Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q4 2023 Earnings Presentation
15 slides from Optimum Communications's earnings presentation, Feb 14, 2024
Slide 1: Altice USA Q4 and Full Year 2023 Results
Altice USA Q4 and Full Year 2023 Results. February 14, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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 historical fa
Slide 3: Full year 2023 objectives achieved
Full year 2023 objectives achieved ACTED WITH ENHANCED ACCELERATED ADVANCED TRANSFORMED FINANCIAL BASE MOBILE AND CUSTOMER THE CULTURE DISCIPLINE MANAGEMENT FIBER GROWTH EXPERIENCE + New leadership team + Stable Adjusted EBITDA + Simple and transparent + 8.2x acceleration in + Stronger satisfaction
Slide 4: Levers for sustainable long-term customer and financial growth
Levers for sustainable long-term customer and financial growth Our Strategy: Deliver long-term sustainable customer, revenue and Adjusted EBITDA growth Connectivity Portfolio Evolution, Base Management & Fiber Penetration Growth & Value Proposition & Thoughtful Pricing Strategic Network + Strategy i
Slide 5: Quarterly Performance Review
Quarterly Performance Review.
Slide 6: Improvement in revenue and adjusted EBITDA trends and free cash flow generation
Improvement in revenue and adjusted EBITDA trends and free cash flow generation Revenue year-over-year Adjusted EBITDA(1) year-over-year Free cash flow ($m) +$322m Free Cash Flow in 2H-23 $201 -1.1% $121 -2.0% -4.1% -2.8% -2.9% -3.2% ($35) -4.9% -5.1% -8.5% -5.3% -5.6% ($166) -12.4% Q1-23 Q2-23 Q3-2
Slide 7: Stabilizing Adjusted EBITDA margins and growth of OpFCF margins
Stabilizing Adjusted EBITDA margins and growth of OpFCF margins Adjusted EBITDA margin(1) Capital intensity(2) Operating free cash flow (OpFCF) margin(1) 39.7% 39.5% 39.2% 37.9% 25.4% 26.4% 24.3% 20.4% 19.3% 15.2% 12.8% 12.4% Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 (1
Slide 8: ARPU improvement and base management strategy
ARPU improvement and base management strategy Residential revenue per customer (ARPU)(1) quarterly YoY Base management strategy overview 0.1% Introducing rational “Everyday Pricing” (rack rates) -0.6% + Closes the gap between promo and rack rates + Transparent and normalized promotional step-ups + P
Slide 9: Proactive focus on balance sheet
Proactive focus on balance sheet Recent debt profile management Altice USA consolidated pro forma(1) as of 12/31/23 + New $2.05bn 11.75% Senior Guaranteed Notes due 2029 to pay down term loans + WACD: 6.5% + Fixed rate % of debt: 86% + Paydown $750m Senior Notes due 2024 using revolving credit facil
Slide 10: Acceleration in fiber and mobile growth
Acceleration in fiber and mobile growth Total fiber customer net additions (’000) Total mobile line net additions (’000) Total broadband net losses (’000) +1.3x acceleration in pace Q4-23 vs Q4-22 45 46 +8.2x acceleration in pace 40 Q4-23 vs Q4-22 38 34 24 16 (19) 8 (27) (31) (37) Q1-23 Q2-23 Q3-23
Slide 11: Customer experience, network, and operational enhancements
Customer experience, network, and operational enhancements Advancing customer experience Investments in network and operations 8 Gig available in 100% of East Fiber Footprint +21pts increase in tNPS(1) Q4-23 YoY 1 Gig or higher available in 96% of total footprint +68% increase in self-installs(2) Q4
Slide 12: Q&A
Q&A. Altice USA Q4 and Full Year 2023 Results | 12
Slide 13: Appendix
Appendix. Altice USA Q4 and Full Year 2023 Results | 13
Slide 14: Summary financial information
Summary financial information ($m) Q4-22 Q4-23 Q4-23 YoY FY-22 FY-23 FY-23 YoY Residential $1,837 $1,786 -2.8% $7,606 $7,274 -4.4% Business Services $368 $372 1.0% $1,474 $1,467 -0.5% (1) $152 $128 -15.7% $520 $448 -13.9% News & Advertising Other $12 $16 26.9% $47 $49 3.4% Total Revenue $2,369 $2,30
Slide 15: Full year 2023 free cash flow bridge
Full year 2023 free cash flow bridge Other operating (1) (1) (1) Adjusted EBITDA Cash capex OpFCF Cash interest Cash tax cash flows Free Cash Flow ($1,705) $3,609 ($1,583) $1,904 ($200) $0 $122 (1) Adjusted EBITDA, Operating Free Cash Flow (“OpFCF”), and Free Cash Flow (“FCF”) are non-GAAP measures.