Altice USA, the American subsidiary of the multinational cable and telecommunications company Altice Group, has released its financial results for the second quarter of 2023. The report indicates a 5.6 percent decline in revenue, amounting to $2.32 billion.
The revenue decline was spread across various segments, with Residential revenue experiencing a drop of 5.7 percent, Business Services revenue down by 1.9 percent, and News & Advertising revenue facing a substantial decline of 14.8 percent.
In terms of net income, Altice USA reported $78.3 million in Q2 2023, which translates to $0.17 per share on a diluted basis. This figure shows a decrease compared to the net income of $106.2 million reported in the same quarter of the previous year, which was $0.23 per share on a diluted basis.
Despite the challenges faced in revenue and net income, Altice USA highlights significant achievements in operational and financial improvements across the business. The company’s efforts to enhance customer experiences and streamline field operations have led to higher customer satisfaction metrics and reduced call volumes and service visits.
One area of success for Altice USA was the broadband segment, with stronger net additions in the quarter compared to the previous year. The launch of their 8 Gig symmetrical Fiber Internet service positioned Optimum as the largest 8 Gig internet provider in the nation.
Dennis Mathew, Altice USA’s Chairman and Chief Executive Officer, attributed the better trends across the business to the company’s strategic focus on providing top-quality products, networks, and customer and employee experiences through operational execution and financial discipline.
Capital expenditures for Q2 2023 amounted to $473.4 million, representing 20.4 percent of revenue (or 11.4 percent of revenue when excluding fiber-to-the-home and new builds). This figure marked a decrease of 2.4 percent compared to the same period last year.
Key operational highlights for Altice USA include quarterly broadband net losses of -37k in Q2 2023, showing improvement from -39k broadband net losses in Q2 2022. Additionally, Fiber (FTTH) broadband net additions reached an impressive +40k in Q2 2023, driven by higher fiber gross additions and increased migrations of existing customers. Total fiber broadband customers reached 250k by the end of Q2 2023.
In the mobile services segment, Altice USA’s Optimum Mobile reported approximately 264k mobile lines by the end of Q2 2023, adding +16k mobile net additions during the quarter and reaching 5.8 percent penetration of the company’s total broadband customer base.
While Altice USA faced challenges in Residential, Business Services, and News & Advertising revenue, the company remains committed to operational excellence and strategic growth in the competitive telecommunications market.