Cincinnati Bell (BDWGP) 9 Aug 192019 Q2 Earnings call transcript

Good day everyone and welcome to Cincinnati Bell's Second Quarter 2019 Earnings Release. Today's conference is being recorded.

At this time I would like to turn the conference over to Josh Duckworth, Vice President of Corporate Finance, Investor Relations, and Treasury. Please go ahead sir.

Thank you and good morning. welcome Cincinnati to XXXX second like call. earnings would everyone Bell to quarter I

the is performance. Financial call Chief on our quarter's me Joining today detail provide Leigh who recap on and highlights Kaiser and Executive quarter our Fox our Andy Chief financial Officer, second will this Officer, and President

call. Leigh during the question-and-answer Following the our Simpson, Andy Tom Chief Operating of and the prepared remarks, Officer will join portion

and are Remarks X. today's statements are that considered Harbor not Safe are Slide facts pursuant made historical made provision on call on the to forward-looking presented

see company's for available by any Please those today's potential may SEC press statements. of outcomes forward-looking description such results the release risks website from recent to our actual or uncertainties materially that and cause indicated on suggested the and filings a or differ

The on non-GAAP presentation of are measures to measures. GAAP website. most these our also non-GAAP Reconciliations measures also directly comparable certain the available financial contains

I'm Fox. President With that Cincinnati Executive Officer, Bell's Chief and pleased to introduce Leigh

you, Thank everyone for you thank us and today. joining Good Josh. morning

strong the our strength investments and Services success our demonstrates second IT quarter fiber of business. of Our performance

and on This on capital allocation focused validating quarters the X% our EBITDA that company. is long-term adjusted further strategy the increased sequentially sustainability growth for investment

has the an strategy of in Our future Entertainment and Communications business is fiber and been Hawaii. the early adopter both Cincinnati in

Oahu network approximately cable which the fiber of XX,XXX the in of fiber spans Cincinnati XX% route a which speeds a bandwidth higher XX% produces product Greater combined and superior to Hawaii. on deploying We fiber-to-the-premise have faster island created competition and than miles Internet

optimizing and have we acquired harmonizing made year marketing one considerable Telecom Hawaiian been sales. since and has and we operations progress It

Services organization to and its increase is within the market IT business robust the begin confident share to demand market. structured for are We capitalize on Internet now

we the within flexibility to PUC that in the need passed legislation involvement our operating engage our I'm to aligns state minimizing business regulatory here more matters. legislation regulatory And also pleased with in increases recently business closely experienced on Ohio. what This certain reduces report Hawaii. involvement

like to our worked the these efforts together this our members team we of am proud combined and are growth of team through adjusted synergies Hawaii EBITDA would get I the dedication XX% changes their realization of and personally passed. PUC very the Hawaii thank will approach I who to year. Hawaiian merger confident with

focus In remains footprint. on now Internet XX% Cincinnati, also increasing penetration at within our the fiber-to-premise

speeds fiber-to-the-premise as demand deploy to to continue as in as returns structures which for We faster neighborhoods continue existing Internet projected trend accelerate. constructed to well match historical newly

our consumer X%. As when evidenced, than was three than more less ago to currently XXX-megabit XX% to of it internet subscribe years customers compared

costs identify pressure efforts addition address In adjusted in the increases contain from cost team Cincinnati implemented of implement the and and Cincinnati ongoing out to EBITDA impact The resulted price growth our year-over-year. recent second the to sequential quarter decline. X% legacy and X% continues initiatives in in

for Demand quarter to Now, to April, sequentially. cloud turning business. and with XXXX. the increased GE and communications Despite in certain strategic out of the with be services practice second remainder compared of services our XX% EBITDA an products impressive hardware the services robust revenue churning continues adjusted to growing IT from XX%

$XXX,XXX have of revenue SD-WAN, contracts solution. Year-to-date a added with we UCaaS, and NaaS combined new our monthly for recurring

new opportunities practice. communications within the our also cloud to encouraged addition practice, In we're the by

certifications software engineers XX% to initiatives up the with ago. in-sourcing impact revenue of from has of providers. XX a plus each cloud highly cloud practice public GE, year-to-date skilled the year across cloud was The Excluding compared

approximately have million of successfully $XXX,XXX that been has cloud The scale the completed in effectively new revenue first In trusted monthly successful team implementation note ability highlighting our an ourselves and recurring enhanced were and also across locations by effort to a one-time to important new $X American public OnX totaling XXXX. our monthly half establish XX% North relationships geographic traditional recurring as implementations prove revenue. compete the adding won It's we to platform. during and of of one-time provider,

our over I second call will for to now Andy, the who turn segment will and consolidated summarize quarter. results the

Thanks Leigh.

up Moving increase $XX for prior slide consolidated X% $XX of to and of sequentially. performance of to adjusted on million, revenue the totaling which the million EBITDA contributed $XXX Telcom revenue generated Hawaiian EBITDA quarter. million, of on an quarter $XXX X, adjusted compared million is X%

the which results Entertainment $XXX Hawaii Communications on Cincinnati quarter. highlighted Our for $XX totaled consistent totaled contributing Revenue slide with prior for and segment the with million. Revenue was million, are quarterly market quarter $XXX X. the million

video markets Cincinnati as Adjusted well both as by fiber-to-the-premise continue to up increases mitigated was declines. X% ongoing due and containment price cord to be growth legacy data cost realization efforts In Hawaii. in and EBITDA sequentially synergies $XX cutting and in fiber of million, enterprise the

Fioptics ago Fiber Cincinnati X. from subscribers, includes the relevancy the of totaled included XX,XXX new combination is of end customers Consumer/SMB offset at fiber-to-the-premise suite customers. a fiber-to-the-node The on up addition metrics for a quarterly products the quarter, of as more the by our Internet and declining of than fiber-to-the-node the year of X% XXX,XXX which update product fiber-to-the-premise was Internet slide

with churn year, decrease prior in video of the top basis X% ARPU from during customer impacted period Fioptics increase Internet Internet the quarter, We by X% We X,XXX which ended overall Cincinnati, preference an declining the video with for subscribers to subscriber year the seasonally over base due a $XX, to primarily by local totaled fiber-to-the-premise of ago compared XX university XXX,XXX points. service. streaming a increased schedule. is our

$XX the increased XXX. Video subscriber ARPU Hawaiian points. with Internet video $XX. XX the totaling increased Consumer/SMB Consumer/SMB churn its during by totaling was subscribers Internet Fiber-to-the-premise while ARPU X% improving basis Telcom with $XX, by Fiber prior year, more base X,XXX from video ARPU decreased than quarter,

of solid EBITDA increased an was year-over-year in-source $XX after year our impact from segment prior certain Revenue to and cloud service. on to million our Turning million all IT to up Adjusted $X Hardware impressive Services due to quarter for the practices. GE's across performance the by decision the X. results compared excluding slide sales

these services from of revenue of EBITDA second quarter compared of million in adjusted second million the XXXX. $X of to in Revenue quarter $X $X million the XXXX and totaled

we year. that migration Now complete, adjusted full as is have EBITDA year compared negatively million that XXXX determined $XX prior in the will by to be the impacted

An update slide on on the communications X. practice is

increasing growth for be continue our year-over-year strategic impressed products the We and the to demand practice. within communications by our

During the UCaaS totals now we seats, hosted XX,XXX approximately quarter which added XXX,XXX.

increasing with We also NaaS locations SD-WAN by increased sites XXX by XXX. our

year six million for $XX on Telcom. million, the months XX, As including expenditures were capital slide $XXX the presented in Hawaiian first of

$X Cincinnati in first XXXX, During Consumer/SMB expand construction in installation costs our fiber-to-the-premise million $XX million Consumer/SMB to footprint expand to the Similarly, Hawaii. we cost million our Fiber half $XX Fioptics Cincinnati. of million in Year-to-date, and were Hawaii. invested in costs in and in Fiber-to-the-premise we invested Fioptics $X footprint construction

million million. expect continue We the to be company's to full to $XXX spend $XXX capital

As full flow outlined remain $XX on for first XXXX XX, the slide free the generate flow was of half million, for target positive cash year. cash free on to as we

NOL of at consistent $X.X billion. $XXX the remains X.X of gross carry-forward $XXX quarter continues strong net approximately maintain debt a Our be million. Liquidity million to ending leverage and we with times at

to confident execute on allow that structure strategic strong and We our are liquidity capital our objectives. are us appropriate

positioned to which results the our financial year communicated slide from XX, half us first XXXX our on of solid achieve noted previously. full we As have guidance,

I to call for will remarks. back closing the now turn Leigh

Thanks, distinct complementary two Andy. lines In business. of the yet closing, towards progress excited achieved about I'm growing our

strategy business differentiated peer approach and has from allocation Our disciplined capital traditional its Bell's result Cincinnati group.

to we our the investments sheet, That XXXX, Looking half strategy unprecedented significantly said, remain our our recognize balance our compete. our better define ahead will at that prove and constraints results second to facing our challenges continue assets, is that continued confident a us company and of as the will that we sector. positioned

our Andy revenue continue to XXXX mentioned, confident in continuing of building explore and while and to and stakeholder shareholder network we we'll IT growing As recurring margin our strategy value. services create guidance our on our fiber options executing additional are

to over and it now operator the up open the for will Q&A. I turn call

Thank take first Simon you. Stanley. question from our [Operator from Morgan Instructions] We'll Flannery

Thanks much. Great. very

there's take spending year think project would that capital way about intensity, and to Fioptics think some using but sheet open you thought liquidity balance buyback that market? several pacing Thanks. it been when dislocations I more we the some do what's the can over today? it of the the term? right your markets, think the And that medium how then of the was phase conceived the think some a in the consider credit to about of on debt about was down, and you to advantage think start it And originally was So then, should over we as

I'll question latter question. the the answer Andy I'll Simon. debt Thanks, let address

Hawaii at in So both now. the and mid-term side, be view any the not fiber. the that environment right I you environment it's business right short in build but That's think consider way in a a building to XX% things share I we has to capital improve column I business we ability markets on are go us that now. pace you here XX% to think the where Look, it would faster, just to that capital market the achieve until in and pushing people should us

of and what debt. that of the we're cognizant it very so for And of being and respectful cost means it

to going begun we So some in are our a that using good more We've getting -- add going. should Cincinnati. engineer nice here cash some homes and that as We're Cincinnati got a along with flow. some to economics things more you know expensive and with in out economics improved pace territory here we're own incremental

of portion. short consider -- answer So the Andy would the I I to the steady in mid-term. will debt And sort pace just

Sure. Hi, Simon.

Hi.

about that loan you're our sub notes term XXXX given essentially So I'm X%. assuming at talking fixed XXXX is our and

opportunity as the and we always and in So come maintained debt, call of in at they move, we still that that. in back network the going and tend does we're significant spend XXXX throughout in to Hawaii, maintained investment the have to debt. look in use have represent year, of invest so where believe capital Cincinnati investing some on the given to to sense the the to make will in XXXX to -- an with towards buying continue as we buy well dollars best we rather to longer-term and it as at than opportunity fiber we every point look and that continue returns company trade our look the our at your market at both But to

Thanks Okay. lot. a

you. Thank

from And next with GAMCO Investors. Dluzhevskiy our question Sergey we'll take

Good morning guys.

bigger question First value. shareholder question kind of on

create since a bigger year of has of for and we kind I past I the look you're mentioned shareholder looking significantly if Hawaiian unfair, think value longer it's at the stock, acquisition but additional been at question You that, stock you or options the the whether dramatic. -- exploring has down term, is, over fair but could to argue Telecom decline mean been

with So look integration more wrong what perspective on could as put steps important market thing at the about where What could enhance to asset taking sustainable is are thoughts think do creation? value you and guys your going portfolio, perspective of are importantly from Hawaiian the meaningfully you value your on company getting company path what forward? you inorganic share steps you you organic a long-term the key and shareholder shareholder -- current more or

absolutely. Yes

stretch. at to solely that the to look and Hawaii So do last is a with last year say has bit a the of year

we're melted future at I capital market. the down dividends, in what mean, bankruptcy, look sector to you the cutting issues. smaller fiber the in affect player ways into compare you and in going people getting peers very us It's others said, a entire That as If announcing that when to sector, think the different. us haven't. invested we've I in have invested

people that I to see just think fruition. to need

that's Stanley the move will told high that did for the than at year of you to XXs lot in sector steady and environment until affect Hawaii that a synergies lot we'll -- others -- don't is are lines, I we've can I not analysis can you. that in there just show our and well you're I word but it's us if comments I've assets just the it's XX% many an Morgan gotten growth. there been with I going think think think better anyone and you you XX% in the the just so numbers, that trend Obviously, grow this numbers else know we've in sector. I invested sector. think to in are That's risk -- on see this at that roughly especially say when in like had be that XXs. revenue think look going a we synergies I know our this, And perceived that

them, know know is right. I me this cynical environment we just time, Well it it. to in to have -- that think hard things people look So to Yorkers. it's these I told prove We businesses. prove cynical in how how -- think but invest New to you was boss one run just I time to it your And think

you've And I show You've showing got we result. -- got to results. the are the think

-- we're mean very guidance. our and going what we'll with continue guidance; do to So comfortable results said and I'm to I show do. our we

be have and is year with our we be for the about when I have the keep XXX surprises. comfortable on future. doing I year think company, responsible steadily, with any and invest and we'll think just next responsible the with but next the -- invest say you comes guidance we EBITDA sheet, talk midpoint do, we'll very balance is don't to We'll what

you in our don't, same place you end that quote up the peers If are. unquote

obviously what Okay. strategy, allocation stock and and trading tool? related the CBB but point into assuming opportunistic where I also you at related plans capital things value, viable good stock and capital they thoughts your And could do are view now about that question, what consideration is your become taken as buybacks? question guess your on investment considering somewhat

value. actually versus issue look, is there do debt term. what and value a and equity, now, I shifting The mentioned think it I both the think very challenge right short-term good long capital, is and as are on is right. our Andy if our a it does you good the

have shifting over the in it's possible, buyback sector sustain away will in I to does growing equity money itself think then shifting issues from to do personally side, money business given on sure you macro to longevity decent but of the it going shares a short-term that a new have amount and the the that making business. And your is what long-term. – that impact,

re-platform, re-platform. one of line is think companies the needed to bottom that of and a The we we have were re-platforming the even seriously handful, not one I very and realized industry re-platformed to whole the few -- were continue

to cause long-term. I be mid if that you're think that to in you going things the shy and you think and away needs the focus to from on I jerk issues react to knee

get across mentioned the you as look And doesn't now right obviously earlier, not – the that's board. market it

think the reason of fiber coming I is a see Wall there weighted more you sees money happens we short-term. will. what why versus understand about and a as long-term given I getting money execute it, have to And we not private into sector versus around sector the in and to backdrop excited show the public the risk we but Street money to that. continue earlier lot are I inherent actually mentioned

said next we're example, an like and was can I this then to breakout will you earlier, quarter any there one in companies quarter, And this other – aware word in think that third the pretty off our numbers aren't a subsidiaries. every the of. year sector have are I'm strong a I in year, start our grow and the of saying that seeing we're conversation about it

So time think will of think capital but that's I the it right now. take right I use just

right. All

IT on question Services. Another

focus EBITDA a goal ability $XXX I'm So for sustainable think and to the I opportunity business talked course, that to may growth the kind an in segment of thoughts Services on its important being target business. the help basically about in IT guys more stronger have its your it of million but you past be the market paraphrasing,

And quickly in medium path $XXX is over you is, question do get goal there? the can you at this that how my to view and term? still you million what EBITDA high level, as So realistic think do

believe a that's do Yeah, still great question, I that.

it'd I have if to we about approach I you people it, a instead kind XX% mean, begin I wouldn't million at like it as think be million with more that think business to that's million a think blip $XX million – a growing year. pay be that $XX to marker, this $XX you if $XX $XX year business had attention. with GE million will

year and got another out great we they're And opportunities got which two the is have tailwind services we it's that gets let job industry this them E&C whether right doing proven nice ourselves not I we'll realize and and there And in think that's stuff right? doing across on. still growth. get a we'll working. right you lately, interested in we house – it's very what to to but way got people once house business feel in sector organic job can a very think and it. war focus that. like like capital bad do lot different it more and backdrop now nice in going execute markets fantastic a times, do. I we're a the now how you team to We've continue got what say it So the will than sector, headwind now just under I'm but neighborhood we've do. We've our said we're nice viewed I is good think like fantastic and it felt out we've the model house, zone to of much once many a sector the we our the that's of we're it I very more in it's got to And organically. are board get much, of because products CBTS we're it I'll they what doing belt grow and expansion a look growing feel or that continue right They're there get or is tell a we I have and So just and inorganic

So they I them just and got think to get we'll let do naturally what there.

on And question XG. last my Great. is

to we are now. launches various test and environments seeing hearing we are XG and about closer tests getting on So wireless with speeds almost empty in for networks operators gigabit

will using to T-Mobile it a successful space. compete merger spectrum we we strong closes residential have So position until Sprint in broadband

thoughts So see as an it what up do could for shaping a risk, as versus a How you versus And update company? your us impacts XG how you opportunity, degree, on this to on your expectations? Bell? Cincinnati is

that of Obviously, industry. we in Yeah. a happening what's attention lot pay to,

the a with We have strategy. carrier good -- different all has obviously very each relationships have, carriers All carriers. the

try to And them. doing. stay close we so they're to what And

With time respect to an impact, I tell. think, will

the has displacement hype around think I I reasons. we're the mean, hype I tied that broadband cycle, you so hearing of used sense buts the good -- all kind in just although, down, down. a lot of died very and and as think, those that for word cycle

I that everything good mobile whether cable, in everything think be there Whether But heading. know you is we where good as a thing technologists, we one talk experience, in you're it you're That's migrates experience. period. whether fiber-to-the-prem wireline, in you're to is common hear. will to -- wireless,

And smarter others much to, is if it I than that others are we and case, due believe which that the is am.

We are at position. a very good

on So we look, impacts see our eye we'll obviously, -- And we'll keep if it. coming.

we've that We'll responsible know. everything are I And the we transparent impact. we right about will, market making do. we now, not but about, been we And let are seeing an sure very think

if we with actually or Hawaii. do it in in seems you negative. we'll both see than actually seeing anything. Cincinnati apprised, on here when we right of positive side, wholesale carriers, a and And good conversations lot But the We're more now, keep

you. Thank

Thanks,

UBS. next gentlemen, Batya ladies And will from to and Levi go we

we when piece that with a line In on maybe just now. to of Great, we expect you the top can strategic of quarter there? down, sustainable a take a And mix the to on basis? think focus thank do you. get growth to E&C, Can lot improvement legacy,

dislocation you get intercom versus of think And about margins levels strategically? you maybe our your the the talk structural Any about can't improve. started private lastly, would assets second in to question, of money. public some Thank How you. have why XX%? Cincinnati it as And differences, to

go of reverse. in sort We'll

Then asset strategic off the I'll it So, answer to hand I'll question. folks.

-- we've like great in I done we've responsibly. as as a about, invested look, got team the good years. we've very the you XX On strategic been We've assets period. think this investing We've asset And job for if right think invested over -- ways.

We've think, -- I things. the right done

I results think, so, And the that. show

show to good that, have show really not assets. I it And think companies. not superior just continue to I two think, just developed, that. they to one will And continue we we've me but good will company,

one complementary both they another. And are very to

is efficient the And as I'm so, it think there markets attraction aren't there. Street right. yes there in you're it. and seen public But an is markets aren't short-term, now. right seeing I not the And Wall is, always aware aware,

that. realize we And

be for anything, fashion. you just so, And And just mid right have feel what is doing and jerk long-term. keep a do and company patient you the to not in knee

As seeing great and execute. we structural long you're the answer Tom, that are question? But I think, I developing think, you obviously, to asset assets. we'll on great to to so bucket. the, and we results focus And want continue as seeing, have we're Hawaii we'll continue

From you other at and in get undersold team inventory we levels, Ultimately, historical And service and when focus on we standpoint, to Yeah. in Hawaii I absolutely and Cincinnati the can penetration. the islands, the Oahu that have, the believe the ARPUs delivery up in analyzing both integration. sales. look

are an in year-over-year Team prove job. immense to They even have is every you fiber-to-the-prem, that And doing we see month. continuing growth.

being I'm very sustainable. that So, confident,

has environment, that mean, the making the really sure focused in X% teams really you been operations Hawaiian and increased mix for on, year everyone the that the in And set make team, that we're is operationally the even fiber-to-the-prem. other, making I success. by know with they've educate team each penetration start sure to talking, together, with the we getting to team aligned Batya we sure Yeah. working that

the customers, it's we're want you begun that things because make the all and legacy want do pretty to operations it answer and confident. in beginning, the part? sure happen Andy, overnight, to doesn't consumer but for So your responsible you're doing it's you right the

Hi, Batya. Sure.

Hi.

over as has and years to offsetting referring now that made So us decline. the fiber it we've investment to you're the roughly call key know past legacy in been what you ongoing XX as strategic

As and mentioned, of and Fioptics growth that's from across all modest business into future, coming growth, fiber. look in we the our the Leigh legacy a in when with. see growth, We we but units our deal XX% Hawaii still it's to XX%. and XX% bit in to more In Cincinnati, revenue obviously legacy of have probably related of bit still a investment more is

to continue to against see see we'll strategic a we're growth so legacy offset legacy our and the again offset into beyond. the And to growth, able large growth future, but continue that's we will and that of in where modest XXXX portion

way thing predict. completely happen, tend come only you Batya I you to And today, a things think different you is company. you assets we've or expand from where that good when good are we we've add the where about things that I'd mean, your Okay. and that we are grow expanded, and grown expect to we

across North reach a have We America.

and those good networks. cycle. doing lot going in we We're businesses it I I'll the that in we that mentioned ways as of we're as see the tailwinds about right just We're a have to see in starting things now, but creates talk than the business phrase right doing headwinds see our right right things now. that a expansion We networks the not -- more and in the for two benefit we We're virtuous customers. And to locations. that are investing for earlier,

very and are good So comfortable. happening, things we're

helpful. Thank Yeah. you. That's very

last David our America. Barden from question take Bank we'll And from of

squeezing Appreciate for Hi, guys. me it. Thanks in.

quarter think the cost in obviously, the of you that price hikes was So, sequential highlight and and reductions. EBITDA as guys I growth, the a framed function

looks that a From kind price price and into tailwind? little about quarter talk we how talk little second that So of you could standpoint, half? bit hikes create the that phased kind can third when and a in about the hike could of to a rolling see we incremental and bit of in the what

where in second would I of kind Second, cost and is they third continue that related controls you. the that price the churn has place kind implemented some metrics be fallout structural they the that impact of from half? hike piece are kind the or Thank through there will then platform more in been would any there half? And that GE over on second to program guess of were

get hikes. a way say actually pricing more price Thanks hike of standpoint it, we specifics But we're think David. a would better doing I'll let about less the to on into Andy have I historically. from timing than of that, done

there, I'll So start right.

So related what GE price thing. other was the isn't And not to it seeing on hikes. or just specifically you're to any cost side,

of sort We -- a a managing have of are we confident costs. constant program

quarter. can industry, business do you every every As something month imagine every the do it's that you in it's just and in what the we're and day, in, you

so from expect And past and consistently. benefit it see you've seen us should in the you a forward going very as I would and I think

sort know you drove incremental or quarter. hikes the price price the for some think of increase a boost don't I So

half our As second I guidance. first very half mentioned, mean, to in I'm I confident

second in do you a see the the you're So math to half. raise just going and

of lot at the say lot I So, doing a that been expectation. I just thing have good would And look to think we're good doing we of things. a things.

Street When is Some into things we number quarterly that the naturally of that's that wrong seasonality of how line Wall we not the as gets business. and kind take things folks, of the a it and see to some folks talk just tend straight business. a to come

year. shifts year typically how ebb of depending the the on things doesn't. is If third hardware quarter, from end every typically the of is quarter to can lower. to the hardware, of and best as year from It quarter quarter depending and first beginning our fourth quarter So second on first doesn't, to quarter it flow be lowered,

low, Second quarter moves it of universities. because think is traditionally, fairly I out

have And trends so, to build these you in.

the the -- think do way think all things. the right we about I continue So I business to

up seasonality, kind quarterly the planning? but see into into of You we're want to right. slightly go you around Andy, trending specifics

Sure.

take So to have I growth. David, we Leigh, them. things I We'll think cost most out We've I around I'll -- first continually of VSPs your mentioned years. sequential the continue I'll had talk highlighted. several past would the think have that the business. of question about, EBITDA But

to years. continues, So year one-time event. annual into not and point, even a It lease a subsequent obviously, it's throughout quarterly the or

we've from beyond, to we that We'll and So staged year. signed where out VSP been to coming year fiber. individuals of throughout XXXX do got as in that and continue migrate up to we see this for appropriate continue the that legacy have

of As phased really roughly, that's it with closely kind relates bill increase. more being was -- as and the in spectrum the have April is Cincinnati we And Hawaii, speak, in of just market. in folks thing doing timing most aligning to the it price would kind Hawaiian was hit we're there cycle. in

Hawaii historically, despite superior think under been I asset. the significantly has

are headwinds So again, downstream. a we these these anticipate go-forward on represent one-time aren't We feel things and tailwinds. that basis that down quarter would current that

Andy, And from quick, the hikes? April launch of the as of there any a just follow-up price really kind churn of ramifications

look, we've look on closely need No. And I manage don't a at do we our that, this, we manage we we but it's Leigh effectively a really board. touched what can to Obviously we invested think bring as critical on year ensure this lot that lose and to subscribers have to base. asset, as a taken to

and customer value lifetime in analyze life, we the a milestones dividends. So as subscriber really paying perspective certain approach from we it's

type as a So we of result churn price spike increase. in of any the not seen have other

see it I think you numbers to. David, Yeah.

see fiber churn across side improvements churn in look at year-over-year, I will you If the you on think board. the

want legacy think, even flat and to in side. say relatively the I I

we've mentioned flow -- in as mentioned, and focused. Andy the So this are I past, we we're cash think

part -- so that. of churn big is And the part cash flow a of is

to customer, that a If creates and to cash that and spend not happy flows you can CapEx keep a customer virtuous that and roll that take in to to new not flow, truck have cash keep network. have the can them a you cycle invest

that's So focused working to be well. it what on we're seems and really

it. Great, thanks. Appreciate

Thank you.

you. Thank

Executive any questions Chief there like Leigh conference And over are for I time. to back the would to Officer, turn remarks. closing this further no at Fox

a and Thanks again appreciate quarter, next We forward Bell. today. your everyone lot. everyone continued for joining to support Cincinnati look speaking we Thanks in us

conference. Appreciate today's concludes participation. that again Once you

disconnect. now may You