Cable One (CABO) 22 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cable One Fourth Quarter and Full Year 2023 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Todd Koetje, Chief Financial Officer. Please go ahead.

to Call. Fourth welcome Year and and Earnings XXXX afternoon, Cable Quarter One's Full Good to you glad We're have our we results. review join us as

that statements proceed, discussion uncertainties. that we I like and remind Before would involve risks contains to relating you forward-looking future events to today's

differ no under today's our find except can events is on call, annual result and earnings and expressly in to in filings, could the including law, One forward-looking update report obligation, Cable XX-K. information, its or a obligation One's actual disclaims any whether cause as today's to future Form of You from new as Cable statements SEC by our required that results factors otherwise. forward-looking materially discussed during release or alter statements,

discussion to financial principles include during cash that U.S. as Additionally, measures GAAP not measures conformity comparable refer will accounting discussed on at less capital call today's generally we release financial presented adjusted accepted of today's we found free remarks of our directly this most When earnings certain EBITDA in with mean ir.cableone.net. defined Reconciliations flow call, release. expenditures GAAP. a or website in the or to can on non-GAAP be measures our earnings our in are

services. to the quarter second During basis, today's exclusively refer of noncore in divested call, XXXX, whenever an our business adjusted on provided certain results we we we are assets which excluding

is our turn today's and call me Julie. the With me Joining to let Julie over on President CEO, Laulis. call that,

company, on how success contrarian nearly belt today brief our you the call. afternoon, call start and us Todd, appreciate to they a as I'd I for our under reflection off to With good contribute a today's you, decade into and Thank like and with our routes future. believe joining a public We today's everyone.

to our on apart towns, differences from broadband small we pivot away lean of the strategy and just cities of a or our few in video Today, always safe examples into kind a from providers to routes, other early attractive have broadband on set those operator have leveraging contrarian rural evolving for the We ourselves large and been future. past. acquisitions how we harbor continue and different focus that concentrated

achieve We a over have drive significant generate combination meaningful customers' differentiator. free a cash this to neighborly flow. plan diversified support footprint bandwidth will growth where continue infrastructure is needs provide to and experience our in and operations time, to believe for local balanced rural robust margins increasing we a a We high a

XXXX, In grew the by residential rates. One the quarter more base driven was improvement connects our among churn and by new in X,XXX both sustain an fourth of low growth year-over-year Cable Notably, was few customers, customers. who than this broadband operators expanding

segments our our to tactical address reengineered expand have to footprint. We customer our new strategically our through attractive go-to-market target and competition pricing offerings, with We and product approach these changes countermeasures believe unconsolidated plan network the deploy This quarter, Similarly, began the fourth and investments our to continues continue financial show third growth. drove and to end throughout customer persisted at of growth strong results. customer momentum date. the

While balanced we achieving growth of over our residential on we also the understand market are focused share, increasing time. importance

market full free financial conditions. a expenditures yet reaching cash our we objective capital less all-time amid with adjusted XXXX, challenging to generate year-over-year. another growth our This to underscores ultimate perform consistently remains something financially, year accomplished in significant X.X% Our for again flow investors, even EBITDA ability for high

use period residential Nearly a per a customers over increase month, X/X cash same of Internet in free We data to consumption now while more network, robust already continuing generated ahead our of the the this flow ensuring terabyte remain XX% our than invest we of last year. curve.

overall as utilization effectively for managed remained network traffic. both upstream peak have approximately this hours downstream during surge XX% and at We

available are capital to term. sustain support our positioned in free spending a efforts we trajectory the growth of Given moderate capacity, cash our to long flow well over this of continued

always, commitment of robust network steadfast in our maintain our the second-guessed customers to service. never so remain their a we As reliability that

in increased to marketing customers Beginning broaden by previously ways to our we reach the value-conscious fourth quarter, in haven't we efforts emphasized.

We surgically appeal to benefits have we new data the exceptionally implemented and free among pricing as existing for value-added changes well packaging retain also introduced to decades. have unlimited broaden such served our we And to our customers. customers and

with message strategies results in branding our are we a and investments ensure continue significant audience. pleased early are the wide We our reaches to making and marketing seeing we will

anticipate Although for opportunities we meaningful urban remain we relatively providing will footprint faced competition, than increasing some our markets, competitive penetration. that wired less

to However, are our one provider In compete we we of with prepares and new markets, will when a respond to aggressively price. on multidimensional a situations, aggressively ready also enter targeted comprehensive more playbook.

markets, the our have dynamics return of some during markets. our that We entrants into capital caused potential believe by have coupled responses, dynamics, construction understanding We and our of to to of with constraints heightened newcomers entry new faced the their a costs. especially these and already times clear capital rethink

new effortlessly noting listening our our customers to network the include usage unlimited value-based customers of worth terms wireless across underscoring price. Fixed commitment indicating prioritizing with limitations known with superior offers our throttling. footprint, is our limits to go and data, a we In and that believe capacity high service we data In their with usage and to ongoing it One our competitors, Cable provide. that accommodates customer wireless It's our head-to-head repeating bears potential reports offers recent offers have needs contrast, services needs. new on

value-conscious this target residential downward can we for in over data quarter. manage fiercely on achieve customers going during forward strategically to We necessary, as tactics to pressure to resulted fine-tune compete ARPU continue our fourth growth efforts and and we where that Our the expect customers ARPU our effectively time. balanced anticipated

for to expanding markets, base in our pressure ARPU an this expected the segment defending near acceptable our view is customer long-term we value value. and the targeting term, Although trade-off enhancing as

said believe taking that we achieve we essential success. is we currently the achieving understand to And I As necessary balanced that. steps are for earlier, long-term growth our

our and who XXXX, aligns philosophy time. level growing consistently Munger, operational the companies challenges, highest continue growth "generate flow." and with we In economic competitive our flow are that late cash despite over subscriber of sought partnerships wisdom of capital the free poised flow great ever. focus we With with cash Ultimately, substantial our discipline Charlie expenditures, on cash in to XXXX over free achieved and

approach substantial differentiated business aspect I and This delivery. fact associates our a that is model. work. are service rooted another of the of the Before that in leaders want in live majority emphasize I operation members is It of over turn our and to heart communities which number to Tom, integral a it our of personal a is they the of to

their to commitment. trust illustrates a and matters Their one systems associates. from Our that story and customers family. beautifully recently loyalty I are our heard this friends of our

hard-grade a One for service to video was of call problem a troubleshoot an on our technicians elderly customer.

I'll out, to our a delivered that for backbone broken. turned pocket, examples, it Recognizing an was new financial up of are not set service. anyone of to simply customers' this our a was The own company technician, one, TV purchase could and video I our it of As unbeknownst dozens the customer the issue a his position truly in customer. it reiterate, share purchased with brand-new our for and it out but success. people TV similar wasn't

And now, performance. recap of and full financial a Todd, year will who provide full quarter our fourth

Julie. Thanks,

fourth like to results, I'd Before XXXX key discussing financials. quarter the of some start from year our full figures our touching on by quarterly

For residential data the of XXXX, year-over-year, however, during video our XXXX, revenues. Residential XX.X% fourth of revenues, PSUs more X.X% increased million, quarter the X.X% in total revenues a from were the fourth a fourth with growing decrease decrease quarter. than by driven X,XXX quarter $XXX.X

in XXXX as services whereas data EBITDA comparable revenues a exceeded services net $XX.X revenue revenue points to gains of to in when outpaced income XXXX. were revenue was the basis of Business of expanded growth services X.X% QX revenue million decrease year-over-year. offerings for attrition million, Adjusted business Adjusted product. in video compared services $XXX.X XX a EBITDA data million year-over-year, the loss margin compared to declined was XX.X% Net rates within by data rates. $XXX.X QX residential XXXX the X.X%

$XXX.X totaled QX. in expenditures million Capital

$X.X During we quarter, the for integration for and new million $XX.X activities. invested expansion market million of CapEx

fourth Our several timing of were elevated expenditures due initiatives large of of new to quarter launch the with capital strategic completion the ones. and projects

expansion, projects network We also government funding. for enhanced ATM XX years backed equipment share particularly future discounted opportunities for capitalized of for on by

deployment growth excellence. our product, wall-to-wall we our the retention commitment operational Additionally, rates. enhanced of experience long-term bolstered the customer significantly has which and accelerated These reflect investments and to WiFi

decrease of incurred the fourth the in the Adjusted capital to was EBITDA by $XXX.X million quarter higher XXXX previously million in the quarter expenditures This $XXX.X as primarily fourth expenditures capital in from decreased mentioned. XXXX driven of of less quarter fourth XXXX.

continues Now X.X% after or of residential decrease in On into growth XXXX, XXXX $XX.X revenues. turning most was divestiture our with drive to from our assets adjusted residential business lower broadband and our XXXX. full the second billion, $XX the business million million driven revenues product a of approximately results. total from revenues product taking the quarter in The to deemphasized for off were revenue. revenues decrease commercial Total declined lines, and The decrease Starting our a in lines year margin, X.X%. including by largely certain residential profitable of decline video an basis, $X.X forward. account continued noncore video of

all high-speed ARPU. expands strike our the balance success and and confidence subscriber As reliable across the demand in groups, does for between broadband so long-term right customer growth ability continued the to

declined For growth adjusted to grew on business XXXX. services the or And offerings data healthy compared XXXX, experienced $XX.X as our X.X%, basis. by mentioned X% Year-over-year, when our but revenues an earlier, X.X% grew services services year. data million within revenues business residential during approximately

driven revenues revenues were expenses XXXX in $XXX.X video XXX compared or basis a million XX.X% $XX.X or in of XX.X% programming decrease by of million improvement, to prior in million costs. a the point year, $XXX.X largely Operating

efficiency Our customer demonstrate with contacts per a management, led customers cost These disciplined X,XXX truck XX% approach and our focus our revenues. on monthly advancements, rolls decreasing along in to drop decrease proactive innovation has per with and and XXXX. in significant a to including aligning strategy investment average video XX% gains, since

for XX.X% to prior the meaningful in are increase compared XXXX for platforms. experience. to that driving initiatives the we ongoing These Adjusted an increase XXXX, and investments XXXX areas $XXX.X million customer software $XXX.X the expenses $XXX.X marketing for of service digital million administrative X.X%. in SG&A revenue and of compared and and XXXX million labor compared $XXX.X XXXX, general higher percentage XX.X% year. for in million as driven was initiatives, by were a with costs, branding Selling, to associate enhanced transformation are was and making EBITDA of for

Our compared representing margin a for XX.X%, XXXX adjusted point XXX EBITDA prior basis year. was the improvement to

adjusted prior $XXX totaled and for million $XXX to to in which XX.X% expenditure year. million of EBITDA XXXX, Capital XX.X% compared the equates

capital over towards in years network X.X the Our have expenditures generated trended with architecture. for specifically these the meaningful to confidence significant XXXX. capacity low thanks to provides investments DOCSIS X the manage us our investments we've the The excess our network, already total by expenditures the made downward XXXs with past capital

Adjusted prior $XXX.X XXXX year, million $XXX.X XX% the expenditures a EBITDA less capital nearly million to was compared for increase. for

of continue investments business and and sheet management. in of conservative this our balance philosophy flow will long-term-oriented that to generates the application rooted meaningful evaluate stay We cash

and investments, digitally-oriented opportunities organic will opportunistic of capital a We disciplined dividends and diversified continue repayment, inorganic and return consistent across balanced platform debt growth remain repurchases. share consisting of investments, strategy network

of for outstanding In of $XXX balance. million million represent shares XXX,XXX back XXXX, debt, million to repaid we bought of volunteer which dividends repayments million our distributed $XX.X $XXX.X and in shareholders, over $XX.X revolver

had and million equivalents of hand. XX, As cash we approximately cash December on of $XXX

approximately loans, balance borrowings of $X.X lease $X unsecured $XXX billion, $XXX million notes, revolver convertible liabilities. term notes, debt was approximately in Our of million $XXX million and consisting million in in $X.X finance billion of

of million reducing billion rate additional credit committed million $X committing balance costs, repaid floating facility. borrowings additional our and Earlier revolving we We for revolving this available also under unfunded our borrowings our revolver $XXX an service week, go-forward expanding credit capacity. debt our debt further $XX had

X.XX%. was Our XXXX weighted average for cost of debt

Our considerably or contracts, been fixed are quarter last environment. basis net long-term X.XXx leverage under issuance the borrowings fixed and on majority exposure to vast prevailing our our annualized was ratio of have rate mitigating your a synthetically the

of any for does Additionally, the instruments final incur nearest not maturity XXXX. our debt until

this Fiber, the with other investment investment $XX growing Ziply quarter, the million addition In fiber the bringing million. we discussed year, agreement subscription previously activity to the invested under provider our remaining total fourth during in our $XX.X during to

of more on unconsolidated and the approximately full partnering reputable X,XXX customers less In X.X% fourth businesses financial business of customers a basis reinforces Looking where year at the by The expansion our does include the collaborating with these XX,XXX investments. significant grew quarter or our [indiscernible] and of This XXXX. residential and operations management teams sequential strategy we enduring total, a investment. with not the in in data have entities the most sector. for experienced than ongoing

Before we Q&A, address the to also for turn customers. broadband to to like as program, affordable I'd ACP connectivity referred our

that plan are note that of taking our the other ACP April. program it While to completed while for pay program, might who steps we of for the are by subscribers less XX% for their provide for proactive ACP end likelihood ACP, prepared prepare subscribers. many. impact XX,XXX is understand potential on by the Congress funded of current the plan. initiated be will be important to have the It disruptive funding the fully than these possible customers approximately the funding continue portion still a are for a program and We that to communications customers We've our is could

the However, ensuring needs appropriate places to possible we've mapped most landing we committed customers' usage and are smoothest our transition. on based out carefully the financial and

potential not in Internet gain new satisfied prompt as to alternative Additionally, this providers. the provider explore their those a existing we lapse service to opportunity funding with as see customers might

now With ready that, we questions. are for

from with comes Nikhil Aluru line JPMorgan. question of first Your Instructions] [Operator the

Thanks there's on down-tiering the sub the I'm the offers you discussion here. for anything But sheet. what existing have you've the offers may or that deceleration. the impact second, Todd, been the like if then low-end the broadband on ARPU ARPU on pressuring balance been First, any noticed? curious from mentioned retention And or base

funding company X.XXx And that leverage to MBI on how at view as leverage how do could do then sheet, balance about target here? look target impact years, potential your leverage for net the the out and mentioned X having How we You you now. for given think you take MBI range?

start I'll Nik, Julie. it's out,

yes, pretty some, competitive your a Well, a and So contractor, stops result. segment. do evolution in a that. we've seen that's hypercompetitive willing or concentrating the targeted that's also few changes growing discounted on if I'd especially customers. an really would is have good more pulls been those overbuilder I are to change type we done have results And good promotional more higher-end If actions we some are of in from say actually the our overbuilder response. that If good that What market, from seen a response packaging good I call some that's what had -- We've our LTV at things an result. good from results? result. a and and that an And area, offers just specifically we value-conscious call do a pricing we've and past strong in markets or that all building

sell-in, simple meg at terms if XX% above. are cannibalization, in I level as the something new of of about coming XXX customers or as our at look In

markets, in still of I have majority that we defending rates. some our responses penetration think our we the So marketplace we're to but and well strong data doing growing are taken our ensure

balance And equation, points then key of Nik, on the sheet Julie most nailed on the ARPU. side Todd,

a leverage or a were leverage maintained we've the various One philosophy to leverage to that taking throughout Cable X.X conservative environments comfortable near se, don't with per of know, balance that has operated always hard-grade of you target in very sheet. up X.X% transaction. range. We kind the As the We but that have X.Xx economic business a profile

interest X% rate. near at capital issuing were also We

reduces enhances of banks. our of question out extended balance disciplined we've syndicate an And the continue I in our you. debt about of to other very was we balance to just outlined the that repayment prospects our down an for the only last that it's capacity like unfunded with cost committed of rate events last MBI. you not transaction as capital that from enacting sheet we multiple, $X that under that that we're committed it's factor of preparing important timing we a feel right that the we're range the of associated in that as like that And quarters, that we'll with and managing but can floating at It all debt intentional been leverage revolver. revolver billion the align debt as X.XX also that earlier few balance see capital, the view that The previously relationship think here which moving year with under tranche revolving we highest transaction will now, and So sheet. your that is also as our

comes Cowen. of Our next Williams TD with from question the line Greg

quarters you and on be as the just sort defense? the the growth, end on I'm sheet. near pressures balanced back to just you an some second and we see Julie, mean? be wondering question the And up think next over And few for the in need ARPU and How does about target low yes, the ARPU pressures shoring you'll mentioned just could is, the buybacks, term. do through burner. near balance term you and what the mentioned acceptable offense also year trade-off. it of Todd seem

to safe So is is balance while sheet repair at down here? prioritization it the these the figure sort of stock is levels,

Great.

pressure the term. yes, near in So

not a example, that are in for mean XXXX. service, We substandard because the first, is opposite not towns. And are were true. And offer cities, folks in back a doesn't that communities if we're the We network. in just one we've gig in the are first large getting fact, operated -- urban, these small operators, to of these

the multi-gig majority fiber and markets is defend HFC our in I is to been to have now. you, context we We operating these we across Greg, are markets although And plant, that grow And market of service our going we decades. for symmetrical the plants share. to give have going that are

So nice remembering that our near-term I dispersed that some do average size states, defend it's we as is see we're markets, across XX pressure customers. market a XX,XXX

of take is We're learning overall. this of have with methodical. to being really to to and going an impact we're a are balance us types going growth can competitor the think that incredibly it be an marketplace on nice we're period, to to journey show going markets different and we us. overall. impact experimenting in segmenting So be But But so I anywhere we multiyear a very overall. not journey. targeted Over a to ARPU trying We're you is

As taking care significant generating on and customers always, our free our focus our cash flow. of is associates,

really So I'm not revenue the concerned in about short term.

customers communities provider to our where be we doing. owners, been shareholders, continue that leading our about these our we've and penetration. to in I'll on mean, the I the multidimensional that a we in behaviors from acquisition customer feel one Greg, add in that. and And about that past, for in can as that's acquisition we as we're believers perspective, demonstrate what creation and expand It's value factor at can associates, which our those looking big retention. both markets an of of we're penetration thing the key And talk just and that economic And we retention to very our at a lot. have we're talked ARPU is but long-term key a our extensively rates terms well playbook have we customer

As the to issuance it, both the utilized repair sheet, the debt balance of balanced in it always sheet I used balance how you term and that. we've very term been from think, cost the wouldn't we've because was and call the relates it, I

us long good quarters. few spot So in buybacks did term, to great the the we back to a feel be pull very like fixed puts a on position We and highly grow. in in it's last

in in network, ourselves, shares equity, You about we a discipline price shares, our running shareholders the with almost ourselves, people, I we saw, bought do as the investing and at. cases, that in that shareholders always investing our investing issued in it's issued and back that audience a investing the I'll of at remind we to And issue XXXX did debt. the issued well. with business much long-term repaying partners, XX% buyback we discount we nearly many think is XXX% as number think of XXXX. return it's in the in We around capital the of of credibility through also to in and And borrowing very that's the believe and our that's credibility but creditor in we

So big on to as you be there. we a for bit and leveraged maintain events the not little sheet debt will conservative us that continue in philosophy, But balance to more the We're future maintaining will we be repayment. want balance prepare focused see a business perpetually believers model.

of Louthan line Frank Raymond the from comes question with James. Next

of bit. begin So do of mean, passed that of rate on what still you've a add for to you And kind XX,XXX see start to broadband subs. see level passed? built point about can quite for subs a year, take at homes -- we you the see homes subs there it's losing a yet kind win and the year? can call to sort when positive think I new you full the growing? you that And What's of the

systems penetration longer case the of already penetration majority the we quarter, of one not. that for single has actually quarter planned. new lot a than me And popped the the free jump and every a the last year, build. building with the is of we've in will the approach, to went we but stuff think new match filling Todd, if feel a some it those is half, we a developments, last about through those which you makes that built. start their that of here, of home I that those rates in. of really lot on the that home I But see A actually in become how And But have just tenure the how is is there -- still is will I'll become one, customers. in mean where Frank, in plant homes. came of

in going So XXXXs it. of will these what on I'm represent growing out XXXX. opportunities comment I is concentrating on for we say us leave in What the not to I growth. XXXX. And about are guidance think

is percentage initiated the that, of QX. see talked Frank, a in call QX up And that the quarter correlate was low quarter, about we also to that the projects it's A-CAM and CapEx XX% I've predictable hard past. about previous the in as quarters. talked ones as CapEx CapEx of you was be many low enhanced in fourth but EBITDA than that XXXs where some outlined we've as would And you we'll even though them, long-term I of or CapEx on expectations we it's full that to came also And year my can those below a with of as considerably the does as Yes. came remarks, were in in it a quarter-to-quarter support XX% to run saw being higher But XXXX we've timing new for that we the moving even regulatory that kind had that associated completed, hard to super be few manage programs. from to end lower what with where -- in elements what in

to us for opportunities be prosecute XXXX. for will in sure there So

at And you mid-XX% homes? penetration most you on of clear, to quarter, Okay. so these you're build be areas X you're those just saying after that

of I'm a been saying home for period they've time. No. if

only you truth. months to are month, single watch have But the barn. a tell X we them every week, in the -- So a week these these

penetration they areas over match newbuild the rates are not those So be to But as in. system higher. high their going as penetration will exist be system time, average that the or

that long does to take So them for existing system? the how match

Is -- system the that a with going really like also won't competitor X it that fast. to doesn't system system than on fiber talking other us a listen, the a a overbuilders would going pretty there about. we're because name depend well, Frank, know have get It system is longer. I say I to take it's that what Is that

Moffett the line with Our next question comes Craig Nathanson. from of Moffat

look bit Todd, about you're to could you're add mostly the compete using and when just of wonder talk that fiber Julie entrants. offers broadband? that geographic you're offers to those if how you -- different than fiber color specific like facing it aimed offers markets more wireless at with I are a you new a But with about are doing you talking if competing competing doing also where in And fixed sounds what little so, do competitor? you're kinds with

in in that piloted QX, really late of than with tier makes was Yes, as was sense. price. where rolled called out was things we to different higher offers which QX, offerings the segment that more was on Julie the offered go can architected with in meaningfully sell-in fixed about saw sale of in we flash we wireless initially that Craig. service well. the if mobilely But of product $XX with head-to-head it our the call in talked initial come a but we that, out also QX And one had jump XXX focused of that promotional both broadband promo meg value of that that being at as a those types

are it for QX, well in in was offer customers over of X/X So offer. for called the that that or in that came

quarter to sales monthly we able capacity to hire that them date. continuing great and listening in see the needs and and requirements on fourth utilization their based their and to was were, and their what here team needs convert Our average

with markets ensuring to offering. go it's compete can in better both. serve, be in that making past, cohorts also it's these mindful offering of mobilely a wireless them head-to-head is being like of doesn't definitely in have network segments based offer good not do and infrastructure not in provide we have to all we our fixed mobile that not, you this the we able a that and don't markets. talked we've say with many all And And We infrastructure we many more on while broadband architected these it's reliable sure our to product a feel about But to reliable markets, of wireless the feel communities the either. to but a opportunity in home a service, on in be some towns fixed product, wireless our and markets

shift I all is us size that any a are that pretty add systems, not guess would fits operating we way. big one and I just for our this

We are innovating.

We are testing.

We are learning.

things. trying We are

every we're are what's We that We're whole taking not it's customer what WiFi device, Craig. just their customers. our we're just device sure to machine but their and noticeable for the that the tools care to issues reliability data look AI price, the needle. the take that their home, and having drives even talking in the learning measuring see journey the by like about and anything experience customers. have making maniacal points not this and we to of from a focus to just measuring grab and on to It's before using at, example, become experience of And node, a they

at approach customer a So look pretty segments. it's how we multidimensional the

develop? anything regular offers are stepping year up are a as price X-year -- Or a primarily discount, first you these about say they Can to discount?

that just of shorter all the multistep the board. some rates the are term. but when what the some what some are take retention that the customers learning whole back what testing and are that rates, packages It's years. board. some term. all looks There they There's sell-in picture meaning door, rates over on are are all over of are the longer like, satisfaction in coming over that, we the the as There's of well. the that. not it It's We're up just and market of There not side take

cases, to the financially to But where strategies competitors of we're But Craig, how of in cycles markets. we think in backed determine investment those competitor. many they're it's raise can some capitalized, they their are and seeing our in and the continue to approach, use. And are, knowledge we'll price cases, the tactical, some different people market who I these that very in already --

way. we of to be you so tenor the respond mindful so can also And have in those that of also very that

but board, it Julie it's very tactical. And so said, the it's, across as is

question Wells the next Our of Fargo. from line Cahall comes Steven with

to a just if talk tie this about together I EBITDA we wondering all bit. could was little growth all

like and of a certainly experimenting the I And a here. to sounds appreciate one-size-fits-all that approach you said anymore. journey there's be you're So it doing Julie, bit not going

a So than on weaker little the in has more there pressure was in past. growth there revenue EBITDA be might a little QX.

I So EBITDA spend is to spending how But infrastructure the you some of is tougher moderate I think spending capital EBITDA the question growth of growth. slow a 'XX. about, in the about environment moderation should scalable talked XXXX. response just any like just that hear in more second there was part capital in the with that would And a love in pull to forward XXXX competitive Todd, of think we may

kind of will that just that's conservative. you keep sheet help so the And balance a lot. I know

on Yes. I'll question. the hit for a things Thanks few Steve. there,

be on still that an On video, growth right at mean, continues EBITDA does decline, accelerated X% while to penetration side, it I the you know, have. as we're and now, guys

although a as you slightly video saw, this it's being products were XXX% declining are revenue quarter-over-quarter is contributors declines up. the our like our EBITDA one margin. Some were to core down, I as think of And primary was it that that it, also of

we of we a it's you customers is. again, learn quarter, appropriate. price that be can them, feel But have expand be about to focus acquisition contributor that for weakness see new to But experience in going where margins continue the penetration. just that it's it's right? we And on to tool Julie will but customer that increasing how the of decline long-term growth, EBITDA to products continue As as core our most we customers, to we from, continue video to on to where was healthiest. is reliable to and margin existing this certain factor have And retention focus as your areas the outlining, not be price, continue long-term highest

years. considerably going that are tougher X.X a As funding complete we're until actives be proactive spending, say response to these the forward a as did architecture did We wouldn't generally I It's in result we've projects we've to environment. some it available, but really basically government in equipment. some XX discounted those that. relates in the next programs it's investing to is accelerate related the for We in been been bring a markets. of how the to spending

in most network proactive even the network. the how but that we've you in, forward So throughout proactive of into for been because the of incremental think XXXX, is in And was some go when the, of then investing forward pull some the part, about investment. XXXX, the investments, but call QX, I'll it,

add, I down expenditures been capital have years. for going X And might

X. will So just that in year XXXX, make

a is it So continuous This pretty This cost at been we're to good being I it's being note not trend. is is also new going. that that for well known as relates we've improvement where effective. being amongst peers would our pretty something introduced.

see them are 'XX part press all brand and is are integrations not think of And having I and brands Sparklight margins. that so as a Sparklight by well. that years our full ramp a teams going going that our and getting bringing operational to on is on will on has that by you in we our since platforms business as almost to of and into the with in on and continue company, going XX amount to the the cash up, be. tremendous I've the 'XX which And family that on focus well. now, continue help amazing of just been it's us in side flow, free been work yet

from have Capital Nispel do KeyBanc And question we our with last Brandon Markets.

ARPU, addressed. I on been But wondering quarter. have onetime wondering this might was was if I you Most could -- if impacts quantify

and providing unlimited removing two I things: data. caps think mentioned data you

could have of and page, impact hoping for period our guys not quantify book XX time. terms months. especially HSD So the you then, historically, the Sparklight X I there's on the not website was for a as of ARPU? that in XX.XX And And on on gig service for on promotional you that front

two, product? the as talk behind about, of sort the putting So hoping that one, lead could decision been? what the I was And reception has you

Okay.

Let's see ARPU what -- so I Brandon. breaking down asking what for happened to ARPU in you're the is fourth think quarter, which

Yes.

Yes.

Okay.

of with decrease will. and majority and of the data, promos sort if from rate the piece came back you of coming shifting So the discounts a of it from

data But that that of their as the data, they're we customers on package unlimited result if come sort data stayed and where us. same perk, included new feed will, in have markets a to rates. in getting Package yet would markets. certain So rates guidelines, those you in in unlimited have used to

So customer what literally see I'm $XX.XX, market element -- or pricing. have is market segment look if and you has you're it size anymore. one new Every within almost all. that marks, at every The trying in those don't some markets, variable to a every a of

for speaking, XX are the still our and XXX rates generally marketplace. XX promos normal for you gig, promo gig or in $XX. $XX.XX be would XX, So if see could a XXX, But a

$XX, you're because a So find know market if looking is trying what you at looked a that a you market at that.. looking at you're to rate of Do

I just sparklight.com

believe selling, we'll I we you a to might we're other we that driving a to gig had is phone those upsell get be In to the had But offering is are we the those marketplaces to are actually that we that and right? would have markets, and But that the product the that, market sell-in, could and hypercompetitive multi-gig have markets think. where Zipcode future, there able in are piece that monetize part in on ring, of more.

of And wanted is you ARPUs or you customers think you're grew that above, service? mentioned megs I ask up, then seeing quite your follow could I a XX% since of sequentially. are bit about you ACP it to selling I mentioned If with what intake XXX type the

XX,XXX think on ACP. I you you had last quarter, mentioned customers

XX,XXX. it's Now

the So that this implies quite base customers of was down core bit sort quarter. a

a bit. you unpack that little hoping can So

of XX. owns little that on little bit of Brandon, Yes. the bit a a ACP XX, south north side, it's

I than the where providing working customers kind that of that's Internet susceptible the all in go important XX,XXX I more, of of category free fully note packaging that that customer with would what provides but like, less to in and we're terms that away. funded assuming that and baseline effectively program pricing there are that with think they're transition does already will those base, look call it, in them

before ACP. they service customers our of customers They that the majority signed used for the up they were tier the of to ACP Yes, increase received.

the we Brandon. go And my with off going what the of afford. know so now don't quarter back make the I'm top you, nicely for into them they and get think what to have that can usage selling fourth now and ARPU that paying I And again, is and to I head. position something our we their sure of look can they're at

that disclose don't we Well, anyway.

There you go.

I at turn the no Laulis, are this you. over further back to There Ms. time. call questions

Thank you, Desiree.

you, associates support We like our ideas for So your make before for One. and efforts, again would and the thank everyone, pursuit our insights, to time growth. interest today. of closing, Cable I which continued market difference in their share appreciate and your Thank attention in

and concludes conference Ladies gentlemen, call. this today's

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