ATUS - Earnings call transcript Q2 2024

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Operator

Hello, and welcome to the Altice USA Q2 2024 Results 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 Sarah Freedman, Investor Relations. Please go ahead, Sarah.

Sarah Freedman

Hello, and welcome to the Altice USA Q2 2024 Earnings Call.

be by Mark Chairman take Sorota, the and today Matthew; CEO, you joined presentation CFO, questions. and who then are Altice and USA's Dennis through We for available together will

today's titled Statements section may review X. Forward-Looking forward-looking please on statements, As carefully presentation the Slide contain

Now turning to to Dennis over begin.

Dennis Mathew

thanks, joining Sarah, today. Thank and you, everyone, for

we in best Optimum products, best team are the decision To the connectivity be Optimum. As me you've to serve. at customer say at heard the best and by providing here we of putting before, best every choice the is do every best that our relationships supported customer that, customer mission at of networks, community provider all center experience, the

of revenue, sustainable business Our focus returning on the EBITDA over time. cash the subscriber flow growth strategy to customer and our underpins

quarter another transformation was of progress our in journey. QX

increased we improved fiber, strategies. quality customer deliver And to improve mobile continue to and the to enhance our BXB experience. data operational and businesses, and our capabilities We satisfaction, product and are artificial use elevated metrics, growth intelligence in go-to-market continuing refreshed customer

We we just started. discipline area across are are getting business, the executing with of financial and every

enhancements road to prospective exciting, have and We and cannot year and of this bring customers we robust innovative product future experience to an our and that wait map current beyond.

current for country. success to Thank Before is teammates lives. we provider our get the of services customers to your of It our business. you to you. thank for future the into is dedication do customers us across And our thank I to in the their driving one that details, most say you and choosing as the our want their essential

face adjusted and into the people, competitive prior returns investments. improve Slide declines in continue to and $X.X turn financial higher EBITDA starting continued EBITDA year-over-year trends. and X increased We in in to see QX higher are revenue interest as and to and to rates, delivered and macro disciplined our let's inflation data $XXX Revenue reflects now adjusted including XXXX. some analytics execution those million of invested This pressures, and to get billion on in compared specifics. So we to operational the We've competition.

across to customer we we teams had and customers use relationships to limited robust of our continue now performance more stable drive managing business. were trends. business, Looking these our The a of tools months and Through our the our our data sales our On implementation analytics saw both XX operations. lifetime as we'll which the and XX are have and subscriber customers. East back had of from impacts customers processes trends, our macro we of AI value. extends pressures, proactively ago, points. competitive the centralized tools, AI all in West understanding understanding and their to benefit transform at them footprint improve touch and pronounced and inbound individual and scale of to our relatively formation

sunset the our gross pressure FWA. from partially and fiber to ILX, aggressive customer overbuilders saw we addition, in ACP of segment, In attributed addition and low-income pricing

Our us effectively to hyper-local value, combined strategy, network with over time. across robust quality our base compete offerings and enables

million drivers and mobile customers, Overall, to subscribers which of remain with customer broadband well relationships. fiber to in key long-term base healthy see profitable positioned strong we customer we and a X.X growth and lines, continue are

is of our outpacing years. a our the over on satisfaction the BXB customers and is customer off. improvements climb, paying year. momentum second growth Overall, half are also in NPS focus in X the of According both saw better external that to internal subscriber positive peers experiences for we Optimum delivering our to on on last build We excited significant the QX, benchmarks,

levels when has over satisfaction customer grown last XX years. transactional interacting or the Specifically, points with X optimum NPS

toward This is progress Optimum Additionally, over and or trust. Optimum has grown customer customers can and XX same the establishing one brand significant that on points the sentiment in marks brand the stabilizing rely relationship overall period. NPS our business

scores focus our to us profitability sustaining ARPU on protecting helps Importantly, improving churn. NPS enhance and while low

QX, saw grow supported experience the brand prospective percentage In we points strategies. percentage and awareness by improvements, customers our year-over-year go-to-market XX points launch East and in customer platform among in the brand also West, X by by

named recognized fastest were New service inclusive New again most in also and Internet third-party And New and footprint our York Internet publication, Optimum reliable PCMag. best provider We Ookla we by was the technology see New continue the York most fiber speeds Jersey Speedtest. recently, to validation Jersey for region of in the once having to and according Mid-Atlantic

we In footprint. across is XXXX, see set of in CNET named best areas the industry. addition, our by in It Internet recognized across were validating provider the networks superiority product and the tremendous our and to

on that impact positive brand driving experiences improved programs are Let's and into few dive these key our reputation. a a

is at lower improved out directly over we November, demonstrates the higher upgraded improved and speed experiences to and service aimed rightsizing for churn benefits previously Almost This enhancements higher engaged, deliver customers and future speed Since as half we rightsized XXX,XXX strategy tiers, customers one on HFC customers plans. were And initiative population qualified stickier base speed room legacy these of of with creating our relationships. our us enables to of we speeds. network more customer satisfaction. Speed how our have leave satisfied have upgrades. management to just overall it our component seen considerable passing as are well phase

are setups customer availability better reducing and self or through experience We of broader truck a satisfaction creating rolls. the increasing self-installs, also customer

saw setup, months XXX,XXX fewer service our in as increase in and the eligible choosing last fewer we improve continue seen this rolls we well self XX% XX will to a truck base, quarter, customers X.X This have as Across we calls. process. million

declined XX% to declined prior the have rates As by customer year. customer experiences, almost and visit have service better per customer XX% we compared around deliver repeat contact rates total

are on quality products, completion all-time and rates network This by service. are and rates highs quality approaching quality our lows. repeat all-time quality, approaching our is driven Our focus

first-time We are proactively tools, before. and faster, product such with expanding app right like resolving as on self-service our every never issues my communicating customers interaction, Optimum driving

platform launch our a trust where which where our hyper-local to about quarter, are So big which best-in-class local level, backed talked last hyper local with support technology ability operate delivered of time to of tailored nearly leadership innovative, local with approach is the already hyper-local position business. benefits the a and our to local go-to-market bring scale town-by-town size, of Optimum, our our I approach subscriber is Optimum approach by teams efforts. brand at the seeing focused serve how we and platform, products XXX emphasizes to a a strategy, This is and we and customers. and segmentation us we in in markets put this stabilization customers unique

wins addition, residential levels. losses 'XX In to competitive on switching customer for improved compared slightly QX

as are non-movers the as better generally. footprint East We west in well amongst performing the in

will strategy are more gaining every Our in go-to-market hyper-local us serve. it is we we market competitive just enable momentum, confident be to and that

deliver driving I developments innovation, focuses our over our well and for are Next, will Optimum product exciting excited review to and are the the of working underway, customers. transformation diligently teams evolution on solutions operational With portfolio, on some flexibility of about we which our upcoming the value X, medium term. the Slide

QX, additional Let's offerings our the add-ons start bring per seen a for even to take support while in will customer product to add-on experience with We that our customer help devices launched in this thousand revenue new opportunity the customers them per services, provides residential of out our value-added month services expanding launch Total products. and Since set Care, their of the capture for and marketing get core beyond at premium several hasn't customers $XX home Optimum, most which recently connected started. with customers. soft we've

fixed protection and device also recently for mobile. device just We launched offer protection services our for

to recognized broadband, our coming focus As focused more customer evolve, where on suite. providers have are creating and key also in a changing growing is to managing that peers a are resell easier several consumer we flexibility partnerships part financial customer while penetration with migrations, and through On categories. renewed both and us, content our areas of enabling us services to area as meet footprints is exploring Optimum reliability HFC needs we untapped the OTT of be and fiber faster, behaviors speed third-party an ahead on continue in rights. fiber, process cost product for This we additions in In for greater both app effective. now

network are and lifespan. in to high speeds, make migrations total deliver optimum of fiber we available of second technology, mid- our we improve speeds one XX% to as video the X our stream we best-in-class to higher have accelerating actively as ability testing on our or system the network investments to anticipate and the capacity HFC using gig Performance reliability for durable year. product. our reclaiming expand speeds the provide footprint, from our half our and well we as continues right gig Today, We split

part on we're Next, coverage basis. continue program management and experience optimize improvements with as ongoing expand qualified we'll and an rightsizing strategy, our our speed of and continuously performance. software our And customers enhancing upgrading hardware identifying WiFi in-home broader to base

gateways. smart and includes Our next-generation backup, map road wireless WiFi solutions

value. quality service the to strategy broadband delivering our great our customers Overall, remains focused a highest at on best

We positioned our year. and current introduce QX to next our continue map our extend to device experience. continue sales product protection will and mobile wearables well with expand device to to selection. to On future and are improve expect channels we'll mobile, We mobile road portfolio that and mobile in to tablets added more

see mobile SD-WAN, months. additions On will services, broadband LTE are such as BXB, add And Service, have the coming features growth. security we started backup quarter, more more and in and we SMB future which managed in traction, as selling BXB, we net beginning reporting a richer support and the plans to recently to Network positive

increase our addition, United an and footprint enterprise existing well that City Manhattan the acquisition installs. it If by June, networks healthy to completed, announced continues serviceable growth acquisitions. agreement In owns net high its market expand XX% revenue business footprint. is fiber driven QX, to in expand to and entered an the to between Fiber in and into Data. tuck-in with Lightpath In acquire Lightpath count expected this over Lightpath see had in York operates Ashburn, align through should by and UFT continued New Virginia.

a X. on to video, Slide moment last, And turning

a last the learned have changes. about have company these been address preparing a years, to few viewing our Over customers' TV we lot and as habits

advanced are We set the and our expanding provide the with connectivity flexibility experience to choice, evolving demand. product customers and our they

launched Optimum stream. First, we

user stream new we to interface in platform, introduce its rewind We to continue across streaming live and million and video we premier West and to our enhance Tri-State is functionality. to nearly pause customers. York all this Android-based more And area a months video our bring footprint. for service homes New Optimum our the Our available to come. TV plan X.X year, expect to

top-rated of Internet of changing several see July, to first for Optimum TV, with and variety the options. and In do the premium package $XX new of priced customers out live a across to optionality. cable sports is at be video and package per the Entertainment coming we Roughly a time only Entertainment New with the York both service, channels rolled with X a are TV by channels preeminent XX News sports, announced available Entertainment of video TV on-demand TV launch we Tri-State to and source landscape of to and is these content when we This broadcast, content new Optimum's bundles news, area. also in regularly, have able XX engage optimum screen. TV provide not at customers now TV customers access month the news continue features dramatically. through X over hyper-local our

in continue choice being confusing choice programmers linear the without content discussion options. who prices want. should to of we and prices for reasonable at partners results their for for to watch to TV bundles who for our committed they to for Additionally, platforms access the This to without majority what of viewing raise giving approach they customers while and fragmented want flexibility, with content a costs. to pay mandate consumers and and don't and will bills equal high every the direct-to-consumer have forced it pay partners regardless we pay also fair will content are the value Therefore, they whether all customer the premium moving with how and renewal customers. forefront, collaborate want providing they and Consumers

year the this beyond, and business. As opportunities rest the evolve of exciting we and look Optimum ahead have to of we continue lot innovations to a to

revenue strategy to is flow confident long-term that well lead growth. and will cash are customer positioning us our We and

QX over With it in Marc that, performance now detail. I'll hand our more review to to

Marc Sirota

Thank you, Dennis.

$X.X customer marked Residential XXXX down revenue Turning the and smaller to X.X% notable Slide the QX a QX QX X. which trend, Total improvement year-over-year, of XXXX billion continued down this revenue X.X%. subscribers. a a was volume improvement declined declined in was by year-over-year X.X% base driven Despite of losses pressure, is trend X.X% X.X% decline the video year-over-year. from and from

within note, consecutive year-over-year service quarter mobile XX% residential over saw residential third our Of growth. revenue trends, of its revenue

residential more As up contribute we should ramp time. to of trends to our on continue this mobile, revenue over

low-income our across footprint, have As across sales observed we segments. channels, our we shoppers assess fewer sales among especially opportunities

opportunities rates. competition macroeconomic due channel our improved and are funnel recent have we in lower a quarters the The challenging top increased of to backdrop. Although conversion

and see strength ARPU growing satisfaction. these we stable Despite and churn stable challenges, underlying customer

dynamics However, ability market line in near the grow subscribers consequently, are to current our term. limiting top growth the and

Over customer the outperform experience our are will fiber that long and suite fixed and term, superior wireless overbuilders. both network, we product confident

Optimum will competitive growth to this advantage expect over enable sustained time. We achieve

we Services, driven and our was Enterprise relationships in LightPath revenue base. growth to and by our services customer ancillary in which we X.X%, to Business In sell grow business, grew continue

X.X% in quarter, onetime to declined revenue nonrecurring items. Advertising prior and primarily News tied the year

to year in half become this a revenue second the year political of expect We more anticipate tailwind double-digit and full growth. of

residential and stable ARPU our at pricing residential card ARPU, beginning $XXX.XX. case. in implementing as of this to to discipline for not enhancements of base pressures that despite continued on when around fiber incremental and like and trend rate signaled across Recall, maintain relatively services erosion. we of is In management video began tied we a be healthy year, base, and continue QX, this new the proven as cohorts this our impact selling has well would our rate base the mobile to we This

translating better our Notably, satisfaction, through have and of to the with rates into using low offers higher all new last operational near churn and we in advanced AI been tools. we've maintained are keep lows quarters customer retention rates per all-time tailored made level able have churn improvements customer Dennis mentioned, at few the already as data customer

of and introducing agents, care the enhances to and for for we This retention, reason one issues contacting tools team equips by legacy resolve us. user-friendly and tailored our use into capabilities to each sales now efficiency the specific and interface. addition AI customer insights swiftly In based our suggest our are actions consolidating dozens offers with needed to on

adjusted margins transformation expenses X we last improvement we year. X.X% was and year-over-year, year. year, X.X%. decline the declines have prior to to the was act of this marked Turning control, declined marketing which with QX, a was in the Total stable what QX slightly XX.X% have from EBITDA Adjusted and point continued Slide from X. revenue Adjusted from QX in costs. in trend were of discipline, under down EBITDA down operating EBITDA sales down just can which Of note, and we quarter result controlling first and of the low elevated primarily maintained single-digit quarter. percentage

As stable. costs talent advanced we improving out overall journey have remained bringing and our operations, our rolling of tools, best-in-class continue the on

some growth line allows and through sales of as positive other over us areas drive marketing, results in operational savings We such and achieved in improvements. to data which areas This and process analytics expected efficiency have time. top are the reinvest subscriber and business to

$XX $XXX of cash year. in million, to the to to compared of higher second free flow we to taxes year the timing negative year significantly continue be taxes taxes half for cash taxes. positive be the and was of first lower will estimated target full in to cash million, year, flow full anticipate expect $XXX and We range the we which cash due million prior cash of free quarter half million the includes $XX QX

quarter to fiber in grew quarter. our existing Slide in adds added We and on we'll representing with XX% XX,XXX points of of trends. penetration Next, on X.X Approximately customer net fiber the prior review the growth the fiber our year X, from customers. percentage pace XX%, subscriber were over migrations quarter, of customers

recall, there this half a the year. migrations refine you accelerate of of pace we we of bit back quarter a pleased mentioned If And we be the down would migrations to continue process. operational in the to slow as the I'm expect

were of XX,XXX, double base line to QX, net additions mobile penetration X.X%. year-over-year, increased than the Mobile broadband additions we pace and more our In of

rate Total continue the university and stickier by of seasonal mobile grow through new create lot We accelerating net in sales and of attachment mobile half pressures and quarter, were anticipate penetration macro in to the $XX,XXX growth have to productivity broadband a the impact exciting the runway continued second to offerings. We and competitive customers. disconnects year driven subscriber sunsetting. losses the ACP of

mainly add low-income prior Specifically, basis. a on which both temporarily pressure the segment. in ACP, is impacted segment of be QX disconnects this attributed broadband sunset this our the performance versus the year in to net has year-over-year adds to gross can in difference and Contributing

adding [indiscernible] their for and customers into connectivity We from price and to low-income more added offers sensitivity on that discounts. their manage fit needs plus these best value mobile tailored continue with bills services to qualified to products customers save to offerings

green earlier, these efforts form. throughout local mentioned just hyper As our and take have to efforts, Dennis we are shoots seen starting go-to-market

improved low-income prior see stabilizing gross the turns July. subscriber in broadband our Further, we add compared segment, July, year to see from we Aside year-over-year. activity

gives underlying to the return to growth. are stabilization are confidence but the see long-term from the pressure with to of continue segment, we positioned which business, that We we us pleased well low-income

communication we products. to as rightsizing, management relationships speed base retaining enhance Overall, the and maximize customers as and customer we to have customer improved by continue additional and long-tenured deepen our such strategies, our selling opportunity CLV

We whom broadband or base have have customers, compared tenured majority been the of X of customers. churn early to years more, take multiple a less strong us and products for with

Turning to Slide XX.

are Cash the our of We a passing network half investments. fiber in in X was will intensity, expenditures CapEx revenue which year. Recall expenditures year-over-year capital was and in $XXX towards QX. XXXX, the our which capital XX.X%, about investment the down Therefore, in a year. capital points we construction. review quarter percentage our XX% as percentage cash In were down total QX included was of weighted to expense versus greater more higher last capital first CapEx, comparing million,

QX added we around and fiber we XX,XXX we expect X footprint million over expanded we XX,XXX In passing additional and end passings in Additionally, year. to quarter, total fiber XXXX, year the expect passing passings this our XXX,XXX total to with the add by

As manner. to plant with HFC Dennis this our quality perform well, capital-efficient mentioned, in enhancements are we continues network a and maximizing

For speeds. capacity improve are X.X to bandwidth we increasing upload and efficiently allocating over example, customers broadband more for both million by download

We to doing split this lower capacity at and network, continue to our we are create nodes on a cost. more

strengthened maintenance network customer ever and with tools to notice. would preventative identify enhanced network processes and issues our around and equipment have a We proactive efforts fixed before in

around we All to benefits of returns efficiency improved with capital review prioritize right We the to improve highest remaining and recognition third-party experience network disciplined awards enhancements intensity. global capital strengthen validating investments these to our networks. to our remain that customers from customer published while enhancements regarding making focused on the and are scores,

network. continue in we we fiber year to and half increase Please as of expect capital slightly more in customers to the our note, intensity migrate invest to back this

lower of guidance. now year, have of full to is first disciplined than the this range $X.X under year come initial we which billion, our half remained in CapEx As slightly the we anticipate

on our I profile. to Slide finally, like And debt would review XX, maturity

runway average a stack weighted swaps. to total with positioned At life our of debt X.X%, of fixed, maturities the cost QX, end average rate of years. floating is X.X well are debt is of our interest fixed until inclusive XX% weighted We XXXX. clear of is our and

X last the X.Xx quarters adjusted was ratio annualized leverage EBITDA. Our

best operating to debt proactive that goals. and in our capital how supports ensure evaluate managing structure to will our long-term continue We be maturities our

near looking to supports we maintain objectives. are we in are capital well all term, While that structure long-term options our positioned the at our strategic

go-to-market focus financial us customer place we conclusion, the strategy discipline sustainable approach with in which growth. have profitability, positions to right long-term on a and experience segmented a with on enhancing all a the In of path

questions. we that, take any now With will

Operator

Our from James. first is Raymond coming Louthan [Operator today Frank Instructions] from question

Frank Louthan

Can something us in call idea kind so you run a business savings from the what where center as for as in or inning as rate forth? the give you're an do your and that? then us And inbounds? of truck integrating follow-up, you far efficiencies of current are the you and think as AI of give kind What rolls like

Dennis Mathew

our improvements operations. we're the really seeing Frank, excited about we're that in

with mentioned, This fewer folks X.X opportunity. calls, is rolls, a sending are we're quarter, less installs. more outages driving proactively truck into all self-install. messages fewer self-installed and that's As just all leaning proactively in is into improved XX% rolls, And truck interruptions, customers, visits, We're when this translating system in into We're more past noise the XXX,XXX experience. savings. just fewer leading our having and I and million service customer calls, service or there's communicating driving this fewer increase

our structure, second, but a first talk in that direction as about disciplined effectively OpEx that [indiscernible] that to retention then provide our a taking bit Marc agents volumes product to them were to our based offers was the the and in call lifetime tool and their we're well, optimizing value, and in are a being accustomed talked customer's needs. we're help really coming We savings more launching that set on and step manage I'll investment. let and in We our about a investing those bit AI

fits have ARPU those takes improvements and when ARPU allowing And market intensity drive so X to drive calls. taking rates in all that that we're the size erosion. not And a the into consideration competitive us also in better it drive it's is save

elevate our care with simpler tools, solutions seeing centers. pilots pilots customer we're a on opportunity of faster, to employees further year Marc? field the to experience, find effective this we our as and more issues it continuing even into have so 'XX. our to teams, the and into just the help ultimately And our efficiency for faster deliver easier We're We're half make in solve journey. drive us real running and running second we're experience the go

Marc Sirota

Frank, add. I Yes, would just

You investments see to in been mentioned keep We make it has our our We've quarter-over-quarter, these were OpEx pleased costs costs. Dennis which sequentially were that able down we operational and flat. about.

And so while with we would in characterize I drive out the we're truck Frank, rolls early to of and able technology. it, type as the AI. phone reinvest calls, this innings,

have mentioned, at to By actions end Dennis As the all the individual level. we'll of third agents. our it quarter, have in of agents tailored we care all our it of of the Again, customer front of front in retention date.

ARPU. video we're going So pressures helping really we despite to you in stable that our the to it's see the this ARPU take see, AI excited about the it company is operations, where video able really and us guide and maintain

our So really early pleased but still on progress innings.

Operator

Next Maral from question today Kutgun is Evercore ISI. coming from

Kutgun Maral

value on outlook EBITDA on one of legacy strategic and the One Optimum. the for

meaningful Optimum there footprint, headlines and I build, about the progress around focus half been monetization. or But fiber And First the the partnerships. guidance the know on some team of now pieces you opposed various perhaps a pieces have we Optimum engage the is maybe mindful years has in across you it legacy we legacy the should I the the capacity? number year? and But to second, point to are DMA are underlying be of moving that EBITDA. you the can should some monetizing the given provide cannot full interest and fiber of that and any can what think business as to appreciate value some on there's asset explicit strategic you for assets in where talk management improving moving at back top for and over more a shifted operations with don't control. recently the towards the there on willingness of of in Board how

Dennis Mathew

throw first, the we're Thanks, footprint are and it and Kutgun. and markets our focused is which We've footprint East. go-to-market And launched the laser the question the particularly are the particularly footprint we that that organization, improved new that playbooks transforming really and take about fiber and over seeing incredible with East our on continuing legacy quarter, Marc. Cablevision I'll excited XXX to in But I'll across hyper-local one we're be we we've second of we're the launched, in to making includes or seeing our we then overlap this Verizon. we're the in laser-focused progress on. past over stabilization performance, where

really We are team to going I'm of continue early lean improve, to the proud to . We're seeing in our what compete, and innings. ability that. we're into still the accomplished. has

one have We independent award after award organizations. by third-party

in named that us and named PC in most But in York DMA you're Jersey. New Mag work New York Jersey top in there's ISP reliable the service, and us more the includes that effectively that New the we drive Ookla which we the I New and up, mentioned, compete know and fastest have improvements As to competitive Mid-Atlantic, continue discussing. we continue our in tools want the And to products, the do. have we have and but East, pressures to the to ramp accelerate to the transformation. we to continue

the So about want on focused EBITDA to Marc, you talk piece? today. do that's what we're

Marc Sirota

and talked a that Yes, really improvements investments expect activities, all we've This network, includes investments which Kutgun. really prior made declines our rolls in about. year-over-year year. moderate made all to speed our the we we our operational that and our over EBITDA about This transforming all truck is in driven the full talked you the the we've service by On year rightsizing calls, see the year. customers, we such versus as just that past the our basis,

on path mainly with the discipline AI a growth for to our we of And really tied customers. there. of ARPU, just each see again, stabilization that's do conversation pleased And drive then and to and use

long is the this we confidence investments what improvements we're EBITDA will on over in focused us these that growth. term, then give sustainable EBITDA and So year that's long-term really that drive and

that's are feel so feel good where and about things And heading it. we

Operator

is question next Your coming from Rollins from Citibank. Michael

Michael Rollins

the share provide curious step get rest of and today the simplified timing the where Just performance base can in a typically specifics of broadband that the back, and customers? to the for percent you second ACP then quarter that half? how impacted performance second the if you on impact in can taking the more And now just to on card broadband you it has how your rate are the may expectations

Dennis Mathew

particular, both Marc rightsize we had they On the rightsize their attributable their mobile leveraged our performance. ACP ACP, some to headwinds making look they slowdown tools our and just broadly, bit at that to we really Thanks, to again increased of getting speeds, customers nominal to a churn relates products specifically, from We and and that gross to a incredible rightsize their with packages into the needed. to as add the we're Optimum We our in offer segment baseline. prepare segment, really a from leveraged did right help and team as that And people it and options. needs, them terms did saw sure low mentioned, packages from and that's that package the see in work be of income very Michael. offers able our with think disconnect I happy really perspective. a as

But look But adds. have we slowdown products general term. at compete the where we a gross of And in on do and a long that seen to I that just right the have that bit services our our incredible occurred of disconnect performance, the we headwinds side. terms the second in that subsidy right So I see quarter. generally performance the and is when feel

value. incredible have We

and we remains quality value. Our the focus value. incredible at footprint. stream and now Optimum at value when have we is And TV is launching look look across we Entertainment an Optimum that complete,

new the capabilities do now compete I long video right As products to package, believe a across term, we mentioned, segment. the every be to have we and that able

retail bit pricing, to that throw color. our to In a little broadband of just I'll more Marc provide terms over

Marc Sirota

and fiber stabilization be fixed perspective, and will multiyear of trajectory will over reset. set talked now rate our that card rate a and then ARPU And we're our about the all we Michael, time, a we've Yes, with from pleased journey, we'll, is rate cards. overall card this

not continue side Again, the feel like there's on from on still we selling in the that to mobile change of and path material it's a more services? fairly products early did other fiber, as here, accelerate and any we ARPU we'll like see continue real growth customer individual and basis. days for impact So ancillary an house. manage that to

Dennis Mathew

the -- our our that strategy bit the reiterate to predictability eliminating or strategy continue we're seeing just implement that that. just continue pricing seeing provide and we're providing been philosophy benefits for. a and with existed that I'll roll the are around from rate transparency, strategy has and Yes, old confusion real that to strategy, cards the clarity We're and promo of customers looking to able that our

Operator

from question today Craig from Next is coming MoffettNathanson. Moffett

Craig Moffett

mobile Can just real any that trajectory kind markets we your retention as little customers of particular? just in to. pointed rolls the fiber size green broadband so shoots segmented talked change in bundles that the the of green can you hyper that of in more of of we local it Let who can see out, In and about, that in in the more trajectory who your in you've once markets, cohorts, can have do about are a kind are me done particular, this the that or customers your for converged guess, a tangible in it's something we so is ask confidence whether even these customers pricing us shoot broadband, net the right the had adds. and quantify I broadband who've of, you some

Dennis Mathew

meaningful in Yes. the low-income excited really fiber what our having playbooks. share. local churn. terms And say playbooks and is And segment. headwinds QX, the and in I I'll that really was performance that the saw really stabilization look that. at our We to really, tied prior came into launching -- We performance really joining these churn. struggling was overbuilders and the we're were look we gross to about when the improvement Craig, on side have these stabilization we add were at of me stabilized the And fairly outsized of taking were we footprint folks impact those as when a in believe

volumes rightsizing of bit seeing stickiness improve. of improvement. Marc we're tactics, we're at we satisfaction in their churn. look when being a these loyalty seeing and just a let call I'll level so tied the improvements and XX% that speeds, across to and speed are moved of And I decrease, add We're color seeing and of are those folks seeing legacy off

we're seeing their that market Similarly, go better. a churn. our we're and in we even we're are then able see to level of is strategies, customers able also as stabilize to are we for that and mobile, those and improvement base compete churn record market, And to by taking profile drive management able

market, When acquisition continue terms at we're our driving so stabilization every share across some meaningful fiber anything are there towns look town drive seeing and we're now across and And more to drive job competing against well a both our we I do is look our as some go-to-market as base well. as you'd town, to in we win share add? win town, to in of that the every at ability and curve our by particularly that way as improvements these bend overbuilders. these of and like Marc, where ability our to seeing to go-to-market,

Marc Sirota

that out or fiber are these coming rightsizing combined speed, their tactics customers churn rightsized. double-digit seeing that improvements we're see and particular, product in of take Yes, just We fiber, working. speed around

segments we're add base. individual non-low-income acceleration So we to Dennis see the doing customer mentioned, And feel stabilizing again, that treatments that tactics in types these as gross we addition around performance. our do are in our of

more the growth gives And investments we a a the optimism time. basis lows, there's businesses like core us heading over driving so with path all-time and from feel coupled to real on that around to sustainable churn experience, customer of made we've

Dennis Mathew

Yes.

into, a -- have opportunity, without we value-added base. an The the services was where several mentioned, We care the already customers. within we've a solution other added total into drive new our weeks launched -- few services and piece marketing, any thousand we're is I as that leaning real opportunity further to

as that having these our the management will And so new strategy a transformation. into base. we much launch that strategic services We further and base that, proactive just sell believe more accelerate

Operator

is from question from coming next Sebastiano JPMorgan. Your Petti

Sebastiano Petti

maybe If quick ask to follow-up a I could just Mike's question earlier.

majority about us Just thinking that, in light think stabilization decline, June, about you be low help could about talked segment. attributed the income of second the was there. some about quarter, But there of -- it perhaps in talked right, to the the you

should we perhaps looking third you quarter the whereas pressure just other terms be the considering thinking As we think of terms see through. the in an impact, be of to basis, would disconnects some "stable" thinking was about the year-on-year of a peers we losses well additional June have nonpaid as what by expect ACP could offset do like XXXX your and ACP articulated. about of from coming maybe on And nonpay about expectation management be, of disconnect something kind messaged in XXXX you base pressure strategies nonpay disconnect

come been through we year there's of trying from should have impact probably still think ACP back the get of sense and peers half headwind. more -- to Just terms on messaging in the to a flowing because the in better how about competitors

Dennis Mathew

Yes. Sebastiano, the was comment July. in on stabilization

seeing quarter. effectively as We in believe the in town fiber level half our them and and -- at that acceleration to implementing And having with marketing tactics by local overbuilders town, July, anticipate to the new the year. we and hyper-local stabilization more wireless. we meaningful the at and able on fixed at being compete offers the town these town provide they're head look us level going second playbooks further in stabilization launched second continue of do we are to We've

to innings, we're stabilizing benefit. more compete the some started it's seeing effectively We're those still helping early in We benefits, some of now acquisition see from an particularly us and in churn perspective. and

But any Marc low-income on color he'd the throw over to like it ACP I'll segment. to add and

Marc Sirota

Yes.

to these morning, the with feel conversation. well. we early but like segment AI In addition tools to in confident to strategy of within had customers we have right going ACP Again, we this to offers It's manage already it. that the exactly too but launching playbook population, too conversations as that and the through we've happen we through the feel what's have to some tell manage we to our early right are place the non-PAG say,

Sebastiano Petti

topic, a was but going go ahead. on to I ask a follow-up different quick

Dennis Mathew

Yes, please go . ahead.

Sebastiano Petti

Okay.

that. Sorry about

perhaps how you this migration think the the Can we in help what rate So of just the thinking about quarter how the us rate and migration could about fiber year? give accelerate us you on perhaps -- change about should think perhaps migrations half side. the that as or back

Dennis Mathew

terms the fiber that migrations, we our Yes. performance, high In were tied and in challenges issues dealing operational had really an technical that we helped some migration. XX% with all-time we us had QX, the and in understand of of to

have bit slowdown technical technical As could a And issues. I so to we report took earlier pleased had in that solve been have little we purposely issues of those I'm solved. mentioned those a calls,

And so . meaningful migration a drive half pace of second our goal the to the much into in is to channels integrate more this our year. of of all now

present have channels. retail to that we retention process opportunity video very to have with get into a our we Now our feel with care and pair will we these the migration an confidently comfortable solutions them channels, a more migrate now products. into and Every them now our strategies have right And interact integrating broadband with option tactics seamless be able along to to product. fiber best also centers, the we customers, we into that our into we're much customers, our with time

able also element launched critical tristate. being we've was of accelerate. mentioned, a I [indiscernible] across the As entire to That

the in take and that broadband East have broadband we and both do you video As have footprint, and customers know, video.

And we we set confidently do present we And needed a so customers. now. we could that solution that have make had full to our existing to sure

our our pace so second in half. pace is the accelerate meaningfully And will goal accelerate. to The

Operator

is coming Ehrlich Our America. question Bank from Reif of from next Jessica

Jessica Reif Cohen

advertising. guess questions. X on I One

Can seeing in parse others who into was come give to seeing also on really you're be didn't should disappointing, but some what advertising you you call, clearly couple are what strong are underlying us overbuilding second but you're you the and efforts the secondly, an Can color your a seeing? update us you're in market? it coming political, X%, expectations half. give your up quarter you Second sound optimistic down overbuild markets. And if then then can versus both you about out what which on markets, super on of

Dennis Mathew

Jessica, and trends. over to throw I'll about it I'll advertising the cover Marc talk overbuilding, the then to

QX. later in and and in New out building to launch track West are we're and We on Montclair Jersey Orange,

cost. the our which our We incredible and when in the plants we have opportunity, to footprint, we fiber was investment, and build on network it return -- and excited these look launching offer for broadband portfolio. a us and overall customers product at an out continue opportunity these particular, to given at our look to at incredible And that and cost-effective in mobile way, We'll -- fiber we're look the products about. towns and full in we be

actively for in are and quarter. later working prepare teams us the strategies ready have go-to-market the We launch and teams to

increase have only We're control we can we to continuing is that's to control. the see why to activities throughout that continue intensity build overbuild and competitive footprint. what know we to the going activities And and

advertising? on -- our team We some a passing. are seamlessly. look the well. more in sure to opportunity, Marc, build to driving towns at deploy end-to-end talk within and that, is that that we're We've effectively stood come that about our up at strategy. to so of meaningful at on is A footprint. new making how XXX,XXX to the working want investment. doing provide we're the you lot privileged to fastest-growing laser-focused effective West. continuing in effectively ensure it process the that west, focus be and as to to on monetizing most to we we're look deliver new our particularly we on want capital we When way the and looking of We're do pace in really build most return we're going When in

Marc Sirota

environment pressure a we we I we're seen not high by growing for hampered year onetime in those about, items, segment. We Yes, And talked and have as we prior strength advertising that season think to our rate full just about year the we basis political on the feel the news bullish be interest of national sales confidence that orders this a from perspective, operating been political certainly, we teams double do really see level that really that's see coming group feel find based really ourselves sales a onetime And we from and on quarter, placed what in. our today, do tied full us the on bullish. that gives the still But digit were have year. recur, X% actually we the the and teams. items Jessica, excluding growing some will local this over over at in

Operator

Mary is Morgan today from Ann Jal question coming final from Stanley. Our

Unknown Analyst

competitive. the On

Operator

you yes. proceed. mind you cannot hear Please speaking would volume louder, we Mary, [indiscernible]

Dennis Mathew

we go. Here

Unknown Analyst

me Sorry. now? hear to you able Are

Dennis Mathew

. Yes.

Marc Sirota

Yes.

Unknown Analyst

Okay.

difficulty. technical the about Sorry

on on your can in wireless. update Just on the the between competitive then pace Western your impact Any overbuilt landscape, and difference perhaps competitive both incremental on you what fixed in fiber the seeing of Eastern you're footprints. footprint X please and us

Dennis Mathew

Marianne. Thanks,

our the competitors, being of helpful. We're we an months. bulk small seen fiber Frontier approach, a revising we and We our data, East the very under been portion BDC look little the that overbuilt that Verizon X a see continue being uptick have by which at over When to in has West, the last XX% of now well. leveraging as the

of fiber, overbuilders, about that of last And in percentage overbuilders that are by -- AT&T and grew other XX% points by X is X/X think see the fiber a fiber overbuilt that others. so about X do and about about AT&T We we months. X/X

And going continue to to so we to is grow, continue that know that, increase.

footprint. town need their we compete so can availability we And continue varies we by based the wireless, best on capacity. the Availability across and best that value, the again products so best have effectively quality, to fixed network the see to most town

there, think And the the presence about Verizon are starting AT&T much in AT&T. in are in pockets we We where fiber. see We're [indiscernible] on of country, to we see T-Mo, town, not on as seeing East, we competitor Verizon. with of the fiber depending as we primary then depending West, primarily and pockets the the given their see

Operator

We session. comments. closing reach back further I'd end like or floor question-and-answer to our for of any management to turn over . the

Sarah Freedman

reach Relations all you to for you questions. follow-up out any if Please have Thank joining. Investor

Operator

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

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

Altice USA (ATUS) 1 Aug 242024 Q2 Earnings call transcript