Altice USA residential video RGUs down 85,000 in 2Q 2022

Wednesday, August 3rd, 2022 
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NEW YORK — Altice USA (NYSE: ATUS) today reports results for the second quarter ended June 30, 2022.

Key Operational Highlights

  • Total unique Residential customer relationships declined -2.3% YoY in Q2 2022. Unique Residential customer net losses in the quarter were -48k, compared to -12k organic(4) Residential customer net losses in Q2 2021. Recent customer trends broadly have been impacted by lower market activity with incremental pressure to subscriber growth from a return to more seasonal patterns in Q2.
    • Fiber Broadband RGUs: Quarterly FTTH broadband net additions were +23k in Q2 2022, more than double the growth compared to Q2 2021 (+11k), mainly driven by increased migrations of existing customers. Total fiber broadband customers reached 104k as of the end of Q2 2022, reaching 6.6% customer penetration of the FTTH network.
    • Residential Broadband RGUs: Quarterly total Residential broadband net losses were -40k in Q2 2022, compared to +0k organic broadband net additions in Q2 2021.
    • Residential Video RGUs: Quarterly video net losses were -85k in Q2 2022, compared to -48k video organic net losses in Q2 2021.
  • Residential revenue declined -3.0% YoY in Q2 2022 to $1.93 billion:
    • Residential revenue per customer relationship in Q2 2022 declined -1.5% YoY to $140.13, mostly due to the loss of higher ARPU video customers, although grew sequentially (+1.6% compared to Q1 2022).
  • Business Services revenue of $371.5 million was flat at -0.1% YoY in Q2 2022, or grew +1.3% excluding air strand revenue(1). SMB / Other revenue was flat at -0.2% YoY in Q2 2022, or grew +1.8% excluding air strand revenue(1). Lightpath revenue was flat (+0.0% YoY) in Q2 2022. Lightpath’s net sales bookings were increased by ~63% YoY, which is expected to support accelerated revenue growth in the coming quarters.
  • News and Advertising revenue grew +1.1% YoY to $133.3 million in Q2 2022.
  • Optimum Mobile has approximately 231k mobile lines(5) as of June 30, 2022 (+33k net additions in Q2 2022), reaching 5.1% penetration of Altice USA’s Residential customer base.

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    Q2-22
-------  -------  -------  -------  -------  -------  -------  -------  -------  -------
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  2,574.2

* 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.

Links: Altice USA