Altice USA Shares Drop 6% Amid Weak Q3 Results and Revenue Decline

NEW YORK - Broadband and video service provider Altice USA (NYSE:ATUS) shares fell 6.6% following disappointing third-quarter results, a revenue decline, and an unexpected loss announcement. The company reported a loss of $0.09 per share for the third quarter, failing to meet analysts' expectations of a profit of $0.04 per share. Revenue dropped to $2.23 billion, a 3.9% decrease compared to the same period last year, slightly missing the consensus estimate of $2.24 billion.

Altice USA's residential segment revenue fell by 5.6% year-over-year, reflecting ongoing pressure in its core cable TV and broadband businesses. The company lost 50,000 broadband customers in the third quarter, a worse performance compared to a net loss of 31,000 in the same period last year.

Altice USA Chairman and CEO Dennis Mathew stated, "We have made significant progress over the last two years in strengthening our networks, stabilizing our operations, and building a solid foundation for long-term growth." He added, "These efforts have generated positive momentum in our fiber and mobile product lines in the third quarter."

Despite the challenges, Altice USA also saw some positive developments. The company added a net of 36,000 mobile lines, marking its best performance in four years. Additionally, it added 47,000 fiber customers, bringing its total fiber subscriber base to 482,000.

Adjusted EBITDA for the third quarter decreased by 5.8% year-over-year to $862 million. Altice USA maintained its capital expenditure forecast of $1.5 billion for 2024, which is $200 million lower than 2023 levels.