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Altice USA Inc (OPTU)
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Altice USA Reports Q4 and Full Year 2024 Results Amid Transformational Changes

Last updated: February 13, 2025
Taurigo

Altice USA Inc. (NYSE: ATUS) has reported its financial results for the fourth quarter and full year ending December 31, 2024. The company has highlighted a year of transformation for its Optimum brand, focusing on operational strength, customer experience enhancement, and financial discipline, despite facing a challenging macroeconomic and competitive landscape.

1. Executive Insights

Dennis Mathew, Chairman and CEO of Altice USA, emphasized the company's commitment to its ongoing transformation. He stated that 2024 was a pivotal year marked by record growth in fiber and mobile services. He outlined the company's focus for 2025, which includes expanding its product portfolio, enhancing operational efficiencies, and accelerating the availability of multi-gig services while maintaining a strong capital structure to support long-term growth objectives.

2. Financial Overview

Key Financial Metrics

  • Total Revenue: $2.2 billion in Q4 2024, down 2.9% year-over-year; $9.0 billion for FY 2024, down 3.1% year-over-year.
  • Residential Revenue: $1.7 billion in Q4 2024 (-5.6% YoY) and $6.9 billion for FY 2024 (-4.6% YoY).
  • Business Services Revenue: $371.3 million in Q4 2024 (-0.2% YoY) and $1.5 billion for FY 2024 (+0.3% YoY).
  • Net Income (Loss): $(54.1) million in Q4 2024 ($(0.12)/share diluted) and $(102.9) million for FY 2024 ($(0.22)/share diluted).
  • Free Cash Flow: $49.9 million in Q4 2024 and $149.4 million for FY 2024.

Operational Highlights

  • Fiber Customer Growth: Altice recorded its highest fiber net additions, reaching 538,000 fiber customers, a 58% increase compared to year-end 2023.
  • Mobile Line Growth: The company achieved its best mobile line net additions in five years, reaching 460,000 lines, up 43% year-over-year.
  • Broadband Challenges: Total broadband primary service units (PSUs) experienced a net loss of 39,000 in Q4 2024 and 170,000 for FY 2024 due to competitive pressures and low switching activity.
  • Video Strategy Evolution: The company revamped its video offerings, leading to improved customer engagement and a 20% attachment rate for new TV packages.

Expense and Capital Structure

  • Adjusted EBITDA: $837.5 million in Q4 2024 (-7.3% YoY) with a margin of 37.5%, and $3.4 billion for FY 2024 (-5.4% YoY) with a margin of 38.1%.
  • Capital Expenditures: Cash capital expenditures totaled $390 million in Q4 2024 (+32.1% YoY) and $1.4 billion for FY 2024 (-15.9% YoY).
  • Net Debt: As of December 31, 2024, Altice's consolidated net debt stood at $24.644 billion with a leverage ratio of 7.3x.

3. 2025 Strategic Priorities

As Altice USA transitions into 2025, it aims to focus on several strategic priorities:

  • Revenue Opportunity: Enhancing broadband subscriber trends and increasing mobile penetration.
  • Operational Efficiency: Leveraging AI and digital tools to improve product margins.
  • Network Strength: Expanding the fiber footprint and accelerating multi-gig service availability.
  • Capital Structure: Ensuring capital efficiency to support liquidity and growth.

4. Conclusion

Altice USA's results for Q4 and FY 2024 reflect a year of significant transformation amid challenging conditions. With a strong emphasis on innovation, customer experience, and operational efficiency, the company is poised to navigate the competitive landscape and focus on growth in 2025. Investors and stakeholders will be keenly watching how these strategies unfold in the coming quarters.

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