Slide 1: 3rd Quarter 2019 Results
3rd Quarter 2019 Results November 6, 2019 Issued: Nov 6, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-look
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP historical and forward-looking financial measures, including but not limited to adjusted EBITDA, free cash flow, unlevered cash flow, and adjustments to GAAP and non- GAAP measures to exclude the effect of integration and transformation c
Slide 4: Financial Highlights
Financial Highlights • Generated Adjusted EBITDA(1) of $2.261 billion for 3Q19 • Grew YTD Adjusted EBITDA(2) compared to the same period in 2018 • Expanded Adjusted EBITDA(1) Margin to 40.3% from 39.3% in 3Q18 and 35.5% at the close of the Level 3 transaction • Achieved $360 million of Annualized Ru
Slide 5: 3Q19 Revenue
3Q19 Revenue Wholesale SMB 18% Revenue YoY % QoQ % 3Q19 ($ in millions) Change Change 13% International & GAM $899 0.8% (0.3%) 25% Consumer Enterprise $1,550 3.0% 3.0% SMB $734 (6.4%) (0.3%) 28% Wholesale $1,025 (6.6%) 0.7% Enterprise Consumer $1,398 (9.2%) (1.3%) 16% Total Revenue $5,606 (3.6%) 0.5
Slide 6: 3Q19 Consumer Metrics
3Q19 Consumer Metrics Consumer Broadband Revenue YoY % QoQ % 3Q19 Performance 3Q19 ($ in millions) Change Change (in thousands) Broadband $718 2.3% 0% Total Subscribers 4,714 Voice $462 (18%) (3.1%) Subscriber Quarterly Net Change (36) Regulatory $157 (13%) (0.6%) Below 20 Mbps (82) Other(1) $61 (33
Slide 7: Adjusted EBITDA | Adjusted EBITDA Margin
Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1) Year to Date (1Q to 3Q)(2) $5.818 $5.778 $5.647 $5.578 $5.606 $6.792 $6.739 40.7% 40.1% 40.3% 39.8% 39.3% 40.4% 38.1% $2.287 $2.301 $2.262 $2.269 $2.261 3Q18 4Q18 1Q19 2Q19 3Q19 2018 2019 Adj. EBITDA Total Revenue Adj. EBITDA Margin A
Slide 8: Capital Expenditures & Free Cash Flow
Capital Expenditures & Free Cash Flow Capital Expenditures Free Cash Flow(1) ($ in millions) ($ in millions) $957 $1,163 $983 $684 3Q18 3Q19 3Q18 3Q19 (1) 3Q18 and 3Q19 Free Cash Flow excludes cash paid for Integration and Transformation Costs and Special Items of $60 million and $52 million, respec
Slide 9: Leverage | Net Debt to Adjusted EBITDA
Leverage | Net Debt to Adjusted EBITDA 4.1x 4.0x 3.9x 3.8x 3.7x • Retired approximately $700 million of debt in 3Q19 and $1.5 billion year- to-date in 2019 • Highly focused on reaching target leverage range of 2.75x-3.25x 3Q18 4Q18 1Q19 2Q19 3Q19 9 Issued: Nov 6, 2019
Slide 10: Reiterated 2019 Business Outlook
Reiterated 2019 Business Outlook Metric(1)(2) Outlook Adjusted EBITDA $9.00 billion to $9.20 billion Free Cash Flow $3.10 billion to $3.40 billion Dividends(3) $1.095 billion Free Cash Flow after Dividends $2.005 billion to $2.305 billion GAAP Interest Expense $2.10 billion Cash Interest $2.05 billi