NYSE$OPTU

Optimum Communications Inc A · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Altice USA reported Q2 2020 results, with revenue, net income and Adjusted EBITDA increasing year-over-year.

Altice USA reported a positive second quarter, marked by best-ever customer net additions driven by organic broadband growth. The company saw growth in revenue, net income, and Adjusted EBITDA year-over-year. They are reinstating guidance for full-year revenue and EBITDA growth.

  • Total Revenue grew +1.0% YoY to $2.47 billion, driven by Broadband revenue growth of +14.2% YoY.
  • Net income attributable to stockholders was $111 million for Q2 2020, or $0.19/share.
  • Adjusted EBITDA increased +2.5% YoY to $1.11 billion with a margin of 44.7%.
  • Free Cash Flow of $707 million in Q2 2020 increased +49.8% YoY.

Headline financials

Total Revenue

$2.48B

Previous: $2.45B+1.0%
EPS (adj)

$0.19

Previous: $0.13+46.2%
Residential ARPU

$144.38

Previous: $145.02-0.4%
Capital Expenditures

$229M

Previous: -$657M+134.8%
Free Cash Flow

$707M

Previous: -$571M+223.9%
Net Income

$111M

Previous: $86.4M+28.8%
Operating Income

$509M

Previous: $483M+5.4%
Gross Profit

$1.61B

Previous: $1.63B-1.1%
Cash & Equivalents

$1.95B

Previous: $139M+1307.3%
Total Assets

$34.8B

Previous: $33.8B+3.1%
Stock-Based Comp

$33.1M

Previous: $16.1M+105.9%

Revenue & EPS history

Altice USA · Revenue · Quarterly

$2.48B

Q2 2020+1%vs Q2 2019
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Altice USA · $2.47B total across 7 segments · Q2 2020

  • Video
    $953M-6.5%
  • Broadband
    $920M+14.2%
  • Business Services & Wholesale
    $366M+2.2%
  • Telephony
    $117M-21.9%
  • News and Advertising
    $96.6M-15.6%
  • Mobile
    $19.9M
  • Other
    $2.71M

Forward guidance

Altice USA is reinstating revenue and Adjusted EBITDA guidance given increased visibility into 2H 2020.

Tailwinds

  • Revenue (ex-mobile): Growth
  • Adjusted EBITDA: Growth
  • Capital expenditures: Less than $1.3 billion
  • Year-end leverage target (ex Lightpath): 4.5x to 5.0x net debt / Adjusted EBITDA (L2QA basis)
  • Share repurchase: $1.7 billion

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 Q2 2020

Historical avgQ2 2020

-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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