ATUS - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Altice USA Q4 and Full Year 2019 Earnings Presentation. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Nick Brown. Thank you. Please go ahead, sir.

Nick Brown

you thank and everyone, for joining. Hello, move moment, CEO, Dexter a take through then I’ll Grau, hand USA’s Altice you we’ll and presentation, to over the Q&A. Goei; will you who In to and Mike CFO,

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

Dexter. to over hand I’ll now And

Dexter Goei

Slide X. Thanks of everyone. into to you jump X% joining. was for X.X% excluding mobile growth going growth Nick. launch I’m Revenue with costs. Hello, Thank X.X%, EBITDA XXXX for right adjusted or

first Following were of a to factors first growing from our a rate QX half we we X%, few November, normal including impact disruption the shared of year year BSS/OSS higher the from we roll-offs prior saw when than in the lapping promotional integration. part strength our north some recent event, down a temporary due of in slow in the and and QX

we expected stronger operational in than turnaround a December. in performance However, saw

you net saw broadband in so quarter normalized in temporary continuing a rebound with to broadband Even leading for the customer QX. significant with trends X,XXX and the far we additions a Specifically net additions of a churn XXXX the show video whole years, minute. in were prior QX, year in the uptick in early customer in I’ll part as in and broadband trends for line with

launched and opened we channels. by been our political News has in and and multiple advertising since Altice cycle reverse and as to continue handset aX offset up Cheddar expected XXXX. we ramping September, expand is driven being sales from lineup we is still the to saw the growth in Mobile

very for will believe year, good new which and now partnership excited will the us. decision, we long-term happy Also, drive are supportive will for we we think very be We of handset the of Sprint strong switching cycle. TMo a are this launch which a

to a to the core for investment customers. for XXXX you DOCSIS connectivity build side, ramp serve I anticipated during up deployed the year and our we all and detail. Mike for On drive increased experience want simultaneously even differentiated to the cable network for X.X this acceleration XXXX take to revenue, the business fiber revenue of will our to more including a growth faster through highlight total mobile. full outlook in of

million We cash billion of to adjacent of acquisition another Service expect lastly, X.Xx to the $XXX to Jersey, This regulatory differentiated of step day for us XXx up optimal close share and to broadband, to mobile should or a ratio. following flow approvals. we debt to New while to for Electric still about net free is the supporting quarter expand the $X.X EBITDA by great free bolt-on This synergies. services video, wider And the targeting advertising able third repurchases, area. our acquisition Xx announced EBITDA be footprint deal

revenue and Onto We the of Slide breakdown XXXX both show year full total growth for X. for the QX.

retention down we early with slow very grew temporary the the the with offset part year, to QX, QX the of increased QX from better of Notably by activity, of dilution. sales volumes more ARPU December, had part successful softness from some and than measure XXXX albeit already in due business with I Residential line despite in X.X% in prior Our mentioned. and a early issues

growth of customers and with continues data using be main more speeds. for higher the residential Broadband revenue consistently to driver paying

new offerings the upside significantly As you’ll streaming runway all speeds. see shortly, and greater of of the one we with main more drivers being broadband video greater on have revenue usage

and and a we’re combine X.X fiber-to-the-home the pushing speeds footprint into and network offerings to in WiFi true excited continue deeper experience, gig performance. upgraded our are We broadband with by it our invest DOCSIS enhancing

X.X% of as with in XXXX growth the was expected. prior prior quarter of was Business QX with services consistent and the line X.X% in the in year grew

in division XXXX X% and declined QX. in Advertising News and Our declined X.X%

for Excluding by driven success and both political, advertising the aX our of news advertising advanced Cheddar. platform, revenue and the about and XX% by QX, grew for year

our year. extremely we’re and pleased the positioned are advertising in performance from expect benefit cycle far to We with coming political and progress thus XXXX, integrated back from news strong as platforms well the this

with growth which customer Slide of With growth X few Annual illustrates rates broadband customer residential how relationship in in for residential the XXXX. X.X%, customer have decline, supporting consistent uptick last growth churn in been QX. revenue video with we X.X% the in in years. of saw the was even trends growth annual the line with X.X%, was XXXX revenue residential per temporary customer growth offsetting in in very the

net seen XX,XXX we’ve line Broadband And than or in X% performance industry. XX,XXX XXXX of with in better growing prior which year-over-year, customer XXXX. than were or what only worse under in in line in losses year-over-year, XX,XXX year, declining exactly additions X.X% is just the video additions the

to attribute Altice this has part and reduce our customers experience WiFi improved for One, continue We churn. which outperformance video and of broadband to both

number as We’re that linear services positioning video and marketed OTT as broadband high-quality our backdrop but services being of the streaming mindful the a and of services. an heavily, market video we enables both are aggregator about provider relative with of the increasing nonlinear positive and streaming

Like be more customers, our video to in and volume event peers, is which continue cost our in to incredibly to and thoughtful program we profitability. our rate recent about reflected continue balancing we inflation February. said, pass-through That

broadband we cash is our of are flow. broadband part EBITDA confident However, the productivity business and increasing remain residential an core robust. of growth will And our and

highlight our more the for than QX temporary the adds was of Slide impacted prior as as customer so year. business the out migration on we’ve the mentioned reversal full in net the broadband well to did achieved X. in December BSS/OSS X,XXX following far October, net broken as the December, November, we We’ve trends we’re and gross the anticipated. which in adds benefits churn recovery disconnects seeing can see this you adds Overall, quarter, trends from right. some see and delayed monthly Turning the normalized to stronger

see to we impact short-lived On price we lost in gross have was QX. QX way, this detracted again, want we months in trends earlier call a very the the by to The trends good offsetting it offers life remain last quarter. out the simple it we this invested you December churn proved heavier left supported while that customer relationships quarter strong continue not heavily losses had few with in and Again, additions our market. throughout and because in businesses X,XXX the had for can the the we in to which growth that end year frustrating opportunities has very the from on see we interquarter

as number of opportunity more in options growth data broadband the highlights further other streaming intensive applications emerge increases gaming. X the video like Slide cloud

translates have broadband speed revenue up We which tiering, the runway growth. broadband and usage on significant

take Xx our to all One. per can three broadband customers use continue and increased upgrades the in years customers take as of the And has Our higher network to more you average speeds about following Altice of data. launch second over and megabits speeds our past of see, the XXX

due divergence month. grow month Our video gigabits video. to between XX% But single bundle with big single in over XXX broadband to year-over-year the seeing broadband streaming average continues mainly a and XXX base. data play household gigabyte more gap usage those among play per per customers increase to interesting, we’re usage who over

As an customers. to for and up usage untapped compelling tier increases, broadband this creates opportunity our us

on last which fiber to As multi-gig trends to we a over reminder, fiber services with Optimum is the in offer we're going month, broadband will be continue started to following the we'll our ongoing XXX the networks with be Optimum second and launching driver ongoing DOCSIS able our addition broadband, X-gig already X.X we replaces revenue upgrade, which footprint fiber, Bronx provide our growth. is maximum in across industry forward. parallel. but of prior which network both a services X-gig We upgrade, deployments speed This expect of investments X-gig our happening speeds an per Combining footprint. DOCSIS megabits our on

to network our Slide which investments, enhance continued the X customer related our experience. underscores progress to

was On see, during million homes the XXXX service now adding is about footprint, XX% XXX,XXX the for and for the This again in XXXX, maintaining Optimum while step same service, the reached homes which we've expect right, ready for last of CapEx over main X.X planned. we year ready up our the accelerate levels. once as CapEx you can the to about fiber of reason pace rollout

up increase just from of Altice penetration base The X% penetration now of our One QX in last reaching of video year. continues XX% to

for continue the enhance to Altice our customers. upgrade We One and offering

congestion improve and Our the addition latest new innovation in all for speeds, solving WiFi by latency issues. WiFi network will and Smart Altice available increase reduced now of existing One coverage customers, which the WiFi

is very ranges leverages across across between X service, also between Smart better offer fiber X.X our frequency well upgrade. a performance this as the Smart allows SSID rooms. WiFi Smart motion both WiFi much X-gig steering and different single with WiFi in mesh technology extenders We for with WiFi intelligent as devices home. gigahertz for using already a band complimentary so is

quarter. months we've X Slide of a to short Mobile, which just broadband just XX,XXX with as Altice X% few our we of end are turning base with the pleased customer lines, one the Now QX an of is in gained traction over in update under on

about what two growth we've seen is faster. times at of by from Looking other industry matrices, launches penetration MVNO this ahead

attractive our month offer customers. we've even existing expect have in single on to one therefore, the end for lines but material we achieving. been to introductory simple Suddenlink for will offer Recall, continue the unlimited week, Optimum slightly most a we come was providing plan everything price, volumes with with introductory a next focused and the plan $XX unlimited higher don't This an will and for

of new few and coming $XXX in more lineup market broadened addition no expect to around remain EBITDA may major in We During and disciplined we mobile of EBITDA, XXXX. cost to iPhones online the Thanksgiving, add losses months. than million the handsets next handset the Samsung on the of expect many with and QX, handsets

the hand impact of and slide, XX%. growth our the see News at integrated are what on news XXXX this strong overall Advertising aX platforms advertising political their and to but on the end can be with the Turning you revenue of ex-political the political up about year, right in advertising side at momentum and entire the into cycle industry, of saw market across cycle. XXXX we you was Cheddar should weak the with year and excited a The

their XXXX thank business over and for momentum and this beyond. to our Before driving appreciate I excited our in efforts I'd to Altice USA We greatly turn we're the contributions team into by at XXXX. like tireless Mike, very call all their

Mike Grau

Thank you, Dexter.

flow you cash detail. Turning see free in will our to Slide more XX,

QX than generated $XXX the fourth is at lower $XXX cash As Cash we cash of the remember fourth million you was in flow in CapEx interest coupon payments. because timing free lower second of the million and and quarter. quarters modestly of will

million expect tax QX with payments still in we the a be Cash we XXXX to significant payer and do that just until not cash $X NOLs tax have. remaining were

did $XX billion. of slightly the short see of is from main saw outflow other reason year capital million working our of And for the we QX. cash the that annual target flow can at outflow You free felt this full the see $X.X operating reversal we in cash not we

handset cycle the particular, flow cash see extra BSS/OSS and Both not payroll driven specifically was free expect to mobile working growth which handset EBITDA and financed BSS/OSS from payments to and XXXX, by growth. inventory cash we be XXXX extra free related payroll and continued in and into accelerated included receivables. revenue In forward the dragged from and going will on in this QX activities, outflows outflows transition January capital temporary the cycle

billion our any our at QX target have We savings bondholders we five remain $X.X some to in maintain should commitments as also cash XXXX, do bonds supportive into later been XXXX, We to the already to at given have shares repurchase year further XXXX. for as debt not of they in callable initial recently. interest leverage times exceeded close which if large end. becoming ratios our bring so markets Even

$X.X purchased of repurchased of billion of we stock an share per at – year. price Recall, $XX $X.X last billion stock we average

$XXX million We resumed incremental share year-to-date. an stock repurchases January have and already in have of brought back

We complete billion in buybacks year. share $X.X expect this to

and shows how EBITDA in side cash original efficiency XX our continued left grow annual our we've view hand adjusted The excess Slide of flows. to margins of demonstrates increased an targets.

margin on EBITDA basis in Altice USA’s XX.X% adjusted up Specifically, reached consolidated XX year-over-year. basis points a XXXX

QX. points XX% losses, in margin XX with wireless adjusted Excluding year the reached and in full EBITDA grew our guidance for basis line the

million $XXX growth been we've the years we've can million $XXX more in Mobile into by fiber, as You One up see and our initiatives. stepped mainly Altice to last CapEx couple of investing

Our build mobile of remain below and XX% capital excluding new intensity, fiber revenue.

this free has around $X cash at operating annual flow fairly EBITDA CapEx less during Our been period consistent or billion.

hand On capital you of after mainly taxes to due free including working cash side, was approximately costs the cash restructuring outflow previously. see flow the interest, touched capital and right that slightly, I million $XXX can down on working

share float. amount. for the to a We've done However, cash in already years, buyback Free share accelerated XXXX pace. we repurchases. flow of us EBITDA free flow growth pace Remember, the up incremental level significant have supported over three the free of growth billion which and million authorization about steady next this this will of represents to of $X continue at accelerated of the portion cash allow has $XXX

our sheet with debt a profile strong very Turning of to maturity in position. a XX recap balance Slide the is

balance We and next continue proactively I opportunity reduce ample same we year way as forward to out will to in continue push mentioned manage should going interest costs. in sheet maturities before, the and our to have our the

cost fixed liquidity. rates an life average average of a X.X felt we retained debt of debt XXXX, at end the weighted of XX% and of X.X% our $X Our is with at years. billion of

We $X.X have no all in at billion bond XXXX until not maturities greater XXXX. than would

of XX for financial our an on overview Lastly, XXXX. is Slide outlook

margin further again, acceleration ex We growth expect This revenue ex of in to revenue adjusted mobile mobile. X.X% X% and growth. represents EBITDA expansion,

want to conservative between expected CapEx, sustaining growth momentum. $X.X our to investment in and We here XXXX Cash we billion level are being initiatives. similar billion we a of all $X.X relatively as build

pace leverage Our year-end ended the may target X times are above normal the we We with as incremental of current remains the repurchases. slightly on XXXX. EBITDA above and of phasing during billion leverage targeting And to and target our given two range times an in this annualized slightly share noted the $X.X line finally, year remain at quarters X.X basis. last share generation X.X in earlier, XXXX buybacks this

will that, With any take now we questions.

Operator

from of question comes Thank Philip first your the you. JPMorgan. with And line Cusick

Philip Cusick

Thanks. the of general, help dragged the Thanks. pretty a dragging this were because like announced. there. And from seems you in all quarter, Hey for revenue guys. model quarter here? wondering price model. you've the loss thinking and about and about how think there's the think us going of how already video video It I'm a guidance rebound lot thinking XX well you're if increase about that I the you quarter forward? also I'm Fourth about was losses Can first things broadband. broadband? has as But in XQ to comp assume video

Dexter Goei

Phil. thanks, listen, Yes,

revenue being I guidance. we fair to think on that the are our in it's say guidance conservative

you of second us instead curve, the the big the part Two the factors of half very second and ahead mobile momentum our revenue and the on factors, in the so a two of on we our fourth in is which being of that are Given good good political January, being being through be February. tell swing very handsets the continue advertising initial thoughtful early guidance. and wanted saw into one side. perspective I'll performance that of on caught performance little December, things, a to QX quarter build offside in a we rebound

So it's as business usual.

QX. have did expected the a us in on the anticipate on RGU we I year next we of side. On where performance XXXX, particularly QX matching, last stronger the XXXX XXXX, QX exactly are guidance QX don't versus actual than in broadband

about broadband good plus XX,XXX So RGU. XXXX, did XXXX of XX,XXX in for we do we very also annual the what number feel to

The exceptional we the in we're quarter, will that last to question how think don't today. really want number I I QX. good about the that an for over feel such hit say, very that phased since be had gets year, to going target. we So year necessarily quarter

saw On some of in we of video video losses, the peers. uptick our losses

margin But seeing. we're over at given that guidance, call actually margin to cash we impact gets EBITDA a on positive is what flow the could for through though float as clearly too know on being particularly today through We particularly to given revenue come do small. to economics basis. cash down the the down free as cautious year think look And the to early with and free down gross it us. that I is the we flow, industry

it, we'll So side we'll that video. we irrespective happened free on revenue specifically. very, cash and monitor flag good on what it about But the very the flows, feel of

Philip Cusick

Dexter. Thanks,

Operator

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

Craig Moffett

Hi. of Dexter, that different will looks think ending you breakeven I'm business the as looks whether long that in it [Audio you'd for trying at deal that the business Dip] the you're Sprint/T-Mobile get happen? and you and pricing previously the changes a just change that business now picture the $XX can a whether be can pricing you the more little or though like current about sense suggests expect the talk the wireless thought? term It bit the profitable than a for there's to

Dexter Goei

And think Thanks, decision relieved of listen, the I I merger. Craig. it and the closes. approve feel guess over not until very very, it's we supportive mean, obviously, to very I

closing was us. access of extension the to And subsequent to process. if delineated the some is see here seven FTC decisions in discussions significant new around there DoJ, and for a clearly the But and as was had transaction we'll XG period, which the from consent an and TMo flagged any commentary So our our win in to is the network. we secondly, one appeals access years

terms in term and services. But the partnership of of good with Obviously, about network having the now we're of the bunch cautiously very establishment really the with optimistic excited very long a the TMo. new there's a new on TMo. work to things and work feel we the to XG opportunities So of about transition

of to is trying flow of know The terms and balance OpEx gross on be to good shareholder to volume And thoughtful really economics, view a dynamics profitability are we you spending value or trying distribution our flagged. by as the side. make the know, this is thoughtful it we're around costs that where more drive going our In cash more OpEx sure we economics we're was to is margin question on as creation. much thoughtful on the

to out that today. talk whole going it So of I'm – think about mixed balance it’s

see we even on our to just mobile, to we a as package, the good. think $XX. the price we're I attractive going though continue on have through We'll through and year push increase by to raise very be prices unlimited

Craig Moffett

All right. Thank you.

Operator

Your next question Hodulik comes with from John UBS.

John Hodulik

Any in the Dexter, match maybe got Great, of subscriber you. base. through plans the from reaction or impact mix could do And business early the volumes and forward? you put guys compare similarly and you've and new the in you characterize standpoint sort on the side. in what maybe to what any what and that Verizon January your reaction past Fios a could been competitive going some and to reads on to has the price increase timing done thank

Dexter Goei

increase think costs of Sure. we by the a Listen driven I onto had on subscribers. increases, programming price the on more slight our really pushing uptick price

to X%, subscriber historically. as X% a the base across X.X% to range about price increase opposed So of a was on average, X%,

We have, about two increase. price into obviously we're that weeks

our December. went already some in Letters out franchisees for of

far on it No reaction call some differentiated, nothing base customer call exceptional. centers, into seen volume our let's but a mid-February. so So have we our from

that to our of reaction monitor date, a closely. But very we've a increases. to had we'll So price normalized kind

that cost than points broadband video of which know, pricing fact if today, headline existing And is you price equipment went XXX-meg pretty be you I and more mean, expensive that In Fios, on to The XXX-megabit their But of than top promo, promo broadband and single to more see to is you clear, is their attractive an our ours. be effects. the their but broadband. for tends it's side, of prices. XXX-meg, discount through the just two is product give auto-pay much on terms the on separated as more expensive $XX had they they promo. on price the but promotional looks actually of from not everyday out

look it, discount $XX So auto-pay. at for if you at a they're $XX.XX, plus

another or and the for I So $XX believe it's equipment equipment. their $XX.XX $XX, for

$X.XX single are $XX, $XX.XX more XXX-meg which is access $XX we're around for for their take like So $XX.XX the so versus a at network broadband, $XX our broadband $XX.XX closer charge, auto-pay they XXX-megabit or versus if to standard, $XX. our you plus plus versus

volume the their had when on video. pricing put impacts bundle I've see any today. good more together, their add when seeing is we bundle February. good single very here bundle a not and trends And mentioned, our their we're you January in plus than you pricing as And So a single lot attractive we broadband

competitive our impact So on that's been really not business. today a

John Hodulik

Thanks for the detail.

Operator

the next of Mitchelson Your Crédit question with from Suisse. comes line Doug

Doug Mitchelson

customers so late the you're I much. experience just The really had light do when timing Dexter right? target? sort in the think far, Is breakeven much. there Two for you're looking head any is about prior but be those separately, profitable full previously, XXX,XXX a towards the questions. Thanks. that that One up still that bit rollout. can don't wireless in year. fiber But play think many marketing then box, up, of today. the that doing you've so on you've more for I the how improvement I losses little do Thanks you would losses And quarter-to-quarter detail And you calendar you sign triple the homes of Is or year, accurate? said comment think households?

Dexter Goei

based At the fiber launch, light pace for that to this we continued trying be every XX,XXX rollout, up homes much the to at Actually, of and year drive be of there'll pretty that that. month, month time a ready we're really a in entire more given across the of we'll quarter XXX,XXX the than XXXX. second footprint. service plus in on So

number good network test play it. fiber drop and – efficiency dynamics really of In terms really We the product of single across to our about talk homes, the of don't of have today, test we hundreds launch marketing in the continuing that thousands are once of of we subscribers there. the several so available, second the But the which do expect we network we're this year. triple is and feel play the very of be we triple able performance quarter the play that about to to box to ready

how think wireless it of to upon my gross I bit touched question really on the both have now. hard losses, the the It's cost, we a OpEx which heavy on little going Craig, I distribution push we really is we're side. we terms In to want on sales in the liked to of and and right, marketing how costs, answer dynamics is marketing side profit right sales which a be

to in guidance going terms on that line to volume fixed be impacts willing are when a be think we driven our that so desire of business. how breakevens by and And we

year. we'll to to continue of every through to the the that to So end as quarter and I monitor get we think continue happy answer question here that

Doug Mitchelson

the around in based the that, of and just could more forward? needing that just of idea I – effectiveness want follow-up Or sort an sort operating churn benefits proof wireless go is already of have Dexter, and you is sort of that marketing you you you dynamics? as on more If terms with on experience in mind in

Dexter Goei

Yes.

what on impact wireless subscribers I existing line. we of the the second. plenty and experience our is think think wireless on it's got on the really We've fixed

our of that of than distributing markets bit dynamics different various little some which the are the other has the have. different think cost we I which elements a mobile, question is real

what forward, at penetrating So this months we're continue when peers as Xx push we into and to our they of a pace four we're launched. did

spend other people that want some but don't the mindful early we spend So are also we are of ahead seen money amount we the of that to we've curve, on.

we're good very numbers. mindful So having – of balance there being on being a our good

Doug Mitchelson

you. All right, thank

Operator

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

Brett Feldman

maybe customer rate. Thanks. And had come here presentation, pretty at ARPU, back to highlighted steady two years talk about a you've grown where bit little you a just you've residential to in consecutive the more

this about two that talked we've performance some it growth of years? tiering just steady metric? in Like rate on adjustments outlook of your You say last year the broadband. up the in type fair the for assumes that to seen Is

And announced you've announced drive the then opportunity the being kind also one more, for business, deal. to value just your to M&A, invest way absent capital in like example, buyback, best returns, talked of but you to in always the buybacks you about

about wondering, being first be that of in could or the thinking to putting really we words amounts So is combination capital have those M&A the two opportunities buy I'm total like And other didn't work update should you. now? you're been an bigger give the that there what if have M&A? just then can maybe out us on looks you right you to Thank

Dexter Goei

It's That's mouthful. like a XX questions, Brett.

Brett Feldman

long One question.

Dexter Goei

is in very XXXX, the same a on to we're we flat X.X% X.X% X.X% ARPU think pretty trends, So slightly while the to saw ARPU down guidance and and X.X%, I Listen, so much the grow ARPU in consistent, ARPU forecasting was our think, broadband be by ARPU right? XXXX pretty side, in up right? And the of down, video I consistent. our revenue mix

got video to cash we're revenue have, standpoint, flow things. a Phil impact in as mentioned as probably could question, it's positive from even though this a on effect think first I what mindful a

where So revenue think the that's good being think through I we as a we're guidance, see on cautious kind But see are why feel trends to here of very to video profitability feel our that. first and we there. about couple on just quarters of standpoint, we want

straight are listen, forward. yes, buy the pretty numbers we backs, – In of terms

drive on to and is even hundreds EBITDA really if question to in we area network, It's there announced go your very, you New as Sparta, networks an mean, maybe broadband upgrade us. slightly that these them, model, look cash of its this areas. also area. lever M&A, had deals, And and you growth surrounding can the so to love higher. speeds. we'd is I and buyback and continue I no our Jersey the think, are through great and increased contiguous have number you at yes, to because we in Then to our very we accretive the flow underdeveloped deal, they're business, our free builders it's profitable over There those

fellow a guidance capacity our buyback But not right that interesting. So very our size, available. They side brother you of that terms you cable, is very sellers We out they we impact reduction we EBITDA think synergy is if opportunity available out, they're The we now. our lot don't side Even – – now. and that in take obviously don't billion. sizeable in, That's drive lot And is we’re are the But much the coming our from cost get synergies some like to may impact There significant once three a pipeline in there of we try a LTQA and on significant. if type going are, quickly, these. there. of $XXX not and of have we the of anything think, see add quickly. on I capacity. pounce at have an And which can online, forma be basis, the limited think buyback if have but to when and we $X.X there. on very are go in we we you revenue take pro months they're it terms of million – in come

Brett Feldman

that. Thank for you

Operator

question next Citi. with Rollins the Michael Your comes of line from

Michael Rollins

fiber plans you business mix taking consumption? willing that on if are bit are that explorations for spend that of broadband Hi, I on customers there's question, tag those your broadband what business, And When little update rate any broadband seeing can could one the a the relative in regardless only of unpack look to are their you you of Thanks. bundles? If are on to points on you own. subscribers infrastructure other good at an afternoon. the the resistant bandwidth just

Dexter Goei

first I'm sure. not understand could so I if the question give there. some more just pointers me fully, you

Michael Rollins

Yes.

bundled the the only, earlier you customers. lot a more that the broadband mentioned than consuming So the month in broadband per they're gigabytes call customers, broadband

what as a that bundled that broadband resistance rate month regardless customers And they plan spend so there relative over than take. might different taking hit what look that a more They broadband. points And are I'm a time, the at want more of then speed x tiers only are mix just don't of take. customers curious you bandwidth if consuming just customer customers on to are bandwidth they're terms what dollars in spend those on are of that to

Dexter Goei

Okay.

That a of a lot just sense. I'm Sorry. sick. little makes

to there's they think a up video, cord I are we spending start shaving the tier tier tremendous on bundle two getting automatically shave. pretty much savings is to $XX next to they're one, amount Those people people automatically single to up of dynamics. they're the broadband. because extra from revenue One tiering go down cord that as of standpoint $XX from in

a speed. So by player who is higher broadband shaving single cord to is going definition, the

bundled the promo single gross the gross single goes bundle X-gig terms gross In bundle. for adoption on a a XXX-meg we And standpoint, people bundle, who product ads product, product of data. of the tends are take perspective tiers product on ads take ads the very the to single, or be a on a most which higher few on a of in where see XXX-meg

on four, on much do single than often products take, will people more three, a bundle X-gig So basis.

see that we We've see someone very speeds a higher seen basis. here. now will cord $XX. and No. seeing don't nice the who we subscription, revenue We X able whether beyond. gig as continue then optimum always data particularly consistently got to the single broadband. a on and footprint be shaved XX% to optimum gig broadband we ARPU single of growth we've on just we are with very continue slow And X average going We levels? So see who a broadband do think X% any someone further. gross drive on a our about on broadband fiber added good to in growth and footprint Do to to it's on We're ARPUs year-over-year for or push to to – people to definitely down taken resistance roadmap

Michael Rollins

there's If on Thanks. an explorations? just business. And the fiber the update on infrastructure

Dexter Goei

diligence we're that. Listen, in talks continue in guys, there to we Yes. of which space a work the couple on with on

are mean, to people can't about proactive this that in and asked people out something regularly I us. we've call it, I is been reaching being So, that quite this updated

they to handful of And so, for. we're parameters hit a if that them talk we'll looking

are people doing who so couple a that of now. And there's right

months a with get I that, couple to about probably of a so think as to talk And they we'd far now position clarity be from this how more in to.

Michael Rollins

you. Thank

Operator

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

James Ratcliffe

Great. Thanks. Two, if I could.

compete of in that of product, front have First just expensive what speed you you. buying country we're seeing thoughts industry most providers? And the you of like broadband, RSN offering that on cord like I giving – in cable is general, re-upped from New trying standalone it are And across WiFi. early cutter providers somebody to video thoughts just integration on this Comcast in who York. investment all, looks MSG could sort you a end your and the sort the is market Any here such something so multiple the want than more Flex, Thanks. in secondly, the on or adding quarter on returns advanced a RSNs be for year. just

Dexter Goei

broadband you're Listen, It's adoption. competing side product Sure. speed on we'll think in are And to the its successful strong that. that for we in particularly very, on with been continue something stages. WiFi very, we'll drive Smart the early the side, has things SMB early other as very getting has right, very

continue your and a we'll something So you see speeds that how more go devices attach continue and more going. that's it's to to that continue I network. to drive customers’ residential think and But that from to

popular. a Smart very going WiFi is to be

given side, platform to of very the platform allow we is doing, That platform. Altice think But as extent experience place can huge One is subscriber there. type is in something think good out really that One integration. a lot the product We developing video the on is yes, It's are well. amount similar the are product I not amount very that's product we a OTT of spending interesting. a resources obviously Flex video a have that Altice the that the OTT of a through customer to the a for

onto And be and attractive of that as gateway to the OTT way terms configuration the even this fiber interact be go platform. more adopt we we'll able will had in

will customers we the like we're very in So, making sure seamless focused that on Flex, making and have products and but that product I'm open user Flex a way. OTT friendly very, a all or saying our available to very not

just our we to probably It's the It's in little the under in this, re-up that on York historically than On pressure. side RSN and likes have RSN a the I side. – a with general expected. a probably is and live statistics, unnatural York the I've people very And do a MSG, we model, sports. not teams the watching local and is think the want spend ratio terms the ran customers. sports. cost partners of sports live to our to attractive But in who fans relative the if ratio power you of to just good amount and the package. Yes. said Listen, their New good that we had of be sports to very time lot better basic of New power

model a that's that So, is challenging.

that's numbers up, the model fees numbers I subscriber affiliate where but think in some affiliate are challenging falling growth. are long-term. faster the a the And over than the you've seen fees probably

James Ratcliffe

you. Thank

Operator

line Barclays. the from Kannan with of comes Venkateshwar question next Your

Kannan Venkateshwar

Thank you.

you're on pricing, broadband that. the couple components there growth Dexter are a get So XX% guess to able I to to X% ARPUs, on that of

people cutting take the fastest therefore price course cord to and you you to and upgrades increases also have faster and are of You have have speeds speeds. who downgrades of have

understand at think negative. is that they've much the video then of end And about how just made mentioned, the a question the you is free market flow help I versus only offer, lower If to guess get broadband Verizon it downgrades. of you easier is, driven product. like you upgrades the obviously when And XX% breakdown X% us second by to in it the of could cash

video is accretive replicate So comparative not offers. book, which that actually more Why offer take the back can forced is versus more Thanks. a that Verizon to widely? So bundle essentially overall. your be losing also new

Dexter Goei

the accounting up are part the start you doing majority giving as on it's tiering the allocation if is XXX the $XXX may on up two-fold. growth, double play, let's ARPU, or ARPU tiering And tiering people of increases when know, you onboarding That change allocation – broadband to call it first people, video. broadband that's at thereafter. you Well, to that proactive promo $XX.XX a megs. really up for megs revenue $XX.XX decreases on whether then and a and of cord it's secondly, the broadband promo you at a shaving XXX vast on and The

XXX makes but more of accounting megs change, don't revenue the broadband amounts XXX because towards got dollar the you've us the instead So push megs.

very for to difficult something guys model. so that's that's And you

on us but as effect And packages come peers and so bundles, – that of see broadband. the you up larger becomes is our with in the one broadband accounting our allocation heavy

ARPU not and rate true, let's given versus accounting call rate real it's more. ARPU, the its it, So of allocating rack but reflective it's bundled and a you're

your of Fios terms comments. In

to colleagues they mentioned are talked who about are it, more I competitive than one your think I not today. we of

are. play. we broadband play, expensive the much they're And more on On than single double they're bundled more a expensive

in play on double our theirs spot, if on cheaper the single price as feel than we both the side. the are points So right and

Kannan Venkateshwar

Thank you.

Operator

comes question Research. Arete next from the with Beale Andrew Your line of

Andrew Beale

the better of I get M&A just Hi. to a was understanding trying trends.

there. us going expanding contribution the But from more lower and better side the that there? that insisting change yesterday commentary any pay pricing some to they you between closes. T-Mobile's the could court on gig help relationship if just also wholesale timeline be in And a in you what quarter a wondering MVNO expect T-Mobile for I was So agreement you do that seems deal the their seemed the core pricing. then papers and DISH you suggest capacity fourth coverage. There think from and wonder, in per the process to Cheddar having secondly, for the DoJ year might with And just expect about full been agreement Sprint revenues as to revenue new might've that from the

wonder into just any as that head I thoughts if So you had you negotiation.

Dexter Goei

full year year. the off the million. $XX just my accounting the for million, And contributed side, the top That's M&A Cheddar around the year. of not quarter I $XX that's in on revenue of So and the about head, million $XX somewhere think fourth

in So June. we close

So it basis million year on what probably to closer contribute. full guess would as million-ish, a $XX I it's $XX to

Service In a full in – year. heads contribution Electric of of a $XX up the the for to that's New cable just $XX give of you Jersey, small maybe revenue revenue terms million operator. terms million

the in that coming our closes, accounts. we'll not get So pro-rata year for our guidance. whenever That's into that revenue

additional So, whatever you year. somewhere probably that It's bps add revenue that can coming – XX whenever of in is. this around to

question, and of In terms DISH. the think, entire your I catch length didn't I relative on Andrew, to of our DoJ second – the the

Andrew Beale

Yes. as sort lower wholesale said that the new network the a T-Mobile capacity on had it basically increased. the insisted price of papers, of court In DoJ

to things of sort we've will talk against that just as heard on weighing up some that of it this T-Mobile migrates the them. So – the about agreement

Dexter Goei

I think, listen, place with Sprint. agreement we've Well, an got in

onto agreement to expect We move price have had be obviously new the to discussion We that on TMo. XG.

stuff. But, DoJ going necessarily. are So, and anything DoJ through don't FTC we to our expectations our with work of is DISH to are reflective the directives also work obviously them do think and through with what on and contract I

Andrew Beale

you. Okay. Thank

Operator

Bernstein. with comes of question from Peter the next line Your Supino

Peter Supino

questions, Hi. marketing. on both related Two

some could and Internet you that churn improvement for a driving come in the improvement? two struggled life year with promos our or what forward, kind from specifically the maximization. looking discuss that in December price in you of XXXX more And from focus we more to from company reconcile used do of achieve And brought to November cash marketing that philosophical price improvement? subscribers, signups perspective? on We've did So XXXX of did and the flow and that sharp then

thoughts So on your both. appreciate

Dexter Goei

Sure.

which probably, one, XX,XXX incremental December. broadband in The was increase and call saw, we That XXXX, December of in December as the an saw X,XXX let's we month X,XXX, a to normalized of impact, net terms that's call XXXX. X,XXX of we to impact XX,XXX, opposed saw it. relative December to it In what let's churn to add

as I was, it, backlog BSS/OSS. of Some mentioned related to

should go customers lost their for we have numbers build or numbers them of like BSS/OSS we card So gone. transfers card credit as because it didn't we lost didn't credit as on seamlessly the things

And then obviously they reconnected.

in we And some January very continued XXXX of to better trends promotional saw versus any into have good off we of in performance the volumes didn't really going And more roll-off of similarly retention BSS/OSS it as terms there. being was of December XXXX. dramatically. just year-over-year And impact that like-for-like fell January

So that's of up October effects catching the really some is which December, on November. of the effects the and one-off effects of negative on –

to In life year-over-year. the hamstring to our ourselves good feel on grow not promotional really our sequentially marketing, view ability ARPUs terms of much relative price to being hit to clients for trying roll-off clients. so about to not the with with is allow big our It's a

we know time, same the broadband. proactively to that a our are While clients of upgrading lot their

do you back price. bundle, new change whenever and your your price change package, a So broadband in then goes changes a if or any mix to you're your video

for which basis an $XX to to significant a that price And to annual lot on $XX call price that a early a is proactively double relative roll-off, we than So they becomes increase happens and price people our even going hit to as that of off-cycle that increase, we're their are in get know for price like they they're of packages our the people fact and the lose that not But some amount life. trying with by higher volume, which something June, changing the see promotional a that life started which anticipation drives whammy. that's eliminate.

Operator

Ben Morgan And line your comes final of from Stanley. Swinburne the with question

Ben Swinburne

gig fiber you marketing the to can in XXXX. you and and questions. Thanks. think of mentioned optimum kind Bronx much within I the of that footprint a sort are what your of you Dexter, X sense Two footprint us service? your how give that goes rollout, on

call you for much over be think felt to growth XXXX. customer I in the to customer earlier ARPU get X%, per expect convert yield. and trying a confirm come may that mentioned in increase wanted back to the a to X% range I given I Just tailwind then secondly, And growth. sense to revenue how that the price might for X% to of just more X.X% you

wanted Thanks heard just I correctly. lot. sure I make a to that So

Dexter Goei

question I X.X%. first. So about hit your just talked to X% second we think volumes going on to don't

Ben Swinburne

ARPU ARPU mean, I per customer. No, –

Dexter Goei

let's ARPU growth and the trends, least out X.X% it of revenues right. in in an broken ARPU price call X.X% X.X%, We BXC had years, volume. was X.X% in at two which last

talk fair it's those say video numbers, any losses. of to excluding think I acceleration around to same

would be anticipation. that our So

You're saying could here year. being some higher. going X.X% terms right see But higher conservative again, maybe in see get we higher that we assuming is forward. – being will little impact increase numbers in impacts of that of to bit the to the same our be on throughout the a We little relative of price we're retention just video percentages what want the bit a and

Ben Swinburne

Got you.

Dexter Goei

about the of footprint X And X the gig gig, in homes that Bronx terms of fiber terms that of half out today about of what homes. And terms have rollout, that XXX,XXX in we we In of XXX,XXX, market the we have is it's amount passed. penetration. rolled marketed XXX,XXX

gig marketing just rest But in, dramatic modeling that's So homes the a gig. ready it, broad today I million X entire think footprint, let's growth we're gig call X expecting – the this this of of X improvement penetration don't year. year. are around on entire over revenue X the optimum broadband driving we in

we X be will So optimum across year. the marketing entire this gig footprint

Ben Swinburne

Thanks lot. Okay. a

Operator

turn session. remarks. to presenters back to question-and-answer the call any for now This will closing the concludes like I the

Nick Brown

follow in Do few everyone. know us questions. any weeks. the for catching much we you. forward got let up Thank with And joining you've you you next to Thank look very up if

Dexter Goei

Thank you.

Operator

gentlemen, this participating. concludes conference you for call. Thank today's and Ladies

disconnect. may now You

Altice USA (ATUS) 12 Feb 202019 Q4 Earnings call transcript