it's our Because end little higher just on, that's bit within Well, as seasonality and That's thanks. this that's of year basis. at on LX the last you so quarter.

Ben Swinburne

then on question Okay, And it. got the front. T-Mobile Sprint,

I they small being think cells. think XX,XXX they out had -- built I -- Sprint

was I number. the think that

expectations, cell expectations around or transaction Assuming your network capacity you Sprint, whether do to have what are closes, going your that between, any they're small more on guys T-Mobile add this that, any? if

Dexter Goei

the number. Ben, right XX,XXX is

New that's the the has we're think to own existing or to comes as area keep the network have T-Mobile, that I they're in with in both. do network about. combination whether dialog of their new going going invested or York to prioritize think privy T-Mobile I which heavily that don't yet Tri-state some a been to strategy Sprint their we're network, whenever

they're I to for I the certain us So have to on think use but densify see they expectations network. that, obviously the that want is to that's to can't continue doing. don't the do say I that wouldn't why planning what they ability

Ben Swinburne

in out company don't at tucking assets the in are on for contribution more this but Okay. business? how ask. Dexter, lastly, the you expectations? then advertising know guess to how you I if that size update about a feel you've I businesses going and got back Whether digital you And make sense and just on businesses, number relative they're I have I think the these might half, any you media for guys the as question. build now of thought sort news revenue closed back Cheddar to least performing of Cheddar you would

Dexter Goei

deliver of and we news of linear the various to products that's about both that tell of being Yes. and as things: have, content can today national side; news content, we thinking board and only so and or also into in one And suite team towards, of out fashion with advertising. our that new you thought thinking has good strategy, in don't part part Altice two can on unique his pushed already Cheddar doing. is an be products with driving it driving suite quiver were driving assets, the we have the have differentiating news news very next We it secondly, acquisition a product which coverage with that and exceptionally two management specific and were the processes wonders internally and of our the exceptional we third we let's and things team partnerships very at USA. organization a I clear proven Steinberg now not it months are bringing parties, Jon that new thrilled to He's fits full done very portfolio integrating good number a call on to not that was digital in but about were of the

So of about think the good the acquisition. early team, I we're probably of and with how Cheddar that but feel know the is life our example experience a it's moon I over in we

that then he In in kind do willing the the terms contribution. that I'll with extent offline drive Nick of to let you. of you with is to discussion

Ben Swinburne

Okay. Thanks.

Operator

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

Your line open. is

Jonathan Chaplin

and I'm like I'm a road. just in way obviously Altice about nationwide the talk be down Dexter, Sprint at start pick could get seems beginning with And just was high-level it guys spectrum. for wondering collectively you such T-Mobile great wondering for have more could opportunity an how think question the then, of you some its opportunity off. broadly, like opportunity It not great But that. of guys taking maybe There to cable what the guys on spectrum the advantage own. and of stood might you a that up maybe process collectively, involved

your all acting something industry of you only context C-band right sense in in footprint. own CBRS the or your in the be cable that that of or size Would really Given make interested the together? is

Dexter Goei

our acquirer necessarily but opportunity On There it spectrum. saying, are as Altice be the the -- peers let's in of call to assets very the USA at don't of was the might. terms wasn't what that it first here potential third-party of process really best to any nationwide are a least opportunity being -- get an much from one. I know our away

can't because more say given So that opportunity we than at the know. it anything never to I I were don't look so

of do the standpoint. we from eve It's future all terms here are our would on based we looking we different alternatives obviously think been launching we too would anything build else spectrum or road, down we a early as at the to In as of have to on the the what to about really wanted given that what [indiscernible]. to tell really doing, infrastructure extent

right the to map So out we this see business. able forward until to allocation capital really allocate really because we anything success amongst business mobile and the on are we capital I want can't strategy comment extent more have the going path do don't to to a

Jonathan Chaplin

one potentially. give? go they way for further their get and you discussions core try deal an quick something to the there has Dexter, to they dish set willing last through you opportunity full to is improve with control your I guys And Was discussions Could the if may. as follow-up with that of T-Mobile you get weren't that states? in

Dexter Goei

why to gone we on as great be assuage mean been lengths the concerns. don't to opposed here initially I and we've FCC fears have which anything our to and clear to presumptuous very our is, The DOJ transaction.

of full possible, the great, be got we both real people But see that big very whether is I present you to so or the of and great third-party will looking Jonathan. will clearly talked for anything or are a like for control, us don't is deals what and next which state already is know advantage AGs what are have core which in happens including already take for a But advantage we'll they to the side of really good other months. for agencies. it. about benefit things control, the out ourselves they the lot over driven pushing terms improved additional things extent We by we opportunities get competitors. And of to not hand-off network

Jonathan Chaplin

Dexter. thanks, it, Got

Operator

Last of line we today John UBS. the for with question have time comes from that Hodulik

line Your open. is

John Hodulik

it Maybe the you're thanks. a current $XX that And travel should say, bit not the going Altice number by on a on does follow-ups but testing is company? may price of that one acquired service, we wireless. forward? the with you acquired company? on currently think quick have they little Dexter to if on MVNO and data. with month company, this touched That's a Say, another great, terms, earlier, and right MVNO press about employees is wireless would two that at cable price point the two, Okay, say unlimited for reports cable the the

from the growth industry-leading nice is again of XX% sort last data quarter. on then acceleration And in data side,

Thanks. the side you Now but your have the on talk maintain we can growth in about that forward? you price increase, of and going anniversary, leading think terms July data industry runway the you growth do

Dexter Goei

to I price John, be coy, but the for you mean don't see So, employees. point

So you employees. price the point see for

when price see that I come with. to the you'll point will launch, think we market

our we're I going that keep to be until So launch. something to we continues actually to close best that think

John Hodulik

shot Okay. I a give figured though. I'd

Dexter Goei

It the If the shot. I gets structure on it's was and good acquired, proper a Altice think transaction. really based

asset to we You're so agreement, actual we are not there but to privy survive. allow deals think us the that scenarios and that survive attractive that that's an to own see clearly we for that

our yes, On performance. data we're pleased with side, very revenue the data growth

majority But primarily super thing than last We we're year, of continue growth Proactive of to seeing XX% may important and way their QX are a are comparisons seeing we're believe the behalf and price so we in going our QX. that a data we have this clients. on up-tiering higher What one which by is higher speeds. increase forward. know lapping of super, from QX I is incremental and driven in year-over-year seeing up-tiering that see less the here we in we're revenue most some

that consistently. seen We've

home have here lot gig have we Relations slowing continue continue to any the we material, launch us. the nationwide, to of not curve in the that multiple our Investor back obviously that good year, as next If upward have see to and right down again of colleague's so of available products right are trend. runway. one you you'll from product I we consumers don't tiers a mentioned, of questions in see fiber of to of gig, to which go all do other XX with an going of room XX-gig our between your all the direction left to We answering to And than today believe X to

decisions the great businesses. we really upward differentiator to continue allocation drive that's believe will our continue trends that So for to drive we in good good network that investments, capital us

data XX%, but like to growth, our or we're the right going growth push you in the on or I revenue continue in terms XX% tell X%, quarter-over-quarter, data whether to that direction of be trends or at can't something all side. the

John Hodulik

Great, thanks, Dexter.

Operator

please to for that closing with remarks. go presenters the I'll any And back

Nick Brown

Thank in Thank up joining catching the next with for weeks. you you you. look forward Thank you. we to few and

Dexter Goei

you. Thank

Operator

This concludes today's conference call.

You may now disconnect.

Altice USA (ATUS) 31 Jul 192019 Q2 Earnings call transcript