Optimum Communications Inc A · Q4 2020 earnings

Briefing

Altice USA reported strong Q4 2020 results, marked by revenue growth, increased net income, and significant free cash flow.

Altice USA reported a 2.5% YoY increase in total revenue to $2.54 billion in Q4 2020, driven by growth in Broadband and News & Advertising revenues. Net income attributable to stockholders was $330.5 million, or $0.60/share. Adjusted EBITDA increased by 6.1% YoY to $1.15 billion with a margin of 45.4%. Free cash flow increased 12.5% YoY to $446.9 million. The company returned $4.8 billion to shareholders through share repurchases in FY 2020.

• Total revenue grew by 2.5% YoY, driven by Broadband and News & Advertising.
• Net income attributable to stockholders was $330.5 million, or $0.60 per share.
• Adjusted EBITDA increased by 6.1% YoY with a margin of 45.4%.
• Free cash flow increased by 12.5% YoY to $446.9 million.

Headline financials

Revenue & EPS history

Altice USA expects revenue and Adjusted EBITDA growth for 2021, with cash capex between $1.3 to $1.4 billion and share repurchases of $1.5 billion. The company expects leverage at year-end 2021 to be less than 5.3x (L2QA net debt to Adjusted EBITDA) for its CSC Holdings, LLC debt silo, with a target of 4.5x-5.0x L2QA EBITDA over time.