U.S. Cable Business Drives Altice's Quarterly Earnings
"We are very pleased with our performance so far," says Altice USA CEO Dexter Goei.
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, has reported better second-quarter financials, driven by its U.S. operations.
Altice's adjusted earnings before interest, taxes, depreciation and amortization, the profitability metric the company uses, for the period increased 6.9 percent to €2.4 billion ($2.8 billion) on a 2.7 percent revenue gain to €6.0 billion ($7 billion).
Altice USA, led by CEO Dexter Goei, posted adjusted earnings of $994 million, up 21.9 percent. Its revenue rose 2.9 percent, or 3.2 percent when excluding newspaper Newsday, to $2.3 billion. Its net loss rose from $282 million to $475 million driven by expenses associated with the removal of debt.
Altice USA last month went public. The company's Suddenlink systems reported a 3.8 percent revenue improvement, while the former Cablevision markets, now known under the Optimum brand, posted a 2.9 percent increase, excluding Newsday. Adjusted earnings at Optimum rose 28.6 percent, while Suddenlink saw an improvement of 9.5 percent.
Suddenlink lost 25,000 pay TV subscribers in the latest quarter, the same amount recorded in the year-ago period, while Optimum lost 12,000, compared with a 2,000 drop in the year-ago period.
"We are very pleased with our performance so far and look forward to continuing to build the company for the long-term," said Goei. "The second quarter was also marked by the successful execution of Altice USA's initial public offering, which provides the company with greater flexibility and strategic optionality operating in a competitive industry."
Analysts have said the company could use its stock to make more acquisitions down the line.