Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q2 2023 Earnings Presentation
17 slides from Optimum Communications's earnings presentation, Aug 2, 2023
Slide 1: Altice USA Q2 2023 Results
Altice USA Q2 2023 Results August 2, 2023
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of hi
Slide 3: Altice USA Q2 2023 Review
Altice USA Q2 2023 Review Delivering on our Commitments Accelerating the Optimum Strategy Driving Operational Improvements Operating with Financial Discipline Altice USA Snapshot 9.6m 4.6m 264k $9.38bn $3.66bn Total passings Broadband customers Mobile lines LTM total revenue LTM Adj. EBITDA 2.7m 250
Slide 4: Accelerating the Optimum Strategy
Accelerating the Optimum Strategy INSPIRE GROW CONNECT DELIGHT THE BEST THE BEST CUSTOMER THE BEST THE BEST CUSTOMER PEOPLE RELATIONSHIPS NETWORK EXPERIENCE Expanded CX Key Leadership Improvements Regional My Go-to-Market Network Upgrades Optimum Approach App Altice USA Q2 2023 Results | 4
Slide 5: Driving Operational Improvement
Driving Operational Improvement Net Promoter Score Truck Rolls and Service Visits +19pts ~300k (10%) improvement in tNPS fewer truck lower annualized Q2-23 YoY(1) rolls LTM(3) service visit rate Q2-23 YoY Self-Installations Customer Care Calls +49% ~900k (7%) increase in self-installs fewer inbound
Slide 6: Quarterly Performance Review
Quarterly Performance Review
Slide 7: Operating with Financial Discipline in Q2
Operating with Financial Discipline in Q2 Improved broadband net adds versus prior year Quarterly sequential ARPU growth Quarterly sequential decline in operating expenses(1) Quarterly sequential Adj. EBITDA(2) margin expansion Moderated capital spend Proactively refinanced near-term maturities (1)
Slide 8: Quarterly Customer Trends
Quarterly Customer Trends Total broadband net additions (’000) Reported Mobile line net additions (’000) (9) (12) 33 (19) 16 (37) 12 (39) 8 (43) 5 4 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Variance in total broadband net additions YoY (’000) Mobile line net additions
Slide 9: FTTH Passings and FTTH Customer Growth
FTTH Passings and FTTH Customer Growth Total FTTH passings and new FTTH passings (’000) Total FTTH customers and net additions (’000) ~6% ~70% acceleration in pace acceleration in pace Quarterly Quarterly new FTTH +146 +270 +321 +251 +214 +287 FTTH +11 +23 +31 +36 +38 +40 passings customer net addit
Slide 10: Revenue and Expense Trends
Revenue and Expense Trends Revenue Q2-22 vs. Q2-23 ($m) Quarterly financial trend ($m) 2,422 2,463 2,394 2,463 2,369 2,324 2,294 2,324 Other(1) 146 124 Revenue Business Services 372 365 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 829 819 782 776 772 Programming & 762 Direct Costs Residential(2) 1,946 1,835
Slide 11: Margin Trends
Margin Trends Adjusted EBITDA Margin and OpFCF Margin(1) +180bps Adj. EBITDA Margin expansion 40.9% 40.9% 39.9% 38.6% 39.7% 37.9% +690bps OpFCF Margin expansion 24.7% 21.2% 19.3% 19.3% 15.6% 12.4% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Adjusted EBITDA margin OpFCF margin (1) Adjusted EBITDA, Operating
Slide 12: Capex to Support Network Evolution
Capex to Support Network Evolution Cash capital expenditures ($m) Capital expenditures review Capital intensity(1) 16.2% 19.7% 20.6% 22.9% 25.4% 20.4% + Q2-23 capital intensity of 20.4% (11.4% ex-FTTH / New Builds) + Fiber passings +287k (+501k H1) 583 543 + New build passings +66k (+115k H1) 494 48
Slide 13: Free Cash Flow
Free Cash Flow Q2-23 Free Cash Flow and Net Change in Cash Bridge ($m) 922 FTTH 448 (473) (358) 35 (108) (18) (35) (1) (1) Adjusted Cash Operating Cash Cash Other Free Cash Other Financing Net change in EBITDA (1) capex Free Cash interest taxes operating Flow (1) investing activities & FX cash Flow
Slide 14: Q&A
Q&A Altice USA Q2 2023 Results | 14
Slide 15: Appendix
Appendix Altice USA Q2 2023 Results | 15
Slide 16: Summary Financial Information
Summary Financial Information ($m) Q2-22 Q2-23 Growth YoY Total Revenue $2,463.0 $2,324.3 (5.6%) Adjusted EBITDA(1) $1,007.1 $921.7 (8.5%) Margin (%) 40.9% 39.7% Cash capital expenditures $485.1 $473.4 (2.4%) Capex % of revenue 19.7% 20.4% OpFCF (1) $521.9 $448.3 (14.1%) Margin (%) 21.2% 19.3% (1) A
Slide 17: Altice USA Consolidated Debt Maturity Profile
Altice USA Consolidated Debt Maturity Profile Altice USA maturity profile ($bn) 0.1 0.8 1.6 0.6 6.0 5.4 1.8 5.7 3.0 Altice USA Consolidated as of June 30, 2023 WACD: 6.0% WAL: 5.2 years Fixed rate % of debt: 80% Liquidity: ~$1.8bn 2023 2024 2025 2026 2027 (1) 2028 (2) 2029 2030 2031 CSC Term Loans C