Altice USA Reports 2023 Results: Investments, Growth, and Revenue Trends

Altice USA has announced its financial results for the fourth quarter of 2023 (Q4-23) and the fiscal year 2023 (FY-23). The company’s capital expenditures, strategic initiatives, customer additions, and revenue performance were highlighted in the report.
Altice Capex 2022“2023 marked the beginning of a transformative journey for Optimum as we drove improvements across our business by acting with operational and financial discipline,” Dennis Mathew, Chairman and Chief Executive Officer of Altice USA, said in its earnings report.

Capital Expenditures and Investments: In Q4-23, Altice USA’s capital expenditures amounted to $295.2 million, contributing to a total of $1.70 billion for FY-23. The company emphasized its commitment to investing in key growth initiatives, with projected cash Capex of approximately $1.6 billion to $1.7 billion for FY 2024.

Fiber and Mobile Growth: Altice USA experienced significant growth in its fiber and mobile services during the reported period. Fiber customer net additions reached 46,000 in Q4-23, marking Optimum’s best quarter for fiber net additions, and a total of 170,000 customers were added in FY-23. Additionally, Optimum Mobile witnessed accelerated net add growth, adding 34,000 lines in Q4-23 and reaching a total of 322,000 lines, showcasing an 8.2x growth year-over-year.

Customer Experience and Satisfaction: Altice USA’s efforts to enhance customer experience yielded positive results, with improvements observed across various metrics. Notably, there was a 21-point improvement in tNPS (Transactional Net Promoter Score) in Q4-23, indicating higher customer satisfaction levels.

Revenue Performance: Total revenue for Q4-23 stood at $2.3 billion, representing a decrease of 2.9 percent year-over-year, while FY-23 revenue amounted to $9.24 billion, showing a 4.3 percent decline. Despite the decline, these figures indicate an improvement compared to the previous year’s revenue declines.

Residential and Business Revenue: Residential revenue in Q4-23 was $1.79 billion, down 2.8 percent, and $7.27 billion for FY-23, reflecting a 4.4 percent decrease YoY. This decline was primarily attributed to the loss of higher average revenue per user (ARPU) video customers over the past year. Business services revenue, on the other hand, experienced a 1.0 percent increase in Q4-23, totaling $372.0 million, and a 0.5 percent decrease for FY-23, amounting to $1.47 billion.

News and Advertising Revenue: News and advertising revenue saw a decline, with Q4-23 revenue at $128.1 million, down 15.7 percent, and FY-23 revenue at $447.7 million, showing a 13.9 percent decrease. However, excluding political advertising revenue, there was growth of 8.9 percent in Q4-23, while FY-23 saw a decrease of 1.7 percent.

Net Income/Loss: Net income (loss) attributable to stockholders was ($117.8) million (($0.26)/share on a diluted basis) in Q4-23 and $53.2 million ($0.12/share on a diluted basis) in FY-23.

In summary, Altice USA’s financial report demonstrates its continued investment in growth initiatives, particularly in fiber and mobile services, alongside efforts to enhance customer experience, despite some revenue declines in certain segments. The company remains focused on its strategic objectives to drive long-term value for stakeholders.

Baburajan Kizhakedath