Progress on PSUs but EBITDA misses
Another mixed set of results. There's clear progress on PSU trends with video losses helped by the new Altice One box while speed uplifts drove an increase in broadband adds to 10k from 2k in Q217. Overall revenue was in line but EBITDA growth of 2% missed the 3% consensus on losses associated with the I24 acquisition and various other items. A key component of the Altice investment case is progress on margins with expectations of 5pp of improvement from 2017 to 2020. The second leg of improvements should come from FTTH deployment starting in Q3 and 2H margins will likely benefit from the forthcoming price increase/political spending. That said our confidence in long term margin expansion is not what it was.Altice USA is a holding company. Through its subsidiaries, the company provides broadband communications and video services and markets its services primarily under two brands: Optimum, in the New York metropolitan area, and Suddenlink, principally in markets in the south-central United States. The company delivers broadband, video, and telephony services to the residential and business customers. The company also provides fiber connectivity, bandwidth and managed services to enterprise customers through its Lightpath business (also marketed as Altice Business) and the company provides advertising time and services to advertisers. The company has launched Altice Mobile, a mobile offering, to consumers across its footprint.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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