Altice USA (ATUS) 14 Feb 242023 Q4 Earnings call transcript

Hello and welcome to the Altice USA Q4 and Full Year 2023 Earnings Results Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Sarah Freedman, Investor Relations. Please go ahead, Sarah.

Hello and welcome to the Altice USA Q4 and Full Year 2023 Earnings Call.

We are joined today by Altice USA's Chairman and CEO, Dennis Mathew; and CFO, Marc Sirota, who together will take you through the presentation and then be available for questions.

contain Statements please go on may section review ahead. presentation Forward-Looking titled Slide today's forward-looking carefully statements, the As X. Dennis, please

of Thank here QX pleased I'm full you all and you, our to performance. to year review Sarah. with be

deliver experience, has our stage early our began of the And XXXX. customer were And achieved which set the the with to to in we objectives and innings with networks experiences. want X XXXX, strategic customer commitments we choice In of to us that gratitude the in support mission: and these I'm established to -- our position their do, on began and able customer, that of a in only would the sustainable priorities best it. I best forth. to while to to to introduction said the year, a improved took best with this in for transformative area It's we and be to return flow new introduced express everyone took our Before serve. transforming to employee their that the the of pillars. customer my do We with people. Throughout growth. we did foundation beginning the Optimum are the and teams They cash to what we of delight relationships, dedicated strategic provider the it deliver the of going every new are dedication remind year steps and we I that set and connectivity we were by very mission against start, connect Optimum priorities we that the inspire grow families. best we lay because revenue journey, incredibly community year, business, full marked we every and we you we were the turnaround, proud

just communities brought CFO Let's review and teams we represent Optimum more equipped a mobile has to hyper-local and Slide global The the Optimum team, a and new telecom and of regional drove amazing a We that. with talent are experience. We And the localized best. X. some and paving the all for and achievements through to and we approach, to executive financial our culture, of video operational, #X beginning than engagement XXX a introduced organization, on Priority our U.S. integration serve. with in decades successful of by the so employee model transformation. empowered cultural a leadership way team leaders we best-in-class its operating new with listening was employees did to leadership lead transform across a and new complement including go-to-market in presence broadband, our of at acting

as we business Second, works seen finance And adjusted culture smarter EBITDA our in we our with how acted Cheddar the growth News. have a to the focus make core runway operating top 'XX in $XXX out the to a proactive were delivered and changed us this result, and as of drive stabilization the year. back organization in financial a decisions. with teams, operational businesses, giving evidenced with margin recent help line, flow EBITDA XXXX. We until We maturities embedding financial no of our business in discipline. capital maturities, our throughout focus to operations from the intensity cash in QX year, trends the We positive of peak committed of and of XXXX debt full margins and and being maturity XX% half on with million QX XXXX. And the recent improved XX% year managed XX.X%. over full year the on free with free XXXX, by under CapEx management, EBITDA our 'XX to flow of we cash drove down sale our in through profile down clearing We

maximize operations success. to our on focus sustained continue evaluate for growth to and positioning the will ourselves We business, core strategically our

that introduced us an base we to base. our equation the Next, improved price/value management evolve will strategy enable for profitably

began weeks Specifically, simplify as pricing rack for announced you efforts to for of packaging. ago, fiber saw rates a customers and changes pricing few to and everyday part our we and our HFC speeds and normalize rightsizing

customer and more value ability intelligence line's to leveraging to models We our learning machine also front manage base. advance lifetime introduced artificial effectively capabilities, our

ensuring reduce take churn while long we a to offer ARPU and disciplined Looking customer approach value to so ahead, term. best each over grow will the profitability for we continue can we the

compared we On acceleration year. the in the to a that front, of growth our mobile in mobile an mobile year strategy accelerated line growth pleased pace more Xx prior net meaningfully mobile of new of that with additions lines enabled the quarter, of QX fiber I'm and customer fourth than XX,XXX this

improved our improvement fiber we sustained XXXX. more be the on when We also in channel are XX% we like and strategy, improvements customer-friendly customers, This health at driven like Northeast. a a largest making they provider. fiber quality X-gig performance, clear We million network management such most, overlap a us in with on product implemented symmetrical it for also end sales work, of X.X top-tier and self-service our other competitor in reaching continues moments. This app, supported We efforts Optimum customer growth the best a optimization a advanced advancing experiences stronger the the prioritize fiber exceptional self-service strong our portal. the tools, and culture, fiber and by Optimum. providing advantage CX now delivering be precisely and to options retail sales compensation or competitive at by winning penetration the chat everywhere nation's successfully network clear for disciplined customers Optimum significant care more My new school, family us finally, than speeds we X-gig The to year, attractive depend our in launched mobile Complete. And we both as performance models, over offers new experience, made as

we teams will emphasis on indicators more of is quality number prior operational management strategy rigor, I'm confidence more about quality the We and quality tools return Furthermore, our growth. more our double self-installed, quality the which capabilities, giving business. full and translating XXXX into time. In and us leading we to in we service and have terms vastly to to go-to-market growth network, and also placed improved we've of summary, year and base have customer products, deliver over that fewer seen to in NPS. have was process. execution able strategy, more discipline sustainable and to high-quality people, pave a of the more calls self-installations effective drive resulting experiences, truck strategy are performance, place, With working the strong year. Everything pleased improved levers that XXXX long-term broadband to nearly way in is we return enhance we compared this as significantly better stabilize it's all XXXX to service greater rolls, pull our of in be in

turn Let's them. Slide review X to to

trends meet Optimum supported Complete. by to evolve anchor offer our business value Broadband and mobile changing attractive with continue across divisions. and ARPU connectivity will an bundle our driving to improved products, we customer proposition residential and remain demands while First, portfolio our

As leverage and like to in with the sell as the we multi-gig XXXX, experience for best combined will assets give better speeds we fiber move mobile we through customers value. connectivity gig best

Optimum product, app. which TV main video video we Optimum Stream launched side, blends viewing in XXXX, experience our streaming as the On to linear with the a experience a

We QX, that BXB options segment, will evaluate later year-over-year. expansion and have video flexibility the continue potential for have greater we will this and choice. With which revenue customers how to on maximize our go we to and X% launch In plans we to to the previously to to portfolio Optimum will customer continue year, experience giving our month, grow package I and Business respect video in SMB BXB to the market our expand Mobile over segment. carefully with we additional Services saw ARPU year, us product new both horizon. mentioned our runway launched BXB give support last We significant profitability

will Mike we new President by and additional our Business products dedicated led a continue Parker, improvement see who Services, joined confident are December. We with the of team to in organization

operational are in we to infuse approach, the parallel business. working we As across evolve our innovation to continue

For with example, we're and exploring AI engagement and generative a digital host engage tools of our customers. better to interact

every dedicated seamlessly product to emerge aim into commitment innovation This of and embedding customer is experience, extends Our our aspect beyond. across development, business. industry operations as leaders to

even improving churn. and we further review thoughtful reducing packaging. Marc took focused more shortly. Next, as initial steps on will ARPU to this new a trends, drive profitable competitive shared strategy to XXXX, strengthening customers, in in management introduce approach and base position detail this we XXXX, our retaining In pricing program earlier, with will a more I

we XXXX. fiber growth focused strategic and network are in expansion Third, penetration on

our We increased continue reduction, customers. trends amongst see to fiber churn scores positive ARPU satisfaction in and

we fiber of customers. network the Given the our to experience and performance, in of our increase trends will continue strengthen fiber penetration for migrations

with new cities which is Officer current to our country. growth new Our In That, our hyper-local builds expanding new go-to-market support communities, market an these approach Marketing strategy. and go footprint we well edge-outs. This of proactive in strategy. approach the brand through we covers sets the a our to our drive in plans to brings brand fastest-growing elevate to some how QX, lever, us segmented Chief experienced us combined and and hired in by fourth up today our footprint in go-to-market of more

Optimum brand advertising brand values new on brought image drive approach, positioning new our will and a reintroduce are also We we customers newly enhance and ball marketing with platform, regional we to formed competing combined and to every jump our creative in of evolved agency ensure and that the growth. brand a resonating for structure, new plan market new our record This to and with market. that Optimum leading are

us with we as foundational with continue is the time. to and culture. And discipline, And will experiences. last, expansion, doing how and and to issues remains a solve with stable embedded communicate capital contribute that right to financial customer upgrades Next, do them. so enhancing on committed levels. one we year-over-year upgrades, in line how we to this XXXX We focus aiming we to and approach DOCSIS to customers structurally this and We great interact in we our our will front with upgrade simplify with on simplify the reputation made easy and time as on tools, to processes progress continue intensity focused us are expenses. company in fiber will and XXXX total keep technology work reducing every all that's our operating the to first interactions customer-centric do to continue company remain business passings across company CX

Now that hand before to driving already growth. is place over X reiterate positioning I in for and the it strategy ago operational put us improvements I to want Marc, year we

will management. with capital We deliberate allocation operate continue discipline, financial with and balance sheet to

that, the and XXXX. take maximize performance our and off This operations We a heightened improve strengthen to strategic we as are total asset our And the a in actions we this time. step on return to continue detail. and focused execution of to revenue portfolio. I growth proud necessary includes accomplished And to am to sustainable core efficiency business. fully on EBITDA year turn we in the the and our focus we right goals in building extremely and performance effort on full over are path in QX to to that foundation, right XXXX, customer, our review I take direction. With it confident over long-term Marc am another I'll will the

Thank you, Dennis.

centers. Residential of our by a or X.X% revenue, Advertising It's Business grew reported I'd significant the begin review subscriber a News X. residential business, over showed was our our in notably, a revenue quarter. Total in worth excluding XXXX, down and driven ad to the and This the QX down we in of by last like the improvement in our growth in News decline trends But mainly Advertising decreases we fourth X% Services XX.X% rate revenue in half in noting, driven second were of X% XX segment decline revenue base volume, months. rate the XXXX, This year-over-year Slide that revenue employing in ARPU preserving X.X% segment. tools, AI implementing segments. News performance. a driven approach Advertising retention and disciplined segment. political successfully more and management to decline strategies maximizing to as however, X.X% our excluding base well with In Turning better and was across tactfully profitability financial total our as and by a

improvement QX EBITDA $XXX back XXXX half cash flow EBITDA the our the the a year, XXXX. In In million, quarter. reported just Improved second for the year-over-year. the XX.X% of in comparison, In the trends in significant half excluding comparison, in yielded fourth flow decline X% trends operating share-based OpEx significant saw adjusted of an X% first year-over-year XXXX to we and a expenses better in of half. decline of prior XXXX of decline. In we in of our of at QX year-over-year rate over 'XX adjusted million XXXX, We declines also year, cash QX $XXX operating peaked adjusted compensation. EBITDA $XXX the we stabilized full million losses with in our in which generated million, versus EBITDA adjusted moderation 'XX, demonstrating down in year, compared $XXX free EBITDA were QX the offsetting the free from of expenses in

In adjusted cash by CapEx. supported million, year. free cash to in addition throughout EBITDA capital a spend in declined quarter, a the marking quarterly trends, fourth cash the decline improved our is flow $XXX step-down CapEx to In consistent

XXXX intensity cash flow a to and adjusted QX step-down corresponding in capital Adjusted EBITDA our Turning XX.X% free EBITDA We for year. X. step-up and full margins. saw in margins Slide XX.X% operating a stable the margins, in were

margins goal to compared keep Our XXXX stable is relatively in to XXXX.

capital to intensity. Turning

This capital while peaked growth. You to a constructed prioritization. Full invest believe this the XX%, a pleased can today was network fourth future it thoughtful which report project capital capital upgrading to level halved fiber disciplined year around and to more spending see nearly also year right QX of in we practices XX.X%, passings to that efficiently XX.X% result we at that in due the approach governance support the intensity the is fewer over continuing business run the to and to quarter. to I'm this in is

range outlook billion. capital full to $X.X of the to for XXXX the Our billion year moderate $X.X versus is XXXX in

We are growth. both best-growth drive strategically the sustainable near-term long-term for to investing areas business capital improvements and in the

migrations this our fiber We limits low-move construction and to we on we fiber best can markets to recognizing of by are ROIs, million homes taking that environment, X driving this a a end, more targeting which approach how customers network. focus front. To grow yield we by expand the year-end on passings disciplined quickly incredible have that about to will more

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grew as higher reducing continued by how retention year. subscribers, X.X% than how the packages. best QX headwinds to churn and able and our ARPU like offset profitability package we driving into ARPU to XXXX as with and by of Dennis earnings X. care prior evolving losses that QX review penetration, last with management value or during been centers customer and customer Even have Slide been our year-over-year AI services the mentioned lifetime we call, the the I'd relationships our video trends ARPU model. Accordingly, well to implementing we as providing ARPU advanced of price to we strategy strengthen price of Turning and previewed. mobile maximize base we've recent declines $X.XX

introduced customer while new increases rates, as rack is profitable few in new goal A everyday ago, clear, transparency. rational offer our transparent to build pricing weeks meaningful resulting overall relationships. and pricing driving provide in we Our

X% pointing everyday new rack less less services, rack broadband full our were than were be broadband, most speed customers worth For out of tiers. rack prices prior on paying that across rates and paying rates will lower than specifically historically, rates. than XX% It's full

We more also value provide customers. to began to rightsizing our speed

very by than with QX, received requesting with customers the we more XXX,XXX was downgrades. in subscribers the Overall, Specifically Northeast well respeed few reached approach. in this

programs. capabilities in lifetime value future for the Additionally, that will customer of we to to and models we is and satisfaction, and base leading allow upgraded This group. moving intelligence churn tiers the speed price/value smarter, to which business. At higher to the interact reductions will saw in customized, core These data-driven machine of sophisticated contact both ultimately control decisions who the our translate with learning management our us improved current lower and customers. customers strengthens customers rates compared underscore to equation, how a make measured strategy integration customer artificial and churn were lower stronger create customer to results

We retention on specific churn testing retention some in capabilities the centers, propensity our using have offers. been deployment of predict AI to based data of

who satisfaction have are This how centers. on a rate a an and care the expand a business. And time. ARPU positioned drive of of sell these impact transformation will we in we at With to customers. Overall, better over and ARPU benefits thoughtful we near-term implement improve lifetime our of and our strategy existing With new more and minimis to base lead residential revenue disciplined customer and our trajectory. customer and in de seen connectivity base, opportunity the management changes, will As approach result, across trends within value to into drive continue to we will last, this and long-term will the churn, base customer other have customers retention sell-in with continue engage forefront. increase broadband products mobile significant the our profitability we areas to work additional of centers and have to mobile our broadband take will penetration within X% mobile

of operate recent we January our issued position at notes of Slide we note term XXXX, capacity. previously draw million with senior have until maturities proactive facility loan senior of announced incremental I'd the review due we X. due X runway XXXX transaction, a term to outstanding from XXXX. the to would we and guaranteed this January business out this the for June $X management. pay of successfully loan refinancing B that cleared a the and our XXXX and growth. In conjunction X/X earmarked balance drive year, to to activities toward down billion XXXX $XXX down sheet proactive pay which near-term which had and were XX In credit us in in revolving continue the rate of Turning to giving all like These BX, due with

average of debt these pro weighted Our for transactions forma cost X.X%. is

Our weighted average maturity X.X is years.

fixed billion Our to swaps. total the the of XX%, end forma debt is to fixed In pro XXXX, of daily $X.X floating us providing interest we rate flexibility in inclusive operations. have rate liquidity, at of

operating to goals. continue will managing supports best capital our and how proactive We maturities our our be in evaluate debt structure

a on we the in even an our Next, us XXXX, through said fiber Plus to identified and put further XX%, related XX, believe we've subscriber of fiber will to acceleration net Slide I'd growth. previously penetration the percentage more months. which focus we In doing which our of to the achieved to prior points by our would on customers. opportunities growing highlighting additions penetration we of like almost both from new focus and coming of accelerate X XX,XXX we increase the review with and rate added existing fiber We end customers systems mobile penetration, migrations migrations. trends, of processes improve allow And is by QX of over that, fiber migration, more on our disciplined year.

the XX,XXX net continue X,XXX growth to we adding when Xx fourth quarter, XXXX the better just lines. pace each QX This lines Regarding in than is added over mobile, of we accelerate quarter. adds

are the pleased trends in are with seeing mobile. We we

drive For mobile see penetration and as significant example, This churn in customers customer we annualized reduction our take in customer further a base higher our opportunity expand reduce XX% fixed-only to addition mobile we churn presents to product, when take the broadband a rates. to compared base.

total subscriber trends. on our Next, broadband

addition competition environment the and we peers, XX,XXX our in subscribers. reported to we similar impacted around As macroeconomic as of heightened performance holiday our we mentioned season activity, continued QX. total challenging a broadband quarter, saw That, last a broadband in to loss low-move

we broadband strategic some broadband go-to-market to approach, with saw the headways and into in enhanced we time. the combined may focus management XXXX, over mobile, and we dedicated are of headwinds positive -- Although have carry network right positioned incremental over care regional and customer are confident programs, trends beginning well place. With we base subscriber which a strategy financial that upgrades, QX, hyper-local discipline, return to in

continued I in and digital participation next turn like committed would Program. providing to services had touch remain ACP. federal we we their slide, the program. on funding Internet the the mobile by services and subsidy and supportive affordable to customers a broadband bridging we the for Before Affordable QX, end to divide to Connectivity our our through customers, We receiving or fully are At XXX,XXX of of mobile accessible on the

we funding exposure, impact a limited concludes. the not our if Given do foresee significant federal

our in will we compelling engaging offers. to be retention these customers and providing with proactive Additionally, efforts

see this go also and every opportunity customers attract jump place a after ball. to potential to with as We new an in plans tailwind

can give in services tNPS our plan XXXX network to points Turning growing have to to up QX across of and delivering like confidence long-term NPS continuing the base some scores with to our year-over-year. that we and underscores the drivers the that XX. performance Slide that customers. right to experiences with us XX our key commitment improve wrap best I'd

We customer usage tools also across support, of increased onboarding. to continue technical and drive self-service care

full in fact, has enhanced XXX,XXX XXXX customer tools, year-over-year calls the year. in QX. Furthermore, to led XX% and experiences communications rolls quality network prior to million fewer X.X self-installation and year compared fewer self-service truck grown inbound In improved

of customers XXX% higher customers in the network of part footprint to XXXX, symmetrical portion in by X in speeds our footprint. rates XX% in of early now achievements, our fiber our fewer continue base, launched improve. On total are per gig and or notably, we the can customers these take improvements driven speeds a of our While of more X-gig East

capital the as are by reach XXXX. In in of West upgraded of we achievements our with XXX% DOCSIS our XX% plans had we we that, the network, experience business, our ensuring end long-term excellence strategically of X.X for customer and now are to will with XXXX designed sustain and questions. Additionally, investment plans growth. With take and for near-term nearly pleased the returns QX, both for XXXX, in to business summary, we

Instructions] [Operator Michael from Citi. is question first Our Rollins coming from

Curious of volume what if just pricing XXXX. price can you're the discuss of relative a seeing the in some could ARPU more about you change bit performance. just the managing unpack bit and a to headwinds you're and could on that some cited terms into the if And broadband strategy you carry then secondly, in additional over how more maybe details early

I you well. hope are Michael,

early early more plans, providers. that the we particularly November during In quarter frame, voice low-end to promotions mobile-switching some effectively you particularly really marketing, existing We aggressive competition last time in outspending fixed we of October also offers us see windows data early some more year, last the and our the terms driving of headwinds, market. mentioned share mobile and customers when in headwinds, we in had we the in and some saw. the in look key some of quarter broadband really that's saw expected wireless of to at as saw in And the aggressive reducing exactly -- advertising the and what

fiber in more as about activity. of think year, fiber build back -- on the half the impact in some the we saw overbuilders West also We the

we think time XX% I overbuilt. the commented this, last to were at XX% I about on

starting offers we're And local leadership coming Now really can at Optimum we've about teams a compete at insightful terms online and more us our put hyper-local excited much being and level. about with that fairly market some place. to effectively market. That the said, and informing competitive in share in aggressive some really in XX%, of we I'm how just all and are these feedback structure very landscape

since I increase Complete. seen very attach well a Xx to we're perform mobile We've very continues Complete positioned. Optimum well. we've launched in think Optimum

she's our with We can are that in we hyper-local that board, market playbook Optimum Marketing really we brought that areas more established. the new about and effectively we've us compete so excited Chief on go-to-market Officer helping new

And come telling also to do so playbooks -- and these teams from we're planning better and to of perspective. our see a really online, story just -- that those a job overall you're more marketing going brand of

about you They the as pricing pricing is talked made address strategy told to want On telling we've fewer And transparency, what AI so in And want so paying. speed And that and that. leveraging also just think our and of customers. calls tied our that we and saw, to them us do them retention, structure customers. Over the reduce mentioned, XXX,XXX rightsizing they're actually centers, for right calls, and call will that really put we've They've journey continue. We're into to sacrificing what we're can that from erosion is customers going value is new care our I churn, equip an this can just Marc the us evolution. they're not packages improved folks. seeing to the customer predictability. value. some adjustments, this we those teams they this evolution. And when are believe helping pricing some we side, to a while And us. it save ability our tied upgrade the customers right simplicity, getting make rightsize existing sure right is that ARPU received both And the

growth. long drive grow cash us And term, in and and actually that help help revenue to strategy flow believe forward. this we're will mission to continuing our and ARPU really so ultimately And we stabilize that drive customer

Ben from is Stanley. Next Morgan from Swinburne question coming

very book/front ARPU working is in a on past growth. was helpful. It talk yield year, expected customer definitely than price book and like Dennis, seems little a in stuff, management the your you thanks along the getting to for how pricing wondering far all a stronger QX. guess a could bit the have don't the and you've place increases been if base commentary base you ARPU around where back are you I I anymore and issue lot this over

said So it little I for million one, guess, for the consider year. into about timing And thought I'm could that's you what's East? us I down the could that I'd curious, if sense and the you the you you guess, I a if curious Just of existing end be 'XX, ahead guys by there. of more talk prioritize X slowing sheet and sort think your footprint? more balance project. And process of fiber build that then, a Is the Optimum just to all homes of where wondering sell more did give on focused.

you're Ben, doing well. hope

Let me Marc we bit and then But and a over to on take to fiber remain fiber. the back it the book our the throw pricing. committed fiber I'll question, book/back strategy, more front expand to

we're churn, performance mentioned, deliver the we We're about able these million East. that customer in network, going to trends, homes. excited add to improved primarily we're And onto having of customers passed the homes X As improved improved ARPU the that satisfaction.

We are that that have and network. performance customers just with of thrilled the excited incredibly

of you terms journey. and particular. We've the We've to a want and CTIO to room they've efficient more of we been help accelerate that's And we migrations this for it mission brought going there's make been and of been an on by additions, year. focus prioritizing us be to organization, organization host so as migrations. in and identified fiber that my more on as accelerated customers lean we've opportunities whole migration network. more driving the fiber to X.Xx, doing And -- process, our audit to if field And improve in look grow. that process. the year-over-year in able to We're on new We've exhaustive

the to going some need the of as QX I'm resolve confident over are into process be we second couple business half, enter new issues And able to there we're late next months, and we but accelerate. so about well. that excited as and And systems to we're then

some seeing fastest-growing as about have where I do we how year. And of work approve to our and is, be really think faster we capital streamlining to to in the think footprint. benefits spend our in to build. into go some we're return to going we've that so to the we're best going of intensity the this terms had enter of And and able execute X and capital fortunate markets start as new ability just we're of And and identify,

And look new prioritize to balanced we're to so East. as while be migrations in approach that's build building And a to priority and huge the continuing a well. going have us to Marc? in going for fiber

of X And we've rate on then, as are, you here put for ARPU. And board around half in the time on first we the quarters, far rate really, to erosion. trajectory the Ben, a your pleased we to the been see, positive question the with of around we're year the able -- second that in along quarter slowing how had

the that that. But very we would transformation So this really are still pleased pricing. around say in much of early about I very innings

of of a this our launching advanced to reps, AI the We of time take and bit the half to are our reps capabilities each call year. first sales of field little and course going center over that's

can the customers work right will have then ultimately on we provide acquire issues think any the real still that our close we with like for have provide do, to we offers book. And we compete or back also book Optimum customers and value existing we potential Complete and right as and front well. with And feel to so value do

but early the So seeing. trends optimistic we're still on early days, that

from from ISI. coming Next Maral question Kutgun Evercore is

pieces. you moving not that think But you're explicit about or for EBITDA guidance providing us XXXX. cash appreciate help for free could the some I was flow I hoping of

for and transition top think some will way EBITDA outlook of with XXXX right see declines. and of sounds shown could the you've line year, year stable be maybe positive end perhaps to it that your EBITDA, you've the on another cleared carry until the relatively about Or XXXX. it? to last Is First, like we trends encouraging in maturities more flattish EBITDA manifest into cash XXXX momentum on certainly the flow, at all relatedly that it's up margins, positive trends? And free

keeping in So at puts Can your confidence again? relatively maybe takes. and cash talk steady least free now flow we'll it [indiscernible] you be positive having about year-over-year or see

then Good and the Kutgun. From year. are excited you. discipline Absolutely. costs we this the margin hear an the over about. perspective, Really we're operating you've that the I'll half pleased take back course seen to EBITDA being that about of of talked the stabilization from around disciplined just how in that, on we rate again,

we're spend EBITDA XXXX. I year-over-year, optimism but moderate our us does down continue performing about. expect into going that around to capital slightly how talked to So give would be we'll as we

the so higher costs, should timing will rate into some full XXXX the we interest a of that on of year despite free optimistic from the later more And And be cash positive flow we that perspective, for cash are XXXX. be actually. still

be we still XXXX. position cash free are And positive a to for feel so flow we in good like

Our is from question John from Hodulik next UBS. coming

if follow-ups, of couple A I could.

the what's big go on it all, just Are to And net that ARPU. guys few the it if sort pressure of of you X% of ramp that really on boil commentary today? on could quarters we you suggesting X% growth mobile, declines, moderate First we ramp? the guess, back in where continue? expect I were and to And just sort ago, the saw everyday to we then you the down, adds. pricing do after the that can driving a

and the choice, and John. and ARPU and mobile, the We've transformed prioritized, with mobile Marc, said, into pleased and centers the centers. the broadband Thanks, mobile. inspecting in sales transformation chime the we've to has provider area of we've optimizing the I'll pricing includes we're piece of on which really connectivity very acceleration. But take welcome retail be every really then, business. And our as This been elements. to

plans, a we've as well and offer really our as our updated as an compensation Complete, package frontline and our customers. transformed by has we've so that received teams Optimum both sales We've well And been performance management our including updated participation. goals.

year, that think so space. to think And acceleration about drive I and about in continuing growth as this I

I think are penetration I that their and on. the we've and net terms we're seen think quarter others, And of achievable the that's some additions per those standard in term, peers of our journey base. long customer all set of

to base I we're our think of continue acceleration, going to at Xx today. we're the so mobile X% And drive And that across penetration the business.

excited, as I opportunity. I'm annualized think mentioned more with mobile. I Marc, XX% believe, reduction churn there's particularly

drive to Marc? continue we'll And so year. of continue the drive and to acceleration to mobile, there's reasons lots throughout

continued trends. we to over ARPU on be good ARPU. it the then, in as AI Certainly, no, disciplined we path you on declines, feel feel time. like a have more John, there's ARPU pressure approach stabilize grow we saw a do tools, But and going position, losses our like we're to And video despite from with the in leveraging that, in

the were for relatively year-over-year, half. of flat, year, just out we down look you XXXX If at full X.X% the back coming especially

to XXXX. expect in We improve on this

drive agents like and we So outcomes feel that. good the the right have of to we about right front tools in our feel

Next Ehrlich question from America. Reif from coming today Jessica is of Bank

it's love Discovery that on announced would One, was and the if Warner just with questions, sports Two views okay. JV Fox. your Bros. Disney,

guess, -- of from in ahead? think in separately, and and political kind about conversations? outlook you that impacts you growth news. how you your your the I that's ex then And Just video and of coming a advertising broadband, -- quarters renewal talk Could good it that might how impact showed business, and couple ex -- where

little Advertising. Marc, News you're take want talk if then, you a Jess, and I'll the I and to well. about question sports bit hope JV

really and is but I all-time really think think fact on at said all-time highs. the yet broken. that unfortunately, that when is that linear challenging model lows I traditional this it's And about at do I'll reiterate video think I've you are the rates before, viewership

to I think the and as they're really so to back make we, center that in our partners right need put work value. getting customer the with sure distributors, the do And

that's with our as what We're -- we do. trying -- process with to approach right got of been channels trying really just we're And has and make for and so to bundled push negotiations, these we've customers have legacy not rate. Historically, channels include in low sure that for and viewership It's conversations exactly extremely inflexible to hard packages. we're with the viewership. fighting terms high in

ultimately fighting consumers looking of bundles as for. And so flexibility these then so we're have packages and that that solutions for types as they're our continue can well direct-to-consumer And the more of customers the part of those conversations, become we portfolio that are available they to can sure making and having as our that leveraged be they're making solutions available, available. that to

that having. ultimately, center we're need really these the we all It so making pricing, have right that the putting are channel back to for customer lineups, offerings. But right And the the solutions, these come sure right packaging, and the at right the broadband. the conversations you does direct-to-consumer

video. And able broadband. quality provide be one price. we of it And to broadband leveraged highest-quality So and does applications top want strengthen value the is to broadband the on the of

right some the solutions watch are to driving bring available, so We what's have value, consumers the video to able be those traditional And and need we're make able video, to having. -- they that's we want right others our the as at if at linear want right that streaming. to to Marc? conversations to the want the and price consumers be and

this was so offset to over the that growth a segment really customer us the really were for of businesses were the actually year ad investments on really have year challenging some in our then certainly, some of the able those thoughtful on that. all space, advertising, operated And advanced how more you accelerant seen advertising declines XXXX to base, pleased We in having the expanding and just but managed customers. then and drive quarters. our few by And past agency through

out a it political as look And So into we our tailwind new we XXXX, for Advertising positive feel trending. where and certainly going be pretty to segment. good we're about the should News year,

from MoffettNathanson. Next question is Moffett coming Craig from

see as to going X well. in can squeeze I'm if I

I the maybe that anything if that's a just of guys one specifically. I could spent took of though especially, wonder time fuzz talking growing on and the MVNO, lot industry can year-over-year, about about to the MVNO dig thing gross secrecy. a with just know know a it X.X% don't just on you of little that bundling bit management up kind business, sort second, able talk larger in indicative that described. And level. expect in happening We you ARPU if of I is is last little just allocations lot it's sequential shrouded your that much to about could you've the you time, respect about if least Granted you share margin ARPU. then your of some could if least Tony, Even by broadband about I First, that wonder talk But economics. and margins at decline. you you that mobile be bit. make a whether in I just a -- program base at the guidance could at to wonder directional

Craig, well. you're hope

question, I'll ARPU let about me in Marc a mobile. broadband talk on the bit and Let jump little

fourth far quarter Yes. a and Increased roll-off. for promotional this in low as year perspective, usually fourth roll-off point happens activity the promotional typically customer quarter. Craig, from is as the a

quarter So for usually us a this that to pretty in moderate meaningfully. this were see pleased quarter seasonally the low we seen fourth is space. seasonality I'm we've able that to traditionally

say down, we the so And would changes year. price here announced the not of it's I that beginning of although at indicative the

place feel manage to through I have right the in So that. tools good we

largest to our and We're having very network. partner the access our happy MVNO XG with mobile and

with Our we're happy mobile but margin-positive. performance. We we margins, really detail, also that we're additional don't out are the happy break gross

to I sales as continue we our get us. terms that also lines. acceleration to under been We've X.X lines. mentioned, in activities, grow meaningful in to -- upside attaching And able more just continue of We there's our now to acceleration, start see legs as

BYOD have XX-XX and of device attach. -- in terms about today We about

get there And continue us. so sea that as again, in our to we, and lean rightsize continue under to there's to opportunity legs

we're just so we're to there as the We're excited, and to And margin drive long-term sell insurance. expansion mentioned, early is particularly and innings. about opportunity. in mobile about I really benefit, churn as continuing we're excited starting accessories the But

add as perspective, to from on the in out that coming ARPUs from ARPU mobile in the really fact meaningful starting that the then we but off services, package see one Complete, free longer growth growth with coming third just $X that up bundled are selling sequentially also side thing would the only well, of actually Optimum quarter. seeing no I the a we're And is we're

have signs direction. in all gone right So the

coming question Next Vikash Rock New from from Street Research. is

versus And potential about think off $X raised Or give you've how table? one, we builds if are how year? Could funds? And that and on would are build a that for new of upgrades fiber what you be billion go versus whether of you I you the do potential Now decide could. what fiber completely for debt, the the sense second still the ABS new IRRs sort those additional upgrades any us working of usage you in do, if the that? to debt? Is during

take of can both I Rakesh, these.

refinancing, and billion it the markets the cleared year. this X where the As to really years rate around they're $X for next us the pleased operate, especially relates to we interest for into that proactive we given were deck and uncertainty heading the

have as As it certainly more takes may about know, relates And just learned to ABS, process you time. just the we this, transaction. the involved in ABS

have possibility. that we cleared the bit properly. a maturities, still I out much more sizing a we've think flexibility timing done little near-term getting the the so and now it's in very And But

dollar us invest ARPU again, ultimately the cash which original definitely give level as improved free just So to coming it seeing of base-case and IRRs, about but -- lift, from in But are reduction our that. And spot externally. the relates to then disclosed to time do results remain the highest drive the builds, all scenario. going those yield. just there, disciplined of But churn of especially capital we're takes around we'll have the better as just we to fiber that's than as out you think out flow not still you intensity to it next that historically

is with every execute, of deliver ability as organization, to we've part our and are only add done the drive new and we evolving right. revamping That's thing that of penetration I'll identify, builds. deliver, The

And I we in our the markets of as X so mentioned, have fastest-growing footprint.

of terms problems are these investment decisions. to good so driving And in have -- making

is Our today Bank. question from final Bryan Kraft coming Deutsche from

wide guess, implies capital guidance, pretty range. I billion you, billion combined $XX intensity guidance ask to to $XX wanted the with a the CapEx I

billion to Yes. range, This $X.X the $X.X is billion. correct

decimal just I point. Sorry, forgot the

clarity. a of It's point

don't a Lyft situation. We want

you that the range with intensity pretty wide guidance. intensity of that So implies capital capital a XXXX XX.X% revenue combine if

decline? billion $X.XX or much how XXXX, to So to that about I that wanted was whether first, would are expectations you guess, And $X.XX if a explain revenue just all revenue your be that I then ask, of some of narrow Cheddar to or if that wide -- that? in I range in wide more think which revenue expect implies billion. than XXXX really it's really

all company. to revenue around We Marc. is Yes. results and and won't of material financial won't -- into but was the into de the specifics say that, not the that just minimis get We of it get this Cheddar

we've around and intensity. making we we intensity, capital going right the in drive As have about give we're of think won't revenue we're optimistic guidance the to capital disciplined strategic to that it the the but stated like how We we moves our place again, have remain today playbook right to place feel today. playbook right drive on kind specific We that just drive outlook, we the here in feel leave revenue we'll trajectory. revenue. And at that

we I a Marc, on that being point? think is intensity? XX.X% Is more long-term follow-up 'XX... could the that Or a just Should capital quick guidance? multiyear one at about this as of that ask comment

a that's question. great Bryan,

moderate much we year dictate we're drive said will spend. And XX.X%, from really I'll today, on the and again, we around every how the disciplined be saying intensity those going results. performing to we we will capital is how As slightly reevaluate really that business to and are reiterate to

back I'd We management for reached any to our question-and-answer the to floor end over comments. like closing turn of further session. the

Thank questions. Relations additional any to out Investor Please with or for you joining. relations media all reach

Have Thank good you. a day.

today's Thank teleconference you. webcast. That does and conclude

your We for at and day. disconnect today participation may wonderful this line you thank time, You have a your