Altice USA video RGUs down 10k in 1Q 2019; Introduces Altice One 3.0Thursday, May 2nd, 2019
• Altice One is delivering the best ever video customer performance for Altice USA, including growth at Suddenlink for the second consecutive quarter.
• Video RGU quarterly net losses of -10k in Q1 2019 were significantly better than the prior year (vs. -30k in Q1 2018) and represent the best ever video customer performance for Altice USA.
NEW YORK — Altice USA (NYSE: ATUS) today reported results for the first quarter ended March 31, 2019.
For quarter ended March 31, 2019 compared to quarter ended March 31, 2018, Altice USA saw significantly improved residential customer trends with total unique Residential customer relationship quarterly net additions of +22k in Q1 2019 (vs. +8k in Q1 2018). This included Residential broadband RGU net additions of +37k, video RGU net losses of -10k, and telephony RGU net losses of -20k in Q1 2019 (vs. +26k, -30k, and -8k, respectively, in Q1 2018). Altice USA Residential ARPU increased +2.1% to $142.57.
Altice USA Customer Metrics (in thousands, except per customer amounts)
Q1-18 Q2-18 Q3-18 Q4-18 FY-18 Q1-19 ------- ------- ------- ------- ------- ------- Homes passed 8,642.0 8,671.0 8,701.7 8,737.3 8,737.3 8,761.9 Residential 4,543.4 4,539.8 4,534.9 4,542.1 4,542.1 4,563.7 SMB 373.2 375.3 376.3 377.5 377.5 378.4 Total Unique Customer Relationships 4,916.6 4,915.1 4,911.2 4,919.6 4,919.6 4,942.1 Video 3,375.1 3,350.9 3,322.8 3,307.5 3,307.5 3,297.3 Broadband 4,072.6 4,082.1 4,096.3 4,118.1 4,118.1 4,155.0 Telephony 2,549.7 2,545.6 2,533.5 2,531.2 2,531.2 2,511.1 Total Residential RGUs 9,997.4 9,978.6 9,952.6 9,956.8 9,956.8 9,963.4 Residential ARPU ($) 139.63 140.19 142.96 142.44 141.32 142.57
Product & Service Enhancements
Altice USA continues to expand the presence of Altice One across the U.S., now with approximately 400,000 customers across the country. A major update to Altice One was introduced in April 2019 with the launch of the Operating System 3.0, which brings users a new sports hub, an enhanced home screen, and voice guidance, allowing for better search and discovery and an overall easier and more accessible experience.
Altice USA’s advanced advertising unit, a4, continues to deliver on its mission of simplifying the complex nature of digital advertising by adding OTT and connected TV set environments to its all-in-one media planning and delivery platform, Athena. This addition further enhances a4’s existing ability to deliver advanced solutions for clients helping them identify and reach their desired audiences across all screens within a single household and in all formats. This offering extends the guarantee of measurability and analytics of reach and frequency among all devices inside the universe of targeted households available through a4.
Altice USA News and Cheddar Acquisition
Altice USA has reached an agreement to acquire Cheddar, the digital-first news company, for $200 million, subject to certain closing adjustments as set forth in the merger agreement. With this acquisition, Altice broadens its portfolio of high-quality news businesses by adding Cheddar’s innovative digital-first, live business, general news and college network focused on young professional and millennial audiences. The transaction is expected to close in the next two months upon receipt of regulatory approval.