NYSE$WOW

WideOpenWest Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

WOW! reported results for the fourth quarter and year ended December 31, 2019.

WOW! reported HSD RGU net additions of 7,600 for the quarter ended December 31, 2019, representing the best HSD RGU net subscriber additions for the fourth quarter in five years. Transaction Adjusted EBITDA for the three months ended December 31, 2019 was $109.1 million, a decrease of 1.4% compared to the three months ended December 31, 2018. Fourth quarter Transaction Adjusted Diluted Earnings Per Share was $0.14.

  • Full year Total Subscriber net additions of 17,000
  • HSD RGU net additions totaled 7,600 for the quarter ended December 31, 2019, representing the best HSD RGU net subscriber additions for the fourth quarter in five years; organic HSD RGU net additions, which exclude net addition from Edge-Outs, totaled 4,500 in the quarter
  • Fourth quarter Transaction Adjusted Diluted Earnings Per Share was $0.14
  • For the full year 2019, we grew Edge-Outs by 48,800 homes passed, including 20,300 homes passed in the fourth quarter of 2019

Headline financials

Total Revenue

$284M

Previous: $285M-0.7%
EPS (adj)

$0.14

Previous: $0.33-57.6%
Total Subscribers

823.4K

No prior period
HSD RGUs

781.5K

No prior period
Video RGUs

373.8K

No prior period
Telephony RGUs

193.1K

No prior period
Total RGUs

1.3M

No prior period
Homes Passed

3.2M

No prior period
Net Income

$6.9M

Previous: $16.3M-57.7%
Operating Income

$36.5M

Previous: $48.1M-24.1%
Gross Profit

$138M

Previous: $134M+3.1%
Cash & Equivalents

$21M

Previous: $13.2M+59.1%
Total Assets

$2.47B

Previous: $2.42B+2.1%
Stock-Based Comp

$2.3M

Previous: $2M+15.0%

Revenue & EPS history

WideOpenWest · Revenue · Quarterly

$284M

Q4 2019-0.7%vs Q4 2018
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

WideOpenWest · $173M total across 5 segments · Q3 2023

  • HSD
    $110M+7.3%
  • Video
    $38.9M-14.1%
  • Telephony
    $11.6M-9.4%
  • Other Revenue
    $7.4M-6.3%
  • Other Business Services
    $5.4M+0.0%

Forward guidance

WOW! expects to continue to grow HSD subscribers and anticipates net additions for the year will exceed 2019 HSD net additions. Total Revenue could decline in 2020, largely driven by the anticipated loss of higher ARPU low margin video RGUs. With the continued mix shift toward higher margin HSD RGUs, however, the Company expects gross margins will be improved and 2020 Transaction Adjusted EBITDA will be flat. Due to the investments in the network to optimize bandwidth utilization, Capital Expenditures are likely to rise slightly in 2020.

Tailwinds

  • WOW! expects to continue to grow HSD subscribers
  • Anticipates net additions for the year will exceed 2019 HSD net additions
  • Company expects gross margins will be improved
  • 2020 Transaction Adjusted EBITDA will be flat
  • Capital Expenditures are likely to rise slightly in 2020.

Headwinds

  • Total Revenue could decline in 2020
  • Largely driven by the anticipated loss of higher ARPU low margin video RGUs

Historical earnings impact

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

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

-2.2%

Avg return

Earnings day

+7.0%

Avg return

5 days after

+8.1%

Avg return

30 days after

38%

15 / 40 earnings

Positive

+47.8%

Q2 2025

Best reaction

-58.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.2%-0.2%+0.6%
Q2 2025+47.8%+48.4%+50.4%
Q1 2025+0.0%+0.7%-4.1%
Q4 2024-1.0%+13.4%+1.7%
Q3 2024+7.0%+7.8%-1.2%
Q2 2024-0.2%+1.9%+5.6%
Q1 2024-3.9%-3.7%+7.0%
Q4 2023-8.4%-12.4%+4.9%
Q3 2023-58.7%
Q2 2023-4.3%
Q1 2023-24.4%
Q4 2022+2.0%
Q3 2022-22.6%
Q2 2022+3.7%
Q1 2022-2.1%
Q4 2021-3.3%
Q3 2021-3.9%
Q2 2021+5.2%
Q1 2021+6.7%
Q4 2020+6.5%
Q3 2020+9.2%
Q2 2020+17.4%
Q1 2020-13.4%
Q4 2019-15.4%
Q3 2019+5.8%
Q2 2019-5.2%
Q1 2019-3.8%
Q4 2018-5.4%
Q3 2018+4.3%
Q2 2018+16.4%
Q1 2018+29.5%
Q1 2017+29.5%
Q4 2017-23.7%
Q4 2015-23.7%
Q1 2016-23.7%
Q3 2016-14.5%
Q3 2017-14.5%
Q2 2016-0.9%
Q2 2017-0.9%
Q4 2016-0.9%

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