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Sep 30, 2022

WideOpenWest Q3 2022 Earnings Report

WOW! reported mixed results in Q3 2022, with revenue decline offset by EBITDA growth and strategic investments.

Key Takeaways

WideOpenWest (WOW!) reported a decrease in total revenue but an increase in Pro Forma Adjusted EBITDA for Q3 2022. The company is focusing on its broadband-first strategy and expanding its footprint through Greenfield expansions and edge-outs. A $50 million share repurchase program was authorized by the Board of Directors.

Total revenue from continuing operations decreased by 6% year-over-year to $173.7 million.

High-Speed Data (HSD) revenue from continuing operations totaled $102.3 million, a 1% decrease year-over-year.

Net income from continuing operations was $0.5 million.

Pro Forma Adjusted EBITDA increased by 3% year-over-year to $68.5 million, with a margin of 39.4%

Total Revenue
$174M
Previous year: $268M
-35.1%
EPS
$0.01
Previous year: -$0.26
-103.8%
Total Subscribers
538.1K
Previous year: 531.6K
+1.2%
HSD RGUs
518.6K
Previous year: 509.5K
+1.8%
Cash and Equivalents
$45.3M
Previous year: $59.6M
-24.0%

WideOpenWest

WideOpenWest

WideOpenWest Revenue by Segment

Forward Guidance

WOW! provided full year 2022 guidance for HSD Revenue, Total Revenue, Adjusted EBITDA, and HSD net additions.

Positive Outlook

  • HSD Revenue is expected to be between $411.0 and $414.0 million.
  • Total Revenue is projected to be between $702.0 and $705.0 million.
  • Adjusted EBITDA is anticipated to be between $278.0 and $281.0 million.
  • HSD net additions are expected to be between (2,000) and 2,000.
  • Company's broadband-first strategy shows growth in pro forma Adjusted EBITDA.

Challenges Ahead

  • The company's future performance is subject to various risks and uncertainties, as detailed in their SEC filings.
  • Total revenue from continuing operations decreased compared to the third quarter of 2021.
  • HSD Revenue from continuing operations also saw a slight decrease compared to the third quarter of 2021.
  • Capital Expenditures from continuing operations totaled $37.7 million for the quarter ended September 30, 2022, representing a $3.0 million decrease compared to the quarter ended September 30, 2021.
  • Total Subscription Revenue from continuing operations for the quarter ended September 30, 2022 was down $9.9 million, or 6%, as compared to the corresponding period in 2021.