U.S. Cable Business Drives Altice First-Quarter Earnings

Altice CEO Dexter Goei Getty - H 2016
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Altice USA, led by CEO Dexter Goei, includes the former Cablevision and the company's Suddenlink holding and has been planning an initial public offering.

Altice Group, the European cable and telecom giant that last year acquired Cablevision Systems in a $17.7 billion deal and also controls smaller U.S. cable operator Suddenlink, on Wednesday reported better first-quarter financials, driven by its U.S. operations.

Altice's quarterly revenue rose 3.2 percent to 5.93 billion euros ($6.46 billion), with Altice USA, which is led by CEO Dexter Goei and which has been planning an initial public offering, outperforming that with a 7.4 percent gain, or 3.8 percent assuming constant currencies, to $2.31 billion.

The company's Suddenlink systems reported a 5.3 percent revenue improvement, while the former Cablevision markets, now known under the Optimum brand, posted a 3.2 percent increase.

Altice's first-quarter adjusted earnings before interest, taxes, depreciation and amortization rose 9.5 percent, or 7.5 percent assuming constant currencies, to 2.24 billion euros ($2.44 billion). That included a 30.7 percent gain for Optimum and 19.6 percent growth at Suddenlink on a constant currency basis to a combined $954 million.

"Altice USA continues to grow faster than Suddenlink and Optimum had been growing prior to our acquisitions of those businesses with improved margins driving significant cash flow growth for the group," said Altice CEO Michel Combes. "We continue to execute on our efficiency and investment targets, and we are very much looking forward to unlocking the next phase of growth."