NYSE$OPTU

Optimum Communications Inc A · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported flat revenue growth year-over-year, driven by broadband revenue growth and resilience in Business Services and News and Advertising businesses.

Altice USA reported flat revenue growth in Q3 2020, with a net loss attributable to stockholders. However, the company saw growth in Adjusted EBITDA and Free Cash Flow, driven by strong subscriber and financial performance.

  • Total Revenue was flat at -0.2% YoY in Q3 2020 at $2.43 billion.
  • Net loss attributable to stockholders was -$4.7 million Q3 2020, or ($0.01)/share.
  • Adjusted EBITDA increased +5.5% YoY in Q3 2020 to $1.13 billion with a margin of 46.3%.
  • Free Cash Flow of $457.5 million in Q3 2020 increased +176.1% YoY.

Headline financials

Total Revenue

$2.43B

Previous: $2.44B-0.2%
EPS (adj)

$0.32

Previous: $0.12+166.7%
Residential ARPU

$138.16

Previous: $143.63-3.8%
Adjusted EBITDA

$1.13B

Previous: $1.07B+5.5%
Free Cash Flow

$458M

Previous: -$955M+147.9%
Net Income

-$4.7M

Previous: $77.2M-106.1%
Operating Income

$549M

Previous: $472M+16.5%
Cash & Equivalents

$982M

Previous: $175M+460.9%

Revenue & EPS history

Altice USA · Revenue · Quarterly

$2.43B

Q3 2020-0.2%vs Q3 2019
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Altice USA · $2.43B total across 7 segments · Q3 2020

  • Broadband
    $941M
  • Video
    $867M
  • Business Services & Wholesale
    $362M
  • News and Advertising
    $124M
  • Telephony
    $116M
  • Mobile
    $19.7M
  • Other
    $3.62M

Forward guidance

The Company reiterates its revenue, Adjusted EBITDA, capex and leverage guidance for the full year. For the full year 2020, the Company expects revenue (ex-mobile) and Adjusted EBITDA growth.

Tailwinds

  • Revenue (ex-mobile): Growth
  • Adjusted EBITDA: Growth

Headwinds

  • Capital expenditures: Less than $1.3 billion
  • Year-end leverage target (CSC Holdings, LLC): 4.5x to 5.0x net debt / Adjusted EBITDA (L2QA basis)

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 Q3 2020

Historical avgQ3 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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