EBITDA miss, better Suddenlink trends
A mixed set of results. The good points were in-line revenue (although 11% Suddenlink broadband ARPU increases are probably not sustainable) and improvements in Suddenlink sub trends (despite the price increase and reflecting the return of Viacom nets and better customer service). The bad points were the EBITDA margin miss (important as Altice USA is very much a margin story) and the scale of the impact of the Starz dispute, highlighting the intense levels of competition in Cablevision markets. 2018 revenue guidance of 2.5-3.0% growth was reiterated as was capex guidance of $1.3bn. The June split off remains a meaningful catalyst in our view but we are cutting our PT from $26 to $22 on lower target multiples. Overweight.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.