Q3 2020 WideOpenWest Inc Earnings Call

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Require any further assistance. Please press star zero. Please be advised that todays conference is being recorded I would.

Now I'd like to hand, the conference over to your Speaker today, Andrew Posen, Vice President head of Investor Relations. Thank you. Please go ahead.

And capital expenditures, excluding expansion capital expenditures, while the company believes these non-GAAP financial measures provide useful information for investors. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP now I would like to turn the call.

All over to Wild Chief Executive Officer Teresa Elder.

The introduction of normal collections processes for those customers in Q3.

First hand in Q1.

77% in queue too.

87% of new subscribers in Q3.

Another way of measuring our success in this transition is to look at the increasing proportion of our customers that are connecting with higher speeds.

At the end of the third quarter last year.

52% of new connect purchased 200 make speeds or higher.

Intuitive easy to navigate access to content, which provides customers with an improved video experience and gets them to their favorite shows quickly.

Word winning customer service and broadband connections available to our communities schools and students.

Our employees are another source of pride for us.

In September we were once again name one of Detroit's best and brightest companies to work for.

This is the eighth consecutive year and the 10th time overall that Wow has been recognized with this award in Detroit.

Client and video and telephony.

If you look at the next slide.

I appreciate the trend this quarter are a bit messy given the pledge impact perhaps looking beyond those customers can you provide a bit more color on what you're seeing across gross adds churn competitive intensity and any notable trends into the fourth quarter that you could share with us and maybe thinking of longer term.

The levels of sure well you know when I look at those pledged customers you know spread over the the two quarters as they normally would've been the churn has been extremely good on the competitive France I think we're all doing our best to really respond to customers needs and be available for them, but I'd be kind of a lot of normal.

Competitive activity for the most part beyond some of the special offers that I I think we all are giving out to those who were school age kids and some of the special program in General I think we are more than participating in this growth both.

With the number of gross connect net ads, but also seeing the in.

<unk> continued increase in how our existing customers are using the network. We continue to see that growth Uhm Klein and we're so proud of the advanced network that we have that it can absolutely respond well to what our customers need for high speed data usage and <unk>.

John do you want to say anything else about fourthquarter at this time.

[noise] newer trucking along anyway, I think too so the first part of your question I mean, 92% year over your group and an interest you connect seems pretty spell. It for me. So we are in fact participating in this and also a 9.5% increase in HFC revenue year over year as well. So I think we feel pretty bullish on it.

I think we got the bulk of our hfcs, probably in the first two quarters, and which sort of leveling off so we're trying to take a look at the whole year my.

My expectation would be Q forward. These somewhat similar to Q3 in terms of what we put on.

Great. Thank you both.

Your next question is from a branded misspelled of Keybanc. Please go ahead you line is open.

Thanks for taking question. This is evan stepping in for Brandon.

We've been seeing a lot of good broadband subscriber numbers this quarter.

Heaters for our colleagues to our industry colleagues at a stagnant and feel that really the Stonepeak acquisition is a reaffirmation of that broadband centric approach that is right and aligned with the strategy that we're rolling out as well.

And with that I'll turn it over to John.

Okay.

Yes, so in terms of one timers I mean, the big the big onetime reserve throughout this year have been coded related to as you recall from last go round I talked about in the first half of the year cobi sort of negatively impacted the business by about 11 million Bucks.

We were anticipating a further new hit to the business in the second half of around 15 million Bucks, We got a little lucky in Q3.

In terms of the impact to the cobot impact was pretty much a net neutral. So we had bad guys and good guys, but they sort of evens itself out.

That being said, where we originally thought we might see a 10 million dollar hit in Q4.

We're thinking that's probably closer to a $5 million hit and really what it is predominantly is a loss of advertising revenue.

Which makes sense in Q4 would normally be the most robust quarter of advertising and advertising businesses just off because a lot of things are still shutdown is lumpy who will soon to be shut down a spate of bad debt.

Coming from across so just kind of as we look at the business specifically related to co bid.

10 dot seven hit for them for the first half of the year pretty much breakeven for Q3 in terms of special.

In Q4, we are anticipating another hit I'll put my two cents in on this down I think it's fantastic I think they're a great come for US I think it's a business that in many ways is awfully similar to ours.

And it just.

Enhances in my view that the well in fact is undervalued. So we'll keep working on our broadband first strategy and prove that out so all the world gets it gets into that but I think it's an excellent comp for us and we're happy to have they got their deal done.

All right great. Thank you.

Okay.

There are no further questions at this time I will turn the call all participants elder for closing remarks.

Thank you so much for joining us this afternoon and thank you for your continued interest and support of Wow. We look forward to speaking with many of you in the coming weeks as we will be participating in several virtual investor conferences throughout the remainder of the year. Thanks, all and have a great evening.

This concludes today's conference call you may now disconnect.

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