Altice USA, a cable giant, experienced a continued decline in video subscribers during the third quarter, although at a slightly slower pace. This decline in subscribers resulted in lower overall revenues for the company. In the three months leading up to September 30, 2023, Altice USA lost 77,600 video subscribers, a decrease from the loss of 84,500 video customers in the same period of the previous year. However, despite the decline in subscribers, the company still reported net income attributable to shareholders of $66.8 million for the latest quarter, down from $85 million in the third quarter of 2022.
The decrease in revenue was primarily due to a 3 percent fall in overall revenues, totaling $2.32 billion. Residential revenue also declined by 3.4 percent year-on-year, reaching $1.83 billion during the third quarter. This decline can be attributed to the loss of higher revenue-generating video subscribers.
Altice USA is a major cable provider, serving approximately 5 million residential and business cable customers across 21 states in the United States through its Optimum brand. However, the company’s recent financial performance has raised concerns.
During an after-market analyst call, Altice USA is expected to provide an update on a corruption investigation that took place in its European operations, particularly in Portugal, where a fraud probe was launched. Additionally, a probe into Altice USA is being conducted to assess any potential cross-Atlantic impact. As a result of the European investigation, Altice USA’s chief procurement officer, Yossi Benchetrit, was placed on leave and ultimately departed from the company. Jennifer Yohe, a former executive at Comcast, has taken over as the new chief procurement officer.
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In light of the ongoing internal investigation into unlawful business practices, Altice USA is also evaluating its supplier and vendor relationships. Some fiber capital upgrade expenditures have been put on hold until the investigation is complete.
Despite these challenges, Altice USA remains committed to serving its customers and finding ways to adapt to the evolving landscape of the cable industry. The company understands the importance of retaining and attracting subscribers, and it continues to explore strategies to improve customer retention and satisfaction.
Altice USA’s future success will likely depend on its ability to navigate the current investigation and address any potential issues. By prioritizing transparency and ethical business practices, the company can rebuild trust with customers and stakeholders. Additionally, Altice USA will need to focus on staying competitive in the ever-changing cable market by offering innovative and compelling services to attract new subscribers.
As Altice USA moves forward, it will be crucial for the company to leverage its resources and expertise to identify growth opportunities and strengthen its position in the industry. By investing in technological advancements and prioritizing customer experience, Altice USA can overcome these challenges and deliver value to its shareholders and customers alike.
