Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q3 2023 Earnings Presentation
17 slides from Optimum Communications's earnings presentation, Nov 1, 2023
Slide 1: Altice USA Q3 2023 Results
Altice USA Q3 2023 Results November 1, 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 Q3 Highlights
Altice USA Q3 Highlights Second quarter of improved broadband net adds year-over-year Acceleration in mobile line net adds – third quarter of mobile line net add growth Best fiber customer growth quarter CX improvements yielding better customer satisfaction scores Financial performance improvement a
Slide 4: Driving Operational Improvement
Driving Operational Improvement Digital-first metrics Q3-23 YoY +22pts +71% +19% +51% +16% increase in tNPS(1) increase in self-installs(2) increase in text message increase in chatbot increase in customer communications sent support volume portal usage Customer Care Call Volume Truck Roll Volume ~1
Slide 5: Optimum Strategy
Optimum Strategy INSPIRE GROW CONNECT DELIGHT THE BEST PEOPLE THE BEST CUSTOMER THE BEST NETWORK THE BEST CUSTOMER RELATIONSHIPS EXPERIENCE + Leadership team + Launching new base + Network quality and + Digital and self-serve management programs reliability + Sales Channel + First time right Perform
Slide 6: Quarterly Performance Review
Quarterly Performance Review
Slide 7: Continued Improvement in Broadband Trends
Continued Improvement in Broadband Trends Total broadband net additions (’000) Variance in total broadband net additions YoY (’000) 13 3 (9) (8) (7) (12) (19) (23) (31) (31) (37) (39) (43) (42) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Altice USA Q3 2023 Res
Slide 8: Optimum Mobile Gaining Momentum
Optimum Mobile Gaining Momentum Reported mobile line net additions (’000) Optimum mobile update +5x acceleration + Mobile ending lines of 288k (+24k in Q3-23) in pace + Optimum Complete and free iPhone 15 promotion 33 driving mobile growth 24 + Mobile Operational Focus 28 16 + Sales channel expansio
Slide 9: Optimum Network Evolution
Optimum Network Evolution Total FTTH customers and net additions (’000) Optimum network strategy +1.5x acceleration + Fiber passings of 2.7m (+61k in Q3-23) in pace Quarterly + 8 Gig Symmetrical Speeds available in entire East Fiber FTTH +11 +23 +31 +36 +38 +40 +45 Footprint customer net additions +
Slide 10: Revenue Trends
Revenue Trends Q3-22 vs. Q3-23 Revenue(2) (millions) Revenue year-over-year $2,394 $2,317 Q1-23 Q2-23 Q3-23 Other(1) $131 $119 Business Services $367 -5.6% -3.2% $367 Total Revenue -5.3% Residential Revenue -5.5% -5.7% -3.4% Residential $1,896 Business Services Revenue -1.1% -1.9% +0.1% $1,832 News
Slide 11: Margin Trends
Margin Trends Adjusted EBITDA margin Q1-22 to Q3-23(1) Operating free cash flow (OpFCF) margin Q1-22 to Q3-23(1) 40.9% 40.9% 39.9% 39.7% 39.5% 38.6% 37.9% +5ppt OpFCF margin expansion 24.7% 24.3% 21.2% 19.3% 19.3% 15.6% 12.4% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2
Slide 12: Capex to Support Network Evolution
Capex to Support Network Evolution Cash capital expenditures (millions) Capital expenditures review Capital + Q3-23 capital intensity(1) of 15.2% (8.8% ex-FTTH / New Builds) intensity(1) 16.2% 19.7% 20.6% 22.9% 25.4% 20.4% 15.2% + Fiber passings +61k (+561k YTD) $583 + New build passings +30k (+145k
Slide 13: Free Cash Flow
Free Cash Flow Q3-23 Free cash flow (millions) 915 562 (353) 46 121 (407) (80) Adjusted Cash Operating Cash Cash Other operating cash Free Cash EBITDA (1) capex Free Cash interest taxes flows Flow (1) Flow(1) (1) Adjusted EBITDA, Operating Free Cash Flow (“OpFCF”), and Free Cash Flow (“FCF”) are non
Slide 14: Q&A
Q&A Altice USA Q3 2023 Results | 14
Slide 15: Appendix
Appendix Altice USA Q3 2023 Results | 15
Slide 16: Summary Financial Information
Summary Financial Information ($m) Q3-22 Q3-23 Growth YoY Total Revenue $2,393.6 $2,317.2 (3.2%) Adjusted EBITDA(1) $954.4 $915.5 (4.1%) Margin (%) 39.9% 39.5% Cash capital expenditures $493.6 $353.2 (28.4%) Capex % of revenue 20.6% 15.2% OpFCF (1) $460.8 $562.3 +22.0% Margin (%) 19.3% 24.3% (1) Adj
Slide 17: Altice USA Consolidated Debt Maturity Profile
Altice USA Consolidated Debt Maturity Profile Altice USA maturity profile (billions) $0.1 $0.8 $1.6 $0.6 $6.0 $5.4 $1.8 $5.7 $3.0 Altice USA Consolidated as of September 30, 2023 WACD: 6.1% WAL: 5.0 years Fixed rate % of debt: 80% Liquidity: ~$1.9bn 2023 2024 2025 2026 2027 (1) 2028 (2) 2029 2030 20