Altice USA, a leading U.S. cable giant, experienced a small decline in video subscribers during the second quarter of this year. Despite this, the company’s earnings for the quarter dropped, aligning with Wall Street’s expectations.
During the three months ending on June 30, 2023, Altice USA lost 68,300 video subscribers. While this is a decline, it is an improvement compared to the loss of 84,500 subscribers in the same period last year. The company’s net income for the second quarter totaled $78.3 million, down from $106.2 million in the second quarter of 2022.
Altice USA’s overall revenue for the quarter decreased by 5.6 percent to $2.32 billion. The Zack Consensus Estimate had predicted a slightly higher revenue of $2.33 billion, reflecting a 5.4 percent decline from the previous year. Residential revenue also followed a similar trend, falling 5.7 percent year-on-year to $1.84 billion.
Operating under the Optimum brand, Altice USA offers internet broadband, video, and mobile phone services to approximately 5 million residential and business customers across 21 states in the U.S. In addition to this, the company owns various news networks such as News 12, Cheddar News, and i24NEWS, providing national, international, and business news content.
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CEO Dennis Mathew expressed satisfaction with the company’s progress, highlighting their commitment to becoming the preferred connectivity provider in all the communities they serve. Mathew emphasized the operational and financial improvements achieved during the second quarter, particularly in customer experience and field operations, leading to higher customer satisfaction metrics and reduced call volume and service visits.
Similar to other cable TV companies, Altice USA faces a growing challenge from cord-cutting, as more viewers opt for streaming services like Netflix. In terms of broadband internet, Altice USA managed to reduce their net losses to 37,000 customers during the latest quarter, compared to 39,000 losses in the same period of 2022.
During an analyst call, Mathew addressed an ongoing corruption investigation at Altice’s operations in Europe, specifically in Portugal, where a fraud probe is underway. To respond to these circumstances, Altice USA has initiated its own investigation. Consequently, the company’s chief procurement officer, Yossi Benchetrit, has left the company after being placed on leave. Jennifer Yohe, a former executive at Comcast, has been appointed as the new chief procurement officer. Altice USA is currently reviewing its supplier and vendor relationships and has temporarily paused some fiber capital upgrade expenditures until the internal investigation is completed. Mathew emphasized the company’s commitment to conducting business with the highest integrity and prioritizing the interests of shareholders, customers, and employees.
Mathew did not address the media reports regarding a possible sale of Cheddar News, a streaming news channel acquired by Altice USA for $200 million in 2019. He stated that the company is focused on executing and driving its strategy across all lines of business and would not comment on rumors or press speculation.
In conclusion, Altice USA experienced a slight decline in video subscribers during the second quarter of this year. However, the company’s earnings were in line with expectations, and they remain committed to providing excellent service to their customers while upholding the highest standards of integrity. Altice USA continues to navigate the challenges posed by cord-cutting and is actively investigating and addressing any issues that arise within its operations.
