Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q3 2024 Earnings Presentation
15 slides from Optimum Communications's earnings presentation, Aug 1, 2024
Slide 1: Altice USA Q3 2024 Results
Altice USA Q3 2024 Results. November 4, 2024
Slide 2: Forward-Looking Statements
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: Q3 2024 Results Summary
Q3 2024 Results Summary • Gross margin +50bps Q3-24 YoY 482k FINANCIAL $2.2bn HIGHLIGHTS • Free Cash Flow(1) ~$100m YTD Q3-24 Revenue Ending Fiber Subscribers • Paid down $100m of revolving credit facility Q3-24 -3.9% YoY +47k Net Adds • Expect Full-Year capital expenditures of ~$1.5bn 17% Fiber Pen
Slide 4: Near-Term Opportunities
Near-Term Opportunities Revenue Fiber Operational Sustainable Opportunity Penetration Efficiency Capital Structure • Improve broadband • Maximize asset value • Gross Margin ~70% subscriber trends and competitive by Y/E-26 • Sufficient liquidity to positioning support long-term • Reach 1 million+ • O
Slide 5: Quarterly Performance Review
Quarterly Performance Review.
Slide 6: Fiber and Mobile Convergence Driving Improved Trends
Fiber and Mobile Convergence Driving Improved Trends Notable Fiber Metrics Q3-24 Percentage of Broadband Base Converged with Mobile(6) 5.2% 2.9m 17% 4.7% Fiber passings Fiber customer 3.8% • 2.8m in East Footprint penetration of 3.5% • 0.1m in West Footprint fiber network 3.2% 10% 14% Q3-23 Q4-23 Q1
Slide 7: Financial Trends
Financial Trends Revenue and Gross Margin ($m,%) Adjusted EBITDA and Margin(1) ($m,%) $2,317 $2,302 $2,251 $2,241 $2,228 $915 $903 $847 $867 $862 67.6% 67.6% 67.9% 68.1% 67.0% 39.5% 39.2% 37.6% 38.7% 38.7% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Total Revenue Adj. EBITDA(1) Gross
Slide 8: Efficient Capital Expenditures and Network Investment
Efficient Capital Expenditures and Network Investment Cash Capex and Capital Intensity(7) ($m,%) Network Investment Fiber Passings Additions $1,914 • +159k additional fiber passings YTD Q3-24 $1,705 o Reaching 2.9m passings $1,500 FY-24 Target • ~3m cumulative fiber passings target Y/E-24 19.8% YTD
Slide 9: Free Cash Flow
Free Cash Flow Free Cash Flow(1) ($m) Cash interest $201 $115m higher Q3-24 YoY $121 $64 $77 ($41) Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Selected Cash Statistics $m Q3-23 Q4-23 Q1-24 Q2-23 Q3-24 Cash interest $407 $429 $402 $378 $522 Cash capital 353 295 336 348 359 Cash tax 80 0 11 165 35 (1) Free Cash Flo
Slide 10: Debt Maturities Addressed Near Term
Debt Maturities Addressed Near Term Altice USA Maturity Profile ($bn) Altice USA Consolidated as of 9/30/24 $0.1 $0.1 $0.1 $6.8 $5.4 $3.8 $5.7 $3.0 Weighted Average Cost of Debt (WACD)(8) 6.8% Weighted Average 4.3 Life of Debt (WAL) years Fixed Rate % of Debt 71% Liquidity(9) ~$1bn 2024 2025 2026 20
Slide 11: Q&A
Q&A. Altice USA Q3 2024 Earnings Results | 11
Slide 12: Appendix
Appendix. Altice USA Q3 2024 Earnings Results | 12
Slide 13: Summary Financial Information
Summary Financial Information ($m) Q3-23 Q3-24 Q3-24 YoY Residential $1,832 $1,729 -5.6% Business Services $367 $366 -0.1% News & Advertising $107 $118 9.5% Other $11 $15 29.6% Total Revenue $2,317 $2,228 -3.9% Adjusted EBITDA(1) $915 $862 -5.8% Margin (%) 39.5% 38.7% Cash capital expenditures $353
Slide 14: Q3 2024 Free Cash Flow Bridge
Q3 2024 Free Cash Flow Bridge Adjusted Cash Cash Cash Other operating Free Cash EBITDA(1) capex interest tax cash flows Flow(1) ($359) $862 ($522) $77 $131 ($35) (1) Adjusted EBITDA and Free Cash Flow are non-GAAP measures. For a reconciliation of these non-GAAP measures to net income and net cash f
Slide 15: Notes
NOTES (1) Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. For a reconciliation of Adjusted EBITDA to net income and Free Cash Flow to net cash flows from operating activities, please see the Q3 2024 Altice USA earnings release posted to the Altice USA website. (2) Customer metric