Altice USA publishes revenue below expectations – 03/11/2022 at 13:23

(AOF) – Altice USA, the fourth cable operator across the Atlantic, announced a 7% drop in its turnover in the third quarter, to 2.39 billion dollars, below the Refinitiv consensus (2.45 billion ). In pre-market trading, the title fell 23.3%. Its quarterly earnings came in at $0.19 per share, below the consensus estimate of $0.34 per share. This figure compares to earnings of $0.58 per share recorded a year ago.

Altice USA reported revenue of $2.39 billion for the quarter ended September 20, 2022, a variance of 2.50% from Zacks consensus estimate. This figure compares to revenues of $2.57 billion the previous year. In the past four quarters, the company has exceeded consensus revenue estimates twice.

Free cash flow from operating activities was $629.2 million in the third quarter of 2022, compared to $698.3 million in the third quarter of 2021.

Adjusted EBITDA decreased 18.1% year-on-year in the third quarter to $954.4 million

“Although we are operating in a very competitive environment and beginning to feel some macro pressures in our industry, we are confident that we have the right strategy to return to sustainable growth,” said Dexter Goei, Executive Chairman of Altice USA. .


End of the price drop

Thanks to the price war, French consumers have benefited from internet prices that are among the lowest in Europe. But gradually, subscription prices are increasing. According to the telecoms authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for fixed. If the current inflationary context can explain this rise in prices, it is not the only reason. All players are indeed seeking to restore their margins. They have already succeeded in outsourcing part of their capital expenditure related to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they have to increase their income. This is an important issue in order to benefit from the development of their performance. Generating a satisfactory level of available cash (free cash flow) also allows them to benefit from attractive financing conditions, in a sector that requires substantial investments. Investments in the sector almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.

Source link -86