Below are my key takeaways from the Altice Q2 2016 Earnings Call on Aug 9:
Summary of US Businesses:
Michel Combes, CEO, said, “Altice has completed its transformation into a leading integrated transatlantic operator. All of our businesses are showing a positive trend.”
Acquired Optimum (Cablevision) and their 3.1MM customers for $17,700MM, making them the 4th largest US cable provider. Last year they acquired Suddenlink and their 1.5MM customers for $9,100MM. (See below for US footprint).
Optimum revenue in the quarter was $1,618MM, up slightly YoY from $1,600MM. EBITDA was $532MM (32.9% margin) vs. $479MM (29.9% margin) in Q2 2015. Best quarter since 2012 with unique customer additions and slight loss of video customers.
Suddenlink revenue grew 5.3% to $640MM. EBITDA grew 18.7% to $292MM EBITDA (45.6% margin), from the $246MM EBITDA (40.5% margin) in Q2 2015. Showed growth in unique residential customer relationships.
Altice US Footprint: Via Optimum and Suddenlink
|Financials (In millions)||Q2 2016||Q2 2015||% Diff|
|Optimum Metrics (In thousands)||Q2 2016||Q2 2015||% Diff|
|– Net Adds||19||5|
|– Pay TV||2,577||2,637||-2.3%|
|— Net Adds||-2||-16|
|Suddenlink Metrics (In thousands)||Q2 2016||Q2 2015||% Diff|
|– Net Adds||-8||-13|
|– Pay TV||1,062||1,103||-3.7%|
|— Net Adds||-23||-29|
List of Key Properties:
- Suddenlink will focus on optimizing customer service, improve retention, reduce churn, and upgrade the network to enhance broadband bundles
- Suddenlink will push Operation GigaSpeed, their goal of having top high speed rates of 1Gbps in 90% of Footprint by 2017
- Optimum is committed to improving broadband speeds and will work towards goal of delivering 300Mbs broadband to entire footprint by 2017
Links to Company Website:
Please comment below if there are data points from Altice you’d like me to include in their next Earnings Call Summary.