Altice USA stock falls after poor third-quarter results

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Altice USAshares fell more than 20% and trading in the stock was briefly halted on Thursday after the company posted a weak earnings report.

Shares of the broadband, cable TV, wireless and telephone company tumbled on Wednesday’s earnings. report this net income and revenue fell as Altice lost subscribers and continued to spend heavily to roll out its fiber network.

Altice’s third-quarter net income fell to $85 million from about $267 million year-over-year. Diluted earnings per share fell to 19 cents from 58 cents last year.

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The company’s revenue fell 7% to $2.39 billion due to a decline in residential and commercial customers. Adjusted earnings before interest, taxes, depreciation and amortization decreased by 18% to $954.4 million compared to the previous year.

An Altice spokesperson said the company is not commenting on the stock’s move.

Cable TV providers saw significant increases in broadband subscriptions in the early days of the pandemic, when lockdowns forced many to work and attend classes from home. But in recent quarters, the number of subscribers in the industry has declined significantly, as competition from other providers has increased and the activity of mobile operators has decreased.

Altice said it lost 43,000 broadband customers in the quarter, as well as 82,000 cable TV subscribers.

On top of this, Altice spends a lot of money deploying a fiber optic network for its broadband customers. The company said on Wednesday it will spend between $1.7 billion and $1.8 billion in capital expenditures in fiscal 2022.

“While we operate in a very competitive environment and are starting to face some macro pressures in our business, we are confident we have the right strategy in place to return to sustainable growth,” outgoing CEO Dexter Goey said in an earnings report. and losses on Wednesday.

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