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Mar 31, 2020
Altice USA Q1 2020 Earnings Report
Altice USA reported first quarter 2020 results, showing revenue growth and strategic responses to the COVID-19 pandemic.
Key Takeaways
Altice USA reported a 2.2% YoY increase in total revenue, reaching $2.45 billion, driven by record broadband revenue growth. The company experienced a net loss attributable to stockholders of $0.9 million. They are withdrawing revenue and Adjusted EBITDA margin guidance due to market uncertainty.
Total revenue grew by 2.2% YoY, reaching $2.45 billion, driven by record broadband revenue growth of 14.2%.
Residential customer relationships grew by 0.6% YoY.
Free cash flow increased by 80.0% YoY to $294 million.
Altice Mobile has approximately 110,000 mobile lines since its launch in September 2019.
Revenue by Segment
Forward Guidance
Altice USA updated its FY 2020 outlook, expecting capital expenditures of less than $1.3 billion, operating free cash flow growth, year-end leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA, and share repurchases of $1.7 billion. The company intends to provide an update to FY 2020 revenue growth and Adjusted EBITDA margin expectations later in the year due to the uncertainty of the impact and duration of COVID-19 related disruptions to their business.
Positive Outlook
- Capital expenditures are expected to be less than $1.3 billion.
- Operating Free Cash Flow (Adjusted EBITDA less Cash Capex) growth is expected.
- Year-end leverage target is 4.5x to 5.0x net debt / Adjusted EBITDA (L2QA basis).
- Share repurchases of $1.7 billion are expected.
- The company's weighted average cost of debt was reduced from 5.9% to 5.6%.
Challenges Ahead
- Revenue guidance was withdrawn due to current market uncertainty.
- Adjusted EBITDA margin guidance was withdrawn due to current market uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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