Altice USA Inc
NYSE:ATUS
Altice USA Inc
Altice USA Inc. has woven itself into the fabric of American telecommunications, establishing a formidable presence through a series of strategic acquisitions and an unyielding focus on connectivity. Born from the ambitious vision of Patrick Drahi, a billionaire entrepreneur with a knack for turning undervalued assets into profitable ventures, Altice USA emerges as a major player in the broadband, television, and telecom sectors. It primarily serves residential and business customers throughout the Eastern Seaboard and beyond. The company's growth trajectory was bolstered by the acquisition of Cablevision Systems Corporation and Suddenlink Communications, which positioned Altice to provide extensive broadband internet, cable TV, and voice services. This patchwork of services, delivered under brands like Optimum and Suddenlink, underscores its strategy of bundling offerings to enhance customer retention and generate steady revenue streams.
Underpinning Altice USA's business model is its investment in advanced fiber networks, designed to meet the escalating demand for high-speed internet. The company's revenues are largely driven by subscription fees for these services, with pricing structures that offer varying speeds and packages tailored to customer needs. Advertising sales also constitute a significant portion of its income, leveraging the expansive reach of its network footprint to attract advertisers. Additionally, Altice Business provides enterprise solutions, delivering data, voice, and managed services to large businesses and governmental entities. This diverse revenue model, rooted in both consumer and business offerings, allows Altice to capitalize on an ever-growing appetite for connectivity in a digital age that increasingly depends on robust, reliable internet access.
Altice USA Inc. has woven itself into the fabric of American telecommunications, establishing a formidable presence through a series of strategic acquisitions and an unyielding focus on connectivity. Born from the ambitious vision of Patrick Drahi, a billionaire entrepreneur with a knack for turning undervalued assets into profitable ventures, Altice USA emerges as a major player in the broadband, television, and telecom sectors. It primarily serves residential and business customers throughout the Eastern Seaboard and beyond. The company's growth trajectory was bolstered by the acquisition of Cablevision Systems Corporation and Suddenlink Communications, which positioned Altice to provide extensive broadband internet, cable TV, and voice services. This patchwork of services, delivered under brands like Optimum and Suddenlink, underscores its strategy of bundling offerings to enhance customer retention and generate steady revenue streams.
Underpinning Altice USA's business model is its investment in advanced fiber networks, designed to meet the escalating demand for high-speed internet. The company's revenues are largely driven by subscription fees for these services, with pricing structures that offer varying speeds and packages tailored to customer needs. Advertising sales also constitute a significant portion of its income, leveraging the expansive reach of its network footprint to attract advertisers. Additionally, Altice Business provides enterprise solutions, delivering data, voice, and managed services to large businesses and governmental entities. This diverse revenue model, rooted in both consumer and business offerings, allows Altice to capitalize on an ever-growing appetite for connectivity in a digital age that increasingly depends on robust, reliable internet access.
Revenue & Declines: Altice USA’s Q3 revenue declined 5.4% year-over-year to $2.1 billion, mainly due to ongoing video subscriber losses, though mobile and other new products posted strong growth.
Margin Expansion: Gross margin hit a record 69.7%, and EBITDA margin improved to 39.4%, with management highlighting significant cost savings and efficiency gains.
Impairment Charge: The company took a $1.6 billion noncash impairment charge on cable franchise rights due to persistent competitive and macro challenges.
Broadband Pressure: Net broadband subscriber losses widened to 58,000, as fierce competition and aggressive promos from rivals intensified, especially in September.
Outlook Reaffirmed: Management reaffirmed full-year guidance for $3.4 billion adjusted EBITDA and $8.6 billion in revenue, implying a strong expected Q4 ramp.
Cost Discipline: Operating expenses fell by 2.4% year-over-year, with further reductions expected; workforce was reduced by 5% without impacting customer service.
Strategic Shifts: Focus remains on higher-value customers, new video and mobile products, and evolving go-to-market strategies rather than chasing low-value volume.
Brand Change: The company will change its name to Optimum Communications and update its stock ticker to OPT in November.
