Altice USA reports “significant progress” in Q3
November 3, 2022
Altice USA has reported results for the third quarter ended September 30yj 2022.
Dexter Goei, Altice USA Executive Chairman, said: “In the third quarter, we made significant progress in delivering against our Optimum Fiber broadband strategy. We saw a further acceleration in our fibre network deployment, achieving our highest ever level of incremental fibre passings and now reaching 1.9 million total fibre passings. With fibre broadband net additions of 31k, we reached 135k fibre customers at the end of the quarter. Our multi-gig speed tiers continued to roll out across our Optimum Fiber footprint, offering faster fibre speeds to more customers across the Tri-State. While we are operating in a very competitive environment and are starting to see some macroeconomic pressures across our business, we are confident that we have the right strategy to return to sustainable growth. We are very pleased to welcome Dennis Mathew as our new CEO and have the utmost confidence in him to build on our current momentum and deliver on our growth plan.”
Dennis Mathew, Altice USA Chief Executive Officer, added: “I am delighted to join Altice USA and see enormous potential for the company. In my first 30 days, I have been extremely impressed with Altice’s leadership team and the passion, energy, and dedication of our thousands of employees across our connectivity, news, and advertising businesses. Looking ahead, we remain laser focused on executing against our fibre broadband strategy, laying the foundation to provide the best products and customer experience for the long term, as well as providing viewers and customers with the best news and advertising solutions in the marketplace.”
Key Financial Highlights
- Total Revenue declined -7 per cent YoY in Q3 2022 to $2.39 billion (-4.3 per cent excluding air strand revenue), including Residential revenue decline of -4.4 per cent YoY, Business Services revenue decline of -16.8 per cent YoY (+0.1 per cent excluding air strand revenue) and News & Advertising revenue decline of -16.1 per cent YoY.
- Net income attributable to stockholders was $85 million in Q3 2022 ($0.19/share on a diluted basis) compared to net income of $266.9 million in Q3 2021 ($0.58/share on a diluted basis).
- Net cash flows from operating activities were $629.2 million in Q3 2022, compared to $698.3 million in Q3 2021.
- Adjusted EBITDA declined -18.1 per cent YoY in Q3 2022 to $954.4 million (-12.7 per cent excluding air strand revenue) with a margin of 39.9 per cent.
- Cash capital expenditures of $493.6 million in Q3 2022 represented 20.6 per cent of revenue and were up 59.6 per cent YoY mainly driven by accelerated FTTH rollout and new builds (10.5 per cent of revenue excluding FTTH and new builds).
- Operating Free Cash Flow decreased -46.1 per cent YoY to $460.8 million in Q3 2022.
- Free Cash Flow decreased -65.2 per cent YoY to $135.6 million in Q3 2022.