ATUS - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to the Altice USA Second Quarter 2022 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Nick Brown. ahead. go Please

Nick Brown

have for USA's thanks who we joined then are take Q&A. end Hello Dexter joining. Goei; Altice we'll and presentation CEO, through Grau, at and by the you for everyone, the Today time CFO, will Mike

Dexter, may X. to today's on presentation read disclaimer forward-looking contain As you. please statements, the Slide over

Dexter Goei

customer X.X% what the Hello some margin normal seasonality net from about market QX with pandemic. business. flow on Slide Free fiber higher performance our the not everyone. second elevated X.X% our year-over-year remains quarter residential XX.X% levels for of to $XX,XXX in OpEx growth. generating EBITDA revenue kicking we’ve I’m were in year-to-date rollout in activity. but coming due dynamics declined which to by Revenue losses $XXX adjusted years investment new-build and off last year-over-year, decline accelerate declined QX of a Residential similar QX with driven with to cash $XXX of quarters, and pressure few broadband we’ve a with robust both summary with million of the mainly X. incremental which seen to reflecting the even and future couple drive a million seen

and continue grow very pace. fiber build plan. we million network accelerated fiber surpassed of quarter year many fiber prior passing much on long-term expect incremental X.X to rolling fiber out QX passings we’ve as our with the at In total back At to deployment entire accelerated Optimum fiber has an meaningfully than added Our we achieved customers track a faster ever pace XXXX. and at are in the with XXX,XXX

multi-gig York area. positioned of we launch New broadband fiber the as provider the tri-state in the now fastest are With speeds

Our XXX,XXX significant Optimal customers. with growth business than broadband also accelerations offerings lines more mobile promotional saw cyber reaching of attractive for Optimal

And Optimum national more distribution one marketing, across and we to the ensure stores unifying channels our brand, Suddenlink of continue consistency telecommunications to seven experience. powerful we’ve opening brands simplification Optimum rebranded expand in an of Optimum which rapidly Lastly, our under the all will country. including offers sales

this of year our in in grew air Services Last, in X.X% trends and Service down Business about million of in million at year excluding grew including a the the end here QX year. of normalizing. QX air year-over-year of half resulting reported revenue was but loss when strand of million backhaul begun have our growth Total and revenue extremely reported reinvestment X%. our to year-over-year, more T-Mobile which revenue declined QX executing improve revenue we in in revenue. declined prior-year on we’re remind of you our To our on focused of benefits in of strategy see $X X.X% strand our due all X.X% trends We business Slide was initiatives, growth to forward. customer Business advertising This in $XX a XXXX. our the is shows this division to Total about trends was which the X, mainly air down about to coming terminated key QX. the strand detail. expect With million excluding on going as $XXX revenue with residential contract comparing overall are this out of X.X% last a $XXX X.X% basis, flat second revenue. news

other difference broadband second normally about QX year quarter line this weaker Slide business. We XX,XXX to is in QX steam QX of the our full ahead performing net towns. the Recall full we we initiatives. words, customers to up broadband Suddenlink with to see because confident the of we on these and from XXXX. net In in loss of in to two exactly and investments, customer benefit are business between the pandemic relationships XXXX customer residential a variation the of as four trends seasonally loss XX,XXX will years our prior underlying remain of come growth various XX,XXX. quarters and reported but Turning University for pick X its residential average are to our a suggests is exposure across The yet this

and We broadband also which of think fixed switchers additions and level couple builders. market is in the the see over the continue promotions our fiber past lower from taking there Clearly pressure incremental of activity unique quarters are some to of some footprint, us. and more wireless across is don't gross to of market we growth with aggressive out

lower Although normal. visibility remains than

to confident still still thirds end of services are X we to accelerated are four by XXXX. fiber expanded delivering next bundles, improved and We new-build channels is customer our the the the footprint mobile Slide on attractive track to with of complimented XXX% of fiber a by of broadband passings than that more activity two total multi-gig where distribution years, entire return targets, growth our X.X we service. a term more customer fiber recap sales and our will fiber longer speeds a multi-gig targeting home to million over bring rollout, broadband

reduce and fiber And In fiber on XX% and percentage much out comparing symmetrical service, by company's internet these churn year metrics more introduced of New paying tri-state The customers seeing as will to points X service time, and first of area. tri-state that gig X of which the churn select us NPS Island, we well We fiber of the making building seeing we've upgrades Slide faster roll Optimum of is to fastest technical network the by longer speeds scalable multi-gig snapshot in of fiber fiber really with current and now customers is footprint demonstrated expect also benefits. Long service we are gig internet to we're our our them term tiers our the for more customer end. to X X improve When experience additions costs. speeds. broadband a is future our fiber Given higher progress these customer every and quarter, and annualized and trends. continue in June fiber XX% X fiber network ARPUs to reliable HFC we're multi-gig provider broadband very drive network, as in deployment off. the higher capacity entire still maintenance with allow on it offering as the our tiers start progressively higher this improvements, strategy evidence network build we residential gross enable York reduce areas across will and

one out incremental COVID QX reaching total as approximately Optimum passings that during we had of emphasize quarter, X.X fiber the is same passings past as of constraints passings, year, showing this XXX,XXX is fiber mainly we've permitting entire in You can in million that couple see new its in the construction we prior that our team first types row our now To and in really many released rolled over the without the stride years. hitting the footprint.

to growth deployment weather. summer QX more expect investments We months on to passings the and at fiber and in incremental conducive better are remain elevated spring increased following construction in our with levels

about additions also can that run quarterly fiber customer is rate. double to accelerated our QX, see which also You quarterly prior net in XX,XXX our

aggressively. been product we've migrations and more As marketing proactive doing of more the

June. XXX,XXX our coverage. customers fiber penetration is our FTTH passings penetration, X.X% at reached where areas of total custsomer with our including in cable we and over fiber total of Note, have end customers have XX% fiber the We customer both these fiber

a X, On with recover we're to approximately fiber reinforcing our new-build Slide this year-to-date XXX,XXX well XX,XXX also add added here. QX us organically our position and on you XXX,XXX in upgrades passings putting say we've So can year. track passings

of total new about footprint fiber new-build activities around the We third edging are homes. our be here one mostly out Suddenlink and will

year-to-date are correlated into To first applications penetration homes achieving awards XX% We X,XXX X,XXX our awarded homes network of we in Louisiana were awarded in broadband we to for QX homes growth. Arizona subsidy customer our which expanding were after Arizona addition new grants update in XX,XXX grants. in of to In the consistently we of totaling new is $XX program X,XXX received the in million areas, over and year homes QX. the subsidy

the deploying where FTTH We all grants. areas be will we receive in

usage. broadband these we megabits support have The average very levels to that was speeds as total across the excited customers fiber our under grant public taking XXX fiber average. be X data base customers and deliver bridge trusted partner the And very local areas. demonstrates coverage help we're the Slide underserved co-funding as about rapid to very of speeds this our but for continuing runway download QX, to are the of per to take opportunity fiber to sell governments unserved are We second, on just divide. high twice on long services can digital focused

XXX in keep continues the for customers quarter. Our customers our base we usage market one-gig a broadband monthly XXX lower, especially only per and huge broadly. fiber we to video speeds, driving Around with XX% in speeds on still still Average customer data multi-gig speeds as streaming so XX% QX higher network, more was biggest every our QX, gigabytes penetration this of second, have grow megabits of or to increased opportunity customer to takes driver.

customer fiber than of bear of end data unexpectedly, For summarized no penetration right and but pleased extremely plus the be this There's multiline our of business base. we've our of XXX,XXX technology expanded the us using mobile for offer of than of more highest this our satisfaction, customers fiber internet structural update Slide MVNO slide. using mobile to customer customers with T-Mobile per offerings about And Optimum data more broadband Incredibly, amongst about full of in on we customers allowing month. sort on we Recall converged competitive customers month. wireless recently. by only which attractive competitive more our XX in we each including mobile one, to in March data hand base of of ranked than the terabyte we're an discounts, one driving XX% promotions, agreement provides launched are service have growth ASCI recognized reached QX, X.X% January excellence quarter one representing number side terabyte residential support to providers are more an being as our more of trend not one in where the announced our

Altice customer churn we've majority shows growth maintain will forward level mobile provide the broadband gigabyte customer the $X aggressive at believe for our Optimum, as want underlying tremendous an highlights we higher Even the and months, marketing off this experience, the this growth XX which Slide huge employee and expect of preparing USA drove customer across last tremendous the in additional though well. over of going to rebrand company mobile their efforts customer Suddenlink consistent Our one week. offer for to rebrand thank updated for generating the for and few to all a improved of teams excitement we milestone. of per I kicked a some month, again to this unify create of the and quarter. the could earnest this promotion work help

QX, to business with our strand but already growth support in distribution almost after level negative in point, QX, to of execute sales of of normalizing our this the last in target revenue air new pandemic of are as year up channels of XXXX. Slide year's as lower leases revenue on the count, Additionally, with expand a to and end end soften comparisons at we've year, the the continue impact door-to-door retail to due the end excluding head growth. the Turning services, reached required below peak XX all in is into on X.X% customer sales of line year-on-years we growth locations for is ramp of We've improved and the number year-end

prior see We that ex-air customer levels to X.X% LightPath in may that a space grew the positive we're economic was the here. revenue in activity we're SMB mindful and more and but revenue back saw pandemic. the not other And delay growth today to continue to material the QX pickup backdrop SMB strands flat. yet trends, we in

QX. performance. the in again green with And and grew year-over-year and financials in pickup some see Mike review well. normalizing expanded launches Remember benefiting significantly detail. weak, to also a recent as the increased new Slide up market half, is in but from auto yet here shoots LightPath we're business see benefit sector that anticipate coming over XX% comparisons more some year-over-year didn't remains at of this now in should it although force. in this expansions, of network from the more The political We advertising XX contribute QX year to news the our quarters. we bookings to this a QX recovery. sales of growth X.X% in net second I'll midterm sales much starting However, expect summary to elections, Revenue given hand accelerate our revenue

Mike Grau

Thank summary you, Dexter now turning of to Slide for financials afternoon XX our good with I'm and everybody. quarter. the a

QX year-to-date. performance adjusted declined with declining with EBITDA X.X% in revenue Our similar X.X%

adjusted in to cash of higher which the operating Our in percentage QX, customer the margin EBITDA areas better drive quarter, was below we've invest prior reflecting revenue and mediums higher year some X is long-term XX.X% outlined costs to growth and to flow growth. points

continuing Dexter recent we XXX we and retail stores converged over people and reached door-to-door dollars out, pointed our mobile put and now rebrand behind For over have example, as are offers sales campaign. XXX our to marketing

contributed see a by fiber XX% or XX, the free operating reduction year-over-year up new capital XX.X% cash build XX.X% investment investment. flow. QX in in CapEx Without quarter. all to intensity X.X%. prior less intensity EBITDA XX.X% This was our cash capital On have growth Our driven up Slide CapEx our can been in home fiber increased year was from you and would

and highlights once the between years investments. CapEx $XXX the new-build we cash million growth after back XXXX accelerated we lower given CapEx basis, additional of a CapEx of $X.X support the year. seeing to $XXX million totaling rollout, $XXX and million build. $X.X $XXX $XXX components quarter of in in XX elevated target CapEx flow all additional billion remains to expect year-to-date, after on Our start prior that million QX is that free fiber to Slide significantly accelerated of of million about to for scaling $XXX of to start compared including to million Remember XXXX our reduced CapEx a couple year-over-year, our billion cash FTTH which

half $XXX should slightly but interest taxes QX, expect and elevated in payments was we currently significantly flow. And $XX were second lower $XXX reflects given higher the excess million half first the quarter cash QX, lastly, of in pay which Our the million the QX to amounting QX free debt down at recent Cash be increases. in to rate continued about activity million cash using when be compared to other for financing year. in

termed prior out to activity. very Slide debt on that want we Finally, XX majority reiterate profile following we a have refinancing well

which $X covered credit flow before bond be cash no or by billion CSC either Holdings maturities have We annual from greater generation free facility. than of capacity XXXX, all could revolving

end continue healthy cost revolving X.X The per an our revolver again approximately average at generation. on the a billion currently XXXX our years of we access is in and as For example, we can we manner need of will a Phil easily free on cover the upcoming $XXX to And million opportunistically $X.X revolving equal JP to will we Last that, of proactively rate go And amount note our into refinancing, without now maturing Instructions] At this to Morgan. liabilities. comes annum. of any Holdings maturity Our [Operator question in facility, top CSC questions. with from and SOFR main ahead, with total Operator July of first manage maintaining entered the to X.X%. billion weighted weighted our month, credit credit liquidity plus credit of debt X.XX% demonstrated life level average is of aggregate to of Please amendment our our had QX, commitments markets. extending with Thank Cusick flow September recent the debt we facility cash take any you. we an $X

Phil Cusick

I guess, can. thanks, two if I

that of sale idea And second, a Thank chatter an the point potential still Can of there's then growth assets. to not, has past be you some on the at a and might you that in lot where what the year And subs, talked valid? get in market response? then about in process if broadband to happen Dexter this there? us a about return you've to what is First you. of give

Dexter Goei

Thanks, Phil.

know and operationally things invest On all business. growth we doing our the back one of the right in we're yes, strategically first the to

will back growth. that confident I we come to think we are

question I is think the when.

think I We that been of think see think ads we give half second in we the that now, the expecting I still in second bear as in hopefully. from precisely can an have don't continue second here still but and of year. we fruition it that this year. when that year see this you we to half improvements we good net indication operational see standpoint can this positive to into half to the see But an to as expect

out a the there. assets, been lot chatter think On there's of of sale I

a think than think is we we to that. I process there want I don't comment further could any going on. confirm

know, update. of time You lot when did there about. there's the deem more of this it's, you really We’ll was nothing much But we rest like LightPath. and market chatter when talk the update a what we to on to at appropriate

Phil Cusick

thanks Yes, Dex.

Operator

next with Street. Please state comes Our New from question. your Jonathan question Chaplin

Jonathan Chaplin

Dexter. Thanks,

from Phil, EBITDA number following the can versus Just the and that subscribers on Optimum us breakdown Suddenlink sense question Suddenlink between you give of up a at Optimum? of and of

Dexter Goei

Yes, Jonathan.

I talk in don't a think that side I the little think we're in going detail. bit. to position a assets to about track we're

I in out to reverse and inquiry parts there we've the been all or Suddenlink the get numbers lot don't assets. we can But I on asset. that financial historically into public forum. a think received debate operational we want for a of a as of confirm KPIs think to have

analysts you like. I the figure what probably look other numbers could think with speaking So out broadly

Jonathan Chaplin

Thanks okay. it, Dexter. Got

Operator

from comes Sachs. next question ahead. Feldman Please Our go Goldman with Brett

Brett Feldman

for Thanks question. the taking Yes.

around cases of discussions heard cost and debt. across inflationary some some know, from bad we in You normalization of peers your telecom cable, pressures,

to you at in times. all wondering, this pressures what's them these of just was of quarter macro what update are us your trends can an outlook I extent collection for Thank some Some give that? your you. or seeing are longer reflected

Dexter Goei

indicative standpoint, obvious some on of probably the early do part labor the in things less like quantified. utilities an side numbers from standpoint channel we our labor But success think some had meaningfully today, aren't costs by There's -- be from I execution year. on Yes, in investments We of think operating which of ahead pressure of seen this inflationary clearly pressure the pressures. can our pressure driving terms distribution probably overall our I in an schedule. inflationary of of some impacted being is

the utility extra costs us is as is utility of here CPEs chains fiber. for couple There we've supply itself. of we at today. year-to-date in about, an a about $XX or think talks where maybe number in that it fiber feel good million everyone costing are standpoint, given been chain a on I be pressure supply whether from it We years

So, we in run into utilities, XXXX to. our something impacting and clearly know, in none sure what where instances deliver didn’t wish deploy going we are than more have, supply we Brett, else than to investment is you capital to asked terms we other I'm able today being is it of of the chain but expect we're you had we, strategy you?

Brett Feldman

Bad debt, collection like expense, stuff bad and debt that. timeline

Dexter Goei

that hand I'll answer Mike to to

Mike Grau

Brett. Sure,

would non-pay when in prior lot. write at a were versus deterioration seeing And all-time of historical and I a out that is this year little point deterioration bit expense debt lows. We’re offs bad not space, the

of within that terms in -- continues bad as always revenue. and our so of a pressure, And I the well think been, nothing in peers pretty mild ranked but our note. of actually among industry we've percentage we've debt

Brett Feldman

trending getting is worse? you it back pre-pandemic or is what this saw or So to

Mike Grau

to somewhere say back all-time between last saw would we between year. pre-pandemic don't I -- No, levels. and lows it's pre-pandemic I we're think the

Brett Feldman

All you. right, thank

Operator

ahead. Moffett question with next Our Craig from Nathanson. go Please Moffett comes

Craig Moffett

Can numbers your of in at like about wireless you now versus industry, little of through Are business? Yes, thing? your product close a has seeing the wireless that a and It more are Are about but you seeing looks impact sell talk the X% hi. seeing to that others you rest I'd starting bit. you it least of have to talk broadband in with sort like six wanted look to finally little and on bit to what that along pull seem reductions? wireless you're you what churn to at your all like Charter. represents revenues the and it

Dexter Goei

T-Mobile we Craig, product were over on and have a Yes, obviously helpful good good been focused our question. that. on a that's One, getting friends at

the close out year, the product since beginning a we've to So of there. had good effectively

Second that was product to get made out offer and a marketing an campaign sense.

that starting at side. of business push quarters on for side the of also You of our we're more able particularly couple know, we've the the been being see distribution channels last fruition and on to working mobile there here some to the

given on There's continue the, listen, data to lot I believe that of churn enhancer. we good year. it's the of think, think a the I we this mobile have we, a acceleration our not material inflection here points

in timeframes we, know, yet. of You of churn terms those kind into statistics not we're reductions

our have we we'll better see So terms seeing but the a than types we of year, characteristics. cohorts from through the better next on different and from view impacts year, this in of anything don't their pull those of churn beginning what peers on anticipate

on what tiers the third is I those. gig a you unlimited attracting X know, of depending here and we're, we And are we're gig pay when delivering X obviously of some the gig the we mix the side. the on our think or are about product with seeing X lower we,

very hear cable see we similar our we statistics So from and that peers there.

financial and customer you in So little bit we we couple a some quarters some give provide these on more of and, impact and you maybe at detail. cohorts a that look with as detail more of impact could

Brett Feldman

Thank right. All you.

Operator

Kutgun from comes with question next RBC question. your Maral Markets. Please Capital Our state

Kutgun Maral

modernization the on taking asset discussion. Thanks I to follow wanted the Great. for up questions.

sudden legacy Optimum. hoping of typically legacy strategic I perspectives but You to know, your was get the talk on about link, we value

and know further pre-pandemic. trend with was you DMA just there's the it's, to so, seasonality maybe to way at consistent just the that QX X,XXX if bit could but historical expectations? into visibility it's sorry that near saw too I but QX Thanks. set, to Just or broadband the given trends level build. get a average and fiber moment, And the about and heading the I limited top this next noted about along QX you much is quarter, give average circle back specific, year so that the benefit a term about to been think the think your is right seasonal how has to

Dexter Goei

Good questions.

our On the asset we taking a big Suddenlink upgrade inquiry the is monetization shareholders in gotten clearly to step embark engaging Suddenlink here. lot thereafter, and escape embarking being look maybe which why good time back, side, here over potentially which responsive on on for, effectively It we've year transactions shouldn't significantly of before assets, and know, we're for on, around us is pause that the were a the fact next a we upgrade. creative you for

looking XXXX us by the end going asset thinking not fully on to be strategic you're given right. about around are is but And today, it's fibroized in that in be are the very, we I'm timeframe. Optimum pretty years, believe but in it But to time engaged right given a sure, discussion point, To that that. So escaped not where at the table the going this discussion forward our its be we'll future not a have that of DMA. for we and us going is it deployment we your has capital that's very

assets. think intra the this like that in the way I I something do all me look from QX to are is In extent place today terms QX earlier about that quarter Suddenlink not we're main quarter to team of, code my we QX. the to business a of of how to QX told On the or commenting bit statistic the would with misleading that a from QX talk they QX because on that the is numbers asked potential little over to

number a also X,XXX but a there number, XX,XXX improvement. cited also out there's You

went years bit a over back consistent we to four to pre-pandemic, QX, very QX from QX. from QX going little all three So or the going place but they're and

of what But in September. don't we're tend or worst and year I seasonally to seeing of that the QX August then preface typically given So months the have particularly year. we the month the is want to best second July being worst the

And, beginning the quarter of just we're August. this our in So earnings. talk we'll next about

Kutgun Maral

Thank helpful. you. Very

Operator

go Ratcliffe ISI. And you. comes James question next with Please ahead. Thank from Evercore

James Ratcliffe

I if have two, I could.

big of you of you, a those and about Can trends fiber particularly seeing any share in product broadband just of don't marketing versus feel First trending us how gross all, about your where adds lower, you gross talked you areas give you're are add difference activity. the sense where you just cable this point have much I about as leverage just historically how can is in talk at in matters scale little terms a it. programming bit And secondly, that and scales to was industry? the advantage you big absolute deal? that mean, a of there Thanks. negotiation; a

Dexter Goei

cable the stable, a see Right. differential east footprint pressures. but in of But in being see vision is gross activity continue activity we on adds higher very side being robust because historic churn on competitive east. where Suddenlink very the we in footprint to in churn interesting It's we in the lower our, ad on the the the see west gross we see overall landscape still the lot

see topographies it's our, footprint. of So bit, different our we little two a terms in

for the of see where in proposition to balls, east. relative terms In well performing tier jump think jump very us got the key the is products yes, I the files. economic files, competitive better board which to across terms a in relative ourselves we're that balls, of as we've We

jump there. in clearly this bundles bundles on churn year efforts, in that end east, will central the disparate out the fiber because scale the Does which particular, to bundles, footprint, and but relative today builders the of centralize at million those FWA, it's by your believe our And are even that a it's activity homes have the to programming there. our difficult footprint distribution impacting and is secondly, look does a see things, we're don't and versus then certain we you product. balls. key, we our in we out but clearly, of to markets. certain the over their can't marketing If we growing put smaller harmonize factor And is on lot in marketing we seeing a relating to in Suddenlink And, being footprint in anywhere mentioned start is from you efforts one we fiber X.X which finger in competitive our two fiber of pressures distribution from communities the specifically you're of differentiating plus when It In west, FWA where X.X Suddenlink matter? our key. it though and part

does scale from efficiencies point efficiencies and matter so and costs. your to in marketing And programming of in distribution

James Ratcliffe

Thank you.

Operator

next comes state Supino from Wolfe Our Research. Please question. Peter your question with

Peter Supino

of the on Hi, On Suddenlink gross stable. in heard ad the possibly your size ago fiber. churn. minutes just I'm just And competitively the question is I wireless fixed be of a about churn changes that resulting about and comment that or thank about have if impact churn on comment pool? from and curious might a Suddenlink couple of you you. I heard operators I've could another trends say other

includes per the in how home drop you. I'm churn then how on fiber, ads cost the gross CapEx wondering and are install?. past and and is trending Thank your trending? whether it wondering So And Suddenlink, for

Dexter Goei

I Peter, just I of minutes couple what reiterate So just a kind to said ago.

of their two different of different. We in see more our in very the peers, in are see our don't think gross types peers of larger It's marginally we particular activity trends a lower that topographies, we know maybe I talk trends. seeing types thousands, standpoint where from Suddenlink footprint. two two about I different national add different trends.

exposed put quarterly are see escaped We on our numerical seeing FWA but actual and markets, all. So a it's impact be in which builders. we to environment, we we we markets FWA. finger adds. negligible at probably the do we can at that whether we where in of isolate exactly that of add competitive But an fiber see not on can't it so uptake relative year due markets the that to do and impact because basis, over of churn, churn. But Suddenlink over then, majority the may the numbers most or we're where us Suddenlink FWA, to see to do And fiber tell be in builders to our a see higher activity, gross last incremental terms at on could, in we gross you it has same churn hitting leads have that

the our Suddenlink on coming to it is our than the is Optimum So areas is side, lot do stable. gross FWA it exposure that we believe in what where in the also we closer on because add of but lot topographies our peers think urban our is some of a is very can competitive in it's I'm areas. churn it more areas, lower urban is than have trends lower we we technology or must be activity and in And are depending than, our marketed. urban and the coming areas rural terms pressures the more certain We our where of think peers. In we seeing isolate same just whether different the a can which from it are, FWA.

hopefully bit insight. a gives little So you of that

past, we we've number in the cost. think I that east, are in $XXX cost for homes the $XXX, On average public of been terms the around

expensive. more it's Sometimes

not that expensive. averaging does include include on it's if really in It not the engineering more That expensive a are less drop process. work, depends CPE lot costs. the obviously but to XXX. aerial a expensive, is XXX does lot That the less the cost but then and and there's installation it's not MDUs Sometimes passing, we're

Peter Supino

answers. helpful really Thanks,

Operator

next comes question. Barclays. state question your Please with Our from KannanVenkateshwar

KannanVenkateshwar

offer terms big to Dexter, investment? which suddenly share CapEx a you marginal success having, the country, the terms speed competitive in I therefore consumer, product anchor there we of you investment of of kind of, as given threshold can more rethink it you. certain in extra the the maybe product your threat your and Thank make a makes gig maybe adjust the does that the valuable of fiber about fiber, from price any parts an When can mean, across a despite or is that less you utility broadly fixed in in plans of wireless to is every accordingly. fiber theory If ones. you think picture able take maybe country, is couple inferior in

point, strategic bigger. When the Altice’s thinking part one of intent. the were about significantly becoming is intentions that's more that all U.S., scaling and And Altice about the second So we the question. up one at mean, potentially entered and I

and Now wrong? or potentially market, monetizing opportunities we we Optimum on more towel about or and are thinking talking Thanks. about are the Suddenlink this completely different so in Is Altice this on. less throwing U.S. the

Dexter Goei

opposite going a, type to way is is fiber so why is first the FWA product answered tends I XXX the I'd you it, the which think powerful that to up which product, one, reason exact the is asked be exact On forward. meg

a think, life terms its its of for our it's that in the potentially the given world I limitations delivery. escaped friends in there's of terms short in cycle, FWA runway product not

of the And our product to upgrades DOCSIS or people, or fiber FWA. inferiority the the seeing ourselves in across is it's some so, you're going country, in that whether even of peers the investments the crystallize other X.X of

see average temporary So in that the we're perspective right? the But, our average FWA surpassing we're market about taken see at share and doing the you losses people XXX of it's what the a So above one view speeds to in can big speeds XXX FWA. are our with already do. megabits and megs, our capabilities chunk average a going we're on as board in terra across of

free will our great which strategic is to and our inverse is you have and cash deliver suggested, the the and we're best significant going not fiber speeds product flow cost be so, going that forward. doing a And do to the accelerate peers but lead which serve then experience goal with us fiber, because to to is to what our stop as returns bandwidths to able and advantage the over deliver best to

So that's think the the about we way threat. FWA

right. just would been a nothing have to things have sale. out lot for has terms loved you're In There more there. acquired strategy, We of

the competitive respects so, the years five at the six equates I relative and to looking shareholders to many thesis for come in dynamics to accretive don't our think that is the or have transaction market. changed And ago towel. did very when throwing we

for I thing think that, the doing. that in just think of my it's, I but one right ounce have about thinking And us footprint have that way see it's to think shareholder that, not history asset at but commentary year-over-year value And or that's adapt dynamics we're we're, I you're and any strategic be said think Optimum topography very fair we a suggested to you dealing of never selling group I we'll change, different the Vision. depending say the can, to and you're at which the on Cable that I quarter-over-quarter. forward. the you to the maximize really exited that we've the of the investments look players, globally, and and countries that you with if competitiveness the with dealing try that going

So we as I think today. we're that best addressing can

KannanVenkateshwar

All Thanks Dexter. right.

Operator

Thank you.

Our Please Louthan next state Frank question. question with from Raymond comes James. your

Unidentified Analyst

guys, for Rob on it's Hey Frank.

that you was accelerated? to a talk but if it So originally And for you rebrand Suddenlink about drove August was can might have acceleration? early what that spoken accelerated, this earlier, you. slated the was or Thank bit

Dexter Goei

first this the done, the of that slated for how you've probably but one of ones. to Yes. is don't in I terms know early August. many you And my have It unreal. do was is frustration always planning rebrands

methodically criteria been distribution think and trucks, in months been terms and hitting all that to markets put rebrand for types things the the a and pacing, place in things. the to last can the different media uniforms of labeling different the about nine and it's investments those in equipment from of that of doing we're So you the

are amount are in People And business until us to, we're nothing. we is to this to discussions as going the don't So a have always been because may you strategic the doing to rebrand have usual slated. if asking continue run has why been you engaging strategic right. discussions

need standpoint, continue And we have do standpoint at in relative end to last assets. we we'll a budgetary something to that and what definitely planned to do to to what to talk earlier we strategic the we do a else about continue the of had until the announced from So year. from year Suddenlink

Unidentified Analyst

Yes, makes you. Thank it sense. perfect

Operator

your Next state Please question comes Fargo. from Steven question. with Wells Cahall

Steven Cahall

Thanks.

market, follow that revise the adds growth your in you reduction the if if fiber are way others the the wondering and I'm adds market you about net for wide just causes and you assumptions, either think So to is going of, penetration rollout slowdown to of regardless just seen. as up, can specific that seeing new-build kind sort growth or have And figure same really and if it quick to fiber to to baked the be or just trying or is will penetration what activity. that's out technology things over steady that and you so the, historically like think that Thanks. is and you've very continue then technologies time kind up wondering fiber of something a into And the CapEx pattern down? mobile is of current or guidance.

Dexter Goei

winner technology, for types So of or is be forward. on think, the fiber it believe pound, of versus any pound fiber that HFC to whether I majority continue side, the be going we other to market technology share going

think stats, characteristics whether that's have think the paused pressures is, So And as only negate lot it other is the operators from in particularly OpEx generated pressures, about of dramatically fiber on be some side, it maybe that chain have early months, changed fiber the size XX on last adds people world. terms I for we of product those, gross why the we in in see inflationary of markets which those be supply are cash smaller in whether being across to HFC a where we good issues well. execution with of issues rollout, we driving competitive whether in, it in that return know probably the the feel that flow see difference because the in able we the lower be the the ARPUs you're I

CapEx, about, continue CapEx. about and, numbers the we're say lot mobile On good good feel that that investment the is well to on different we feel as expect penetration deliver. return mobile that we there no it's penetration throw as going around there. fair there out there's But of feel to that to we that a as So I out levels think consultants

Steven Cahall

Great. Thank you.

Operator

Swinburne comes ahead. Stanley. next with go Our Morgan Please question from Ben

Ben Swinburne

are pace that? afternoon. sort year the both still of expectations talk back half end same good comments expect cetera, the Given on fiber of you et up about lot to little of the made ability fiber. earlier thing the that that number to by a and second continue second come and and and and out if sort flesh the check construction, of And from the just front. $X.X back organization's year, know ramp to I in wanted that. you Hey, it quarter had half to involved accelerate see second could Dexter, you just couple I adds come bit? the, the there's just net the on tape sounded a to to of quick level. that, your sort a red side, for, about you of to follow the of expecting Could the hit you like of mobile the, I all million I for just then wanted us accelerating a just installation

Dexter Goei

whether system, us in passed know kind I we'll fiber, customers do tell last was X to suspect customers across we that know accelerating it, Yes. get whether get of we the over terms to, being see a budgetary get New Ben, board helpful of better you and So and we million the One listen, the permit we right? the delay. bips months. if be have that's last do type X,X, pace. and or in on reforecast we clearly of in for to don't thing ahead to there. our we hundred X,X, the thousand cost east off, just to in the we're the that the side of in the west. homes. serve, inflationary new don't to able State XXX,XXX know to been whether I migrating trying six about may X,X on year We're beat X bobs York million because the or year. the I Jersey in numbers on to it, to to process quicker homes to potential get being targeting very any that reducing pressures able a is X, that our better I'll the New that this we are for helping I the We'll we're get We're mean,

releasing the been big swath and office particularly where there. in York areas we've governor's have So of big, the DoT been New very helpful

helping really that's accelerate. us So

to quicker we try right. we'll And I and anticipate accelerate, than there, planned do had hopefully on and we're for think we do and in anticipated. From an to what what so we'll, standpoint, going the try it more XXXX, we're you than XXXX, the slides it than see slides in was organizational

We are, of our terms again be we to QX been to yes in materially homes of month than expect better QX July has a passed. the great knock wood is delivery the, going it be on

daily something almost a basis to on very, very on the very, monitor is progress. as closely very, this so, And that we

So see XXX,XXX you don't number we're the I we're subscribers, year add materially of those end to in end, side up where teething as to end. and side as fiber get and we're migrations and on to we an stuff installation much and And in standpoint gross than experience well, as the we add have, organizational side add put getting and IT the as There's prioritize migrate resources to migration lot The again, more issues accelerating terms accelerate to to then to related to side. the know standpoint a be close the side. possible, in XXXX. to, related that place migration numbers, as there move on in someone. has year has to like from able The we've from an continue to but as better we'll going but migration going better keep been great. gross at issues, our I'd gross someone

Ben Swinburne

service drive the meaningful marketplace. Got you about, translating it. How And have this the much of volume economics then can as business business? to nicely in look thinking generating, have, and are that out I least That's sort versus next, just don’t the on into expecting what, years. of kind gotten, EBITDA of should, you wireless quarters the the sort guys you ARPUs you broadband over couple here, unit in how at growth. wireless aggressive know, And of you're wireless, or more using in you tell what us about out you

mobile on marketplace? using So what's in your the philosophy

Dexter Goei

seeing mobile operators use fixed Yes, fixed listen, the to case anyone. trying mobile think, surprise as that's, is to no cable some mean, the that's I And obviously and of the, the I using peers mobile, drive for to for right? the you're driver a inverse

at gross margin margin growing in discipline positive the if in margin I looking gross that's margin. customers mobile or of economics periods. way, can and that our Right? continue gift clearly subscription about product we in think a keep as we're gross we're a volume that to not opposed and we're selling EBITDA. negative want terms and customer But So on different Right? growth gross products driving look the think customer customer. that's, per period Netflix you it promotional card to drive as like to we can we or margin in something But overall gross always for

Ben Swinburne

you. Thank Yes.

Operator

Bank. ahead. Our next Please from comes Deutsche Kraft with go Bryan question

Bryan Kraft

ask aggressive or to in ARPU digit broadband two, Hi, to the right you worked the I Do LightPath. your sales wanted don't do we in once had it about way range, returning afternoon. good about too mind. you given think to guess re-ramp the beyond? I year, competitive if And through next and I big XXXX also get you mid, and growth see that's channels first, old think a environment? into you've what's then

sales LightPath’s that increased mentioned You net bookings XX%. by

Can lot. LightPath you. expect in you could that Thank accelerate? contextualize a of terms help like and growth we us Sounds how much to

Dexter Goei

ARPU going think into see to impact were into think going side, year, year the on a last promotion worried on I broadband end we this that and people I the were going of Listen, ARPUs. heavy year negative

low what we at for digits, the continue should on continue digit stage, that will lower there ARPU growth, in ARPU. able our the broadband going be of you've business digits. but grow in to particularly we becomes more to that to or broadband to our numbers will low given than, higher our of It's our fight a, broadband and I a basis lower As near growth in standpoint, pushing we're will, its single that this get promotional than seen confident we this promotional But not where single on will, mid-single to think reduction aspects we're we're cap is that mix, material, digit in at churn be given from numbers the push that, with seeing clearly until continue which and, stage. sit which product, we fiber a levels we going single to term, single day-to-day ARPU

point, a the kind are it's to small entries second and to of you kind of six sorry. types the second next should growth, growth look right did think, the install we're turn single insofar, flat over execute the in of digit to I ask XX sorry, take now months you LightPath because to revenue to question? But to revenue. kind numbers numbers I'm material product. we actually months mid, as if these order but On Yes. LightPath of XX on were six

Bryan Kraft

you much. it. Thank Got very Okay.

Operator

Suisse. Our with next Please go question from Credit ahead. Doug Mitchell comes

Doug Mitchell

in. Thanks for squeezing me

where think where deal. those you you Dexter two wanted to one, understand And seems or is number. fiber already? to comment grown since you've like a competing and over I'm fiber defend you're XX% penetrations out just trying just coax you XX% the clarify So I on and questions, can that, with both have have you launched, building fiber XX% that over penetrations fiber you're were big

XX% cable that's I've any ever talking assets, just then, help for must and private private, that And as some cable to Thanks any lot and seems Do get as improvement of I'm it. on valuations over perspective, start or just I'm valuations gap around it asset quite explains wide as I term not. for be fiber what enticing trying launched with whether are seen lows. you values about buyers, to potential market at penetration, So context cable for simply since between the have sales for wondering long process imagine to you public you a Dexter, an more a

Dexter Goei

one you're right. On the first

which you're in comment second percentages our we're fiber. Your right, that's launched areas which where first over XX% is we're the were,

confident shares. we are, to those market So very types we're able maintain in of

is the up technology, today our competing I but is the fiber inferior the product, it's -- friends years are belief. meaningfully in That's in many, against technology, today to catch think fiber [indiscernible] thesis the we to are we're clear the many a against going we at right? competing XGs duplicate to And which to be and in is to experience our the terms that investments over take order provide. able Verizon to able of the speeds

that think Optimum believe critical market installation actually get once back get to, mass get able in we can down footprint. we share So the the pat, we're processes to migrations perfected. We to the gain

market Obviously mobile great remains product. that we an So dominant and think in we But, mobile very we at deliver to to using that today. seen share a inferior Northeast position have Verizon's good its be advantage. mobile

standpoint believe them. price very peers as from and think and we're I that well, attractive a our than competitive more

with will areas in of fiber. the delivery So we share we're do able take market able, time believe over many back to be that

wrong in context should context drives [ph] a lever term Your there's lot second you said market well, the you lot multiples, to meaningfully the ask multiples I'm be that when that, you're private on longer could question listen, in yourself I thinking numbers at EQ of, guys can public higher said when assets private person a ask, higher to valuations. a

lower you about And of than these some think than, strategic, there synergized of if public that capital market cost of capital then minds high. the the markets. the probably are is some is, of it think financial, there out multiples is top their our on that, for private clear I in cost of funds of

they're And so patient. and more

shareholders. obviously a continued And think I we we're, market private this for the, could there that numbers, that a higher side the because way If of being out we there we're why think we're terms about are very accretive some is which process. in driving so interest what's that is transactions reactive in thinking be from right

Doug Mitchell

All you. right. Thank

Operator

you. Thank

Matthew from go Please Benchmark. with comes question ahead. next Our Harrigan

Matthew Harrigan

stem Dexter, tactical feels It in right going Verizon. has How been you've pretty perspective on in now, much commitment a to York adamant with in really committed much it to about just have very value of your and New say sparing could York makes higher. apps in you. a that lot Thank lot from consumer been the Thank talking there. the the Metro but term, is Suddenlink And and that side visibility versus good of you. getting New certainly revenues the – up, market you're you what really like long is terms you a to and a the the of markets? it into fiber position your that more

Dexter Goei

terms would for the parties The future. other called, in hear a is competitive hit competitive in many you've got out fiber something players, And technologies player you I the up you FWA lot if from footprint one is And, environment there for it believe two it's very strategic attractive. players standpoint got better we've long of in on got respect is is single the lot even dynamic term. fiber to markets fiber or a the putting our market. that X.XX The from population sign a our and demographics products, is, Right. nose, economics think Matt, out when third I of our we've that strong every are a aside that's a two and potentially And of attractive. there good competitor it's for, that stable. we are

and believe terms right? the it a in And very it's that we the DMA in knowing And strategic part of execute you've are a country. other then largest in are economics footprint. we dynamics And on in the top next fiber not super that bad knowing the over the that of of the we So the Optimum that done, free in hybridized parts It's value. country of wealthiest has of know lot advanced cash the being impressive fully strategic no and asset. cost so got are of that and couple our rollout asset just we're a how years, to the execute. to There are surprises flow already

Matthew Harrigan

Dexter. Thanks

Operator

this it questions at further I'll to Thank turn back are time. you. There management closing any remarks. for

Nick Brown

if joining if the have you you for up follow questions, rest speak any to weeks. Thank Thank you otherwise you Altice. And like to coming would we’ll in you.

Operator

Thank you. Have This may concludes evening. good today’s call. a disconnect. All parties

Altice USA (ATUS) 4 Aug 222022 Q2 Earnings call transcript