NYSE$OPTU

Optimum Communications Inc A · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Altice USA reported Q3 2021 results with revenue growth driven by Residential, Business Services, and News & Advertising.

Altice USA reported a 5.8% YoY increase in total revenue, reaching $2.57 billion in Q3 2021. Net income attributable to stockholders was $266.9 million, a significant improvement compared to the net loss in Q3 2020. The company is focusing on broadband customer growth and investing in its Residential business.

  • Total revenue grew by 5.8% YoY, driven by growth in Residential, Business Services, and News & Advertising segments.
  • Net income attributable to stockholders was $266.9 million, compared to a net loss of $4.7 million in the same quarter last year.
  • Adjusted EBITDA increased by 3.4% YoY to $1.16 billion with a margin of 45.2%.
  • Residential broadband net losses were -13k in Q3 2021, compared to +26k broadband net additions in Q3 2020.

Headline financials

Total Revenue

$2.58B

Previous: $2.43B+5.8%
EPS (adj)

$0.58

Previous: $0.32+81.2%
Adjusted EBITDA Margin

45.2%

No prior period
Capital Expenditures

$309M

No prior period
Free Cash Flow

$389M

Previous: $458M-15.0%
Net Income

$267M

Previous: -$4.7M+5783.8%
Operating Income

$691M

Previous: $549M+25.7%
Gross Profit

$1.73B

No prior period
Cash & Equivalents

$233M

Previous: $982M-76.3%
Total Assets

$33.4B

No prior period
Stock-Based Comp

$24.4M

No prior period

Revenue & EPS history

Altice USA · Revenue · Quarterly

$2.58B

Q3 2021+5.8%vs Q3 2020
Beat estimate in 8 of 15 quarters(53%)
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

Altice USA updated its financial outlook for FY 2021, expecting revenue growth, adjusted EBITDA growth, cash capital expenditures of ~$1.3 billion, free cash flow of ~$1.6 billion, and share repurchases of < $1.0 billion.

Tailwinds

  • Revenue: Growth
  • Adjusted EBITDA: Growth
  • Cash capital expenditures: ~$1.3 billion
  • Free Cash Flow: ~$1.6 billion
  • Year-end leverage target (CSC Holdings, LLC debt silo): 5.4x net debt / Adjusted EBITDA on an L2QA basis

Headwinds

  • Share repurchases: < $1.0 billion
  • The Company expects to return to a leverage target of 4.5x - 5.0x net debt / Adjusted EBITDA on an L2QA basis for its CSC Holdings, LLC debt silo over time.
  • Additional FTTH capex to add an incremental 1 million passings in 2022 (reaching ~2.5 million FTTH total passings by the end of 2022)
  • Additional New Build capex to add an incremental 175k+ new passings in 2022
  • Capex for 50 to 75 new retail stores in 2022

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 2021

Historical avgQ3 2021

-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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