NYSE$OPTU

Optimum Communications Inc A · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Altice USA reported a decrease in total revenue and net income, but Fiber broadband net additions increased.

Altice USA's Q1 2023 results showed a decline in total revenue by 5.3% year-over-year to $2.29 billion. Net income attributable to stockholders decreased to $25.9 million, or $0.06 per share. However, the company saw significant progress in its fiber initiatives, with the best-ever fiber net additions, reaching 210k fiber customers.

  • Total revenue decreased by 5.3% year-over-year to $2.29 billion.
  • Net income attributable to stockholders was $25.9 million, a decrease from $196.6 million in the previous year.
  • Fiber broadband net additions were strong, with 38k additions, reaching a total of 210k fiber customers.
  • Optimum Mobile has approximately 248k mobile lines as of March 31, 2023.

Headline financials

Total Revenue

$2.29B

Previous: $2.42B-5.3%
EPS (adj)

$0.06

Previous: $0.43-86.0%
Adjusted EBITDA Margin

37.9%

Previous: 40.9%-7.3%
Total Passings

9.5M

No prior period
Capital Expenditures

$583M

Previous: $392M+48.6%
Free Cash Flow

-$166M

Previous: $208M-179.9%
Net Income

$25.9M

Previous: $197M-86.8%
Operating Income

$425M

Previous: $512M-17.0%
Gross Profit

$1.52B

Previous: $1.59B-4.4%
Cash & Equivalents

$220M

Previous: $196M+12.7%
Total Assets

$32B

Previous: $33.1B-3.5%
Stock-Based Comp

-$2.62M

Previous: $40.5M-106.5%

Revenue & EPS history

Altice USA · Revenue · Quarterly

$2.29B

Q1 2023-5.3%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Altice USA · $2.37B total across 7 segments · Q4 2022

  • Broadband
    $961M
  • Video
    $782M
  • Business Services & Wholesale
    $368M
  • News and Advertising
    $152M
  • Telephony
    $79.5M
  • Mobile
    $24.4M+2.2%
  • Other
    $2.77M-15.3%

Forward guidance

The company expects to continue to focus its investments in key growth initiatives including the FTTH rollout and new build expansion, with anticipated cash capex of approximately $1.7 billion to $1.8 billion in FY 2023.

Tailwinds

  • Focus on FTTH rollout and new build expansion.
  • Targeting 100% of East fiber footprint in 2H-23 for 8 Gig Optimum Fiber internet service.
  • Strong momentum in growing customer penetration in new-build areas, typically reaching approximately 40% within a year of rollout.
  • The Company remains on track to reach 150k+ passings for the full year.
  • The company introduced Optimum 5 Gbps (5 Gig) and 2 Gbps (2 Gig) Fiber Internet.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.7%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-4.8%

Avg return

30 days after

53%

19 / 36 earnings

Positive

+27.7%

Q2 2022

Best reaction

-33.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.0%-31.4%-21.0%
Q4 2025+3.7%+0.0%-13.0%
Q3 2025-4.7%-8.4%-14.4%
Q2 2025-8.5%-6.7%-6.3%
Q1 2025+4.6%+3.0%-15.1%
Q4 2024+0.7%+5.9%-7.0%
Q3 2024-4.2%-2.3%-5.7%
Q1 2024-2.5%-1.5%+22.2%
Q4 2023+6.9%-2.0%+30.9%
Q3 2023+0.7%-15.2%-20.8%
Q2 2023+13.1%+8.1%-4.4%
Q1 2023-12.9%-5.7%-17.3%
Q4 2022+1.0%-10.1%-25.4%
Q3 2022-33.7%-30.0%-36.1%
Q2 2022+27.7%+27.4%+7.2%
Q1 2022-10.4%-5.5%+12.2%
Q4 2021-19.2%-21.4%-20.3%
Q3 2021+4.4%+1.4%-2.1%
Q2 2021-9.3%-9.4%-18.2%
Q1 2021+3.1%+3.0%+2.2%
Q4 2020-7.0%-7.1%-7.6%
Q3 2020+3.3%+4.4%+31.5%
Q2 2020+7.1%+11.1%+8.7%
Q1 2020-5.2%-10.7%-2.4%
Q4 2019-5.1%-2.5%-24.6%
Q3 2019-17.8%-17.0%-19.9%
Q2 2019+3.9%+0.4%+10.6%
Q1 2019+5.6%+3.3%+1.3%
Q4 2018+1.8%+0.6%+0.8%
Q3 2018+9.3%+12.8%+8.1%
Q2 2018+1.3%+2.0%+5.2%
Q1 2018+10.2%+14.7%+8.0%
Q4 2017-5.2%+0.5%-3.7%
Q3 2017-9.4%-7.5%-26.1%
Q4 2016-3.9%-3.9%-5.7%
Q2 2017+3.1%+7.0%-2.9%
Q1 2017
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2012
Q1 2012

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