Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q1 2025 Earnings Presentation
16 slides from Optimum Communications's earnings presentation, May 8, 2025
Slide 1: Altice USA Q1 2025 Results
Altice USA Q1 2025 Results May 8, 2025
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: Q1 2025 Highlights
Q1 2025 Highlights o 37k broadband subscriber net losses Broadband stabilization o Trends in East footprint improved year-over-year o Broadband ARPU(1) growth +2.4% year-over-year o 69k fiber net additions All-time high o Surpassed 600k fiber customers fiber performance o Reached 20% penetration on
Slide 4: 2025 Priorities
2025 Priorities ~$3.4bn Adj. EBITDA(1) and Enhance Investment Returns Broadband Stabilization Revenue Operational Network Sustainable Opportunity Efficiency Enhancements Capital Structure (1) Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to net income (loss), please see the Q
Slide 5: Executing with Focus to Deliver ~$3.4bn Adj. EBITDA FY 25
Executing with Focus to Deliver ~$3.4bn Adj. EBITDA(1) FY 2025 Activating Competitive Deepening Penetration of Transforming Operations Go-to-Market Strategies New & Existing Products to Drive Efficiency + Launched simple income + Broadband: Launched Whole Home + Innovating programming deal constrain
Slide 6: Executing with Focus to Deliver ~$3.4bn Adj. EBITDA FY 25
Executing with Focus to Deliver ~$3.4bn Adj. EBITDA(1) FY 2025 Adjusted EBITDA(1) ($bn) FY 2025 Outlook $3.9 $3.6 + Revenue $8.6-$8.7bn $3.4 ~$3.4 + Programming & Other Direct Costs ~$2.6bn + Other Operating Expense ~$2.6bn + Cash Capital Expenditures ~$1.2bn FY-22 FY-23 FY-24 FY-25 Outlook (1) Adju
Slide 7: Fiber and Mobile Growth
Fiber and Mobile Growth Broadband Net Adds (000s) Fiber Net Adds (000s) Mobile Line Net Adds (000s) 4.3m 607k 509k Ending Broadband Ending Fiber Ending Customers 1.3x Customers Mobile Lines acceleration in pace 1.7x 69 acceleration in pace 49 57 53 47 40 36 40 33 (30) 29 (1) (39) (37) (51) (50) Q1-2
Slide 8: Q1 Financials
Q1 Financials Revenue ($bn) Adj. EBITDA(1) ($m) Gross Margin % Adj. EBITDA(1) Margin % -4.8% +120bps -3.9% -40bps -4.4% -5.6% +180bps -50bps $2.25 $847 67.0% 68.8% 68.2% 37.6% 37.1% 37.2% $2.15 $2.16 $799 $806 Q1-24 Q1-25 Q1-25 Q1-24 Q1-25 Q1-25 Q1-24 Q1-25 Q1-25 Q1-24 Q1-25 Q1-25 excl. non- excl. n
Slide 9: Driving Toward ARPU Stability
Driving Toward ARPU Stability Residential ARPU(1) ($) Broadband ARPU(3) ($) ARPU Strategy -0.6% + Customer Lifetime Value (CLV) based -1.3% +2.4% model and AI-assisted retention tactics $135.67 $133.93 $134.88 $73.58 $75.31 are minimizing ARPU impact from retention discounts + Broadband uptiering: ~
Slide 10: Increasing Network Efficiency
Increasing Network Efficiency Enhancing and Expanding Our Networks Cash Capital Expenditures ($bn) + Added +25k total passings Q1-25 and +185k LTM $1.9 + Added +33k fiber passings Q1-25 and +215k LTM $1.7 + Initiated mid-split upgrades to deliver multi-gig speeds $1.4 + Lightpath continues to expand
Slide 11: Q1 2025 Free Cash Flow Bridge
Q1 2025 Free Cash Flow Bridge Free Cash Flow ($m) Adjusted Cash Cash Cash Other operating Free Cash EBITDA(1) capex interest tax cash flows Flow(1) Cash interest ($356) $145m higher year-over-year $799 ($547) $1 ($169) ($66) (1) Adjusted EBITDA and Free Cash Flow are non-GAAP measures. For a reconci
Slide 12: Debt Maturity Profile
Debt Maturity Profile Altice USA Maturity Profile ($bn) Altice USA Consolidated as of 3/31/25 $7.2 Weighted Average Cost of Debt (WACD)(1) 6.8% $5.7 $5.4 Weighted Average Life of Debt (WAL) 3.8 years $3.8 $3.0 Fixed Rate % of Debt(1) ~73% Liquidity(2) ~$700m $0.1 $0.1 2025 2026 2027 2028 2029 2030 2
Slide 13: Q&A
Q&A Altice USA Q1 2025 Earnings Results Confidential 13
Slide 14: Appendix
Appendix AlticeAltice USA Q1USA Q1 2025 2025 Earnings Earnings 14 14 Results Results
Slide 15: Summary Financial Information
Summary Financial Information ($m) Q1-24 Q1-25 Q1-25 YoY Residential $1,768 $1,668 -5.7% Business Services $365 $364 -0.4% News & Advertising $106 $102 -3.1% Other $12 $18 52.0% Total Revenue $2,251 $2,152 -4.4% Adjusted EBITDA(1) $847 $799 -5.6% Margin (%) 37.6% 37.1% Cash capital expenditures $336
Slide 16: Estimated Non-Carriage Impact in Q1-25
Estimated Non-Carriage Impact in Q1-25 Estimated Subscriber Impact Q1-25 Financial Impact Q1-25 Total customer disconnects 3.0k Revenue Impact ($12m) • Customer credits Broadband PSU disconnects 2.7k Expense Impact $5m • Programming savings Video PSU disconnects 4.6k • Other Operating Expense relate