WideOpenWest (WOW) 4 May 202020 Q1 Earnings call transcript

Thank you, David. Good afternoon, everyone, and thank you for joining our first quarter 2020 earnings call. With me today is Teresa Elder, WOW!'s Chief Executive Officer; and Bill Case, WOW!'s Chief Information Officer.

Before we get started, we need to remind everyone that during our call, we will make some forward-looking statements about our expected operating results, our business strategy and other matters relating to our business. These forward-looking statements are made in reliance on the safe harbor provision of the federal securities laws and are subject to known and unknown risks, uncertainties and other factors, including most recently the economic uncertainty related to the COVID-19 pandemic and may cause our actual operating results, financial position or performance to be materially different from those expressed or implied in our forward-looking statements.

to reliance not statements. such cautioned are place on undue forward-looking You disclaim such update obligation statements. We to forward-looking any

For additional materially SEC. or with of cause statements, information our financial refer the actual our concerning please filed Risk results factors SEC, that Form including to Factors our XX-K differ to from the forward-looking could our filings affect section results the with

include financial release, that EBITDA; measures In call earnings adjusted transaction to today's share. capital note adjusted capital capital adjusted per our in excluding we addition, measures, certain expenditures; non-GAAP please in and refer diluted expansion earnings such and transaction expenditures, expenditures

the While or substitute with for this these of information provide measures is presented GAAP. the not financial as useful a information be financial in isolation information company intended accordance investors, in presentation believes for the to non-GAAP considered

to I'll Teresa. call the Now turn over

Lucas. you, Thank

you As world COVID-XX so for years, to the last pandemic two quarter I I comment life different things dramatically. speak means how people. each help to with have quickly to for during and the changed pause so on can't today, I Adjusting as different but has the

it may many has potential series major of mean inconveniences, this the but for disruptions for with impacts. a caused life-altering some, For

back duties time with at all review our business didn't grateful strong I'm COVID-XX my know, I quarter sent to be happy so beat. in difficult well-wishers WOW! WOW! stepped-up that to tested this family, and the first As and I'm days sure skip my who full you way March the results. friends colleagues. for today positive very at for for recovered spent to know of you everyone a was a five be for to and and end the of I hospital.

we We the in year our quarter best and flat least in at XXXX. excluding solid well. very The results during started subscriber debt experienced As continued quarter addition with the the estimated call, March. net bad off saw end associated RGU five the growth in reserves January the described we been EBITDA of years. HSD quarterly versus have first Adjusted would COVID-XX February

As customers’ our wellbeing we top keeping our employees tested the positive our list. challenges, being small by and acted place of at to we and for of to are impacted that to unprecedented and preemptive support put employees communities healthy. contributed Only at I workforce respond quickly quickly and directly health handful put our measures the a programs with in decisively the our face we took believe priority WOW! individuals pandemic. have

the to worked wanted and is pride to WOW! in With through continuing our rapid walk services to service economic I protect and January expected its time. customers. and employees and provide we our how initiative acceleration some to planned customers challenging of in pandemic of essential provider. we this COVID-XX the our impact, We're in an beginning to we take

home, many has this of for the customers serve. we been of working from communities invaluable internet directives, stay-at-home learning and service During time are WOW!’s our

to employee local full employees of be not if many call domestic municipalities more weeks. and more employees governments. all work-from-home would dispatch whom status X,XXX typically our status many than time actions not took move successfully In to work-from-home. we center for cases, these ahead to by two groups, In and than included of considered directives other XX% and We span of state mid-March, the and WOW! began than less in smoothly of work-from-home moved

Workspaces risk how Hand becoming to for reduce of risks who health are these and guidelines their ill. minimized customer WOW! essential were facing pay contributions essential our and considered and were customer customers, also a person to key was employees all of provided recognition to personnel In disinfectant facing to to business locations. awarded sanitizer wipes were the enhancement. Each the disinfected. their serving temporary distributed We operations. on commitments

Protective safety or We and all Personal customer and equipment offices, include Additional CPE boxes actions retail they garage, bill launching system processes cleaning counter new closed and Equipment, drop already providing mail locations front and at encouraging all technicians payments. home to payment where traffic for added handling exist. to local didn't

procedures without homes. as we new accelerated in better call launched anyone more often serve To symptoms techs flu our HSD and options as and installation. ahead in jobs Whole-Home the WiFi if possible, We contact only like entering customer customers' to have home our customers, self-installed for ask completed

additional employees. implemented COVID-XX impacted We time paid for personal also

of Our workforce only conditions. adapted these unprecedented to not well the is part is the that business

put of have unparalleled increase experienced and of network by approximately We forth beginning to handle to traffic moving XX% I keep I'm report especially to our continues in advanced environment. increase was customer forward a am it to I our broadband the in overstate across the bandwidth of in all since new well perform challenging network this how the well. in year. cannot business our demand positioned an pleased efforts and teams the proud overall

RGUs This how the the the of quarter, first best high-speed these which by So XX,XXX quarter included high-speed addressing years. data five grew least in have Total was challenges. now, XX,XXX organic executed quarter addition. quarter let in High-speed net XXXX. while data the net at in of in first RGU me grew additions Subscribers first data XX,XXX we highlight

minimal for and onto net to and was for FCC’s pledge not the two quarter. HSD keep for impact proactively additions customers weeks the signed customers implemented connected just on we the last disconnect the pledge reported non-pay. quarter, The had While in

was of churn was Total non-paid first five least on in the Once minimal the lowest again, result pledge and quarter. the the impact commitment decreased first at years. the as in first quarter quarterly disconnects the in to Subscriber FCC churn our

As lower disconnects non-paid quarter, expect well. the to second we look as we

solutions to COVID-XX support them work find time. We been to pledge to through will connected affected them continue our customers, and have who keep this difficult with by

is world cornerstone their to the our customer providing priority, connected always been them possible it’s have our best and customers and the experience. of along with vision our Keeping

will subscriber than we impact throughout on likely in the the past. variability year of COVID-XX, the growth greater the With have experienced experience emergence

universities back As will late remotely in in do third an example, campuses when services students since unknown quarter. to move been many or would communities if and March, schools typically and and teaching have they it’s reconnects as their the

our first of subscribers part As the X,XXX subscriber Edge-Outs in growth, added quarter.

fourth subscription grew quarter services year-over-year business XXXX revenue quarter and XXXX. over improvement First the X.X%

uncertainty recognize and businesses Although is we there the pandemic. rebound from how medium-sized about the will impacts of small considerable

the excluding impacted quarter, was the EBITDA year-over-year with seen a the EBITDA bad adjusted of million X.X% basis, by collections on reserves associated first adjusted the customer have debt been quarter impact first $XX.X minimal COVID-XX. down have flat end First behavior. and quarter would COVID-XX, of Through we on was which adversely XXXX. of for

accounts customers, to potential However, uncertainty for approximately our it additional advertising first quarter. reserves as debt to outstanding amended customers second receivable heading the from bad residential pertains collectability bad partners in for These into and supports taking commercial the $X.X quarter debt reserves million.

customer’s to would ongoing be the record these led where, as their choices industry. cutting see enjoying Our evolving the to more not shaving surprised business behavior. accelerate They’re cord entertainment agnostic before We content to is becoming ever customers’ This of market is economic choose. how dynamic and how they and than delivered. impact this has when, cord as in and more access challenges

meet dynamic to of value to we data broadband a is WOW! proposition further and continue turn in WOW! network. market by our of strength building business high-speed challenging now Especially, positioned this us to upon price good improving they see our as grow our they the services and customers choice services these advanced at want. because a times, for trust us, broadband they as the

initiative have with the advanced our alternative been testing our last service, we our video and strategic IP As WOW! discussed OTT and markets in call, we offering. on TV tv+ streaming have earnings two

to network We’re accelerating the services. transformation all IP-based of our

coupled of our adoption, alternatives, connects. and as and South Charleston cost-effective forward we April the choices. on to streaming changing our this move without starting pleased high-speed flexible, Carolina addressing slowdown customer measured a only X, have specifically been we expanding data video we’ve for streaming test is a effort video success the In customers, data to for began WOW! very with was Thus demands how solution drive with across Charleston, successful footprint. more High-speed in in with continuing far, alternatives OTT

Ohio, Our Columbus, launch in well. tv+ along has in moving been of January as WOW!

video We offering during operational service to the increased continue service the customer in additional delivering and to improve look expand markets to our seen second We’ve full this in period. this efficiencies to quarter. improved

capacity to on enhanced the ensuring We more video reductions efficient the IP-based and as future. demands expect we that multi-gig services bandwidth penetration operating use reclaim capital of of data, of both networks, will sufficient provide expenses long-term have these we our facilitate to drive of meet high-speed

our this. continues behavior customers’ broadband-centric, – behavior to As consumer behavior move buying towards reflects

only high-speed in first the For total the and of first data XXXX quarter new subscribers, XX% represented quarter in buying up XXXX. from of of fourth XX% the XX% quarter XXXX, customers of

network customer several broadband As we optimize on to to enable We continue free focused experience services business, plan our key choice, initiatives capabilities. to objectives. customer the are and capacity to to provide transform our up enhanced more

advantage take these toward strength. how of WOW!’s is All of industry the objectives evolving

believe the enjoy WOW! driver connecting is we work we positioned company high and rates experience, these of every time. and their easy, increased WOW! speed capital higher as better the customer be world will accelerate and to for efficient, margins, transforming pleasantly surprising making people After evolutionary investments our vision the ultimately more WOW!’s is define become at EBITDA data, growth. business, reliable, penetration realize through which This to our

adoption has as with speed higher Customer data rates seen our to added coupled has WiFi service an behavior data and offering. rise high-speed continued services high-speed significantly more with evolve towards associated well. tiers as Whole-Home

points WiFi For first points and XXXX percentage up quarter, Whole-Home three percentage the XX.X quarter take XXXX. quarter over first up of the over were rates of the fourth

channel, has be acquisition new for Our sales to grown the channel the of largest connects. lowest channel second cost online

this also come connects rate We channel. at data saw higher even in through an high-speed only

is of connects for and a For WOW! we strong transformational of exactly migrate channel. WOW! of high-speed what our customers our What to XXXX, for need through as right the exciting data is only take centric doing time is quarter advantage came online approach broadband our have first most XX% to been This now. we our an network.

products that and for for We connected. services our offers them their keep have customers, compelling

it of turn to I’ll some Now, the Case to Bill quarterly over financials. discuss

Thanks, Teresa.

pandemic. for result a of Net of of included million, as $X.X XXXX which EBITDA first down quarter on the first the to additional impacted total quarter of reported quarter adjusted $X.X XXXX, $XXX.X million basis. around first by XXXX the first million bad customers EBITDA For the adjusted X.X% debt global economic was a a reserve totaled which $XX.X we revenue decreased million. the quarter uncertainty year-over-year income for was margin position and XX.X%, expense of the in of

additions XX, March of increased the subscribers Subscriber As X.X% net of and increased count, XX,XXX XX, RGUs end the XXXX, by or or total from total by X.X% XX,XXX HSD XXXX a the net Total December over first RGU quarter. revenue services fourth first activity organic included in Subscriber of or a XXXX $XX.X HSD the of XX,XXX. quarter million million the Business during $X.X quarter, year-over-year net of increase X.X%. totaled subscription

highly nature half and how I and the Understanding been Edge-Out of XXXX, achieved Edge-Outs. second of XXXX the first penetration. which want achieved were recent Edge-Out of penetration that the creative year XX.X% we’ve most the most XX.X% in have Edge-Out to nodes the the highlight through XXXX progressing investments, the the delivered of vintages nodes, of quarter among economics

on This business as expenditures construction, of reported included of as optimize initiatives of Expansion launch well million quarter $X.X partnering we’ve Capital capital the highlighted million strategic and service including capital and bandwidth $X.X totaled a XXXX for million $XX the utilization our services of with network. WOW! efforts Edge-Out to for to expenditures providers first on streaming related our the tv+ basis.

continue expect in We these the making areas year. investments throughout to

outstanding XX.X% undrawn and March $X.X million capacity. million expenditures of of of had hand. XXXX, of billion million totaling the we revenue. liquidity leverage XX, on with quarter revolver of $XX.X to million $XXX.X Excluding Capital cash expenditures, total and $X.XXX first totaled debt capital as Expansion regard or $XX.X XXXX

Thus far, effects on crisis. of we’ve not our health liquidity experienced as result the global significant a

obligations made capital and the we’ve Accordingly, we in since we’ve our we While have liquidity collections, credit revolving response foreseeable the the believe future. to conditions. XXXX and drawings in fund facility a only cash to on sufficient financial experienced slight of future markets requirements resources uncertainty anticipated slowing economic that March in our precautionary

December on times was at of XX, which leverage times XX, Net adjusted X.XX X.XX from EBITDA XX-month as March was up a XXXX, XXXX. basis, trailing

positioned to essential serve increased is as stand, As an challenging to from meet service call, our the the this these we we’ve able provider, support and we employees, during customers. our communities highlighted ready WOW! and times. needs our customers, in

economic However, COVID-XX withdrawing unprecedented dynamic WOW! impact previously the for the impact, from due to and arising of is the announced the duration XXXX. uncertainties its outlook in economic

the concludes questions. That prepared back it turn open operator our to remarks to to the and call I’ll

Instructions] question Batya ahead. [Operator UBS. from take We’ll our go with Levi first Please

Your line is open.

see and ask penetration broadband of terms few great of terms I competition of the side. I last quarter, saw terms a the you we good provide in the continue you thank still – more gains to fully little I those bit maybe – on in Teresa. wanted higher Great, on to year. financial have net drive It’s And April? the you to And year to assume in high-speed trends Can you. versus momentum that versus can components questions you guidance but a growth, color you the strength how that have been data know, recovered, data metrics, pull understand why this in so the adds in would far the the of

some it though about how you’ve Thank revenue we bit and a provide looks growth had the price of growth color impact that data on secondly, Can slowed growth, ARPU down And ARPU forward? increases. the think should even on going you. like little you

Thanks, Batya for and your thanks well-wishes.

tell the question our overwhelming but a value high-speed is at coming you for coming that price. broadband I break is about can they’re reason growth customers data WOW! down think first don’t the where products over the So, I are precisely, and kind our this of high-quality choosing I it think us it’s your to we from? and services competitors

care customers at an I their for looking customer incredible realizing think as with certainly great service WOW! well. great budgets and value a are as

have services had home. some There past component. who they customers, coming wireless before perhaps well perhaps are customers, broadband to also realize providers. from as who that conversions in are only want We’re now seeing us, the and who to at they’re when had never broadband as DSL

don’t our those. historic is, the we break customers is would are it of of at us you that ever breakdown exact keeping the And But the provide. choosing can before we So, tell price I great we’re each customers most down say more than churn. that I we’re for also of seeing we net services the with low

our now pulling were on the prudent just given had markets. feel really right do On it’s any to tremendous the COVID-XX we overall, any data uncertainty that We the right guidance, now. high-speed before certainly of impact extremely encouraged with growth

So continue getting our certainly, response both our good product the see customers. and that and we’d from we’re about feel like offering we to sales,

you did In terms think actually did, was we increase of one referenced I revenue, only a the a rate increase. December in video we rate the

speeds improvements seeing that WiFi buying in they higher we as our So components. And data within purchase are of we’re that the ARPU two so seeing many their businesses. on mesh demands is their like also, It’s and impact I product. wouldn’t are the further home Whole-Home our revenue, customers network where feel data have

side. two the So, on those the are components data

Okay. Thank you.

Thanks, Batya.

take Louthan We’ll next question Raymond go our with please from James. ahead. Frank

is open. line Your

Thank Great. on very guidance, CapEx I pulling much. just on but appreciate the you outlook. the thoughts

April? can what million the was I – you Thanks. change you’re think strengths? still million, particular Any where seeing $XX trends share still that any maybe HSD reasonable? you Are you to before Is guided about us And any markets, taking increase. that and $XX there? tell through

understand piece of what it guidance. just doing. desire pulling we’re CapEx, really components the out understand we Okay. I Thanks, people’s part, but Frank. not I’m to can guidance, On like giving other are

closely. We watch very, very continue CapEx to

that we aren’t board tell these to had one both primary on up week and meetings, network on are at this in we fewer a edge-Outs And capital, had were components for can further so the so how guidance now. that team demands things that that I we can executive XXXX, my we penetrate is look the all giving we as customers just tremendous but right of of the you well to said, every the new really any the growing with coming in at keep year, do bandwidth growth as deploying we’re we going

April, we quarter. that HSD end to second feel On the you’d the of add? playing for give usually else But those are the trends our have I anything the think marketplace. to continued how about Lucas, like in at I good strategies out

a follow-up I’ve various held the where forth. CapEx ways, is so some are things, you of some construction, – more I up with and process mean, or as ability this an construction. some ahead permitting some as far just construct Yes. plan? kind there’s get maybe it’s as municipalities to, your heard on some outside with allowing opportunity to to in

the also thoughts on how trending your thoughts you you’re and Just Thanks. there edge-Out Any reporting that? those are as not on focusing are penetration vintages.

Okay, Frank. thanks. Thanks,

continue varies some where On Those restrictions plant, to you’re move right, area. have the by municipality. Those we that it forward. can that outside in

of just decided as we’re so, in we this no edge-Outs did longer the we case-by-case could we and before year. that COVID our few in it the further going those had base taking areas, and we organic work a after basis. into of But we terms already we previous penetrate to on report our in but of last we part what really to year. So, reduce number were roll they’ve a vintages, vintages since base. years those sell separate continue them don’t become

and the you’re for great healthy. job. Glad back on congratulations right. getting All again

you. Thank

ahead. KeyBanc. Nispel next We’ll take go our question Brandon from with please

open. is line Your

is, I programs? far? your you guys? greater And you seen hear I question. markets in then that the interest and guess, we’re How your then out virtual thus deeper the have you. across each of guess of for on partnerships the little Teresa, spending footprint? a what VM, did the did I you saying with And to get taking correctly you rolled get Can for at difference Thanks. And in tv+ type What’s the have a you pick that virtual the a product you capital the picked? the Thank Great. trying which WOW! for you I question follow-up.

Thanks, Brandon.

satisfaction WOW! tv+, we It tv+ with and our is product. have video linear TV extremely that with years IP on really we that customer Columbus, to the ability our in like for reduce and the Ohio course, that footprint delight to operational data our costs. WOW! us growth in And our more is we can come. So, across what just going is that’s traditional recover as network, launched our not so that one offering product as of service yet. this usage that bandwidth have launched both helps entire well well of to

our we to, streaming a Carolina. Our which partners did South was OTT think referring Charleston, just I virtual, in you’re trail

are apples oranges markets Charleston the very So from Columbus. and to

not it’s them. like of we a two So, race the have between

is with connected like to consumers, them get that The We streaming we more video to these OTT, customers our and our the offering In streaming we want to help partners is the with difference a traditional customers. directly partnerships our are those and providers. providers. fact, it of on provide becoming like offerings. the that streaming really as the service menu because see more this with a ability especially model, the what what choices services, have, relationship it’s being we

very model well. that as like we much So

offerings X. process the our and it's across really, in that with not the markets the lead. between And partners deploying have all April we're letting or an but effective I'd So OTT customers done rather either say of them,

So a of little okay? that, bit that’s

for follow-up, this environment economic Thanks. cord Got guess tv+, your you cutting. in versus WOW! couple the ago? it. plans your does And I spending a then about potential acceleration for change and the talked view a given an as today of months uncertain

provides So also of an things. of move not boxes, for over wireless for but customers and that they existing of offering, tools kinds different as on new smaller is WOW! those new tv+, just boxes, course all this to service navigational the customers

our that the customers ways many like to as plays to service. that HSD in we our base maybe acceleration customers we only of in and cutting us OTT a have cord is the that's the strengths what still video So core business something provide. part offering of do or of to moved But

closely. So we're watch continuing very to all that

and And new you WOW! Or tv+ guess for they customers. it and you customers Are on to are just proactively? come Thanks. ask? it’s – giving I as existing

It’s for customers proactively.

I services want sure. streaming meet if understand offer, I So that needs, would just if provide their which WOW! then we offering, would needs. But tv+, is in video understanding I'm WOW! a not we first, And meet offerings I would guess what like their markets. the question. exactly needs. the first. But the now, certainly right also we have customers limited their tv+ said,

you. Thank great. Okay,

We'll take Riley Silver Please our ahead. go question from with B. Zack next FBR.

Your line is open.

And happy to Okay, great. Thanks full I hear question. for a call and Teresa, recovery. the the that, made you've on you're

first The just anything me acquisition you triple can into share serve couple in assumptions your But unit calls. bandwidth around things consumer of changing over only with around economics demands. per benefits meeting, a For customer? customer costs The for is – to for traditional like broadband churn, play is first and guys past longer-term and around the customer there one have specifically? you cost the you us push guys broadband the that highlighted a differences around

Thanks, Zack.

ahead, Go Sure. Teresa.

Yes.

Lucas all let in this I'll time. think been I the on having I've jump one since

a offering into the calls past, you like the again, XX% some some in offering fewer is broadband profit once have I unit as a The churn, mid-to-high of the broadband margins think, much just we've with the from call that around So Zack the details benefit range. gross and repeat to is economics the such, just conveyed as of associated center. that service offering in of profitability perspective, well high-XXs,

well. churn driven for down past the churn gotten has lot actually first in those a have stated We've HSD actually only as the truck fewer on rolls double-side that complete below crossed we've has down Whole-Home You on is us. the where a that problems. that been feedback in also also more interactions try WiFi And

focus overall favorable the very for economics to broadband are awhile. down So the go for us

it. Edge-Outs door-to-door helpful. a and that the if on sales ground. is one And Edge-Outs more our around and Got process That's lot really that boots of those, could, understanding selling of is then I more sort the

the challenges virus into and you how and different selling Edge-Outs presents, new thinking that With are about guys markets? those penetration

Yes, you're repurposed course, sales We I the out the with or those with also and market door-to-door our productivity. COVID-XX, job to in right. folks about have way selling have a did are field and take a happened those different folks communication in doing with of what's feel they markets. and of think is folks we I the good news good their our great direct really marketing

So high and in. sales coming that a to profile keep we've continued

to does best. So who agile environment really and and WOW! that we're changes what is focus And nimble are. continuing being doing just we that's and the as

Thank great. you both. Okay,

go Kutgun Please Maral Capital from RBC ahead. Markets. our question next with take We'll

is line Your open.

I'm be that you Thank in the be appreciate outlook Thanks. throughout flow. and of sustainability cash you've trying just board, bit hear to across about video seeing that free services headwinds flow how get cash or investment any a the can some comfort investments withdrawn XXXX to I'd new question. you end year, versus what term. around there a should areas IP-based of do Great. across the volatility rant we up love for but CapEx balance about back be free on? period your are near the in I might more we flexible within thinking the bandwidth pulling EBITDA taking the If

to would our trying I to impacts the sure unprecedented Yes. I we're many growth so Thank speed really, yes, some CapEx seeing much know for you on especially and our can demand medium things challenging success services, and We We're jobs, looking that's all our which almost with how so as you also already say the understand And many challenges as the well. mentioned yet. understand forecast business. guidance I some our with we're on at CapEx and small question. based with comes businesses, as back for am in COVID-XX it's high side, the withdraw residential well not dilemma commercial And of that data goes. where

things as And the those that's ability to we're have look talked some free cash to initiatives the line where bottom component and look we've we timing the to of as doing And a we also well. stage would then that about say I flow. more on

we're juggling and So as to try those things business. all weekly daily the on manage a we basis,

So is in as details, give and as CapEx and many I'm possible. trend sorry, absolutely what our balancing exactly, I you more is but just as that efficiently we're on on minds know these can't things using

Great. you. Thank

with our Please ahead. next take go Ratcliffe We'll question from James ISI. Evercore

Your line open. is

what CapEx glad makes can revenue government, enterprise versus exposure and up services et revenue likely Teresa, business that some particularly toward you're on you, and, front, On move I large us business trend services you and SMBs? any how segment Thank side OTT more give you of us you subscription, could. noticed SMB running and fluctuate line on Thanks. up independent back color kind again. subscription that by two, if And I One, can the give the how secondly, cetera, on the to as is item up in picked in to And the IP-driven quarter-over-quarter CPE quarter. thoughts and more just video flat offers?

Sure, James.

well component business – on in is Lucas is the the the on as as SMB side. revenue, subscription subscription very probably, on the typically business wholesale. I it’s revenue CapEx to services sides. then here and Enterprise much So the But Bill turn over it there services revenue other business in

hospitals locals as of is of mid-market most – exposure on include as the large So, That governments does that more local there. So, definitely sort and schools side. the whatnot? well and other SMB there’s as as well

look ever that know can I far percentages, you with we’ve into out, As afterwards. and that as probably follow-up don’t I broken the but

And Yes. saw many of just to lines. for partners many that, to healthcare add our I ask we mean, additional obviously

services well. their them were area, was more an broadband that as and to for services help we course, demands increased rushing, So of as where they needed the

the Yes. And the in and that around to our just is question your maybe, Much regard CapEx. I’ll with success-based capital. of chime CPE around

we looking of areas in that well for HSD some subscriber coming HSD saw, looking but not you in As installations, as for our WiFi as well. just growth, had as who some were Whole-Home cases those,

there. that the you’re terms growth investments of as made of CPE much that in So, success-based seeing that we

The in around degree other around with success-based the although that the investments less that investments piece CPE. our capital our WOW! of was is were strategically making, a some CapEx really ticked strategic up the to tv+ we of much for most

Okay. Thank you.

take our Brian Russo go We’ll question next Please Suisse. Credit with from ahead.

open. is line Your

Two, Hi. if Thanks questions. for the could. I taking

The with respect results. your strong first is HSD to

curious cutting. to Just to HSD boost from the your just figure of And versus year. the March regard sort and HSD out wasn’t last first different any what what you sort way January of of second very the trends February look the the at cord was In when trying end place, in possible? the break-out was to COVID-related with didn’t add quarter, into really there results came lockdowns sort of if saw net

cutting on if March change So, curious why this if or just I in during sort and you’re was give cord April to Thanks. you something of maybe, just maybe expecting increase some time? not, color late into saw

break-out it in impact, and of any was last on had impact usually trends don’t March. second in weeks, that And and strong see think of minimal definitely, about the didn’t we was it the think a It We two and only. that new In things. more, strong words, results. out is, able where saw Yes. continued. the I to see when would Brian. talked early the what I we cutting increase but are cord quarter really COVID I that the say but other we – kind Thanks, coming on dampen really, month-by-month, number when The we we’ll be was certainly are in that trend results, February very about give connects January HSD

and great from be our others So, cord at data good and they our price. to offering coming high-speed may network cutting a valuable for us

have coming that’s that been we’ve that increase now only. of who that are significant our So, proportion showing customers, in a HSD

rather than happening our growth the customers see existing I of downgrading. where that’s guess base I So,

than your say So, applicable would less it be maybe your to of some own competitors? video base is to fair that’s it subscriber to

I think so.

some that doing across in, of offer customers the streaming when WOW! since we we’re moving that. and more only to and consumers by option the money streaming we in, we base, own see are board, course, of available save can our Although, our more see them they in tv+ call services and

I connects I see would in door us the of So, that. though I say, it the coming to we’re the new and dramatically beneficiary believe in

strong that view the offering network we a we and suited is So, our that to as have. well trend

Understood. Thank you.

our take question… We’ll last

can take question? our we last David,

Brandon Absolutely, we’ll take from Nispel KeyBanc. ahead. with our question Please go

Your line is open.

bad FCCs your to can Thank debt. is about hoping maybe, level now, connected be what’s support that what then estimate I you. And conservatism you built-in? if Two that did a revenue to have keep details from Great. How advertising was out? for great. One, coming couple talk not come the percentage of on of pledge, I the share number more ask you under of some wanted could would of the follow-ups. Thanks. estimate? that’s requested customers, broken just their who you And lastly,

Okay.

talk the to So want you and if Lucas, for want then Bill, first if the about debt? came two up we estimate bad with you – to how take those

Sure.

don’t of revenue within Brandon, advertising So, it out we break of that line on is like the said, percentage results. the actually from our revenues other you

especially be result kind So, see speak some that be fully will to impacted perspective. will back should is and out. but of of to some it as or but recovery, we specifically the second or as kind we can break whether It can’t expectation to advertising there, don’t inference of start you from protocol, a see that overall, take the from less not is half,

free that very first as that’s far number days broken the – that. was our by we We we didn’t that or pretty were it’s are As haven’t offering out and pledge, saw. actually regard represented with impacted like XX growth that subscriber in any to the of – we early of not by customers sort anything it the we’re quarter, still nominal,

those around really connecting more if COVID-XX to to We considerate might suffering they’re because hardship out economic difficulty proactively with than are going non-paid those who and – free, will. who disconnects having more being managing customers, sort associated and from necessarily looking paying, be of are you

as number. customers on a to the being significant comment then debt we really want if the identified side? haven’t And number Bill, to So, you of bad

right. But we’re expected non-collectibles of basis And be be our those, a cash driving look didn’t across specific cash see took that and flow revenue commercial regard just impacted. We with that’s those may we that and bad potential COVID-related with debt on and saw that estimates. scenarios. those debt forward all and more collections of terms residential, Thanks, Lucas. looking flow Yes, We at add associated different the bad to bad in may debt sales balance that took. expense look we

So, point viewpoint already it to terms certain that in a that may necessarily happen, that that estimate. we thought had to was things of led what prospective reacting us happened more were not of

Good. Thank you.

regards really add to just quick I’ll advertising. with Brandon, And

Just quarter, from just as from that than a percentage of total revenue perspective. the X% less is so

you. Thank Great.

Okay.

the no are there further time. And at questions on line this

Well, and joining of our continued business this so at WOW! all us appreciate support we much. appreciate you your Thank interest afternoon, your Great. in I and you

This may for your now you does conclude program. you and participation today’s Thank disconnect.