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Mar 31, 2020

ATN Q1 2020 Earnings Report

ATN International reported improved results driven by US Telecom business recovery and positive performance of International Telecom operations.

Key Takeaways

ATN International reported a 7% increase in consolidated revenues and a 31% growth in EBITDA for the first quarter of 2020. The recovery of the US Telecom business and the continued positive performance of International Telecom operations contributed to significant consolidated operating income growth.

Consolidated revenues increased by 7% year-over-year to $110.9 million.

Operating income increased by $5.2 million to $7.3 million.

EBITDA increased by 31% to $29.8 million.

Net loss attributable to ATN's stockholders was $1.0 million, or $0.06 per share.

Total Revenue
$111M
Previous year: $103M
+7.4%
EPS
-$0.06
Previous year: -$0.1
-40.0%
Gross Profit
$64.3M
Previous year: $56.4M
+14.1%
Cash and Equivalents
$147M
Previous year: $171M
-14.3%
Free Cash Flow
$1.4M
Previous year: $1.01M
+39.0%
Total Assets
$1.11B
Previous year: $1.16B
-4.7%

ATN

ATN

ATN Revenue by Segment

Forward Guidance

Due to the uncertainty surrounding the global economic impact of the coronavirus pandemic, projecting the impact on the businesses in the coming periods is difficult. Revenue and profit margins for certain services and in certain markets are expected to decline during this crisis.

Positive Outlook

  • ATN's strong balance sheet provides significant financial flexibility.
  • The company is well-positioned to weather the storm and build brand equity by doing right by its customers and partners during this crisis.
  • Increased teleworking and social distancing are likely to accelerate a shift to heavy telecom and data reliant activity, which may provide long-term growth opportunities.
  • The changed environment has allowed faster gains in digital customer engagements such as mobile payments and paperless billing.
  • Anticipated improved operating efficiencies and capabilities will better position businesses post-crisis.

Challenges Ahead

  • The coronavirus pandemic will change future business and social behaviors.
  • Revenue and profit margins for certain services and in certain markets are expected to decline during this crisis.
  • Many of the markets served rely on tourism as a major source of economic activity, and that sector of the economy may take longer to recover fully.
  • There is uncertainty around the depth and duration of the global economic impact of the coronavirus pandemic.
  • The overall timing of the network build schedule has been delayed.

Revenue & Expenses

Visualization of income flow from segment revenue to net income