Altice USA, Inc. (ATUS) Bundle
A Brief History of Altice USA, Inc.
As of 2024, Altice USA, Inc. operates as a leading telecommunications and media company in the United States. The company was founded in 2016 following the acquisition of Cablevision Systems Corporation by Altice N.V. The acquisition was valued at approximately $17.7 billion and aimed to expand Altice's presence in the U.S. cable industry.
Financial Performance
For the three months ended September 30, 2024, Altice USA reported revenues of $2,227.7 million, compared to $2,317.2 million for the same period in 2023. The operating income for the same period was $861.2 million, while the net income attributable to Altice USA stockholders was a loss of $42.97 million.
Stockholder's Deficiency
As of September 30, 2024, the total stockholders' deficiency for Altice USA amounted to $422.577 million. This figure includes:
| Category | Amount (in thousands) |
|---|---|
| Class A Common Stock | $2,779 |
| Class B Common Stock | $1,842 |
| Paid-in Capital | $225,467 |
| Accumulated Deficit | ($649,877) |
| Treasury Stock | ($10) |
| Accumulated Other Comprehensive Loss | ($7,313) |
| Total Altice USA Stockholders' Deficiency | ($427,112) |
| Non-controlling Interests | $4,535 |
| Total Deficiency | ($422,577) |
Debt Obligations
As of September 30, 2024, Altice USA's long-term debt stood at $24.778 billion. The company has various debt instruments including:
- Senior Guaranteed Notes totaling $10.710 billion
- Revolving Credit Facility of $1.700 billion
- Term Loan B amounting to $1.520 billion
Cash Flow Analysis
For the nine months ended September 30, 2024, Altice USA reported net cash flows from operating activities of $1,142.479 million, a decrease from $1,330.185 million in the same period of 2023. Capital expenditures for the same period were $1,042.975 million.
Customer Metrics
As of September 30, 2024, Altice USA had the following customer metrics:
| Metric | Value |
|---|---|
| Total Customer Relationships | 4,595,900 |
| Residential Customers | 4,217,500 |
| Average Revenue Per User (ARPU) | $135.77 |
| Total Passings | 9,784,700 |
Recent Developments
In January 2024, Altice USA issued $2.050 billion in senior guaranteed notes due January 31, 2029, with an interest rate of 11.750%. The proceeds were used to repay existing debt and meet other financial obligations.
A Who Owns Altice USA, Inc. (ATUS)
Ownership Structure
As of 2024, the ownership of Altice USA, Inc. (ATUS) is primarily divided among its Class A and Class B shareholders, with significant interests held by its parent company, CSC Holdings, LLC. The breakdown of ownership is as follows:
| Class of Stock | Shares Outstanding | Percentage of Ownership |
|---|---|---|
| Class A Common Stock | 460,626,000 | Approximately 49.56% |
| Class B Common Stock | 1,842,000 | Approximately 0.20% |
| Non-controlling Interests | 4,535,000 | Approximately 0.49% |
| Owned by CSC Holdings, LLC | 9,360,000,000 | Approximately 49.75% |
Major Shareholders
The largest shareholders of Altice USA include:
- CSC Holdings, LLC - Holds the majority of Class A shares.
- Institutional Investors - Includes various mutual funds and pension funds.
- Retail Investors - Individual shareholders holding Class A shares.
Financial Performance and Market Position
As of September 30, 2024, Altice USA reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income (Loss) | ($40,835,000) |
| Revenue | $6,379,353,000 |
| Total Assets | $25,052,672,000 |
| Total Debt | $23,627,982,000 |
Stock Performance
As of early 2024, the stock price of Altice USA (ATUS) has experienced fluctuations due to market conditions and company performance, with a notable decrease in broadband and video revenue impacting overall stock performance.
| Date | Closing Price | Market Capitalization |
|---|---|---|
| January 2, 2024 | $5.20 | $2.16 billion |
| March 31, 2024 | $4.75 | $1.95 billion |
| June 30, 2024 | $4.10 | $1.85 billion |
Recent Developments
Recent reports indicate that Altice USA has been focusing on restructuring its capital and operational strategies to improve profitability and enhance shareholder value. The company has faced challenges in customer retention and revenue generation from traditional services, leading to a strategic pivot towards enhancing its mobile services and business solutions.
Altice USA, Inc. (ATUS) Mission Statement
Overview of Mission Statement
Altice USA, Inc. aims to deliver high-quality telecommunications, entertainment, and news services while fostering innovation and enhancing customer experience. The company is committed to providing advanced broadband and video services to residential and commercial customers across the United States.
Financial Performance Indicators
As of September 30, 2024, Altice USA reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue (in thousands) | $2,227,700 | $2,317,200 | $(89,500) |
| Operating Income (in thousands) | $444,593 | $492,565 | $(47,972) |
| Net Income (Loss) (in thousands) | $(40,835) | $75,515 | $(116,350) |
| Adjusted EBITDA (in thousands) | $861,976 | $915,499 | $(53,523) |
Customer Metrics
As of September 30, 2024, Altice USA reported significant customer metrics:
| Metric | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Customer Relationships (in thousands) | 4,595.9 | 4,652.0 | 4,772.6 |
| Residential Customers (in thousands) | 4,217.5 | 4,272.3 | 4,391.5 |
| Average Revenue Per User (ARPU) | $135.77 | $135.95 | $138.42 |
Debt and Financial Obligations
As of September 30, 2024, Altice USA's outstanding debt was as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Credit Facility Debt | $6,493,136 |
| Senior Guaranteed Notes | $10,671,626 |
| Senior Secured Notes | $445,472 |
| Senior Notes | $6,586,850 |
| Total Debt | $25,052,672 |
Operational Highlights
In 2024, Altice USA made notable investments in capital expenditures totaling approximately $1,042,975 thousand for the nine months ended September 30, 2024, compared to $1,409,561 thousand in the same period of 2023.
The company also reported cash flows from operating activities amounting to $1,142,479 thousand for the nine months ended September 30, 2024, reflecting a decrease from $1,330,185 thousand in 2023.
Market Position and Strategy
Altice USA's strategic focus includes expanding its broadband and mobile services, improving customer retention, and enhancing technological capabilities to meet the growing demand for high-quality connectivity and entertainment services.
Recent Developments
In response to market challenges, Altice USA has been working to streamline operations and reduce costs while maintaining service quality. The company is also focusing on enhancing its digital platforms to better serve customers.
How Altice USA, Inc. (ATUS) Works
Overview of Operations
Altice USA, Inc. (ATUS) primarily operates in the telecommunications sector, providing broadband, video, and telephony services. The company serves residential and business customers through its fiber and hybrid fiber-coaxial (HFC) networks. As of September 30, 2024, Altice USA reported a total of 4,595.9 thousand customer relationships, a slight decrease from 4,772.6 thousand in the previous year.
Financial Performance
For the nine months ended September 30, 2024, Altice USA reported total revenue of $6,719.39 million, down from $6,935.45 million for the same period in 2023, representing a decline of $216.06 million. The operating income was $1,338.53 million compared to $1,399.68 million in 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Revenue | $6,719.39 million | $6,935.45 million |
| Operating Income | $1,338.53 million | $1,399.68 million |
| Net Income (Loss) | $(32.72) million | $192.83 million |
| Adjusted EBITDA | $2,574.91 million | $2,705.63 million |
Revenue Breakdown
Revenue streams for Altice USA include broadband, video, telephony, mobile services, business services, and news and advertising. The revenue from these segments for the three months ended September 30, 2024, is as follows:
| Revenue Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Broadband | $913.42 million | $961.75 million |
| Video | $715.12 million | $775.82 million |
| Telephony | $69.88 million | $73.64 million |
| Mobile | $30.56 million | $20.32 million |
| Business Services and Wholesale | $366.36 million | $366.85 million |
| News and Advertising | $117.68 million | $107.48 million | Other | $14.69 million | $11.34 million |
Cash Flow and Capital Expenditures
Altice USA's cash flow from operating activities for the nine months ended September 30, 2024, was $1,142.48 million, compared to $1,330.19 million in 2023. Capital expenditures for the same period amounted to $1,042.98 million, down from $1,409.56 million in the previous year.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $1,142.48 million | $1,330.19 million |
| Capital Expenditures | $1,042.98 million | $1,409.56 million |
Debt and Financing Activities
In 2024, Altice USA's financing activities included the repayment of debt totaling $3,891.18 million and new long-term debt proceeds of $3,875.00 million. As of September 30, 2024, the total liabilities amounted to $31,842.97 million.
Customer Metrics
As of September 30, 2024, Altice USA reported the following customer metrics:
| Customer Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Passings | 9,784.7 thousand | 9,609.0 thousand |
| Total Customer Relationships | 4,595.9 thousand | 4,772.6 thousand |
| Broadband Customers | 4,039.5 thousand | 4,196.0 thousand |
| Video Customers | 1,944.8 thousand | 2,234.6 thousand |
| Telephony Customers | 1,326.0 thousand | 1,572.7 thousand |
Market Position and Strategic Initiatives
Altice USA continues to focus on enhancing its broadband offerings and expanding its mobile services. The company has been investing in fiber infrastructure to improve service delivery and customer satisfaction. As a result, the average revenue per user (ARPU) for broadband services was $135.77 as of September 30, 2024.
| ARPU Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Average Revenue per User (Broadband) | $135.77 | $138.42 |
How Altice USA, Inc. (ATUS) Makes Money
Revenue Segments
Altice USA generates revenue through several key segments, primarily including:
- Residential Services
- Business Services and Wholesale
- News and Advertising
- Other Revenue Streams
Residential Services
Residential services account for a significant portion of Altice USA's revenue. The revenue breakdown for the three and nine months ended September 30, 2024, is as follows:
| Service Type | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Broadband | 913,417 | 961,751 | 2,745,400 | 2,884,661 |
| Video | 715,117 | 775,818 | 2,210,156 | 2,321,557 |
| Telephony | 69,877 | 73,640 | 212,545 | 227,390 |
| Mobile | 30,563 | 20,320 | 82,935 | 53,993 |
| Total Residential Revenue | 1,728,974 | 1,831,529 | 5,251,036 | 5,487,601 |
Business Services and Wholesale
Business services and wholesale revenue is derived primarily from fiber-based telecommunications services. The revenue for the three and nine months ended September 30, 2024, is detailed below:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Business Services and Wholesale | 366,355 | 366,852 | 1,100,506 | 1,095,197 |
News and Advertising Revenue
Revenue from news and advertising is primarily derived from advertising inventory and digital advertising. The revenue for the three and nine months ended September 30, 2024, is as follows:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| News and Advertising | 117,682 | 107,484 | 328,687 | 319,686 |
Other Revenue
This includes revenue from mobile equipment sales and other minor revenue streams. The revenue figures for the three and nine months ended September 30, 2024, are:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Other Revenue | 14,689 | 11,335 | 39,161 | 32,968 |
Total Revenue
Combining all revenue sources, Altice USA's total revenue for the three and nine months ended September 30, 2024, is:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Total Revenue | 2,227,700 | 2,317,200 | 6,719,390 | 6,935,452 |
Operating Expenses
Operating expenses include programming, direct costs, and other operating expenses. The breakdown for the three and nine months ended September 30, 2024, is as follows:
| Expense Type | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Programming and Other Direct Costs | 711,330 | 750,538 | 2,174,677 | 2,284,537 |
| Other Operating Expenses | 674,564 | 667,278 | 2,019,356 | 1,974,651 |
| Depreciation and Amortization | 386,342 | 402,366 | 1,170,503 | 1,237,283 |
| Total Operating Expenses | 1,772,236 | 1,820,182 | 5,364,536 | 5,496,471 |
Net Income
Net income (loss) attributable to Altice USA stockholders for the three and nine months ended September 30, 2024, is as follows:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Net Income (Loss) | (42,970) | 66,839 | (109,809) | 171,004 |
Adjusted EBITDA
Adjusted EBITDA figures for the three and nine months ended September 30, 2024, are:
| Period | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) |
|---|---|---|---|---|
| Adjusted EBITDA | 861,976 | 915,499 | 2,575,708 | 2,705,632 |
Cash Flow Analysis
Net cash flows from operating activities for the nine months ended September 30, 2024, were $1,142,479, compared to $1,330,185 for the same period in 2023, indicating a decrease in operational cash flow.
Capital expenditures for the same period were $1,042,975 in 2024 compared to $1,409,561 in 2023.
Debt Management
For the nine months ended September 30, 2024, total repayments of debt amounted to $3,891,175, while proceeds from long-term debt were $3,875,000.
Interest expense for the nine months ended September 30, 2024, was $1,328,264, compared to $1,216,203 in the same period of 2023, reflecting a higher cost of borrowing.
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Resources:
- Altice USA, Inc. (ATUS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Altice USA, Inc. (ATUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Altice USA, Inc. (ATUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.