WideOpenWest, Inc. (WOW) Bundle
A Brief History of WideOpenWest, Inc.
WideOpenWest, Inc. (WOW) has undergone significant transformations throughout its history, particularly in the past few years. The company, which provides broadband services, has faced various challenges and opportunities in the competitive telecommunications market.
Financial Performance Overview
As of September 30, 2024, WOW reported total revenue of $158.0 million for the third quarter, a decrease from $173.1 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $478.3 million, down from $517.9 million year-over-year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $158.0M | $173.1M | $478.3M | $517.9M |
| Net Loss | $(22.4)M | $(104.5)M | $(48.2)M | $(244.2)M |
| Basic Loss per Share | $(0.27) | $(1.29) | $(0.59) | $(2.99) |
Operational Challenges and Strategic Adjustments
In the latest financial reports, WOW experienced a 9% decline in total subscription revenue during Q3 2024, largely attributed to a shift in service offering mix and a decrease in volume across all services. The residential subscription revenue for Q3 2024 was $117.4 million, compared to $132.1 million in Q3 2023.
Operating expenses (excluding depreciation and amortization) decreased to $62.6 million in Q3 2024 from $75.6 million in Q3 2023, reflecting a more efficient cost structure. The company has focused on reducing direct operating expenses, particularly programming expenses, which decreased by $9.2 million.
Debt and Financial Obligations
As of September 30, 2024, WOW's total debt amounted to $973.0 million. The company has entered into multiple interest rate swap agreements to manage its exposure to variable rates, effectively fixing the SOFR-based index on a portion of its debt at an average of 4.3%.
In terms of liquidity, WOW reported cash and cash equivalents of $21.6 million at the end of Q3 2024, with net cash provided by operating activities amounting to $132.8 million for the nine months ended September 30, 2024, compared to $90.4 million for the same period in 2023.
Recent Developments and Future Outlook
In late September 2024, WOW incurred damage to its network infrastructure due to Hurricane Helene, leading to an estimated $2.4 million write-down of damaged fixed assets. The company continues to evaluate the full impact of this event on its operations and financials.
Overall, WOW is strategically managing its capital expenditures, which were $164.1 million for the nine months ended September 30, 2024, down from $188.3 million in the prior year. The focus remains on maintaining and expanding its network while addressing operational efficiencies to enhance financial performance moving forward.
A Who Owns WideOpenWest, Inc. (WOW)
Ownership Structure
As of 2024, WideOpenWest, Inc. (WOW) has a total of approximately 84.76 million shares outstanding. The shares are held by various institutional and individual investors, with significant ownership by institutional investors.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | Approximately 48 million | 56.6% |
| Individual Investors | Approximately 36.76 million | 43.4% |
Top Institutional Shareholders
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 10.5 million | 12.4% |
| BlackRock, Inc. | 9.8 million | 11.5% |
| State Street Corporation | 8.0 million | 9.4% |
| Invesco Ltd. | 7.2 million | 8.5% |
| Other Institutional Investors | 12.5 million | 14.7% |
Financial Overview
As of September 30, 2024, WideOpenWest reported a net loss of $22.4 million for the quarter. The company has experienced a decline in total revenue, with revenues reported at $158.0 million compared to $173.1 million in the same quarter of the previous year.
Stock Performance
The stock price of WOW has seen fluctuations in 2024. The market capitalization as of the latest reports stands at approximately $258.2 million.
Debt Obligations
WOW's total outstanding debt is approximately $973.0 million as of September 30, 2024, with a cash balance of $21.6 million available for operations and obligations.
Recent Developments
The company has faced operational challenges, including a significant increase in interest expenses, which rose to $31.6 million for the third quarter of 2024, primarily due to higher overall debt balances.
Market Position
As of September 30, 2024, WOW serves approximately 490,500 total subscribers, which represents a decline from previous periods.
Conclusion of Ownership Analysis
WideOpenWest's ownership structure reflects a substantial presence of institutional investors, which contributes to its strategic direction and operational stability. The financial metrics indicate ongoing challenges, particularly in revenue generation and profitability, amidst a competitive landscape.
WideOpenWest, Inc. (WOW) Mission Statement
Company Overview
WideOpenWest, Inc. (WOW) is a broadband services provider that focuses on delivering high-speed internet, video, and telephony services. As of 2024, WOW operates primarily in the United States, serving residential and business customers with a commitment to enhancing the customer experience through reliable services and innovative technology.
Mission Statement
WOW's mission is to deliver high-quality broadband services that enhance the lives of customers and empower businesses. They aim to provide innovative solutions that connect communities, foster growth, and create value for their stakeholders.
Core Values
- Customer Focus: WOW prioritizes customer satisfaction and strives to exceed expectations in service delivery.
- Innovation: The company is committed to continuous improvement and the adoption of new technologies to enhance service offerings.
- Community Engagement: WOW actively participates in community development and supports local initiatives.
- Integrity: The company operates with transparency and honesty in all interactions with customers, employees, and stakeholders.
Financial Performance
As of September 30, 2024, WOW reported the following financial metrics:
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Revenue | $158.0 million | $173.1 million | -8.7% |
| Net Loss | $(22.4) million | $(104.5) million | 78.6% |
| Basic Loss per Share | $(0.27) | $(1.29) | 79.0% |
| Cash and Cash Equivalents | $21.6 million | $X million | N/A |
Service Offerings
WOW offers a variety of services aimed at both residential and business customers:
- Residential Services: High-speed internet, video services, and home phone services.
- Business Services: Internet, phone, and data center services tailored for small to medium-sized businesses.
Recent Developments
In 2024, WOW has focused on enhancing its network infrastructure and expanding service areas. Key developments include:
- Completion of network upgrades in multiple markets.
- Introduction of new promotional packages to attract new customers.
Market Position
As of September 30, 2024, WOW has reported the following operational metrics:
| Operational Metric | 2024 | 2023 |
|---|---|---|
| Homes Passed | 1,952,200 | 1,932,200 |
| Total Subscribers | 490,500 | 504,100 |
| Total RGUs | 620,600 | 660,400 |
Future Outlook
WOW aims to continue expanding its service offerings and improving customer satisfaction while managing operational efficiencies. The company plans to leverage technological advancements to enhance service delivery and reduce costs.
How WideOpenWest, Inc. (WOW) Works
Company Overview
WideOpenWest, Inc. (WOW) is a broadband services provider that operates in the telecommunications industry, focusing on delivering high-speed internet, video, and telephony services to residential and business customers across various U.S. markets.
Financial Performance
As of September 30, 2024, WOW reported the following financial metrics:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $158.0 million | $173.1 million | $478.3 million | $517.9 million |
| Operating Expenses (excl. depreciation and amortization) | $62.6 million | $75.6 million | $194.7 million | $229.3 million |
| Selling, General and Administrative | $37.9 million | $37.5 million | $112.1 million | $166.6 million |
| Depreciation and Amortization | $55.2 million | $49.4 million | $160.3 million | $141.6 million |
| Net Loss | ($22.4 million) | ($104.5 million) | ($48.2 million) | ($244.2 million) |
Subscriber Metrics
As of September 30, 2024, WOW reported the following subscriber metrics:
| Metric | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|---|---|
| Homes Passed | 1,952,200 | 1,956,700 | 1,948,500 | 1,932,200 | 1,905,600 |
| Total Subscribers | 490,500 | 495,200 | 500,700 | 504,100 | 517,400 |
| HSD RGUs | 480,600 | 485,000 | 489,700 | 490,100 | 503,400 |
| Video RGUs | 66,300 | 71,600 | 79,300 | 90,800 | 100,800 |
| Telephony RGUs | 73,700 | 75,700 | 77,700 | 79,500 | 82,700 |
Capital Expenditures
For the nine months ended September 30, 2024, WOW incurred capital expenditures as follows:
| Expenditure Type | Amount (in millions) |
|---|---|
| Scalable Infrastructure | $58.2 |
| Customer Premise Equipment | $54.4 |
| Support Capital and Other | $26.6 |
| Line Extensions | $24.9 |
| Total Capital Expenditures | $164.1 |
Debt and Liquidity
As of September 30, 2024, WOW's total debt and liquidity position was as follows:
| Debt Type | Outstanding Balance (in millions) | Effective Interest Rate |
|---|---|---|
| Term B Loans | $706.4 | 7.60% |
| Revolving Credit Facility | $245.0 | 7.69% |
| Total Long-Term Debt | $951.4 | |
| Cash and Cash Equivalents | $21.6 |
Operational Highlights
WOW's operational strategies focus on maintaining a robust network infrastructure and providing competitive services. Key operational highlights include:
- Ongoing capital expenditures aimed at network maintenance and upgrades.
- Strategic initiatives to improve customer acquisition and retention.
- Focus on managing operational costs while enhancing service quality.
Market Challenges
WOW faces several challenges in the broadband services market:
- Intense competition from other broadband providers.
- Need to manage increasing programming costs and regulatory expenses.
- Economic pressures affecting consumer spending on discretionary services.
How WideOpenWest, Inc. (WOW) Makes Money
Revenue Streams
WideOpenWest, Inc. (WOW) generates revenue primarily through its subscription services, which include High-Speed Data (HSD), Video, and Telephony. As of September 30, 2024, the company reported total revenue of $158.0 million for the third quarter, a decrease from $173.1 million in the same period of 2023.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Residential Subscription | $117.4 | $132.1 | $356.9 | $395.9 |
| Business Subscription | $28.6 | $28.2 | $84.6 | $84.2 |
| Other Business Services | $4.5 | $5.4 | $14.8 | $15.7 |
| Other Revenue | $7.5 | $7.4 | $22.0 | $22.1 |
| Total Revenue | $158.0 | $173.1 | $478.3 | $517.9 |
Subscription Revenue Breakdown
Subscription revenue is a key driver of WOW's income, accounting for approximately 92% of total revenue in the first nine months of 2024. The breakdown of subscription revenue indicates a shift in service offering mix and a decrease in total subscribers.
| Service Offering | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| HSD | $87.5 | $90.8 | $260.1 | $265.6 |
| Video | $25.5 | $36.1 | $83.1 | $114.0 |
| Telephony | $4.4 | $5.2 | $13.7 | $16.3 |
| Total Subscription Revenue | $117.4 | $132.1 | $356.9 | $395.9 |
Cost Structure
WOW's expenses consist of operating costs, selling, general, and administrative expenses, as well as depreciation and amortization. For the third quarter of 2024, total costs amounted to $155.7 million, down from $294.2 million in Q3 2023.
| Cost Type | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Operating Expenses (excl. D&A) | $62.6 | $75.6 | $194.7 | $229.3 |
| Selling, General & Administrative | $37.9 | $37.5 | $112.1 | $166.6 |
| Depreciation & Amortization | $55.2 | $49.4 | $160.3 | $141.6 |
| Total Costs | $155.7 | $294.2 | $467.1 | $797.3 |
Net Income and Loss
As of September 30, 2024, WOW reported a net loss of $22.4 million for the third quarter, compared to a loss of $104.5 million in Q3 2023. The company's net loss for the nine-month period in 2024 was $48.2 million, down from $244.2 million in the same period of 2023.
| Period | Net Loss (in millions) | Basic Loss per Share | Diluted Loss per Share |
|---|---|---|---|
| Q3 2024 | $22.4 | $(0.27) | $(0.27) |
| Q3 2023 | $104.5 | $(1.29) | $(1.29) |
| YTD 2024 | $48.2 | $(0.59) | $(0.59) |
| YTD 2023 | $244.2 | $(2.99) | $(2.99) |
Subscriber Metrics
As of September 30, 2024, WOW reported a total of 490,500 subscribers across its service offerings, with a decline in revenue-generating units (RGUs) across HSD, Video, and Telephony services.
| Metric | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 |
|---|---|---|---|---|
| Homes Passed | 1,952,200 | 1,956,700 | 1,948,500 | 1,932,200 |
| Total Subscribers | 490,500 | 495,200 | 500,700 | 504,100 |
| Total RGUs | 620,600 | 632,300 | 646,700 | 660,400 |
Capital Expenditures
WOW invests in its infrastructure to maintain and expand its service capabilities. For the nine months ended September 30, 2024, capital expenditures were reported at $164.1 million, a decrease from $188.3 million in the same period of 2023.
| Expenditure Type | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|
| Scalable Infrastructure | $58.2 | $44.7 |
| Customer Premise Equipment | $54.4 | $48.3 |
| Support Capital and Other | $26.6 | $38.2 |
| Line Extensions | $24.9 | $57.1 |
| Total Capital Expenditures | $164.1 | $188.3 |
WideOpenWest, Inc. (WOW) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- WideOpenWest, Inc. (WOW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WideOpenWest, Inc. (WOW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View WideOpenWest, Inc. (WOW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.