Altice’s Q1 Earnings Call: Our Top 5 Analyst Questions

Altice’s first quarter results showed continued challenges, as revenue declined and the company posted a larger-than-expected loss. Management attributed the downturn to ongoing subscriber losses, competitive pressures, and macroeconomic headwinds affecting customer affordability. CEO Dennis Mathew noted, “Our performance was driven by investments in customer and network experience, expansion of competitive and targeted go-to-market initiatives, and a focus on transforming our business.” The company also faced temporary impacts from two major programming negotiations, which led to customer credits and increased operating expenses.

Is now the time to buy ATUS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Altice’s Q1 Earnings Call

• Michael Rollins (Citi) asked about the impact of fiber competition and customer shifts toward value products. CEO Dennis Mathew acknowledged intense competition and highlighted new affordable offerings, but noted subscriber losses remain a challenge.
• Rob (Raymond James, for Frank Walton) inquired about the rollout and ramp of the low-end broadband product and mobile insurance attach rates. Management confirmed the product’s phased launch to 0.5 million homes and reported 10% penetration for mobile insurance.
• Jonathan Chaplin (New Street Research) questioned the pause in bondholder discussions and future debt management. CFO Marc Sirota reiterated that while no agreement was reached, the company feels comfortable with debt maturities through 2027.
• Craig Moffett (Moffett Nathanson) sought clarity on broadband pricing competitiveness and the effectiveness of new hyperlocal bundles. CEO Mathew emphasized improved pricing control and the ability to tailor offers, but noted ongoing work is needed.
• Samuel McHugh (BNP Paribas) asked about the risk of cannibalization from the new low-income offering and the timeline for Western market improvement. Mathew explained disciplined deployment to limit cannibalization and expects strategies to help improve trends over time.

Catalysts in Upcoming Quarters

Looking ahead, our analyst team will be monitoring (1) the pace of broadband subscriber stabilization, especially in Western markets, (2) the adoption and revenue contribution from new value-added services and fiber products, and (3) the effectiveness of cost control measures and digital transformation on margin trends. Progress on asset sales and further strategic portfolio changes will also be important signals of Altice’s execution.

Altice currently trades at $2.16, down from $2.64 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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