Altice USA residential video RGUs down 74,000 in 1Q 2022

NEW YORK — Altice USA (NYSE: ATUS) today reports results for the first quarter ended March 31, 2022.

Key Operational Highlights

• Total unique Residential customer relationships declined -1.5% YoY in Q1 2022 on an organic basis (-0.8% including the acquisition of Morris Broadband in Q2 2021). Unique Residential customer net losses in the quarter were -21k, compared to -1k Residential customer net losses in Q1 2021.
  • Residential Broadband RGUs: Quarterly Residential broadband net losses were -13k in Q1 2022, compared to +12k broadband net additions in Q1 2021.
  • Residential Video RGUs: Quarterly video net losses were -74k in Q1 2022, compared to -54k video net losses in Q1 2021.

• Residential revenue declined -3.6% YoY in Q1 2022 to $1.91 billion:
  • Residential revenue per customer relationship in Q1 2022 declined -3.0% YoY to $137.92, mostly due to the loss of higher ARPU video customers, although was stable sequentially (+0.1% compared to Q4 2021).

• Business Services revenue grew +0.1% YoY in Q1 2022 to $368 million, or grew +1.5% excluding air strand revenue(1). SMB / Other revenue was flat (-0.1% YoY) in Q1 2022, or grew +1.9% excluding air strand revenue(1). Lightpath revenue grew +0.6% YoY in Q1 2022. The Lightpath business increased net sales bookings by ~70% YoY in Q1 2022 which is expected to support accelerated revenue growth in the coming quarters.

• News and Advertising revenue grew +9.1% YoY to $115 million in Q1 2022, approaching pre-pandemic levels of growth, driven by strength in the travel, entertainment, and sports betting segments.

Customer Metrics – Residential Customers – Video (in thousands)

  Q1-20    Q2-20   Q3-20*    Q4-20    Q1-21  Q2-21**    Q3-21    Q4-21    Q1-22
-------  -------  -------  -------  -------  -------  -------  -------  -------
3,137.5  3,102.9  3,035.1  2,961.0  2,906.6  2,870.5  2,803.0  2,732.3  2,658.7

* Since Q3-20, figures include Service Electric Cable T.V. of New Jersey, Inc. acquired subscribers. Q3-20 Service Electric subscribers added 34.4k residential customer relationships, 29.7k broadband, 18.6k video, and 5.9k voice.
** Since Q2-21, figures include Morris Broadband, LLC acquired subscribers. Q2-21 Morris Broadband subscribers added 35.1k residential customer relationships, 30.3k broadband, 12.2k video, and 2.2k voice.