Altice USA (ATUS) 3 Nov 222022 Q3 Earnings call transcript

Company Profile

Participants

Nick Brown	Executive Vice President, Corporate Finance and Development
Dexter Goei	Executive Chairman
Dennis Mathew	Chief Executive Officer
Mike Grau	Chief Financial Officer
Phil Cusick	J.P. Morgan
Craig Moffett	MoffettNathanson
Doug Mitchelson	Credit Suisse
John Hodulik	UBS
Jonathan Chaplin	New Street
Brett Feldman	Goldman Sachs
Michael Rollins	Citi
James Ratcliffe	Evercore ISI
Peter Supino	Wolfe Research
Steven Cahall	Wells Fargo

Call transcript

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Operator

Hello, and welcome to the Altice USA Q2 2022 Earnings Conference Call and Webcast. [Operator instructions] As a reminder this conference is being recorded. It’s now my pleasure to turn the call over to Nick Brown. Please go ahead.

Nick Brown

Hello, everyone. joining. for Thanks you joined and are introduce USA's Chairman, will Executive new Today, Mike by Grau; Goei; take together who CFO, Dennis to the and Dexter presentation. CEO, we Mathew, Altice through we’re or delighted time we Q&A. then And for have will

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

Dexter Goei

in advertising X% Hello, contract. on Slide performance as our third year-over-year, driven the air everyone. mainly quarter loss Kicking and legacy after off the strand with a termination our by as well revenue Sprint pressure revenue of our businesses, prior summary declined residential the of of X, year in

Excluding strand higher OpEx year-over-year. customer $XX,XXX XX.X% the margin air been of net and revenue EBITDA revenue, have revenue down were decline with would just QX excluding XX.X%, Residential reflecting a strand or X.X% with growth. broadband in losses both QX QX, in air revenue, to was losses declined and the which million to generating decline adjusted XX.X% future drive for our pace competitive remains elevated pressures even materializing. cash solid, date. as activity $XXX million market fiber flow our the environment at Free which $XXX a the initiatives impact lower QX with are and current relatively line growth to investments in year-over-year

quarter. quarterly Our Optimum the Fiber to date, pace out fastest XXX,XXX network accelerate adding fiber the to deployment in continues at new passings rolling

customers in customers and accelerated existing XX,XXX and migrations We an additions network. pace to our fiber also gross at fiber to to both added QX expect continue through grow of

more today. stores of our sales Dennis ago Mathew, our of opening across pace the CEO, joined future exactly builds to formerly new distribution of growth. which our the finally, customer support expand us the both advance And I'd welcome and to continue who We month country, channels, one including Optimum like several new

thanks to in USA rewarding been I Before share the that to Altice to to my experience at Dennis Dennis, take of family track my I weeks team it what the be an would Dennis our a hands. leadership Altice could a more player, to future workforce, enthusiastically and it confident the on I'm want not I good career, accomplished is leading to incredibly serve and team, organization. has thousands proud be few frontline and broader found the company's well dedicated I one, couldn't just back over But like the to together Altice Europe. at is turn reins proven and record, having and most I as a about was personal time but in step USA, exceptional the across a leadership every employees and leader optimistic great and the reasons The of based communities and country decision this away difficult with short from CEO day. to operator role has acclimated we customers move across

hand with this transition few strategic we about period, the company. now Dennis to I'd a that, opportunities say ahead with Chairman With for focus over words the following Executive Altice's on As look involved like a to to we're himself.

Dennis Mathew

Freedom was broadband potential elevating Dexter. the important at have areas northern some of coast, in And and regions XX previously much, this company. as nearly juncture Delaware. of background, Pennsylvania, Region, largest Jersey, Altice experience provider the recently Comcast, at of the for so years the most I New includes which of of role with Thanks CEO see I choice. just and way by east leading company's customers while to in serve of very excited the I'm immense the further join company to the connect

the the the XX days, with customer where employees discussing and leadership on here And team broadband we a frontline areas provider teammates, on and excellence a throughout ground the my meet and with sessions stronger time to organization, had experience. employee best-in-class customer strategy deep operational can hold as with Altice USA I've focus deliver a first opportunity so is goal my experience. to spend position In

I'm to lead an proud has and right of in that experience. investments centered long-term company the strategy update and so give fiber you And such more to innovative an you infrastructure superior the are customer in a Dexter the first a few and on headline on will But through vision detail. initiatives QX moments. it more hand to would to with bit build I we like fiber a take in where performance new back I

Dexter Goei

Thank you, Dennis.

strand revenue of Business in QX to $XX a year-over-year, trends million reported which X.X%, the but $XXX strand million was revenue in have a a to XX.X%, residential prior revenue excluding which revenue year-over-year, had strand flat Advertising loss showing we in business on revenue our revenue of QX report of X, down and X.X%, down not QX in air declined I Slide News XXXX. X% to million revenue. in air basis, declines our in in back decline in In come remember, air about more detail. will business, Total Total see another revenue. this we'll is due Services for full moment. Moving to year air which approximately excluding mainly year year-over-year of XXXX, $XX strand we'll XX.X%

on residential trends XX,XXX. of a X report residential our and Slide net in relationships We to customer QX loss business. of Turning loss broadband net customer XX,XXX

our some broadband move in growth growth top some given moving we're positive that continue we from multi-gig firmly new improvements, and distribution on out market and inclusive of operators school experience lower typically competition and these in deployment launches, QX, parts solutions we're localized pressure is This growth clear trends the this improve from overbuilders. higher the QX some benefits customer from It's is fiber pandemic. trends our in discontinued of lines we adding a the to of to segment to the our return market We which the is Revenue our to track see seasonal believe comparing we speed of taking past Slide see declined quarters, quarter, fiber channel business as the switchers an previous to back Separately, our few general activity overview well slowdown fixed revenue. service is these households observing some the of expansion and in on investment. as X since our investments, Business return mobile-only build and X,XXX of of quarter through promotions. in footprint. While when mobile broadband in still growth experiencing to as QX. XX.X% mobile that wireless

other Advertising Similar our residential the down from high-count with into XXXX. impact as the network our we was market the with subterranean SMB into of flat early Miami more in second enterprise competition fiber for year-over-year. comes major the delay the brand-new that XX-mile growth kick business. and AirStrand Lightpath's entrance a revenue impacts, Excluding Lightpath are also ex-AirStrand Coast seeing build. a price in market be fiber will pickup market Miami This entrance East will and off business, expansion network is here. XX ready XXXX. announced XXX-mile and that footprint the quarter performance. Slide following was Boston over in a was summary slowdown an couple June incremental is impacted economic was carrier X.X%. months in we SMB with additional a recently a to past of AirStrand Lightpath material has mindful X grew Lightpath Once QX by factors. QX lap revenue may our in in entered revenue XX.X% flat some still entire and that also into Revenue News business driven of the by revenue of an down revenue

of the for than be will year some weighted expected this to for First, QX us. political revenue QX more

had year, campaigns revenue which contributing nonpolitical in not larger we a did this prior of year. to couple Second, occur the

given at as of continue seeing In some environment. the market cancellations end quarter macroeconomic campaign addition, we retreated ad start the to the the

one build drivers, pass now fiber new although the I'd in on to the we As are is you pick update to slow and Dennis recovery. it build to like back auto it starting expansion. And see up, the of spend to bigger

Dennis Mathew

so much, a in best I'm that Dexter. technology Thanks as exists believer fiber the today. big broadband

of I'm to that a fiber very total tenet our With of a build X QX, key present and million progress the quarterly customer X.X fiber trends. has We've during strategy, released an the Altice This about. I'm reaching mind, incremental Slide fiber optimistic highest a passings USA XXX,XXX ever with is to on of of pleased snapshot I'm passings. very passings that's additional current – achieved. in pleased Altice number So ever our which

quarter of on strategy, network. competitors. the we've year but Internet two faster X-gig Multi-gig have significantly by and adds, main across slower at passings fiber migrations symmetrical be customers the well customer weather, support we fiber fiber quarterly we'll Optimum to in of existing to speed fiber of voluntary September, introduced over a slow customers. the our total expect XXX,XXX we as At will had see doing also the the tends fiber and We our you'll fiber end And a recently experience X-gig XXXX. will fiber pace and slide, to our cumulative million as passing. footprint, first in additions, we the now Island well colder as all which down the construction, residential of be Long wider for of marketing fiber time, tiers fourth speeds accelerated than available speeds are which end QX product everywhere QX gross the is Connecticut supporting XX,XXX bottom the across At net which as been a offered

that indicate our me on let our better of the underscore Fiber fiber. significantly Importantly, network compared a customers highlight some HFC broadband network. long-term to benefit experience for customers fiber our trends on stats

X the even we're this we're putting and on improved added year-to-date, We're legacy meaningful network in key churn year. passings new driver approximately play new optimistic ARPU annualized On our seeing Suddenlink This QX year to penetration about points improvements, over see company benefits. XX% organically XX,XXX fiber higher new edging well after in passings achieving makes the and XX% for X is track which first the expectations and to XXX,XXX growth. for add build out of a us of mostly areas, and Slide growth. footprint, you customer pass us NPS into our consistently can percentage X, expanding confident Specifically, more and XXX,XXX

across awards North for us to actively we passings to were $XX trusted grant programs, communities. opportunity and programs unserved partner Additionally, X,XXX year-to-date, high X,XXX continue new local Virginia excited illustrates Slide in faster take megabits be sell broadband per the data even subsidy million. XX,XXX faster fiber but to for have base in homes We've total to governments we broadband in levels customers XX we're customers broadband speeds average. We'll our totaling additional and our faster quarters. runway on can to to to QX, of these received passings and And usage. was taking future awarded long download bring West accelerate of The QX, average the are support second to and in apply twice as will coming Carolina. a new that underserved XXX enable speeds the builds services

customers toward the base our using more our that, each to increased support to X-gig terabyte X/X which broadly. XX% driven was XX% represents our usage quarter. broadband-only to us data fiber with QX, trend as financials to of best big a video this QX, in which And XXX opportunity using the month. increasing Our of selling are customers data I’ll QX, base, In usage speeds more position in data hand month. data speeds Average over fiber we market to especially have which our higher well. second our review base of than within mostly to customer penetration on XXX per XX% technology about for speeds, gigabits streaming. than to network of with of And – every X keep about by lower it broadband-only growth are positions of demands more really more continues Mike is multi-gig X megabits customers terabyte Around per customer monthly grow Fiber detail. customers of in or

Mike Grau

do to the want Thank and you, add Dennis, warm welcome. I to

a have very us our Altice with happy quarter. it I’m join to of afternoon, Good the up summary pick you at So XX for USA. on everybody. going financials we’re to certainly here Slide

Our with declined adjusted year-over-year declining EBITDA QX, XX.X%. X% revenue in

and year XX.X%. revenue was year-to-date from adjusted down EBITDA revenue strands, the was X.X% X.X% period, strand prior and basis, down down total air X.X%. adjusted On excluding revenue a air EBITDA down Excluding

long-term XX% just flow adjusted in plan revenue Our and EBITDA operating margin part of cash growth. drive and was better medium costs to QX, reflects which under higher our as customer higher growth to investment

Capital by driven operating reduction CapEx. year-over-year, CapEx capital Slide and XX% prior or XX.X%. EBITDA QX, the have overview of build we’ve free in approximately fiber intensity quarter. home intensity our in CapEx. XX% to was up our flow. fiber was an cash new increased billion would been $X.X contributed up spent about XX.X% year XX% Without from investment. Year-to-date, CapEx a cash of XX Our is less growth This investment, all cash in

a billion we a of Our elevated start support full year reduced $X.X after significantly couple between billion start cash to expect target build. on that Remember back the years we do rollout, scaling to once CapEx and fiber remains CapEx accelerated our $X.X basis. of seeing

accelerated is the the have our was free year-over-year cash investment in to quarter of $XXX over investments. next $X bridge XX, Slide that $XXX would year-to-date, our all flow was which which given for quarter. flow in free growth of and been excluding Turning cash shows million flow FTTH, year-to-date. Note cash the billion lower third Free million

in slightly QX, $XX million which payments interest any in although taxes at cash of do third tax payments we were in cash Our our debt than and were $XXX quarters is QX. recent higher material a fixed the rate expect not XX% Cash previous rate. given million current quarter, is increases,

notes debt have Lastly, revolving excess other paydown $XXX been repaid X We the the revolver to down million cash reflects the continued in subsequently quarter. credit financing with activities X/X% free million and for our facility $XXX with flow. paying September about amounting

positioned maturity with maturities out to Slide on prior that well termed profile debt highlight Finally, is want activities. I following refinancing again our XX,

$X CSC markets. credit be facility no have from which to credit annual maturities before can or any XXXX, free billion access all Holdings bond either without term than We cash flow greater by of the or loan need covered revolving capacity generation

is $X.X entered SOFR plus facility, main maturity of generation. top amendment XXXX recall credit X.XX% to to extending cash per billion of Holdings At to annum. of rate revolving well weighted our free If last continue that, had when And debt a years our end liabilities our average our approximately $X.X quarter, into opportunistically you on now cost take approximately we think maintaining debt our as we of average level is at an X.X%. The X.X of weighted schedule we QX, appropriate to manage very we we in will to and of debt and it we life positioned a July the Again, with CSC the equal liquidity and any and questions. will currently so. billion maturity flow remain healthy proactively is do

Operator

Instructions] [Operator Phil J.P. Morgan. from is first you. Cusick Thank question today Our coming from

now Your line live. is

Phil Cusick

maybe see Optimum Thank thanks can't at about how I history and Dennis, welcome wedded what companies to an follow-up the guys. I your And this where it Dennis, sense you start Hi month would Can on time? the first situation first your the Dexter, inevitable to all you you help think you. toward Suddenlink loud given of do do for markets? you. aboard. path. thought fiber comment a over or in DOCSIS help. the but are Thank in about with technology recent the fiber different make threats in opportunities think sort greatest your is out of being Comcast move very maybe the company's versus

Dennis Mathew

question. Thank the you for so much

here strategy on that and a budget across been teams Mike the And leadership to focused company's lot last meeting and business. employees setting brand. multi-gig I'm is the the deeply And various the through days, a the the XX and launch of clear me and I've made whole what's fiber with believer the really best big that rebrand foundation executive Over team the technology is its today. speeds deployment that fiber one broadband strong and for sessions exists of in to a the progress strategy, quality best of

execution in focus our that's to and broadband investments Altice the on return and I'm about. a of And to I growth. we order disciplined I strategy to very experience as maximize ahead, need So think to optimistic look customer hallmark actually that

go-to-market that up the working I'm team do marketing and product offers sales we to get machines our where aligning continue as with packaging there we growth, and with to can to our to and sustainable back are and happen. can I us accelerate, such our that looking how at strategy, So think deeply I'm making ramp forward our looking portfolio. areas to

Operator

Any further questions Phil?

Phil Cusick

I there. guess if can follow-up I

while? you process? which was that know own little As tougher. any there at Is look of little selling process for the in strategically credit a business, the are still your markets Suddenlink, thoughts of the on I out a

Dennis Mathew

our I'm in going strategic pass involved Dexter to initiative. who's to that

him. I'll let So

Dexter Goei

we've calls on. that the Phil, market mean, these update something on saying the pretty update to I when been Yes. we'll we consistent have and market

it's decision's whether something Thanks. as won't on to market say we we're think going do I pretty place comment will to the where that I to further appropriately. not to not fair we're update the and than or imminent that getting But a or any that.

Dennis Mathew

Thanks please. Phil. next question Operator

Phil Cusick

Thank much. you very

Operator

Thank you.

is question from from MoffettNathanson. Moffett Craig coming next Your

Your line live. is now

Craig Moffett

the And Hi. with with Dexter, thanks going let Thank for the you over me And me stay congratulations to my I'm my let I Two if could. add themes. questions of Dennis, and same past some working few you. add years.

pricing least how quarter eventually in to you situation First that the what something your And said the suddenly you continue in thinking Altice broadband a possible pieces pricing? parts think then that potentially this transaction, demand was – back thinking down Dennis, the on grow Dexter, comment think to to what's at the know was are ARPU, than, can't you early by come of market strategies. saw can while at a you a prospects rather but guess wonder on of I or hang you much it? is pricing all you wanted your behind which where about I broadband it were Is at strategic as I side that you thinking and second, the you than that discuss on Dennis, look driven selling you about about too significantly? the fairly to?

Dennis Mathew

critical with I'll looking part budget pricing offers So, is I through I'm address the looking card, again as and fiber this And in have that's a the evolve fiber. our the of deploy piece, rate go area team. let pricing assessment me. with I'm Suddenlink strategy. at for – process the opportunities of marketplace the we to we our as my Dexter at we continue focus so I'm how but at can on looking the go-to-market

as solidify our taking budget, so And some making be a quickly. we'll we decisions look deep and

Dexter Goei

was operation I think to disparate that and had of overall on think I nature geographies. the of we'd inquiries of in size terms the Craig, the being Suddenlink sign, responsive the received the

had pieces of so along opposed to thing as some whole across players. And we it inquiries multiple the

piecemeal a we company so responsive And to that being a whole versus were solution. way

Dennis Mathew

please. question, Next

Operator

Our Suisse. next question from Credit Mitchelson coming is from Doug

live. is Your line now

Doug Mitchelson

M&A Thanks down. the a know they you markets. focuses footprint Suddenlink markets process Comcast, the smaller interesting a there? markets. on about you're the been more you all hopping obviously larger debt mean, over at so and Not or is find much Dennis, sizes itself, quarters larger have Dexter sorry think focused you of what And have scale super and the you markets for on the of economics I Typically but attractive can lot than strategy, on strategic perspective necessarily in time last New then do I be a York if experience on markets separately scale versus anything I'm smaller pay side, couple different. hearing we've just as but importance think business, cable I in the curious, of but just had

free Thank flexibility hunkering your going and continue down? still [indiscernible] You're positive. think you're focused or that fiber pay while Is flow cash there on the through for we to should any obviously overbuild down debt you.

Operator

please gentlemen, and by. stand Ladies

speakers gentlemen, momentarily. please speakers be rejoining Once ladies stand Our rejoining again, by will our be and us will momentarily. us

Now rejoining speaker the line.

Dennis Mathew

anything do It to just Sorry We about apologies. have didn't our the with [indiscernible] that. question.

Doug Mitchelson

enjoy London you you Well and add, U.S. [indiscernible]? dollar that you stronger hope as chance to move to Dexter the gives a

Dexter Goei

It the timing clearly that may not me has good. escaped be

Doug Mitchelson

to forward And to for welcome I'll with Dennis. add my Look rest the you you. working

Dennis Mathew

you. Thank

Doug Mitchelson

I So my did or catch should guys them? questions repeat you

Dennis Mathew

sorry. I'm didn't. we No,

this So us please just great. It'd again, give Doug. be

Doug Mitchelson

small for and have at the your view markets. importance scale I'll markets shorter you the the Yes. same optimum a time just business large Dennis, the versus audience. on give Cable's footprint. Well, curious, super I'm scale you version just and strategic on

tuck-ins of small markets specifically, might I last think suddenly I think you but larger cash we over forward? your down the And so debt quarters, as just the then than still flow and for will where that Is how focus focused Thanks. markets where positive, it has about pay not economics couple more or strategy, So small having discussion focus just you time? think curious M&A on deals. curious going about think be? just versus flexibility you're Dexter, free should the the been You're

Dennis Mathew

Yes.

I markets So as experience strategy have the right in looking large our as we is as those right how operator, go-to-market way. of markets both. now well in got working My focus have small do the included needs my disparate very I've and in an address at and footprints markets

where the I and our I'm about think we excited have we're – strategy headed.

we build strategy continue a as be taking addressing our through we go budget to how XXXX, a again lens how forward. and I are both process close I'll customer as and for the so move we experience have And at can look

Dexter Goei

been pretty would to are reactive on assets that we tuck-ins certain think I of much think our some plate, there there that at. some that verticals whether you think may I at expect. available and to of that And additions may on there's strategy are some look We've would a we expect comment. on things, may M&A other you are is that don't that whole that not I like – things look host our that or

art time, thinking there terms things in in we about. talk And point in possible, about we're the the of are there's near probably the about at future that talk for think of so this no will I need things but to us

Doug Mitchelson

right. you both. Thank All

Dennis Mathew

you. Thank

Operator

Thank you.

UBS. Next from John coming Hodulik from question is

live. is line Your now

John Hodulik

Great. And Dennis again welcome Dexter. and congrats to to

that the Cablevision So maybe you driving broadband we the I trends you talk markets you're I talk then competition can maybe benefit, worse you're the do as would could look the current couple Dexter XXXX? be that think you you to get then you that that Suddenlink And typical the XXXX, in terms point and to we more the talked sometime fourth next guess, on difference Thanks. trends are market, back back-to-school things about the as the we'd quarter? could versus in where out during get of about expect about a to benefit, to look that the guess Or guess, we And that in year markets. side, suggesting said you the lastly, into you without that trends back-to-school I seeing saw based grow on seeing the year? the we something is fiber

Dennis Mathew

are dynamics combative the on question how in our are Yes. seeing KPIs terms our in of we Maybe what and taking evolving entire markets.

remains out we've same, that primarily commenting that footprint is the the think a the do on QX Connecticut, from that's of same. seeing have Fiber Frontier part clearly effects west, it's of over I who's been east grown some obviously but still FWA so which which the QX, builders in in we're in there. we small in been and our

than activity have dynamics the and historically. side on which side the is higher well, I gross think the on seen out we churn same the activity lower we geographic west as remain have east

in it's a QX QX. west of in the more we've as in pretty QX seen the stabilization to a We we of same balance bit towns seen a performance. period I the a we relating and some on year the we've rates in are much how year think in that about to quarter-over-quarter sequentially big your little of periods will time churn about have that say evolve so we in QX go attractive QX, QX. fair point But where was of unique don't And issue terms to effectively lot back-to-school; evolves whatnot. seen university I whole October we've through flat terms of talk QX, Obviously in of relative the to saw terms of the time things to QX than versus and saw initially. for run the unique

has been XX furious fast So, to the work and months. the XX for past

on it's our your We investments lot obviously And do continue and a to the the through build a we time go obviously that fiber and on question comment question to let care. XXXX. earnings. I'll of process to build the and relating when Dennis into of get QX and on distribution relative work, new But budget

John Hodulik

you. Thank Great,

Operator

you. Thank

is New coming from question from Next Jonathan Chaplin Street.

live. now is live Your

Jonathan Chaplin

Thanks. other changes out growth? Suddenlink of Thanks. that's sort review place of I'm gross couple of a sort is whether EBITDA going you subscribers Dexter, in mentioned, Dennis, strategy of see already for to lower are big us adds and foundation to in question what follow-up mentioned implemented revenue strategic that bit will that or that do question trends on on markets a the sort of was is trajectories going equally for times are versus Optimum, little to of as may. give been it required if look the a get of already challenged? function that's business playing at back that get from the you to up function a back whether One churn, like you then of a the can if come and up the pick I I'm the subscriber there to moment. wondering You context of And and here? you are a as been losing in a strong sort what's to laid. just that's Is you growth your both put the function

Dennis Mathew

churn growth in same. think macro the west improving. activity Jonathan side side the on the the in commentary trends And the higher overall of think I lower east, I are trend remains overall

continued We are we've coming losing other the But sunshine that about really between care in, rays and the the that's basis. the things. are subscribers that things and a we've and in year-to-date we to just year distribution, and some various again, all do throughout both rebrand about seeing spoken the of east west on investments technological

direction. trends And the the I right the in so, they're moving think, same, are but

Dexter Goei

process From need efficiencies. further investment, our in necessarily be we spending lens my a talk first where I'm opportunity the made impacts. in XX opportunities teammates now. and but front understanding getting from I And think great our seen to there that been spend that and on investments on the deliver my perspective focused see think of I or customer operational get in to and I service. it's improvements time change that some experience to think don't significant I'm continue I'm may the of days, our kind to hundreds customer I've lines, lines. experience had the I've the And bringing the end-to-end front experience to and teammates, have great evolve our feedback time there I and do themselves some operational strategy

Jonathan Chaplin

Got it. Thanks guys.

Dexter Goei

Yes.

Operator

Thank you.

Your question coming from from Feldman Sachs. next is Goldman Brett

live. Your line is now

Brett Feldman

for welcome Dennis. to questions. Thanks And taking the

But it broadband, they mobile advertising buy for tiers really a have broadband your their I hard to order money. leaned to way you in as broadband do also save to have of great and in considerably, seen increasingly trend pulling to talking course, through of softened are it. in mechanism particular, about some As is a think cable their they have mobile,

leased deal, use you've new recently. half mobile the your but through opportunity to of more it significantly actually restructured You've T-Mobile

your talked to thoughts have play for you the give some the debt. can mobile broadband that in growth. hoping pay helping a of your get how Mike, And So latest of think I down using role your one some you just to quick to on about cash back you business been you was could us

you're to Your at market, pretty the bonds significant back you discounts also think are if I'm wondering the par. bonds or that? do trading opportunity find how to you. Thank in about

Mike Grau

expand No, my you paired that as find product. we And I a retail in great presence. And broadband is question. with a do to great know, especially product, are, our experience mobile continuing

we've that with so where do excited mobile, very some on deep having been is opportunity with team strategy think conversations and I'm the And about. there I I'm

at drive how looking strategy and our broadband our so continue that offers we Absolutely. current, our at also drive to can looking be we evolve will we offer and can mobile. bundles so and And

Dennis Mathew

So is us. of Brett, in the the lost hasn't manner marketplace aware very response question, your our debt been second which to trading in on certainly that

open in to of bonds. not of our engaged sort have market any We repurchases date

haven't Our easier have in to been debt downs to and we little of liquidity on from the as and that pay as to but a certainly we'll the pull but some road bit continue revolver contemplate. of via radar mindful Historically, we've we date of our down well, contemplated. prepared alluded logistical It's very is value something it's we're it. It's standpoint gone yet, comments. something our a screen enhanced to up

Brett Feldman

Thank you.

Operator

you. Thank

from Michael is Citi. next Rollins Your from coming question

Your now live. line is

Michael Rollins

good to afternoon. Thanks Dexter and and welcome Dennis. wanted I just to my thanks convey

the following And on experience, or trying of privately curious licensing to whether the back bundles? customer future you, points Altice on for for to then stepping being a future customer in generally accelerate experience, just it's USA for on company partner, company? opportunities what of opportunities thinking or for just distribution technology, further the Just Thanks. the Altice I'm are of merits, second, accelerate held to each the you Altice about the some even discussion versus enhance how of public are the to the

Dexter Goei

all take we I if a were the speaking of you private mean, one. miss Well, company. to I'll first I'd

in terms I'm and continue our that be and to the into table us but So are at, that looked decisions terms I private this in of that more obviously those something at the been low is discussions. would one has joking process looked and XXXX. think, ability on But analysis that all context, as it. are our points budget level flexibility of something is level to doing through of that an again today a maneuver and that sure the future escaped aside, Board if in in not definitely shareholder we the the go with of is But be going we'll hasn't at

company capital into radar flexibility So the public has merits don't a ways right the company there's programs, incentive But of think to the being and to in it's both on. availability, in those operate I the also of relevance comment but versus of clear private more any that types things. terms anything a

talk some And point there's that's at there. all maybe say to in I future, today. could about lot So more the a

Michael Rollins

with opportunity customer experience partnering? the or And on

Dennis Mathew

And that Mathew. installation, business and/or do – We et question I partners across call is Yes. understand Dennis we sure cetera. here. not this repair, with the our about talking operation fully I'm have the partner are supporting whether centers ecosystem we're

and we're right And to deliver right what's expect. and able partners of looking at that those effectively of the being the mix so that's that we most to in quality level strategy approach. the deliver the And would quality terms managing constantly the

and mix a and And we part best sessions review out process really that so the is the strategy can of experience. right part happening so that the the deliver of the budget as figuring that's

Michael Rollins

Thanks.

Dennis Mathew

Yes.

Operator

Thank next James The coming from Ratcliffe you. is Evercore question ISI. from

is now live. Your line

James Ratcliffe

congrats to to welcome and and Thanks Dennis. Dexter

in thoughts NPS talk interested been combat the and is fixed advantages product you've materially wireless wireless fiber than Just, Dennis, particular out I’m gives fixed you and improvement the how you and about products. HFC already scores in that your on some your that better there. building because But clearly

So how you do Thanks. combat – a as if you're that's a force? competition, how competitive that if –

Dennis Mathew

of looking part look at question. packaging, at mobile. that the what great with as that's pricing, we at as I offers, look got as bundles think as the at a a have That's earlier our our of portfolio especially in about I channels. our products we do sales can I we discussed I great that positioning, where I I'm we've at And look available as create look services

together we tools drive that's And that these going that compete give marketplace. as us particular, out, going and of pull all in to think technology roll assets, in and effectively. to that continue them at most we looking to the so I so fiber, we're And best can the

driving And as excited so well. that we're about

James Ratcliffe

Thank you.

Dennis Mathew

Yes.

Operator

The next is you. Wolfe today Research. from from Peter question Supino coming Thank

line is live. Your now

Peter Supino

churn question. the west. ask taking I wanted to the one in for a on thanks couple, Hi,

fixed local both in and mentioned also wireless. builds fiber You

where could you the wondered contracted arrives? And side So visibility is know fixed you there is as I a I costs and per that on on wireless places please churn house, might fiber problem roll – is well? Or specifically it the finance really a then happening churn primarily – churn problem in a your XXXX you. that XXXX Thank had discuss build home? and wondered forward the lot visibility when off. fiber of of

Dexter Goei

think smaller AT&T increased you're definitely on whether the fiber we're on on on seeing not fiber there. able Because same that of higher the in seeing which first churn were where types – the not if all activity, markets overbuilders, the look players Peter, other that I spot of some you out to we're it's side, is we're kind or where at be of competition trends. activity on, seeing primarily markets type of question, we're

Mike Grau

Peter, – this is second Mike. your Yes. on

terms household rollout, the we In of pretty good have for on visibility fiber unit visibility. per cost

some there'll terms will inflationary think of material don't and/or you're be in dramatic think I but be I But it costs labor pressure, costs. right.

do we and good You that. materials that longer have the contracts in made procure point. to a to locked labor need term certain We the both do

to, here build to think due is west cost think I mile will both east. as we But a little and our build we've of mix The instances. exposure pretty both the do per in lower a that will density previous to little household east in in west more than the what fact west. visibility in the those have more the underground as as drive commentaries, well build, I in be the be on variability between good we the expensive, do alluded unit will honestly,

Peter Supino

Thank you.

Operator

Fargo. you. Thank Cahall Steven from question coming next Wells The is from

Your line is now live.

Steven Cahall

Thanks.

if pull the currently whether labor continue as I'm much forward follow-up excluding CPE? about just the fiber you're you're permitting, maybe imagine On seeing passing that's then market. to passings, accelerate And I to there's or anything it can constraining putting you possible. per that And those. fiber to of wondering as you growth, it's as you'd that, is what as the into kind cost a talk want

seeing some that really is price put how offense happens and versus the into any cable it marketplace? from about coming for Does see you you some the because seeing it ARPU and Or price market competition commented increases do defense, ARPU? just on cable channel. into pressure fiber your we're net think adds You fiber about across it When builders.

think just if I'm really So customers a competition you for fiber those Thank overpriced. you. not it's and or impacts just wondering

Dexter Goei

East slowdown overall of see you can doing passing better theme. the part we're side, the continue as into – is the we’ve much bit going for years. think on we’ve we’ll weather to by I And numbers, And due We’ll been XXXX East. our as the QX, throughout in fast a pretty with the XXXX done can as the obviously, going a see in we’re but of in three we been accelerating accelerate to this year. on little as

issue, West, geographies. the it’s a complicated little dealing disparate a On it’s you’re with more bit that – not just more but lot

York. East in planning. more a limitations of are about bottleneck seen so The has probably somewhat permitting. York with terms really scale the New regularly of on to able into New of been in this not The efforts XXX,XXX XXX,XXX those some to state access has waiting takes year of Connecticut And in We have are of we one to really state in permits labor. the and quickly, we’ve it that redirect labor. go Jersey New a impediments. the the await organization lot limitation been been permits our the we’re in and The permitting. We We’ve as that’s But State have New York. to only do of –

different there. in row relative materials out question in communities the that to in well. are access time of have the our the ducks just getting a a all We raw it’s to And as various West,

HFC. probably side the as defensive add In offense-defense, fiber profile well. improves there mentioned, XX% gross example overbuilder. churn fiber given to and is theme built releasing tend as we it I are as against the our plus another Connecticut as start good a built that higher we that, have Frontier of materially fiber our fiber is homes overall is But in versus you to gross when we adds terms in generate ARPUs mean, see of obviously, is and we gross fiber ARPU, our than add fiber

about And customer, and are our And think the about type I add your focused strategy. about ARPU. go-to-market it’s even competition about is that about of gross we team and do will more think I so that very handed. in Dennis very thinking our be overall pricing It’s thinking less but diligent on

right? raising a any customer about prices, levers So as being be are we’re price, about not at our pricing obviously And as thoughtful to thoughtful going it’s well. MVPDs pricing. So we’re

Steven Cahall

you. Thank

Operator

Thank you.

Frank coming Louthan from from Raymond is Next question James.

is line now Your live.

Unidentified Analyst

It’s Rob Frank. on for

you touched how give again, can you might update you spoken your So you gotten the just earlier, on but then would allocation build we’re but keeping guys you’ve you. supply that us And most this would fiber currently? capital rank secondly, this a priorities selling – earlier, previously? through might all have quick or guys chain to your bit have from of say you Thank a that on issues into the you

Dexter Goei

deleveraging. for free capital our the think flow, I we’re cycle I cash regularly. allocation, see on build. and on pretty flow, excess focused free fiber the think we cash we’ve investment excess revolver new obviously we’re been And on using on deleveraging Where

straightforward. that’s So pretty

got well inventory all to We’d to on raw – to our levels. the fiber comfortable with rollout, right side, in be underway. and related got And ducks to terms on the the on or that. row we’ve We’ve adds we’re materials migration, gross migration a both the I CPEs very looking be the of do In of accelerate able think side.

week. installation issue more get start as and are getting you those rolling to will because experienced, just to repeat that So they lot escaped are of we faces I Jersey early that technicians XXXX. as installation better get New over New is our think New better, And York and served process the better and to getting we get get out Jersey relative Connecticut time better everyone than at is a The hasn’t only right? and week and of more look technicians – Connecticut phases continue ones. process continues into obviously, us our better better it the and New better York if as The the in rates better.

Operator

floor turn to any the end I’d closing Thank or like comments. Nick you. We’ve question-and-answer of session. for reached further back the our over to

Nick Brown

any have we’ll you. Thanks, know the catch everyone, you Do for Otherwise, with questions. few joining. if next Thank weeks. us follow-up let up in you

Operator

teleconference does you. webcast. That conclude Thank and today’s

you day. thank for You your have at this wonderful and lines today. participation your disconnect We may a time,

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