Optimum Communications, Inc. · NYSE:OPTU
Optimum Communications — Altice USA — Q1 2024 Earnings Presentation
14 slides from Optimum Communications's earnings presentation, May 2, 2024
Slide 1: Altice USA Q1 2024 Results
Altice USA Q1 2024 Results. May 2, 2024
Slide 2: Forward-Looking Statements; 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: Q1 progress on levers for sustainable long-term growth
Q1 progress on levers for sustainable long-term growth Simplify Fiber Penetration Quality Customer Connectivity Base Go-to-Market & Network Business Network Experiences Portfolio Management Approach Expansion Services Optimum Fiber: LTM Inbound Mobile Line Net Residential Where local Fiber Network B
Slide 4: Maximizing customer profitability
Maximizing customer profitability Residential ARPU(1) Our customer level approach quarterly year over year Total Revenue year over year Revenue Direct Service (ARPU) costs costs +0.1% +0.3% -0.6% -1.9% -2.9% -3.2% -2.7% -2.8% -5.3% -5.6% Customer Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23
Slide 5: Improved go-to-market and base management, & simplifying customer interactions
Improved go-to-market and base management, & simplifying customer interactions Go-to-market and base management Established brand platform with hyper-local campaign + Hyper-local and competitive marketing + Rightsized speeds for ~300k customers + New “Everyday Pricing” + Innovative AI tools Customer
Slide 6: Adjusted EBITDA trends & Free Cash Flow generation
Adjusted EBITDA trends & Free Cash Flow generation Adjusted EBITDA margin(1) Adjusted EBITDA(1) year over year Free Cash Flow(1) ($m) $201 39.7% 39.5% 39.2% 37.9% 37.6% -1.1% $121 -2.5% $64 -4.1% ($35) -8.5% ($166) -12.4% Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23
Slide 7: Connectivity portfolio acceleration in fiber and mobile growth
Connectivity portfolio acceleration in fiber and mobile growth Total fiber customer net adds (’000) Total mobile line net adds (’000) Total broadband net losses (’000) +1.4x 53 45 46 38 40 +3.8x 34 29 24 16 (19) 8 (27) (31) (30) (37) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23
Slide 8: Mobile opportunity to support business growth
Mobile opportunity to support business growth +$4.30 -20% 5.3% 64% Mobile expansion increase in mobile annualized churn reduction penetration of mobile of mobile customers are customer ARPU(1) when customers take customers in broadband on unlimited or unlimited + 2024 Product Roadmap: Q1-24 YoY mobi
Slide 9: Network strategy, fiber investment & capital intensity
Network strategy, fiber investment & capital intensity Investments in network and operations Cash capital expenditures ($m) -42% +45k additional fiber passings in Q1-24 YoY $583 $473 +51k additional total passings in Q1-24; Target +175k in FY-24 $353 $336 $295 Quality network enhancement initiatives
Slide 10: Debt maturities addressed near term
Debt maturities addressed near term Altice USA maturity profile ($bn) Altice USA consolidated as of 3/31/24 $0.1 $0.1 $0.1 $6.7 $5.4 $3.8 $5.7 $3.0 Weighted average cost of debt (WACD) 6.5% Weighted average 4.8 life of debt (WAL) years Fixed rate % of debt(1) 86% L2QA Leverage(2) 7.0x 2024 2025 2026
Slide 11: Questions.
Questions. Altice USA Q1 2024 Earnings Results | 11
Slide 12: Appendix.
Appendix. Altice USA Q1 2024 Earnings Results | 12
Slide 13: Summary financial information
Summary financial information ($m) Q1-23 Q1-24 Q1-24 YoY Residential $1,821 $1,768 -2.9% Business Services $364 $365 0.3% News & Advertising $99 $106 7.1% Other $11 $12 10.8% Total Revenue $2,294 $2,251 -1.9% Adjusted EBITDA(1) $868 $847 -2.5% Margin (%) 37.9% 37.6% Cash capital expenditures $583 $3
Slide 14: Q1 2024 Free cash flow bridge
Q1 2024 Free cash flow bridge Other Adjusted Cash Cash Cash operating Free Cash (1) EBITDA (1) capex OpFCF interest tax cash flows Flow (1) ($336) $847 ($402) $510 ($11) ($34) $64 (1) Adjusted EBITDA, Operating Free Cash Flow (“OpFCF”), and Free Cash Flow (“FCF”) are non-GAAP measures. For a reconci