ATUS - Earnings call transcript Q3 2020

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Operator

[00:00:03] Ladies and gentlemen, thank you for standing by and welcome to the Altice USA Q3 Twenty twenty Results presentation. At this time, all participants are in listen only mode. After the speakers presentation, there will be a question and answer session to ask a question.

During this session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded.

further press any zero. require you assistance, star please If conference to your I like the over would now turn to speaker, Mr. Nick Brown. Thank you. sir. ahead, go Please

Nick Brown

on [XX:XX:XX] read the over today's forward you two. moment, thank Mike Q&A Brooks, page tDexter Hello, as us. take CFO the then everyone, a you looking we'll will In to through Goei for and contain I'll And our statements. presentation to joining you disclaimer may who Please QSA. presentation. See, hand and move

Dexter Goei

[XX:XX:XX] Thanks, everyone. Nick. And hello,

slide and half year. growth a customer we percent from strong credits. seven this underlying York for cable issued three adjusting mostly in acceleration the a of Hurricane impacted business I we great you this not was regional proud our quarter, navigating adjustment, by Before together, the in the months this the quarter which nine team. the want in to damaged growth over summary flat for significant displayed the the strength, to We take back mainly once Laurel, if three. in some another of we storm for been Isaac revenue Coast. to Gulf very QX. interrupting begin, for downed have have third again Eltis a three revenue in customers this uniquely And year starting New for Separately have adjustments credits. with was lines hit to difficult from the our Total moment. Tri-State of I'm credits a thank percent power commitment Hurricane Further due of employees the thank year quarter, would in the time. and grown ongoing and service I'll opportunity anticipated And come to our area would delivered first USA by revenue revenue we which Louisiana sports network disruptions saw on point

Our this point use closed available demand our growth had Even in was growth over across local successful one our additional both New a which like by to adjusted Service performance quick July, of fifteen gig optimum, to without we saw York revenue, broadband strong in resilience our disruptions among the with strong additions another one and a and XXXXX Tri-State service continue completion XXXXX. in by entire or for on services the quarter. year advertising, revenue of percent And [XX:XX:XX] acquisition revenue we six storms, the for advertising. the Electric, our to contributed of broadband was area. services, SMB XXXXX Stormers customers. driven recovery And making helped year, Contributing we see enterprise improved business of rollout political customers

and acceleration an three to five point percent to led over performance impact. adjusted strong half Our EPS year and percent the storm's Mobile percent year to adjusting seven in seven a year up over for point year, the for Exxon growth six or year,

of us helping hundred the flow, point was year billion year two one flow generated free year, in forty full six which cash XXX Our date, free one billion already one deliver percent the cash over million of ahead is point for well seventy six year to XXXX.

point date to completing in over attractive We price, QX, eight in approximately year one billion through totaling XXX quarter. the third take just in share repurchases continue to of the advantage million our valuation share

one full guidance year billion two from We or point repurchase have billion share raised for our target previously. the to seven higher

I we And maintain customers to a a core three year we our to because say less CapEx and to this want fewer half rebates was not corresponding to optimistic this will slide leverage have for of On EPS for Cash-Flow arrests times [XX:XX:XX] says year, to end to value the of to again, our environment, of credit XX we than the year, we the year. when an are QX, last our drive we percent one realize to Total four, reported shorten year more outlook, adjusted point in to target in on three year of corresponding defensiveness Turning and reboarded, million to to you the decision recorded expect QX. four over and be to being strength anticipate at strong growth League summer. shareholders. the was Baseball's the reflect to of reduction business. booked date one number, continue remain demonstrating about costs. arson's five point These growth Major due we of EBITDA season. this to what amount the of In which on of expect net business entire estimate broadly, we underlying the represent a expect approximately the quarter did flat revenue impacted, date minus QX from programing the impact the opportunities we the to further RSL revenue revenue games focus billion number year, and of in revenue kind zero incredibly wrap we third the refunds we continue delivered centrists nor remains year our can see two up credits months

three news Excluding percent have these credits. are two the quarter. extremely in adjusted over grew totaled and impact adjusting believe to this recovery which percent revenue X.X at grew We have this quarter, achieved credits, advertising, one year. two have total we that the would for XX Further, million adjusted growth services growth with arson further grown seven three or that credits, four including would with about Residential but are pleased are excluding dollars point arson revenue total percent, our three over point the credit third percent storm would of year front, been the year, year, for percent. and point three point percent businesses decline point stolen percent in have revenue credit storm, Further continue the point over business gone percent adjusted three in the would in percent. All we Öresund revenue all, we one also environment. eight where the but well the one year for positioned for very pleased and year [XX:XX:XX] results six

delivered a storms impact customers negative broadband subscriber XXXX broadband residential to customers five, to flat the a reported residential Altius we USA and XXXX year residential Turning about XXXXX added again customers slide unit subscribers. strong when including of in quarter, XXXXX we ago once results, had additions. The compared

disconnected on the Laura, of in severity region Compounding is you making absence to grown adjustments, right that similar impact over these broadband XXXXX XXXXX, Internet. in customers the area Service of in note Hurricane here the absence and who the of order which to likely reported the another XX customers the Louisiana in impact normal customer figures would would have executive relationship net still disconnect have The Delta. So FCC Hurricane New Delta we XXXXX our subscriber with of otherwise greater damage just by given base, added to policy than have our XXXXX Electric, days? XXXX of these exclude including QX would the exclude these of pledge hit October, that Jersey and In XXXXX advance ads customer adds. surprise with the more in storms, been broadband quarter. shown after in have customer results customers Did relationships broadband which

good small the and been gains, payment have a really progress number their including adjusted we market share on continue and the pledge. the a benefit of days. pleased detailed from In past remaining only of pledge greater about to we pledge mattresses, their the customers the more as on by had in mattresses. about [XX:XX:XX] Recall retaining than six had between of our households. that customers. only due from growth cut feel increased quarter customers extremely end from reported QX, we for on customer breakdown We with Slide last and And XXXXX momentum mobile breach XX we underlying DSL of provides a summary,

implemented we begin retention pace and and had accelerated saw the We disconnect video on year. This gross We attachments. video. below to said, to initiatives an customers of the success again compared retain XXXX, are payments prior as lower was to due now receiving in various mostly

well As the of and video products the for Jersey New we our work some as as the with various disconnecting programs. customers, retention Pledge Order through our Executive associate

very continue we during see seven, heavier performing pandemic. the to to Turning well, even usage network our with slide

gross following optimistic fiber and portion offerings, abroad, with remain launch of big And opportunity. additions. only gigabytes the gigabytes per gigabit year, remain or year to XX gross one XX data Our up of nine the data quarter, up fiver say of the the averaging customer customers triple [XX:XX:XX] to broadband XX five commercial very monthly percent pleased additions Taking double percent the our available and opportunity. elevated it's about use I'm a per XXX one growth and in was from quarter cost it QX second with saving areas representing from speed percent QX over nearly already usage Average enormous month. XXXXX month in in ending up and year. over per where upgrades broadband in percent XX an over percent, home year XXXX, customers XXX is XX at customer approximately just areas we speeds the where in per took up in was of Twenty available, our percent celebrates

which we one XX network HFC on summarize. gig of support our a great and taking Additionally, taken customers representing with our demand. are remain higher pleased on one a very and performance grows to fiber opportunity monetization of gig proportion focused product, monitoring our upgrading continuously network our to We're the to and plant, percent is

rollout are end more percent to the big footprint, slide now percent Altice quarter USA one to services of quarter. we to available XXX our over complete XX year with across that the at consolidated up optic of than Turning availability We key doubled of footprints. percent a XX eight, this the our of pleased we gig second from announce one one the

[XX:XX:XX] speeds opportunity continue faster base us to of only meaningful continue absorb a Increasing rest availability customer drive to increase penetration seven one twenty the megabits. to penetration, to our XXX our have up percent lower, megabits speeds upselling the download to customers. tiers. deliver continue increases today of to percent Our from room of customers see XX about the or point three average speeds QX. for to broadband But opportunity increase to footprint point QX, XXX higher to across five to twenty Internet speeds. of rest lot to of speed seven in Our in gig one our representing we higher And a continue still gig, to percent

nine, once expansion to you want our long we are new network agile build term Turning opportunities. we to on of slide additional strategy, network, remind focused and our upgrading more footprint existing pursuing

upgraded we're completing footprint, up further optimum entire drive now XXXXXX FTTH today our costs targeting improve three footprint, addition homes longer optimum to one to customer to In point revenue million significantly reduce about the experience, passed ready gig we and over homes which for for passed growth. service one US upgrading have and five the totals term

Suddenlink, As approximately means in which opportunity we effectively we one over XXXXXX from be upgrade are approximately enabled and those further our have sizable about on XX today homes size, HFC. cost our homes, upgraded for homes. a percent percent remaining that one with of XXXXXX penetration can XX increase capacity ourselves a But gig

edge seen network in strategy extremely our capturing where strong market is focused have footprint, we Our traction primarily suddenly share. in out

activity As remarkable roll a new on out a our soon adding XX new a reach percent Newbill are about homes level of future on lot customer we help result optimism and we strategy. forward, plus are in drive annually the within which XXXXXX builds, and penetration going growth. and months that comfort us will increasing focused We gives build, XX revenue [XX:XX:XX] average, currently as passed of of

our to expansion jobs, we footprint service up purchase additional to and our added of beyond another which XXXXX an electric, footprint. complete homes is Finally,

continue expand. look cable to I've before, shared for As to M&A opportunities we other

rural for be also auction, partial August in filed return should builds upcoming the with on have to government where areas in we look the We investment for by which starts this FCC attractive. subsidy opportunities week, invest network

data Slide consumers launched very to offering plans. our mobile our our XX, flexible tiered plans gigs dollars business twenty at twelve on this three choose data gig we of for for to the dollars, flexibility three any per quarter, dollars unlimited month. or One affordable forty Turning

we a remains customer experience mobile of pandemic, types our closures of store had quarter see three Momentum due accrued and shorter and an and lineup as continued XX, resilience penetration further accommodate turning a service. But recovery in percentage offerings closed. thousand increased part adjust continue sixty point and with year. two or education, eight businesses. two zero revenue one unique improving reduction and added both sales the a our eight in all percent to and over percent our Our focused additions and during by mix half business net percent, point if our these. launching a government from retail churn stay to customers reduction point to XXXXX opportunity managed with for two Total credit. and our Flypast, to benefit home. million we We of three like XG one our On we S&P sales and of groups, residential the and match expansion continue the grew business point Life one see and reach product work We cycles of still engagement on at capability about SMB churn for our base. in services, six point line. and and we with two cable early We home quarter, ending other data for from families bundling the customer for percent customer saw further from a remain used slowed due with to nearly percent adjusted third [XX:XX:XX] care to will health storm hundred credits four Slide half our stores to with total the year indication the verticals the and mobile excited handset remain broadening services percent have offerings.

two in CNN managed that quarter represent year positive our to offerings. product space. net helped services saw we SMB XX our over our business, percent three launched nearly growth year. the also In first which Year We contribute suite, revenue SMB in additions this

our throughout Our in wave of lowers however, pleased potential cost uncertainty remain Obviously, challenging a customer e-commerce from better than sales business of performing with activities second services have acquisition. shutdowns which our this very is performance we recovery still expected. this increased, markets, Fly-past there year, and

regulatory transaction in expect to the life close our eye continue fourth We quarter a following close to path approval.

growth pleased percent of on sales QX, news has incremental recovery in X.X in extremely percent advertising without year in our basis. news over of in year over Slide ad decline and on we're trajectory to to a Turning declined QX. advertising QX, revenue. year business the compared even year year XX, contribution [XX:XX:XX] fifteen to the only revenue political a report six of from percent this quarter point six The Advertising on improved. business political year six point Ex over

to advertising further advertising from highest revenue the boost In seen from date. in in addition in has level local year October to April. recovery a the saw to its political, increase we a trough monthly

with percent percent users pre website viewership percent are is News year back since XX advertising in well, benefit increase a in increase and positive of spending. starting pandemic which as come a and XX positive traffic in We trends, XX to basis. over on chatter a continue year to viewership TV XX for Sports from increase

market assess our now year. of continue optimistic is pressure cautiously anticipate we segment However, flat for national and the we advertising to with of detail. the business that, conditions. a a that depend the business including revenue discuMike achieve full turn to and our and news we date, to lockdowns. are full branding I'll of we Mike to comeback still the But can remainder in further Year whether more on and protracted over many year in this a factors, And avoid flat, Grau to financials this sports ss continues lot see this can

Mike Grau

[XX:XX:XX] growth highlighting afternoon, our a Thank is for minute well. certainly Good spend hope EBITDA slide sir. everybody. us. We you, I XX. to joining on everyone want doing trajectory Thanks

Isaias adjusted impact point additional sixteen or an three year year in quarter, mobile adjusted For X.X EBITDA starters, seven approximately even quarter our the storms. growth each and year to the and over had that of excluding over We EBITDA percent has rate of in this Laura, year mobile excluding Hurricanes over we and seven dollars year to you can year, percent million grew grew six point we accelerated QX, year. see excluding percent

to year grow deliberate benefit in continue our EBITDA deleverage. strong We actions a of from confident to and combination and remain this customer and very growth ability cost

percent, the adjustment We good to point also you expected that adjusted margin up credits our six decrease some On we year, drive XX, XXX margin slide quarter of margin XX. an can by and feel programing forty business, basis over our regional which programs. driven rebates I'll revenue very EBITDA three now in network opportunity costs improvement in expansion posted slide points year to to for about to is sports the from turn of on this to see sports due continue

these would been year forty still adjusted four eight percent, credits, up Excluding points RASM year. basis over XXX EBITDA have margin point

to for still increase mobile for basis EBITDA over year an percent basis losses results ago, seen capex credits a lighter credits, Harrison six year. and of was ever and flow XX capex year percent, point to [XX:XX:XX] would of three free nearly of to which operating margin up Adjusted basis percent, points EBITDA, though in hours over due forty forty three to XXX combination In improvement adjusted five some XXXX business or percent have year. was best growth over by margin points five year ever less point our or margin XXX the due QX, seven is EBITDA year Excluding cash storms, of cable even margin minutes. we four and achieved delays year point both three whether point and forty compares a

CapEx to total But sales prior would now new to home and fiber was eight have periods six capital of slide XX, without we Turning this intensity year to underspend point investments, on percent. percent relative continue quarter three point the growth QX. in this for been five

quarter, we complete and asked. one gig our did rollout This

the customer noted of I consumption invest by reaccelerating network, changes initiatives As focused that network see impacted our continue to and in remain pandemic, to our in will delays behaviors, anticipating permitting I all on due we permanent earlier, of Isaias, of we base. but in a the related capital third led to course, Louisiana. our a much has repair some fourth storm one outlays to the and cybering of Delta combination Laura hurricanes replacing Furthermore, damage, and in including quarter

billion significant below Particularly we at footprint. capex for cost. build one optimal below However, we superior we we and upgrade billion operate can reduction to and that the comfortably connectivity in reasonable and point come cash are potential out to upgrade term, for and The with network one network point spending continue expect opportunity summary, longer our various [XX:XX:XX] think we in year continue term our once billion. long five In few Agilent full and. the to to point there to about deliver remains a to three very continue of a feel customers to dollars our our initiatives four fiber solutions next completed we good capital the we as and CapEx complete one the billion three envelope think to year years, one optimum,

forty in of cash XX, flow over third in With Twenty year results quarters, performance. free We cash pleased have one year generated prior. million flow free in dollars six billion another flow slide dollars first strong already free year very flow up three than more cash in which cash to XXX to our the free I'm date. Turning twenty quarter date we to very delivered any quarter, to generated year, point percent XXX the report

and increased sum our we to flows our September, from per quarter and transactions. significant cash Our cash flows in cash current our until XXX a new XXXX has three and In and bond percent share of flow appears received a three refinanced our cash forma for relative to inclusive a our XXXX call. electric proceeds point being notes share XX we of the which in last in June, transaction five life activities the XX in representing six quarter, acquisition yield this QX the over share million Slide three year the XXX our from from XXX an free seven outlay of capital do notes include of saw dollar And financing, reflect percent quarter. year of to completes dollars dollars of. to guaranteed sheet months July, for million XX percent due investing cents, price. and we service, third which billion quarter, In seven received dollars activities in proceeds and Pro which points, of point net unrestricted in to a which debt September, million is the Limpus billion, three and average million quarter. [XX:XX:XX] we million debt that one restricted five in cost escrow balance five a a two which consolidated from the or financing the million last number restricted Holdings senior level hundred QX we total held at has overview as unsecured of debt price pro basis approximately presents funded. outlay of the CSC annualized Holdings a in repurchases. is subsidiary represents LaPier includes of percent. Linebaugh raised transaction, of cash This held Altice on LLC In is on percent yet life structure, leverage is six of issuances assets dollars discussed has percent XXX balance nine the pro is basis point that silo forma four on now the seven XXX total forma, of In five Cablevision year eight notes forty priced and basis. of dollars is times new CSC XXX term LLC. million the reflected quarters eight to and an within this separate plus of a and point the two XXX point from at dollars nonrecourse seven, LLC. is This to XXX last our notes three year for Cable dollars been secured times. five nine Lopez as the not of new senior life eight a sixty life leverage facility price four sheet new from quarters cash basis annualized has blended one USA are on the loan notes

be Holdings pro times LLC debt that proceeds is debt On CSC update transaction IPO on and slide savings point Lastly, our reporting interest due similar four the activity. an XXXX leveraged in [XX:XX:XX] Twenty will relative from recent forma to a equity to for our interest on of expense refinancing the initiative, to net basis. of eight EBITDA XX, we cash timing twenty provide

cash point point However, we QX, four on interest approached a out, in one on four to of and to savings. dollars interest we going to of current since eighth XXXX run cash rate basis eighths refinanced zooming to have for in monthly implies savings forward. yield that offering realize unsecured notes, expense at approximately happy annual cumulative effective million one XXX point six ten percent. the Anadan five billion dollars interest we an we seven out our that June In note, taken XXXX, seven are we a XXX expect relative very And illustrate million over

a to eighths record lower year and percent and CSC notes refinanced point QX LLC. expense cost she's quarter guaranteed entire would XX note, billion dollars. Holdings labor in half than last new in three leaving nine three levels, come of our interest stock six and and less Holdings unchanged, into debt hundred our a four five dollars also the This we of one LLC a were borrowing We and coupon of percent point four low to similar GSE million nine for our further from If percent. five annual this at identity refinance

balance debt than average to nine quarter point dollars our free undrawn of made one generation covered will our balance going CSC. way we our this manage and We the the could progress Additionally, with be We six same either revolver. maturities the of bond and in [XX:XX:XX] and weighted which all or the sheet the sheet. remain XXXX, comfortable years flow know billion resilience very through to Silow. extended Holding refinancings, cash proud greater before of of forward that continue that at by we proactively annual strength have life of

Finally, updated on for twenty. Slide Twenty provide XX, we our outlook

three excluding expect growth EBITDA percent, Total still percent, year. year six adjusted two in as basis, is are the revenue is we year. end date mobile point credits. point guidance point QX this delivered maintaining on year We model EBITDA growth adjusted faster north growth to the the would growth one revenue and two We date this for zero of percent and an reported to compared to first but half growth be

to very half which is CSC basis three address at LLC, some remains on a billion, including point and level guide two storm we damage. quarters than A to to which times less temporarily comfortable. cash annualized elevated four Holdings We continue to of one leverage are dollars capex at five last a the target CapEx

team towards point financing the likely up favorable billion we've remarks buybacks time, year, billion one echo higher dollars the and target that Given this level the this the of resilience end Dexter's to least questions. our point of the one now that, This will the around share and environment, of share short in repurchases once resulted we target billion take are now share five at conclude, guidance for and our consistent with we just remain which quarter. fact Maltese from reflect range strong previously. want of with leverage is we to end in of times. a already again seven And to any of I very as their this proud eight dedication incredibly in buyback And has QX two during term. raised completed remain to that We've

Operator

to telephone is you your Morgan. press ask to the to reminder withdraw a moment the your a press Cusick roster. a question, And for As first compile pound star question need Phil report key Q&A JP your to on [XX:XX:XX] one just question, from

Phil Cusick

[XX:XX:XX] guys, thanks. Hey,

So I can. if a couple of things,

First, guidance you for just a second. about talked Mike,

should fourth go can Let's you year, and and back again you for think you the those give Twenty how of these growth And about twenty of EBITDA second, how Can in this to. say renewals this dig you growth sustainability revenue point? with a anything XXXX? your to your that. guidance room. up through of we quarter Have one point, think in in into At then for lot run are can both you us in about at taxes this

Mike Grau

So right, that open we're we of we a the [XX:XX:XX] year. quarter, little do we to in to think we the the are the in growth. guidance, I EBITDA adjusted accelerated continue mentioned guiding anticipate relative on that and only And growth towards at half first of are you're terms fourth ended least

I think we're that's any where more don't we But on kind growth. So revenue going get of are than to specific that.

some quarter. the in We fourth headwind will have

cash of interest of benefit pushed you some know, of enhanced XXXX, towards terms fourth given that in you credits On XX adjustment the an that in XQ, think that as element alluded would year. I fourth expense, saying for a in made a we got quarter. we beginning additional revenue ISO beginning we lot full credit will fact know, of then year, the our in of XXXX. we even guiding deductibility growth in from have the still the the as Act Oracene the anticipating we entered out to of the Carers to we But and taxes, of taxpayer the twenty be federal nine and Twenty we

Now, full federal we year, with very early we back transaction, think a that I the year. beginning saying the XXXX, taxpayer we where actual when that the I anticipate started latest were we're mean, if. in being the of cash burden in in tax a

Phil Cusick

to year. [XX:XX:XX] tax push going I was the to actual burden just in that continue

Mike Grau

I is the neighborhood XXX somewhere of placeholder [XX:XX:XX] a in Yeah, number. it's million, XXX to think reasonable

that that always a continue. in and efficiencies area. of And pursuing We we're room for channels There's in some number regard. certainly strategy

Phil Cusick

you. Thank helpful. That's [XX:XX:XX]

Operator

of Nathan. Moffett Murfitt Craig [XX:XX:XX] Your next question is from

Craig Moffett

how sort discounts with on how thing, didn't Dexter, broader the have this the sort margins Hi. of margins, out I given I gotten, business. allocations percent within questions, A the said for were out of further, think high ARPA how think the can about then then the complicated question. he and bundled in If once couple forward of the and its and you bundle margins you that XX hours reasonably might should question I feeling that. wonder [XX:XX:XX] growth to if do that now you and of broadband, we And actually now as thing? discounts of percent down you'd of a get that broadband, look sort are our think just unbundling just getting first you're going given be what And upgrades on think and break and components margins? close out you revisit XX look

Dexter Goei

XX broadband Yeah, just X/X you so crashed we're our know, two I broadband, by percent. and eleven revenue XX, [XX:XX:XX] broadband, grew crew was it on percent think crew, about point the our

down. So percent breaks the eleven point two

is quarters very we know, right. our about growth All called accounting. it of south third is. is previous and like the One third it one You third one of of its much it in when

that's So pretty what consistently seeing year, quarter. over quarter much we're

that’s on a you at growth accounting exclude if the group. eight know, of you you in or percent broadband you're if ish kind type So, allocation, cash looking pretty cash in

margins, thinking of you probably how in mean, know, In as you XX running terms percent I north of know, in of today. certain we're businesses know, you parts our about we're

and from on drive customer which accelerate XX help to when going products. Yeah, me you and then, help percent think us in capital guidance we the mean, we interactions infrastructure, higher continue to and we you here to hopefully focus shift also drive expenditures ARPU what our lower that upselling away you terms forward. ask get And broadband going to gross the know, clearly continue know, let's and growth. get know, higher broadband, are more first and You to give I'll going some do, question there margin in obviously, margin I and more video of is broadband

Craig Moffett

Dexter. you Thank [XX:XX:XX]

Operator

next Goldman question Feldman is of Your Sachs. Brett [XX:XX:XX] from

Brett Feldman

know, of impact that ability you point, your competitors, had obviously business, quarters quarter good EPS well. clearly together we've solid to that chief did your Thanks, put and this not [XX:XX:XX] seen and as very a at fiber Fayose some

we Twenty question efforts? and markets any competitors? your the make to into had like their trying twenty what like, that the to to move been in understand into between And getting the look and you really adjustments? you seeing step are know we some as way and we And fiber past have you And think run keep is I this So your quarter is one. we're third competitive up them what's the you know, dynamic in quarter rate

Dexter Goei

listen, numbers Yeah, I numbers, saw an of broadband of disclosable the of FiOS strong The KPIs haven't files QX the also of growth. you we had, in on installations. board side. over were less And their present AT&T know, particular labor aggressiveness either think you you. from on in issues [XX:XX:XX] the in know, through all mattresses, acquisition given know, saw QX. from terms anything good, some you very just and to Thank terms customer we've marketing We seen them I across outstanding in

date think I a terms about year, you broadband know, catching so XXXXX, year you than there. to were little bit percent still we last XXX of know, in And up But, to subs. date they're higher we're

on and accounts And to know, grow customer so, you focused very argues. broadband we're our continuing our

able at of despite fact that competition know, the so that of QX, from outrageously the there, And QX out in different been we not balance end we've the to anything results. and they've got defend seeing nicely got we're you that strong gains the all

Operator

Suisse. Mitchelton from the next Credit Your is [XX:XX:XX] from question

Doug Mitchelson

know, in percent to us you're happen is just timing you facts the when the scaling of you us the from XX you the for cost much, savings Ah, Dexter. Is when expected? connect so network in the gross you pretty happens. could, OpEx fiber remind adds. because And That now fiber footprint was around interesting. sell of I the Thanks market, the is remind hoping fiber, [XX:XX:XX] some you what as the you connect when expect and roll right. to customers you to out think, for turn makes fiber Kulaks and connect and fiber. starting And sense Not fiber for to parts and just I point sure you of then And them you build customer lots over of costs the Mike, you are fiber customers make to all Suddenlink that want know, when successful? you network. I see heard reactions or

for tax You reasonable heard make sure I in want you would something percent that said XXX a be, XXX like I million placeholder a to XX cash to because rate. right. XXXX, I taxes think, was

Dexter Goei

hit up first? final early out how quarter obviously see what's days the picked still to I roll quarter. question We're don't why So rate nice rapidly [XX:XX:XX] very is the in has with some the on selling over very the

on takes connect just the cost the absolutely fiber well as comfortable OpenX customers subscribers, terms of installations, normal, think expected it which in our it training still as connections in would anywhere we time near with in of and very which newer efficiencies to OpenX and terms I where our we're is see where we're be techs, takes want terms field I what the in of not to technology. in as getting

the us more the the this be on particularly you very see become product, here. this a of the to closely, improve upload training terms home, of we more speeds, know, in put as up But side efficiencies So work we're continue resources this very, for relevant runway ahead monitor is from going just people demand of to huge going pent and connections. a to lot on very of to

we'd story with some think think And a having that to to start have from is this continue interaction data is you share. grow points quarter as we on so guys can we to I that and I of like quarter this base the more

we're any to yet form And cost still to effectiveness, or your where in about point I as want too think shape be. think it's early we to today. there I don't

terms we to Suddenlink. we we the to I today, want to to last But or home at we fiber effectively to laying in Should what But we're think pockets you to terms going know, think upgrade I doing that. to focus in which in-house large, of are that on technology. deep HFC us to fiber Suddenlink that new fiber? want fiber look plant, to very, terms allow into edge what certain of a the to drop adapt very wiring and of do are where and going will outs by home, given we're our last positioning how that we're do continue on full the in I'm on there, footprint, the we builds to

Doug Mitchelson

Thanks. [XX:XX:XX]

Mike Grau

and a I your we're heard mean, rough XX you I in giving And may rate. I I estimate, [XX:XX:XX] Doug, little using then, certainly response percent know taxes, a to not was on question a have

down I use of inclusive continue little bit. available know, you didn't to to We a effective And a rate states. we had that XX us certainly to kind percent opportunities of mention, manage number

Doug Mitchelson

you [XX:XX:XX] Terrific. Thank both.

Operator

Swinburne [XX:XX:XX] Stanley. from Your Ben next question is from Morgan

Ben Swinburne

about than you well on obviously which even But bigger think wondering that built just is homes the think that's It built. to out there pretty go down. for then there [XX:XX:XX] you're if nice good if if of growth. video wondering a maybe know, I'm and sort but of edge, on the you you're topics. to area. the about and remind us different take to you. there's, and opportunities a Thanks. you seeing sub continued maybe settles you Maybe Good guys curious afternoon. could are returns mentioned and to gives term. for maybe where way him, opportunities sits I'm XXXXXX a to rate has potential Two the focusing know around that And just based economics Suddenlink, year. aren't higher broadband on number enough a a roughly penetration longer I us Dexter, One, where I'm that. kicker to trend you cell in

Dexter Goei

the and in that's Yeah, were were of first Selling mean, high I we I know, When the you low rates, in on XXs, to your in now, were video. very the listen, selling class. XXs. rates we very, best [XX:XX:XX] answer Ben, a first high just question kind mid on the

that's XXs mid we to know, mid the year, the You in high second as off really of XXs, were the XXs. as high to this seeing and numbers fallen to late quarter

related. pandemic is it of some And

of Jersey in some roll at or we're offs New look comes when we that the order As executive people. things of pledge and promos of mid-XXs doing it debt forgiveness and terms to

there's and people some disconnected stuff a people. where mumbo-jumbo big there's So we've of reconnected

would of the safe as in super is country a is they Right. a number. percent there. aren't think But numbers it I kind probably goes be historically. the So from that XX And clean number

quarter touching of is but that's thing, over been challenge we over kind of the see again, we'll of stopped agile, we've more machine a and there up to running from used period. back So XX as biggest and be getting high biggest fallen get know, in obviously In terms even all to given a just the lot where have quarter to pandemic. the significantly XXs marketing we're [XX:XX:XX] But the where normal numbers. it and from the we you mid going has during during the work the

there to think and focused a do? we're XXXXXX a XXXXXX year, for lining our can this So delivering on to extremely we're the ready years, we're trajectory. year, really we year do average XXX try a and confidence three next not. Yes. Yeah, year? towards Can getting we're end definitely up more we plus. in more? of push the year If more. lot three for But crews them do Do Probably new for the going going we looking with with of next are

home that makes that expensive, buildout us some you can't for that on a be to obviously, to be areas on, be. economics what the exactly be big return some tell we're contiguous already a thoughtful opportunities the are though to will how very cost is doing We going that here, some know, were may post sense or from do opportunity subsidies, particularly some even super just of see that. small per going for how standpoint, ton to going there be But will you to I very, Ardell. here. We're

number what be we think know ultimately opportunities will to be. results a about what I open that kind of will going be and So we are the the once more are

Ben Swinburne

it. are are it's imagine, of your and you right, get those go [XX:XX:XX] to I sort if completely God, so opportunities, market tough unserved, after

Dexter Goei

right. exactly That's [XX:XX:XX]

properties. answer, want build expect So, the you the very and know, to want you constituents not. push that communities we continue out build get we first contiguous know, to which And that will we even to particularly small out to for for for, are some subset basic or

Ben Swinburne

[XX:XX:XX] wrapping you one maybe weren't just week, question up in into that last then, obviously of. Yeah. aware Dexter, next case election And

Dexter Goei

didn't You want the but [XX:XX:XX] there's in know, I a lot on the rain. today, wait to focus of

Ben Swinburne

about fortunately, greater stuff Yeah, industry. aren't think thinking politically, a hours. just going cable. targets of things you But at Three [XX:XX:XX] a guys, you're but focus you how And, how financially wondering this too sound like look least for to lot wondering A potential FCC. it know, affect out could all in it like the XX among art the I'm any political hours. Democratic the Title two, as focus for just cynical, And Washington, to cable seems the stuff on and works be, mean, implications maybe of me, if you Right. the. know, implications of not you to access, about the I you to you.

Dexter Goei

overthink think [XX:XX:XX] you months can to lose you can you to to it, sleep it's go crazy ago take you any Yeah, snippet and about you some know, from, difficult it's and over because, take this really know, six then Right. debate rhetoric know, a of it.

we time is could do it to to a really altogether. very And something or act be to want on to and with to not, of just the very, administration understand to else sector is relative overregulation enact, FCC long anything going You is last that Right. any basically type of saw going could process you as time. something our take that whether know,

I elements this I country enlargement potentially continued is proactive and reactive this new I three-year think this is a think a you even know, see. things. the is think on a be broadband wait be extremely focus and But, always that reached But, into obviously access. a as certain in with sector, of is we'll I not on and administration. even great focused yet come respects know, that's many We'll the improvement and screens regulatory think on dialog So our many you may

the people And going incentivize I criteria that. that, to so do underlying be continuing to after to is think

see for know, on there's the of things different that to can demographics? we come worried be we imminently that You that's up. again, there things But do need subsets sure be horizon about. I'm that we nothing will

Ben Swinburne

[XX:XX:XX] Thanks a lot.

Operator

Hodulik [XX:XX:XX] Your next question is from from John UBS.

John Hodulik

rich than hints Atlantic target lot or second the into look but you up sort in or But are you talk transaction you insight sort of looking what guys growth any guys for think landscape be of cable proceeds sort a give I use great? like? think better you there, about, you for. any got know, the the seen of looks environment a among broadband passed landscape contiguous is queued Obviously, expected regions in to Houlis of EBITDA updated a you the we've Can you here? I or under thoughts M&A what of look penetrated And assets just sense lot to the from as of lower first, there's any to the light [XX:XX:XX] the smaller or or half on situation, companies sort the cable small obviously about a how then margins out us we it of any know companies. given at

Dexter Goei

envelope your you the think are doing guys my proceeds of and the you math. [XX:XX:XX] I I know, use Sure. may of Listen, path, probably back

guidance plus non-life right. billion based two accuracy. our you guidance, know, on You a Houlis is know, All

Houlis buybacks proceeds. just and saw do So more some or that QX we expectations given two the and see on of able EBITDA we'll QX billion Houlis be QX, in to growth for we non-paper and

of we're one billion one proceeds get. know, You the net point going to

to extent to it's all that buy think or that, it any don't some fair to opportunities deploy know, see use the shares. of we I back to M&A You say probably that will attractive

I great. of stuff all side, like your under know, criteria, that So, M&A sounds you you all contiguous, cable, know, the On penetrated

and there's unlock different of electric, us there of out that know, [XX:XX:XX] XX Suddenlink, necessarily though that there bit Service we're contiguous, been smaller of been in even all of in not That's marketing of additional over or matter lot. the think, And that SMB things. side. handful a this interest we're network seeing, consistent here new really looking very in know, here. stuff. technology are not pop operational given through quickly and operators scale, has can. And, in customer fruit been environment, not by that you we for picked on environment, both some and size we're But the are know, service, on it's the guys low like you network small that business. easy looking I products. those out There percolate residential especially obvious a BXC starting given It's lucrative are from The the just of hanging that's assets the increasing little up to in to bringing the We of Electric, a just at and very guys there. know, as to And given side there, has it's do SMB and obviously, a upgrading, types And the lot the mom adding, you two as when investing think a any I lot smaller three synergies not penetration is been to very invested it getting smaller a XX service us you does in salespeople, side we the deal out the rate operators that states, terms given all of heavily place. the

will are hands returns able on terms you best M&A the opportunities So, in But be our get capital use our we to know, everything of standpoint. of that you half in four, absent terms think, XX know, cash flow yield four equity when XX that, and buying, four, free I at we're know, you financing, Right. like you percent. a we percent know, percent, of

the continue in So outside best will capital meantime, be of that of M&A. use will that to the our

Operator

Your is from from question next Supino Peter [XX:XX:XX] Bernstein.

Peter Supino

I and September provided subscriber more would I in Thanks. love about territories, ask the and was some in to suddenly know profitability customer and the [XX:XX:XX] helpful or and different to Suddenlink, levels in trends color Harpa given Suddenlink demographics really whether there. the about on curious you growth of particular

Dexter Goei

volume public there we our Peter, [XX:XX:XX] out Harpal disproportionate demographics. chunk the very it's our in know, but the other is clear coming terms on Suddenlink, you that, break of out of growth don't of Suddenlink which similar to numbers, a peers Hey, is been from some

a York finished. on has average in And prominent are And So, upgraded footprint the benefit less been as to is you broadband or driven know, New Tri-State side, Suddenlink you throw percent the versus growth as opposite we historically it sub there. call good. lot side, you a let's also know, B, has a from by the of video historically, margins We in or of in the XX competitors as lineup competition the worse on, in in side. are And earlier our it we the Suddenlink zones, is which just gig the in have Suddenlink been ARPU as diversity higher see our we've one that's by a the it Suddenlink optimal Suddenlink. sons the sense consistently penetrated lot upstream on been Firestones And from not intensity well. we than on Pu's on better lot the channels programing the the area. five gross Funnily UPU footprint of the really to than side are broadband than is broadband the that a makes who enough, which

know, it. you insight some you maybe gives into So, that

is that businesses Suddenlink of don't the it is than a you the One out things also on SMB and break see is the business of side, up of penetration stronger you given business when that and side the much the the try on two them. growing

the side consulting optimum that side comes and of However, most side. profitability the the dollars flip does it growth advertising from is and

the overall So for in each an other. of certain that one of the equalizer terms little consolidated a numbers is in property, respects bit versus

Peter Supino

[XX:XX:XX] Thanks.

Operator

Research. next Jonathan of Chaplin Your Street is question [XX:XX:XX] from New

Jonathan Chaplin

guys. [XX:XX:XX] Thanks,

the the from is fourth if there out time Or do, an when that sort You up if repurchase processed over about this the that? could date questions consume isn't over will point not, And on with quarter extras Atlantic one be of my broadband part accelerated deal would is you And use at follow the to share point. billion which it be there that the at broadband Atlantic proceeds over? we in would would think is of in of a terms share sort the like one spread do repurchases? point program that another of

Dexter Goei

broadband, latest going date on November Atlantic just I answer know, you an the [XX:XX:XX] think offer XXth. our on also, had the to expiration

But the over next So be I point other repurchases there's than reiterating or aggressive as continue today think months. other or a for that trying some whether market terms are today, to try doing it we to spread do for of to ways deploy to levels there the accelerated of could it given I open in in me where to offering. obviously, the we'll repurchase lot trying that, that, type there's structured XX price opposed just of steps one be small one and opportunistic we in anything see an think share billion, the is could

Jonathan Chaplin

it. the Atlantic Got back to going just [XX:XX:XX] broadband And process.

So you York, still seems opportunity fairly is that as the New that for there? regard from still or definitive is as there definitive. an Do there you letter

Dexter Goei

[XX:XX:XX] Yeah, that very I other listen, controlling alone minimum, think do with strategics. two cognizant engage to shareholder a strategic a we transaction at to to the to were acquiesce, needs let look

if XXth to on I guess, move on to I based and chance you November formally, fair we've his being being say forward there's little on you So, and think it's know, his you able anything project. us But, that know, know, to see today, shakes until Roger's got statements loose. to that of able collectively this rhetoric there's his

Jonathan Chaplin

we investors seems to either repurchases. next [XX:XX:XX] one Thanks, question Atlantic Securities. had of to TD one point broadband way, It Cross guys. went Bentley like billion get share [XX:XX:XX] is Your from from

Bentley Cross

on Quick [XX:XX:XX] intensity. capital question

some when we on down put get wondering that. billion of dream Just scenario if and time you to one can frame a that

Dexter Goei

this lot this year we the permitting year. We're Edgehill's. that on we've obviously with budget for given going restrictions home of run and budgeted I Yeah, to the I our has Same the think construction a fiber on not to We it do mean, to numbers are [XX:XX:XX] definitely thing not that hit into. rollout.

quick you the up resources ability in pace. And quickly got and in homes of can process us the for So, the moving to fiber in year, plus stuff of, we the you the we we do permitting go the to because see year. know, that at of process that and extent the out machine of reach we're next know, next home a today going are the first probably you know, to given milestone, XXXXXX gone availability do aggressively and has and terms what running, we've more as as we half to

thereafter. per know, probably we'll year plus be You doing million

do just three a the we're math, So optimum half and years we four if at looking footprint probably entire complete to looking on you're before we the FTTH.

Operator

[XX:XX:XX] of We City. have time final is your question and Michael for one Rollins from question last

Michael Rollins

a the you're own strands more or and your mobile good a build in more to to the a time terms might fiber to to offer home, partner and building provider? a of looking about and market Thanks. where capability into able to fiber that, layering over rolling in Curious talk leverage you you're looking another at solution T-Mobile be and your could when strategy you're [XX:XX:XX] either or in at lot if you infrastructure how the are afternoon. building network bit you if some related and Thanks

Dexter Goei

the our rolling not happen. So we're fiber [XX:XX:XX] necessarily take footprint, to yes, in that into knowing could putting that going we mobile could out first, our exactly are high clearly just your But of second as counts forward, multipurpose Australian fiber what planning very terms strategy. it that in question we across is so

we with know, You are dialog good with T-Mobile.

now. them on We are right roaming

term timetable We a terms T-Mobile are of off and in ourselves the preparedness. their the is function And a network. discussing very onto near of network really Sprint holding that

continue with opportunities is to look own And at other a products their to But some with the and additional business. partners other going technical grow services thing near-term SPSS, that at that do T-Mobile near look some our expect Some term to happen. and to develop to factors. we very to we're

terms of. in going that's allocations that not think capital do are relating call it let's probably something we sizable building lot I to of a to infrastructure,

exchange looking more help we think in as or deals, those infrastructure I where to focusing a subset for capacity who people out we people some potentially like on opposed infrastructure build have may could partner up buy model their build near-term a some of types region to of of of with or and spectrum the infrastructure.

are very near-term economical Thank lot a around. that doesn't that much, economics drive the given, the subscribers that moving think probably is And given of everyone. probably near-term our less fact I you that attractively.

the And whenever. Kathee, Nick follow your Sounds that's Mike like last myself are Appreciate time. obviously, available for question. and questions

Mike Grau

[XX:XX:XX] Thank you.

Dexter Goei

Thank you. [XX:XX:XX]

Nick Brown

[XX:XX:XX] everybody. Thank you,

Operator

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

You may now disconnect.

Altice USA (ATUS) 29 Oct 202020 Q3 Earnings call transcript