Q1 2024 Altice USA Inc Earnings Call

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Operator: Greetings and welcome to the Altice USA first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Speaker Change: Greetings and welcome to the Altice USA first quarter 2024 earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

Speaker Change: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Freedman, and my best relations. Thank you, Sarah. You may begin.

Speaker Change: As a reminder, this conference is being recorded it is now my pleasure to introduce your host Sarah frequent Investor Relations. Thank you Sir you may begin.

Sarah: Hello, and welcome to the Altice USA Q1, 2024 earnings call we are.

Sarah: Joining today about teach USA as chairman and CEO, Dennis Matthew and CFO Mark Sara So together, we'll take you through the presentation and then be available for questions.

Sarah: Today's presentation may contain forward looking statements. Please carefully review the section entitled forward looking statements I would like to now turning over to Dennis to begin.

Dennis Mathew: Thank you, Sarah. I'm pleased to be here with all of you to review our Q1 performance and discuss some of the opportunities we are working on for the rest of the year. In Q1, we continued to make progress on improving our financial and operational performance. Our transformation journey is well underway, and I'm thrilled to report that our efforts are yielding results. To start off, I'd like to acknowledge the dedication of our teammates across the country who are working hard every day to serve our customers.

Dennis Mathew: Thank you Sarah I'm pleased to be here with all of you to review, our Q1 performance and discuss some of the opportunities. We are working on for the rest of the year in Q1, we continued to make progress on improving our financial and operational performance.

Dennis: Our transformation journey is well underway and I'm thrilled to report that our efforts are yielding results.

Speaker Change: <unk> off I'd like to acknowledge the dedication of our teammates across the country, who are working hard every day to serve our customers over.

Dennis Mathew: Over the past year, our focus has been on investing in our teams and talent, evolving our go-to-market strategy, and elevating quality across every area of our organization. We are focused on quality products, quality networks, and quality service. Customers want quality and value, and our teams are working hard to deliver the best quality at the best value. To that end, we are strengthening our networks, improving our execution discipline, and enhancing our product portfolio to compete more effectively against existing and new market players.

Dennis: Over the past year, our focus has been on investing in our teams and talent evolving our go to market strategy and elevating quality across every area of our organization.

Dennis: We are focused on quality products quality network and quality service customers want quality and value and our teams are working hard to deliver the best quality at the best value.

Dennis: To that end, we are strengthening our networks, improving our execution discipline and enhancing our product portfolio to compete more effectively against existing and new market players.

Dennis Mathew: Our improvements across first-time right initiatives are driving lower contact rates, fewer service visits, and higher net promoter scores, and are evidence that we are making operational progress, which is translating into customer loyalty and sets us up for long-term growth. And our efforts have garnered recognition from independent third parties, further validating our progress.

Dennis: Our improvements across first time right initiatives are driving lower contact rates.

Dennis: Your service visits and higher net promoter scores and our evidence that we are making operational progress, which is translating into customer loyalty and sets us up for long term growth.

Dennis: And our efforts have garnered recognition from independent third parties further validating our progress.

Dennis Mathew: Beginning on slide three, I will review some of the progress we made in Q1 against the main levers for sustainable long-term growth, which we laid out last quarter. First, we are focused on delivering the highest quality network experiences to our customers. Through our advanced networks, both fiber-to-the-home and hybrid-fiber coax, our customers are receiving faster and more reliable services than ever before. We're pleased to share that Optimum's fiber internet network was recently recognized by Ookla Speed Tests for delivering the fastest and most reliable internet speeds in New York and New Jersey and the lowest latency across New York, New Jersey, and Connecticut. In addition, Optimum received the Top ISP Award by CNET in eight major cities across Connecticut, New Jersey, North Carolina, Texas, and Arizona.

Dennis: On slide three I will review some of the progress we made in Q1 against the main levers for sustainable long term growth, which we laid out last quarter.

Dennis: First we are focused on delivering the highest quality network experiences to our customers.

Dennis: Core advanced networks, both fiber to the home and hybrid fiber coax, our customers are receiving faster and more reliable services than ever before.

Dennis: We're pleased to share that optimum fiber Internet network was recently recognized by Uccle speed tests for delivering the fastest and most reliable internet speeds in New York and New Jersey.

Dennis: And the lowest latency across New York, New Jersey and Connecticut.

Dennis: In addition, optimum received the top ISP award by <unk> seen that in eight major cities across Connecticut, New Jersey, North Carolina, Texas and Arizona.

Dennis Mathew: These endorsements showcase the strength of our network. We have up to 8 gigabytes of symmetrical service over our fiber network, making us the nation's largest provider of 8 gigabyte speeds and 1 gigabyte download speeds across 95% of our total footprint. And we continue to see data consumption increase. In Q1, the average monthly data usage of our broadband-only base was over 700 gigabytes of data, which has grown 13% since Q1 of

Dennis: These endorsements showcase the strength of our networks.

Dennis: We have up to eight gig symmetrical service over our fiber network, making us the nation's largest provider of eight gig speeds and one gig download speeds across 95% of our total footprint.

Dennis: And we continue to see data consumption, increasing in Q1, the average monthly data usage of our broadband only base with over 700 gigabytes of data, which has grown 13% since Q1 of last year.

Dennis Mathew: Additionally, the top 10% of our residential customer base uses more than 2 terabytes of data per month. This level of growing consumption, paired with our unmatched speed and reliability, gives us confidence in our ability to compete long-term against competitors like fixed wireless. And we are expanding our network to new markets with strategic edge outs, allowing us to leverage our nearby plant and infrastructure to increase overall returns on CAPEX. For example, we recently began extending fiber to Montclair and West Orange, New Jersey, using existing nodes servicing nearby markets.

Dennis: Additionally, the top 10% of our residential customer base uses more than two terabytes of data per month.

Dennis: This level of growing consumption paired with our unmatched speed and reliability give us confidence in our ability to compete long term against competitors like fixed wireless.

Dennis: And we are expanding our network to new markets with strategic edge outs, allowing us to leverage our nearby plants and infrastructure to increase overall returns on Capex. For example, we recently began extending fiber to Montclair and west Orange, New Jersey, using existing nodes servicing nearby.

Dennis Mathew: We are currently selling Optimal Mobile to these communities with plans to begin lighting up our fixed fiber network in both areas later this year. This allows us to generate additional beneficial returns with efficient CAPEX. In 2024, we will add more than 175,000 additional total customers.

Dennis: We are currently selling optimum mobile to these communities with plans to begin lighting up our fixed fiber network in both areas later this year.

Dennis: This allows us to generate additional beneficial returns with efficient capex in.

Dennis: In 2024, we will add more than 175000 additional total passengers we will deploy strong go to market strategies. So all new homes passed with compelling promotional offers and ensure we are effectively attracting new customers and capturing material share.

Dennis Mathew: We will deploy strong go-to-market strategies to all new homes with compelling promotional offers and ensure we are effectively attracting new customers and capturing material share. In Q1, we maintained our momentum in reducing service calls and visits while advancing digital and self-service solutions, and customers are noticing. The quality improvements in customer experience have led to meaningful upticks in NPS, including Relationship NPS, Transactional NPS, and Early Tenure NPS, reflecting improved customer satisfaction across the board and translating to relatively stable churn. This is driven by a first-time right approach.

Dennis: In Q1, we maintained our momentum in reducing service calls and visits while advancing digital and self service solutions and customers are noticing the quality.

Dennis: Improvements in customer experience has led to meaningful upticks in NPS, including relationship NPS transactional M. P. S and early tenure NPS, reflecting improved customer satisfaction across the board and translating to relatively stable churn.

Dennis: This is driven by a first time right approach when a customer contacts us we want to ensure their questions are resolved. The very first time and we continue to track improvement on this front.

Dennis Mathew: When a customer contacts us, we want to ensure their questions are resolved the very first time, and we continue to improve on this front. We also continue to enhance our connectivity portfolio by delivering more value to our customers. Our Optimum Complete offer, which bundles broadband and mobile services, creates a unified connectivity experience that customers want.

Dennis: We also continue to enhance our connectivity portfolio by delivering more value to our customers.

Dennis: Our optimum complete offer which bundled broadband and mobile services creates a unified connectivity experience that customers want.

Dennis Mathew: We are excited about our opportunities in mobile. Our mobile business is gross margin positive and helps us create stickier, more profitable customer relationships. And we plan to add tablets, device protection, smart watches, and more to our Optimum mobile portfolio later this year, delivering even more value to our customers. We continue to see video as an important product in our portfolio, and we are innovating the video experience to meet the changing needs of our customers.

Dennis: We are excited about our opportunities in mobile our mobile business has gross margin positive and helps us create stickier more profitable customer relationships.

Dennis: And we plan to add tablets device protection smart watches and more to our optimum mobile portfolio later this year delivering even more value to our customers.

Dennis: We continue to see video is an important product in our portfolio and we are innovating the experience to meet the changing needs of our customers.

Dennis Mathew: Optimum Stream is our main set-top box across the east footprint and continues to be rolled out across the west footprint, and we'll look to launch two new video tiers later this year to offer more entertainment options for video customers.

Dennis: Optimum stream as our main set top box across the east footprint and continues to be rolled out across the west footprint.

Dennis: And we will look to launch two new video tiers later this year to offer more entertainment Optionality for video customers.

Dennis Mathew: Next, we prioritize customer satisfaction and loyalty through better base management, a transparent pricing strategy, and offering high-quality products with exceptional value. Our base management strategy, supported by advanced data analysis, allows us to better understand and anticipate customer needs, fostering deeper engagement and satisfaction. In Q1, we introduced everyday pricing as our new rack rate, which reduces our back-book pricing and creates a clear, simple, and transparent pricing journey for each customer.

Dennis: Next we prioritized customer satisfaction and loyalty through better base management, a transparent pricing strategy and offering high quality products with exceptional value.

Dennis: Our base management strategy supported by advanced data analysis.

Dennis: Laos us to better understand and anticipate customer needs fostering deeper engagement and satisfaction.

Dennis: In Q1, we introduced everyday pricing as our new rack rates, which reduces our back book pricing and creates a clear simple and transparent pricing journey for each customer.

Dennis Mathew: This strategy is enhancing our rate events and promotional roll-off process, leading to increased value and customer retention, and our customers are responding. We are seeing less RPO erosion and stable customer churn trends, particularly at the time of promotional roll-off. Combined with advanced retention tools that we've deployed to our care centers, we are able to look at the customer's lifetime value and provide offers specific to that customer to maximize save rates while also improving profitability. This includes speed rightsizing, offering mobile, video package optimization, and much more.

Dennis: This strategy is enhancing our rate events and promotional roll off process.

Dennis: Adding to increased value and customer retention.

Dennis: And our customers are responding we are seeing less our pool of erosion and stable customer churn trends, particularly at the time of promotional roll offs.

Dennis: Combined with advanced retention tools that we've deployed to our care centers, we are able to look at the customer's lifetime value and provide offers specific to that customer to maximize say rates, while also improving profitability.

Dennis: This includes speed right sizing offering mobile video package optimization and much more.

Dennis Mathew: You know, we recently launched our new brand platform with modern and fresh marketing, which highlights our segmented go-to-market approach. The platform, where local is big time, centers on our ability to bring customers and communities the reach and connectivity resources of a large national provider with the familiarity, connection, and localized attention of a small business. Our brand platform leverages the regional leadership structure we announced last year. As a result, we are able to compete town by town, neighborhood by neighborhood, house by house.

Dennis: We recently launched our new brand platform with modern and fresh marketing, which highlights our segmented go to market approach the platform, where local is big time centers on our ability to bring customers and communities the reach and connectivity resources of a large national provider with the <unk>.

Dennis: Emily I already connection and localize the attention of a small business.

Dennis: Our brand platform Leverages, the regional leadership structure, we announced last year.

Dennis: We are able to compete town by town neighborhood by neighborhood House by House with a granular view of each service area. We can tailor marketing services and offers at a hyper local level.

Dennis Mathew: With a granular view of each service area, we can tailor marketing, services, and offers at a hyper-local level. We have three main objectives with our new marketing platform: to deepen trust in the communities we serve, to attract and retain customers, and to strengthen our overall brand, driving business results. In addition, we're going on the offensive with our marketing in highly competitive areas and directly highlighting our superior value and quality product set compared to competitors.

Dennis: We have three main objectives with our new marketing platform.

Dennis: To deepen trust and the communities, we serve to attract and retain customers.

Dennis: And to strengthen our overall brand driving business results.

Dennis: In addition, we're going on the offensive with our marketing and highly competitive areas and directly highlighting our superior value and quality product set compared to competitors.

Dennis: Okay.

Dennis Mathew: We have also made strong progress on increasing penetration on our fiber network, which will remain a focus for us this year. We closed the quarter with over 14% penetration on our fiber network, a marked increase from under 9% in Q1 of the previous year.

Dennis: We have also made strong progress on increasing penetration on our fiber network, which will remain a focus for us this year.

Dennis: We closed the quarter with over 14% penetration on our fiber network a marked increase from under 9% in Q1 of the previous year.

Dennis Mathew: As I mentioned on our last earnings call, we are improving our fiber migration and installation processes, and our customers are already seeing improvements in the fiber experience. As such, we will thoughtfully offer more migrations of our existing customers to fiber as well as add new customers directly to fiber in our footprint to leverage our existing investments. And last, we are encouraged by the opportunities in B2B across our entire footprint. With a focus on better base management and sales execution, our business services revenue grew modestly in Q1-24 year-over-year.

Dennis: As I mentioned on our last earnings call, we are improving our fiber migration and installation processes and our customers are already seeing improvements in the fiber experience.

Dennis: As such we will thoughtfully offer more migrations of our existing customers to fiber as well as add new customers directly to fiber in our footprint to leverage our existing investments.

Dennis: And last we are encouraged by the opportunities in b to b across our entire footprint with a focus on better base management and sales execution. Our business services revenue grew modestly in Q1, 'twenty four year over year.

Dennis Mathew: This is a notable improvement from the trend in Q1 of the prior year, which was down approximately 1% on a year-over-year basis. In Q1, we launched Optima Mobile for B2B, which will add to mobile growth over the course of the year.

Dennis: This is a notable improvement from the trend in Q1 of the prior year, which was down approximately 1% on a year over year basis.

Dennis: In Q1, we launched optimal mobile for <unk>, which will add to mobile growth over the course of the year.

Dennis Mathew: We also have plans to launch new managed services, including wireless backup and recovery, cybersecurity solutions, unified communication services, and more, for our business customers. We are just getting started on providing a more robust product portfolio for businesses across our footprint, and I'm optimistic about the impact on our business over the long term. Before we move on to the next slide, it's important to recognize the impact of the current macro environment we are operating in.

Dennis: We also have plans to launch new managed services, including wireless backup and recovery Cyber security solutions unified communication services and more for our business customers we.

Dennis: We are just getting started on providing a more robust product portfolio for businesses across our footprint and I'm optimistic about the impact on our business long term.

Speaker Change: Before we move on to the next slide it's important to recognize the impact of the current macro environment. We are operating in.

Dennis Mathew: Although we have made significant improvements in our operations, we, along with our peers, face challenges due to the difficult macroeconomic conditions. As we start 2024, consumers are facing continued financial stress. Household mobility remains low, particularly in the New York Tri-State area. Housing starts in March decreased by more than 30% in this region, where we have a significant presence.

Speaker Change: Although we have made significant improvements in our operations, we along with our peers faced challenges due to the difficult macroeconomic conditions.

Speaker Change: As we start 2020 for consumers are facing continued financial stresses household mobility remains low, particularly in New York Tri State area.

Speaker Change: Housing starts in March decreased by more than 30% in this region, where we have a significant presence.

Dennis Mathew: Additionally, we see continued competitive pressure in the West from new fiber entrants into traditional DSL markets, moderating the growth we would typically achieve. However, as we look at how we are competing against fiber overbuilders over time, our trends are stable. When an overbuilder launches, their initial penetration ramp levels off after a period, which proves that we can compete well over time. These consumer factors are affecting the number and timing of connects and non-pays, which is reflected in our NetAd activity in Q1.

Speaker Change: Additionally, we see continued competitive pressure in the west from new fiber entrance into traditional DSL markets moderating the growth we would typically achieved.

Speaker Change: As we look at how we are competing against fiber overbuild is over time, our trends are stable when an overbuild or launches or initial penetration ramp levels off after a period, which proves that we can compete well over time.

Speaker Change: These consumer factors are affecting the number and timing of connects and non paid.

Speaker Change: Which is reflected in our net add activity in Q1.

Dennis Mathew: Our go-forward performance will continue to be affected by the competitive landscape and the timing of market recovery. However, despite the current market headwinds, we are encouraged by key metrics that show that our underlying business is healthy. We are stabilizing residential ARPUs, churn rates remain low, NPS metrics continue to improve, and our sales channel yields and productivity are increasing. We have the right strategy in place with a disciplined approach and a focus on profitability, which positions us on the path to sustainable long-term growth.

Speaker Change: Our go forward performance will continue to be affected by the competitive landscape landscape and the timing of market recovery.

Speaker Change: Despite the current market headwinds, we are encouraged by key metrics, which show that our underlying business is healthy.

Speaker Change: We are stabilizing residential <unk>.

Speaker Change: Turn rates remain low NPS metrics continue to improve and our sales channel yields and productivity are increasing.

Speaker Change: We have the right strategy in place with a disciplined approach and a focus on profitability, which positions us on the path to sustainable long term growth.

Dennis Mathew: In 2024, we'll remain focused on driving profitable customer relationships, enhancing network product and service quality, and executing with discipline. We are accelerating our local go-to-market strategies, evolving our product portfolio, and driving enhanced base management and pricing strategies, all while maintaining financial discipline. As we look ahead to the remainder of the year, there is a lot to be optimistic about. We are well-positioned to continue to drive our transformation journey, remaining confident that our strategy is yielding positive results. With that, I'll now hand it over to Marc to review our Q1 performance in more detail.

Speaker Change: In 2024 will remain focused on driving profitable customer relationships, elevating network product and service quality and executing with discipline.

Speaker Change: We are accelerating our local go to market strategies evolving our product portfolio and driving enhanced base management and pricing strategies, all while maintaining financial discipline.

Speaker Change: As we look ahead to the remainder of the year there was a lot to be optimistic about.

Speaker Change: We are well positioned to continue to drive our transformation journey remaining confident that our strategy is yielding positive results.

Speaker Change: With that I'll now hand, it over to Mark to review, our Q1 performance in more detail.

Marc Sirota: Turning to slide four, I would like to begin with an overview of how we are maximizing profitability in our customer base. We look at the profitability of each individual customer, which includes recurring revenue, direct costs, and the total cost to serve each customer, from sales acquisition costs to total customer contact rates. This allows us to focus on the value of each customer from a profitability standpoint, not just RPU.

Mark Sara: Thank you Dennis turning to slide four I would like to begin with an overview of how we're maximizing profitability and our customer base.

Mark Sara: Look at the profitability of each individual customer, which includes recurring revenue direct costs and the total cost to serve each customer from sales acquisition cost to total customer contact rates.

Mark Sara: This allows us to focus on the value of each customer from a profitability standpoint.

Mark Sara: Not just <unk>.

Marc Sirota: We have a long-tenured base, which supports our strong residential ARPU of over $135. Approximately 60% of our customers have been with us for five years or more, and approximately half of those customers have been with us for 10 years or more.

Mark Sara: We have a long tenured base, which supports our strong residential <unk> of over $135 approximately 60% of our customers have been with us for five years or more and approximately half of those customers have been with us for 10 years or more.

Marc Sirota: We have runway to improve our food trends as we minimize overall churn, remain disciplined on acquisition and retention offers, sell in higher speed tiers, and offer additional products like mobile. As we streamline our base management programs to enhance long-term value and focus on profitable growth, it's important to recognize that this has, and may, lead to disconnect volumes. We did see a slight uptick in disconnects in the first quarter with this new disciplined approach. We are ensuring our offers across all channels optimize conversion and save rates while we're remaining competitive in each market. This aligns with our segmented go-to-market approach, moving away from a one-size-fits-all strategy.

Mark Sara: We have runway to improve our food trends as we minimize overall churn.

Mark Sara: Main disciplined on acquisition and retention offers.

Mark Sara: Sell in higher speed tiers and offer additional products like mobile.

Mark Sara: As we streamline our base spansion programs to enhance long term value and focus on profitable growth. It's important to recognize that this has N.

Mark Sara: May lead to disconnect volumes.

Mark Sara: Digitally a slight uptick in disconnects in the first quarter with this new disciplined approach we are ensuring our offers across all channels optimize conversion and save rates, although remaining competitive in each market.

Mark Sara: Aligns with our segmented go to market approach moving away from a one size fits all strategy.

Marc Sirota: Instead, we adjust our approach based on the competition to maximize both subscriber trends and profitability. This level of focus has enabled us to begin stabilizing residential customer ARPU trends. Despite facing headwinds from ongoing loss of video customers, we have successfully mitigated ARPU declines by increasing mobile penetration, maintaining stable turn, and integrating AI and advanced data analysis into our sales, care, and retention centers. In Q1, residential ARPU grew $0.35, or up 30 basis points year-over-year. This is the second quarter in a row that we have reported ARPU growth year-over-year. However, residential ARPU trends are likely to fluctuate throughout the year.

Mark Sara: Instead, we adjusted our approach based on the competition to maximize both subscriber trends and profitability.

Mark Sara: This level of focus has enabled us to begin stabilizing residential customer <unk> trends, despite facing headwinds from ongoing loss of video customers. We have successfully mitigated <unk> declines by increasing mobile penetration.

Mark Sara: Maintaining stable churn and integrating AI and advanced data and analysis into our sales care and retention centers.

Mark Sara: In Q1 residential <unk> grew 35 cents.

Mark Sara: Or up 30 basis points year over year. This is the second quarter in a row, we reported <unk> growth year over year.

Mark Sara: Residential <unk> trends are likely to fluctuate throughout the year.

Marc Sirota: We expect ARPU trends for the full year to be moderately better than the year-over-year decline in 2023 of 1.5 percent. However, total revenue declined 1.9% year-over-year to approximately $2.3 billion, a marked improvement from Q1 of 2023, which was down 5.3%. In Q1, residential revenue declined 2.9%, driven by a lower subscriber base and an increase in video customer losses in the quarter. Business services revenue grew 0.3%, which is supported by growth in the Light Path business of 3.6% and a 0.8% decline in S&B and other. News and advertising grew 7.1% in the quarter, driven by higher political revenue.

Mark Sara: We expect ARPA trends for the full year to be moderately better than the year over year decline in 2023 of one 5%.

Mark Sara: Yeah.

Mark Sara: Total revenue declined one 9% year over year to approximately $2 3 billion.

Mark Sara: A marked improvement from Q1 of 2023, which was down five 3%.

Mark Sara: In Q1 residential revenue declined two 9% driven by a lower subscriber base and an increase in video customer losses in the quarter.

Mark Sara: Business services revenue grew 0.3%, which is supported by growth in the Lightpath business of three 6% and a 0.8% decline in SMB and other.

Mark Sara: News and advertising grew seven 1% in the quarter driven by higher political revenue.

Marc Sirota: Excluding political revenue, news and advertising revenue saw an underlying growth of 1.8%, and political revenue will become more of a tailwind in the back half of this year. Slide five is an overview of how we're improving our go-to-market strategy, enhancing base management, and continuing to simplify customer interactions. Last year, we rolled out a regional market structure, dividing our footprint into distinct regions with localized teams overseen by dedicated regional general managers. We've improved collaboration across teams, which has strengthened our local execution from marketing to pricing to customer experience.

Mark Sara: Excluding political news and advertising revenue saw an underlying growth of one 8% and political revenue will come more of a tailwind in the back half of this year.

Mark Sara: Slide five is an overview of how we're improving our go to market strategy enhancing base management and continuing to simplify customer interactions last year, we rolled out our regional market structure dividing our footprint into distinct regions with localized teams overseen by dedicated REIT.

Mark Sara: <unk> general managers.

Mark Sara: Improved collaboration across teams, which has strengthened our local execution from marketing to pricing to customer experience.

Mark Sara: We are communicating the specific needs in each community and acting quickly to respond to evolving customer demands at.

Mark Sara: At the heart of our enhanced base management strategy is our commitment to providing quality and value as Dennis referenced in his opening remarks.

Marc Sirota: We are communicating the specific needs in each community and acting quickly to respond to evolving customer demand. At the heart of our enhanced base management strategy is our commitment to providing quality and value, as Dennis referenced in his opening remarks. As of Q1, we right-sized speeds for almost 300,000 customers, primarily those on historically low speed tiers, and have plans to right-size another 100,000 customers in Q2. A meaningful portion of our speed rightsizing efforts is geared towards moving customers off of legacy speeds and onto our current speed tiers. This provides customers with faster speeds at a better value and drives loyalty while leaving plenty of runway to sell higher speeds. This also allows us to retire old speed tiers and create more operational efficiency.

Mark Sara: As of Q1, we rightsize speeds for almost 300000 customers primarily those in historically low speed tiers and have plans to rightsize another 100000 customers in Q2.

Mark Sara: A meaningful portion of our speed right sizing efforts is geared towards moving customers off of legacy speeds and onto our current speed tiers.

Mark Sara: This provides customers with faster speeds at a better value and drives loyalty, while leaving plenty of runway to sell in higher speeds.

Mark Sara: It also allows us to retire old speed tiers and create more operational efficiency.

Marc Sirota: To support this strategy, we are committed to bringing innovation to every aspect of our operation, including introducing new tools to support our field, care, and inbound channels as well as innovative AI solutions to enhance our marketing and customer relationship management. And on customer experience, we continue to see underlying metrics moving in the right direction. The rate at which customers call into our call centers continues to decline as we are more proactively and clearly communicating with our base, launching easy-to-use self-service options, and improving our operations, giving customers fewer reasons to pick up the phone.

Mark Sara: To support this strategy, we are committed to bringing innovation to every aspect of our operations, including introducing new tools to support our field care in inbound channels as well as innovative AI solutions to enhance our marketing and customer relationship management.

Mark Sara: And on the customer experience, we continue to see underlying metrics moving in the right direction the rate at which customers calling to our call centers continues to decline as we are more proactively and clearly communicating with our base launching easy to use self service options and improving our operations.

Mark Sara: Giving customers fewer reasons to pick up the phone.

Marc Sirota: Truck rolls or service visits continue to come down as we have implemented better tools to detect network issues, and we continue to invest in enhancing our network to deliver seamless and reliable connectivity. These improvements are driven by a first-time right approach to achieve resolution at the first point of contact, a metric that continues to improve every quarter.

Mark Sara: Rolls or service visits continue to come down as we've implemented better tools to detect network issues and we continue to invest in enhancing our network to deliver seamless and reliable connectivity.

Mark Sara: These improvements are driven by a first time right approach to achieve resolution at the first point of contact a metric that continues to improve every quarter.

Marc Sirota: Next, on slide six, I'd like to review our adjusted EBITDA trends and free cash flow generation. The Q1 adjusted EBITDA margin is 37.6%. As you recall, Q1 is typically a low point in our quarterly margin trends as we have more programming resets. And specifically this year, we have additional expenses related to the timing of OPEX and transformational expenses in the quarter. Total adjusted EBITDA was down 2.5% to approximately $847 million in Q1, as we made steady progress towards EBITDA stabilization.

Mark Sara: Next on slide six I'd like to review, our adjusted EBITDA trends in free cash flow generation.

Mark Sara: Q1, adjusted EBITDA margin is 37, 6% as you recall Q1 is typically a low point in our quarterly margin trends as we have more programming resets and specifically this year, we have additional expenses related to the timing of Opex and.

Mark Sara: And transformational expenses in the quarter.

Mark Sara: Total adjusted EBITDA was down two 5% to approximately $847 million in Q1, as we made steady progress towards EBITDA stabilization. This marks a significant improvement from Q1 of the previous year, which declined over 12% year over year.

Marc Sirota: This marks a significant improvement from Q1 of the previous year, which declined over 12% year over year. The 2.5% decline in adjusted EBITDA for the first quarter is primarily attributable to a low single-digit revenue decline, incremental sales and marketing expenses associated with the launch of a new brand platform, and transformational expenses related to third-party consultants, in part. In Q1, we generated positive free cash flow of approximately $64 million, compared to negative $166 million in the first quarter of the prior year.

Mark Sara: The two 5% decline in adjusted EBITDA for first quarter is primarily attributable to a low single digit revenue decline incremental sales and marketing expenses associated with the launch of our new brand platform and transformational expenses related to third party consultants and partners.

Mark Sara: In Q1, we generated positive free cash flow of approximately $64 million compared to negative $166 million in the first quarter of the prior year.

Marc Sirota: This was driven by lower capital spend in the first quarter of $336 million, partially offset by lower adjusted EBITDA. NQ1. Excluding cash impacts from restructuring, free cash flow would have been approximately $84 million for the quarter.

Mark Sara: This was driven by lower capital spend in the first quarter of $336 million, partially offset by lower adjusted EBITDA.

Mark Sara: In Q1 exclude.

Mark Sara: Excluding cash impacts from restructuring free cash flow would have been approximately $84 million for the quarter.

Mark Sara: Okay.

Marc Sirota: Next, on slide seven, I will review our quarterly subscriber trends. During Q1, we added 53,000 new Fiber customers through a combination of new customer acquisitions and migrations of existing customers. We ended Q1 with 395,000 customers on Fiber. Our momentum with the Fiber customer base continues to accelerate, growing 1.4 times faster compared to the pace observed in quarter one of 2023. Notably, our strategy has evolved, with shifts towards migrations contributing to a larger share of our FiberNet additions. In Q1, migrations accounted for approximately 70% of our fiber net ads and 30% from net new customers. This shift is a result of improvements in the migration process and our overall high product performance.

Mark Sara: Next on slide seven I will review, our quarterly subscriber trends during.

Mark Sara: During Q1, we added 53000, new fiber customers through a combination of new customer acquisitions and migrations of existing customers. We ended Q1 with 395000 customers on fiber our momentum with a fiber customer base continues to accelerate growing one four times faster compared.

Mark Sara: The pace observed in quarter one of 2023.

Mark Sara: Notably our strategy has evolved with shift towards migrations contributing to a larger share of our fiber net additions.

Mark Sara: In Q1 migrations accounted for approximately 70% of our fiber net adds and 30% from net new customers.

Mark Sara: This shift is a result of improvements in the migration progress and our overall high product performance.

Marc Sirota: On mobile, we added 29,000 new mobile lines, a 3.8 times acceleration and pace compared to Q1 of last year. We continue to market optimum complete, a compelling bundle offer, and have greater emphasis on mobile in our sales channels. We are also selling mobile in retention and care, and these sales channels are continuing to gain momentum. Broadband net losses are $30,000 from the first quarter as we continue to operate in a sustained competitive market.

Mark Sara: On mobile we added 29000, new mobile lines of three eight times acceleration in pace compared to Q1 of last year.

Mark Sara: We continue to market often will complete a compelling bundle offer and have greater emphasis on mobile and our sales channels. We.

Mark Sara: We are also selling mobile and retention and care in these sales channels are continuing to gain momentum.

Mark Sara: Broadband net losses are 30000 for the first quarter as we continue to operate in a sustained competitive the market is.

Marc Sirota: Against a challenging macro backdrop, as Dennis mentioned earlier, we face continued headwinds, including less calls into our sales channels and fewer shoppers online in Q1. We will continue to see headwinds in Q2, which is also typically a seasonally weaker quarter due to the impact from university disconnects in our west foot.

Mark Sara: Against the challenging macro backdrop as Dennis mentioned earlier.

Mark Sara: We faced continued headwinds, including less calls into our sales channels and less shoppers online in Q1.

Mark Sara: We continue to see headwinds in Q2, which is also typically a seasonally weaker quarter due to the impact from University disconnects in our west footprint.

Marc Sirota: Despite these factors, we have the right strategy in place. We are focused on profitable growth, financial discipline, and enhancing the customer experience with a segmented go-to-market approach, which positions us on a path for sustainable long-term growth. I would like to give an update on how we will address our customers who participate in the Federal Affordable Connectivity Program, for which funding is expected to include in mid-May. We ended Q1 with 130,000 ACP customers, which is less than 3% of our base.

Mark Sara: Despite these factors we have the right strategy in place we are focused on profitable growth financial discipline and enhancing the customer experience for this segment of go to market approach.

Mark Sara: Which positions us on a path for sustainable long term growth.

Mark Sara: I would like to give an update on how we will address our customers who participate in the federal affordable connectivity program for which funding is expected to include in mid May.

Mark Sara: We ended Q1 with 130000, ACP customers, which is less than 3% of our base.

Marc Sirota: As the program is likely to be scaled down, we have implemented a strategy to retain ACP customers and have assigned dedicated and specialized retention agents. These teams are equipped with new AI-powered tools to provide customized offers and solutions to each customer based on usage and needs. This includes mobile, speed right sizing, optimum stream, and more. We also have the ability to repackage customers into price-saving offers such as OptumComplete to receive discounts by bundling internet plus mobile, or move into our income-constrained products for qualified customers, such as our 100-meg product for just $25 a month. The percentage of our base who are on ACP is relatively low, and the majority of those were existing customers before the program.

Mark Sara: As the program is likely to avoid down we have implemented a strategy to retain ACP customers and have assigned dedicated and specialized retention agents. These teams are equipped with new AI powered tools to provide customized offers solutions to each customer based on usage and needs. This includes Mo.

Marc Sirota: <unk> speed right sizing optimum stream and more.

Mark Sara: We have the ability to repackage customers into price savings offers such as optum to complete to receive discounts by bundling Internet plus mobile <unk>.

Marc Sirota: Moving to our income constrained products for qualified customers such as our 100 Meg product for just $25 a month.

Our percentage of our base, who are on ACP is relatively low and the majority of those were existing customers before the program with a strategy in place we have meaningful ability to retain our ACP base programs wind down.

Marc Sirota: With a strategy in place, we have the meaningful ability to retain our ACP base as the programs wind down. Furthermore, as we look at the value across our connectivity portfolio, we have numerous opportunities to further expand and enhance our customer relationships. A prime example of this is our mobile business, which I will review on slide 8. The mobile service is a key connectivity solution within our business, enabling us to extend connectivity to our customers beyond their homes.

Marc Sirota: As we look at the value across our connectivity portfolio, we have numerous opportunities to further expand and enhance our customer relationships. A Prime example of this is our mobile business, which I will review on slide eight.

Marc Sirota: Okay.

Marc Sirota: Mobile serves as a key connectivity solution within our business, enabling us to extend connectivity to our customers beyond their homes and offer substantial potential for scalability improved profitability and support for broadband and business trends in.

Marc Sirota: It offers substantial potential for scalability, improved profitability, and support for broadband and business trends. In Q1, we grew mobile ARPU by $4.30 year-over-year. Our mobile service, backed by the largest 5G provider in the country, positions us to unlock more value in mobile, supported by our Optima Complete Bundle, offered at attractive prices.

Marc Sirota: In Q1, we grew mobile <unk> by $4.30 year over year.

Marc Sirota: Our mobile service backed by the largest <unk> provider in the country.

Marc Sirota: <unk> us to unlock more value in mobile supported by our optimal complete bundle offer at attractive prices.

Marc Sirota: And when customers take mobile in addition to broadband, we see over a 20% reduction in annualized churn compared to customers who just take broadband, sir. This poses a lot of opportunity to reduce overall customer return as we grow the penetration of mobile in our base as well as drive customer profitability. Mobile customer penetration of our total broadband base at the end of Q1 was 5.3 percent. We have increased penetration by almost two percentage points in the past year, and we have a lot more opportunity to grow on this front.

Marc Sirota: When customers take mobile in addition to broadband we see over 20% reduction in annualized churn compared to customers, who just take broadband service.

Marc Sirota: This causes a lot of opportunity to reduce overall customer churn as we grow penetration of mobile in our base as well as drive customer profitability.

Marc Sirota: Mobile customer penetration of our total broadband base at the end of Q1 is five 3% we've increased penetration almost two percentage points in the past year and we have a lot more opportunity to grow on this front.

Marc Sirota: We continue to see our mobile customer base opting for unlimited mobile plans versus by the gigabyte, with almost two-thirds of our mobile base on an unlimited or unlimited max plan. And there is more opportunity to continue to shift our mobile base toward these unlimited plans. As Dennis mentioned, we launched mobile for B2B, and we are looking to expanding our mobile portfolio by adding tablets, device protection, smart watches, and wearables, and accessories in our e-com channels later this year.

Marc Sirota: We continue to see our mobile customer base opting for unlimited mobile plans versus by the gig with almost two thirds of our mobile base on an unlimited or unlimited Max plan and there is more opportunity to continue to shift our mobile base towards these unlimited plans.

Marc Sirota: As Dennis Man, just mentioned, we launched mobile for <unk> and we are looking to expanding our mobile portfolio by adding tablets device protection smart watches and wearables and accessories and our E. Com channels later this year.

Marc Sirota: Overall, we have a lot more to come on mobile, and we are optimistic about the trajectory of this business. Next, on slide nine, I'd like to review our network strategy, continued fiber investments, and capital spend. We constructed an additional 45,000 fiber passings in Q1, ending the quarter with 2.8 million fiber passings. We'll reiterate our year-end target for fiber passings to reach 3 million.

Marc Sirota: Overall, we have a lot more to come on mobile and we are optimistic about the trajectory of this business.

Marc Sirota: Yeah.

Marc Sirota: Next on slide nine I'd like to review our network strategy continued fiber investments and capital spend.

Marc Sirota: We constructed an additional 45 fiber passing as in Q1, ending the quarter with $2 8 million fiber passes.

Marc Sirota: We'll reiterate our year end target for fiber passing to reach $3 million.

Marc Sirota: We said we would focus on driving more penetration into our fiber network, and we are doing just that. Our focus on fiber penetration will unlock additional benefits as we move more customers onto this incredible network. Better gross ad RQ, faster speeds, better churn rates, and lower maintenance costs will enable us to realize faster returns on this best-in-class network investment. We ended Q1 with over 14% penetration of our fiber network and grew our fiber customer base by almost 90% year-over-year.

Marc Sirota: We said, we would focus on driving more penetration to our fiber network and we are doing just that our focus on fiber penetration will unlock additional benefits as we move more customers onto this incredible network better gross add <unk> faster speeds better churn rates lower maintenance costs.

Marc Sirota: It will enable us to realize faster returns on this best in class network investments.

Marc Sirota: We ended Q1 with over 14% penetration of our fiber network and grew our fiber customer base by almost 90% year over year.

Marc Sirota: As I mentioned, we have identified and improved operational operations around order entry and provisioning, the quality of our field operations, and enhancing the post-installation product experience. We are already seeing the benefits with notable improvements in completion rates and customer satisfaction. Additional improvements will be implemented in Q2, which gives us confidence in our ability to further accelerate fiber additions in the second half of this year. And we continue to make strategic investments across our entire footprint, including edging out and enhancing our network performance and upgrading portions of the West's footprint that were not yet on DOCSIS 3.1. We will have nearly 100% of the West upgraded to DOCSIS 3.1 by year-end.

Marc Sirota: As I mentioned.

Marc Sirota: We have identified and improved operational operations around order entry and provisioning qual.

Marc Sirota: Quality of our field operations and enhancing post installation product experiences.

Marc Sirota: We are already seeing the benefits with notable improvements in completion rates and customer satisfaction.

Marc Sirota: Additional improvements will be implemented in Q2, which gives us the confidence in our ability to further accelerate fiber additions in the second half of this year.

Marc Sirota: And we continue to make strategic investments across our entire footprint, including edging out and enhancing our network performance and upgrading portions of the west footprint, but we're not yet on DOCSIS three one.

Marc Sirota: We will have nearly 100% of the west upgraded to DOCSIS three one by year end.

Marc Sirota: In Q1, we added 51,000 total passings to our footprint and expect to deliver more than 175,000 in the full year through both edge out and new build construction. In Q1, our capital spend decreased 42% year-over-year to approximately $336 million, with capital intensity just under 15%. Compared to Q1 of last year, capital intensity is about 10 points lower due to the time you spend and more discipline around capital intensity. We continue to guide to a full-year capital expenditure of $1.6 to $1.7 billion for 2024, as we make strategic investments to enhance our network and products to deliver sustainable long-term growth.

Marc Sirota: In Q1, we added 51000 total passengers to our footprint and expect to deliver more than 175000, and the full year through both <unk> and newbuild construction in.

Marc Sirota: In Q1, our capital spend decreased 42% year over year to approximately $336 million with capital intensity just under 15%.

Marc Sirota: Compared to Q1 of last year capital intensity is about 10 points lower due to the timing of spend and more discipline around capital intensity.

Marc Sirota: We continue to guide to a full year capital expenditure of one six to $1 7 billion.

Marc Sirota: For 2024, as we make strategic investments to enhance our network and products to deliver sustainable long term growth.

Marc Sirota: And finally, on slide 10, I'd like to review our debt capitalization. As a reminder, in January, we issued approximately $2 billion of senior guaranteed notes due to January 2029 at a rate of 11 and 3-to pay down the outstanding term loan B and incremental term loan B3, which were due in 2025 and 2026. In conjunction with this transaction, in February, we paid down in full the senior notes due in June of 2024 by $750 million.

Marc Sirota: And finally on slide 10, I'd like to review our debt capitalization.

Marc Sirota: As a reminder, in January we issued approximately $2 billion of senior guaranteed notes due January 2029 at a rate of 11% and three quarters to pay down the outstanding term loan B and incremental term loan b, three which were due in 2025 and 2026 and.

Marc Sirota: With this transaction in February we paid down in full the senior notes due in June of 2024, with a $750 million draw on our revolving credit facility for which we had previously earmarked capacity.

Marc Sirota: draw on our revolving credit facility for what we had previously earmarked capacity. These two refinancing activities successfully cleared out near-term maturities until 2027, giving us the runway to continue to operate and drive the business toward growth. At the end of Q1, our weighted average cost of debt is 6.5%, and our weighted average life is 4.8 years. Our fixed rate of total debt is 86%, inclusive of floating to fixed interest rate

Marc Sirota: These two refinancing activities successfully cleared out near term maturities until 2027, giving us the runway to continue to operate and drive the business towards growth at.

Marc Sirota: At the end of Q1, our weighted average cost of debt is six 5% and our weighted average life is four eight years, our fixed rate of total debt is 86% inclusive of floating to fixed interest rates swaps.

Marc Sirota: Our leverage ratio is seven times the last two quarters' annualized adjusted EBITDA. We will continue to be proactive in managing our debt maturities and evaluate how best to ensure that our capital structure supports our long-term operating goal. While we are well-positioned in the near term, we are looking at all options to maintain a capital structure that supports our long-term strategic objectives. In conclusion, we have the right strategy in place with a focus on profitability, financial discipline, and enhancing the customer experience with a segmented go-to-market approach, which positions us on a path to sustainable long-term growth. With that, we'll now take any questions.

Marc Sirota: Our leverage ratio was seven times, the last two quarters annualized adjusted EBITDA.

Marc Sirota: We will continue to be proactive in managing our debt maturities and evaluate how best to ensure that our capital structure supports our long term operating goals.

Marc Sirota: While we are well positioned in the near term we are looking at all options to maintain a capital structure that supports our long term strategic objectives.

Marc Sirota: In conclusion, we have the right strategy in place with a focus on profitability financial discipline and enhancing the customer experience with a segmented go to market approach, which positions us on a path to sustainable long term growth.

Speaker Change: With that I will now take any questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. In the interest of time, we ask that participants limit themselves to one question. One moment, please, while we poll for questions. Thank you. Our first question is from Kutgun Maral of Evercore ISI. Please proceed with your question.

Speaker Change: Thank you we will now be conducting a question and answer session.

Kutgun Maral: I'd like to ask a question. Please press star one on your telephone keypad, a confirmation Tom long the Kate Your line is in the question queue. You May Press Star two if I can remove your question from the queue.

Kutgun Maral: Participants using speaker equipment and might be necessary to pick up your handset before pressing the star keys.

Kutgun Maral: In the interest of time, we ask that participants limit themselves to one question. One moment. Please while we poll for questions.

Operator: Okay.

Kutgun Maral: Thank you. Our first question is from gotten morale with Evercore ISI. Please proceed with your question.

Kutgun Maral: Good morning and thanks for taking the questions. I was hoping you could unpack the competitive backdrop across broadband a bit more and perhaps what you're seeing into the second quarter beyond typical seasonality. Dennis, you called out stable trends against fiber overbuilders, which is encouraging. Any sense on whether the pace of overbuild activity has changed across your footprint? And are you seeing any notable shifts across fixed wireless? We've seen some growth moderate across certain fixed wireless operators, though that seems to be offset by the rollout of AT&T's Internet Air. I'm not really sure how that plays across your footprint, so any help would be appreciated. Thank you.

Kutgun Maral: Good morning, and thanks for taking the question I was hoping you could unpack the competitive backdrop across broadband a bit more and perhaps what you're seeing into the second quarter beyond typical seasonality Dennis you called out stable trends against fiber overbuild orders, which is encouraging any sense on whether the pace of <unk>.

Kutgun Maral: Overbuild activity has changed across your footprint.

Kutgun Maral: And are you seeing any notable shifts across fixed wireless we have seen some growth moderate across certain fixed wireless operators. So that seems to be offset by the rollout of AT&T Internet are I'm not really sure how that plays across our footprint. So any help would be appreciated. Thank you.

Dennis Mathew: Hey, CATGUN. I'm happy to address these topics. On the competitive front, you know, we've got a little bit of a different composition across the East versus the West. But I am very happy with the trends, particularly from a churn perspective. As I look at where we are, we've really done an incredible job as a team to stabilize churn, particularly in the east. And so we're really focused on continuing to drive gross ads and top of the funnel.

Kutgun Maral: Hey, Kirk on happy to address these topics on the competitive front, we've got a little bit of a different composition across the east versus the west.

Dennis Mathew: I am very happy with the.

Dennis Mathew: Trends, particularly from a churn perspective.

Dennis Mathew: As I look at where we are we really done an incredible job as a team to stabilize churn.

Dennis Mathew: Particularly in the east and so we're really focused on continuing to drive.

Dennis Mathew: As I mentioned, we have a lot of headwinds to work through with interest rates where they are and mortgage rates at, you know, 23-year highs, near highs, and housing starts being down 30% in the northeast.

Dennis Mathew: Gross adds on top of the funnel as I mentioned.

Dennis Mathew: We have a lot of headwinds to work through with interest rates, where they are and mortgage rates at <unk>.

Dennis Mathew: <unk> 23 year highs.

Dennis Mathew: There are just less jump balls, less calls coming into the call center, and less shoppers online. We're seeing Verizon go hard after the lower end of the market, both with their, you know, offers, $30 offers to 300 Meg. They've now launched their fixed wireless solution, so there is a bit more amplification and competition at that lower end. I am happy to say that I'm seeing our wind share stabilize against fixed wireless generally, and some of our local go-to-market strategies are really helping us compete more effectively.

Dennis Mathew: We are high then.

Dennis Mathew: Housing starts being down 30% in the northeast there are just less jump ball less calls coming into the call center less shoppers online.

Dennis Mathew: We're seeing Verizon go hard after the lower end of the market.

Dennis Mathew: Both with their offers $30 offers two or 300, Meg they've now launched their fixed wireless.

Dennis Mathew: Solution.

Dennis Mathew: There is a bit more amplification in competition at that lower end I am happy to say that I am seeing our wind share stabilized against fixed wireless generally.

Dennis Mathew: And some of our local go to market strategies are really helping us compete.

Dennis Mathew: More effectively when.

Dennis Mathew: When I look at the West, we are continuing to see build, absolutely 200,000 over-billed passings in the second half of last year, and we do see these folks coming in and taking some share upon initial launch, which is not surprising. But our ability to compete is really improving, and we're starting to see, actually, our ability over time to compete and improve every day, every week. We're finding customers are now starting to come back as they're dissatisfied with the quality of service and with hidden fees.

Dennis Mathew: I look at the West.

Dennis Mathew: We are continuing to see build absolutely a 200000.

Dennis Mathew: Overbuild path things in the second half of last year.

Dennis Mathew: And we do see these folks coming in and taking some share upon initial launch which is not surprising but our ability to compete.

Dennis Mathew: Is really improving and we're starting to see actually our ability over time to compete improve.

Dennis Mathew: Every day every week, we're finding customers now starting to come back as they are dissatisfied with the quality of service. They are dissatisfied with the hidden fees.

Dennis Mathew: We're more present than ever. We're delivering better quality, quality products, quality network, and quality service. People want quality and value, and that is what we are committed to delivering, which is evidenced by the awards from Ookla and from CNET, and we're really focused on profitable growth as we move forward as well. And so, we are really becoming, and we've really implemented some nice discipline on our go-to-market acquisition offers, as well as in our retention. And so, the competition is fiercer than ever, but our ability to compete continues to improve every day.

Dennis Mathew: We are more present than ever we're delivering better quality quality.

Dennis Mathew: Product quality network quality service people want quality and value and that is what we are committed to delivering which is evidenced by the awards from <unk> and from seeing that and we're really focused on profitable growth as we move forward as well and so.

Dennis Mathew: We are really becoming.

Dennis Mathew: Really implemented some nice discipline on our go to market acquisition offers.

Dennis Mathew: Well as in our retention and so.

Dennis Mathew: The competition is fiercer than ever but our ability to compete continues to improve every day.

Speaker Change: Understood. Thank you for all the color.

Dennis Mathew: Absolutely.

Dennis Mathew: Understood. Thank you for the call. Absolutely. Our next question is from Greg Williams with TD Cowell. Please proceed with your question. Great, thanks for taking my questions. You guys have shown signs of improvement in the past two quarters. Now you're focused.

Operator: Our next question is from Greg Williams with TD Cowell. Please proceed with your question.

Dennis Mathew: Our next question is from Greg Williams with TD Cowen. Please proceed with your company. Please proceed with your question.

Gregory Bradford Williams: Great. Thanks for taking my questions.

Gregory Bradford Williams: You guys noted for the past two quarters now your focus on fiber migration. So I was curious if you had a percentage of what your ads where on the fiber side, how many came from HFC migrations versus new to all piece.

Gregory Bradford Williams: I think in the past you said it was 50 50 and I'm wondering if that's shifting.

Gregory Bradford Williams: And also just general color on EBIT trends for the balance of the year, you've had some opex investments in seasonality in first quarter, just wanted to see how that shakes out through the remaining two quarters. Thanks.

Dennis Mathew: Thanks, Greg. Our fiber migration processes are improving by the day. In this past quarter, we actually had 70% of our ads, fiber ads, come from migrations. As I mentioned on the last couple of calls, there's a whole host of process and technology improvements that the teams are working hard on, and we're starting to see those improvements deliver results. And we have a whole host of additional technological improvements coming towards the middle of May.

Gregory Bradford Williams: Thanks, Greg our fiber migration processes are improving by the day.

Dennis Mathew: This past quarter, we actually had 70% of our add fiber adds come from migrations as I mentioned on the last.

Dennis Mathew: A couple of calls there is a whole host of process and technology improvements that the teams are working hard on and we're starting to see those improvements deliver results and we have a whole host of additional.

Dennis Mathew: Technology improvements coming towards the middle of May.

Dennis Mathew: So I imagine we will.

Dennis Mathew: <unk> be a bit flattish in terms of Q2 fiber migration.

Dennis Mathew: Performance and then we want to really hit the accelerator as we move into the second half of the year.

Dennis Mathew: So I imagine we'll be a bit flat-ish in terms of Q2 fiber migration performance, and then we want to really hit the accelerator as we move into the second half of the year. And our customers are already telling us that they are experiencing improvements in improved NPS and customer satisfaction. Our teammates are also sharing. We're now seeing in pockets an ability to deliver 90% completion upon fiber migration and, you know, some marked improvement from mid to low 70s just a few months ago.

Dennis Mathew: And our customers are already telling us that.

Dennis Mathew: They are experiencing the improvements with improved NPS and customer satisfaction. Our teammates are also sharing we're now seeing in pockets on ability to deliver 90% completion.

Dennis Mathew: PON fiber migration.

Dennis Mathew: It's a marked improvement from mid.

Dennis Mathew: Mid to low seventies, just a few months ago, and so I'm very optimistic that we're going to be able to have a step function change in terms of acceleration of migrations as we move into the second half Mark I'll throw it over to you to talk a bit about our EBITDA.

Dennis Mathew: And so I'm very optimistic that we're going to be able to have a step function change in terms of acceleration of migrations as we move into the second half. Marc, I'll throw it over to you to talk a bit about our EBITDA trends. Thanks, Greg.

Marc Sirota: Yes, Greg, on EBITDA trends, as we've mentioned before, prior year subscriber losses will continue to weigh on current year results. However, we're optimistic about the improvements we're making that we talked about on the call. We're transforming literally every aspect of this business, and we think that will fundamentally be able to grow EBITDA over the long term. And we feel like we have the runway to continue to sustain ibada growth for the long term.

Dennis Mathew: Greg.

Marc Sirota: EBITDA trends.

Marc Sirota: As we've mentioned before prior year subscriber losses will continue to weigh on current year results. We're optimistic about the improvements, we're making that we talked about on the call for.

Marc Sirota: We're transforming literally every aspect of this business and we think that will fundamentally.

Marc Sirota: We'll be able to grow EBITDA over the long term, we're acting with discipline.

Marc Sirota: On Opex and we feel like we have the runway to continue to stay in sustained EBITDA growth for the long term.

Speaker Change: Got it thank you.

Marc Sirota: Yep.

Jonathan Chaplin: Our next question is from Jonathan Chaplin with News Street. Please proceed with your question.

Marc Sirota: Our next question is from Jonathan Chaplin with New Street. Please proceed with your question.

Marc Sirota: Thanks guys. I've got a question, or really a couple of questions on ARPU. Marc, I think you said you expected ARPU to improve from last year. Was that for residential ARPU or for broadband ARPU, or both? And then I'm just wondering about the new pricing plans that you've put into effect, you know, clearly they're having a benefit in helping stabilize churn, but when do you think you'll get to a point of ARPU stability? Can that happen at some point this year, or is it more likely next year? Thank you. Jonathan. Yes, on our

Jonathan Chaplin: Thanks, guys I've got a question or a couple of questions on <unk>.

Marc Sirota: Mark I think you said you expected <unk> improved from last year was that for residential ARPA or for broadband broadband at all both and then I'm just wondering with the new pricing plans that you've put into effect Kennedy theyre, having a benefit in helping stabilize Chad, but when do you think.

Marc Sirota: Youll get to a point of.

Marc Sirota: Our stability could that happen at some point this year or is it more likely next year. Thank you.

Marc Sirota: Hi Jonathan. Yes, on ARPU. We do look at ARPU holistically because there's a little bit of fair market allocation between the product lines, so our focus fundamentally is on the overall residential ARPU. And as you've seen, we're pleased with the stabilization of ARPUs, especially over the past three quarters, really erasing significant declines that we previously experienced. And so just note, as we've talked about previously, video losses will continue to weigh on ARPU declines, but we're offsetting these.

Jonathan Chaplin: Hi, Jonathan.

Marc Sirota: Yeah. So on <unk>, we do look at <unk>, holistically, because theres, a little bit of fair market allocation between the product lines. So our focus fundamentally is on the overall residential harpoon.

Marc Sirota: And as you've seen we're pleased with the stabilization of <unk>, especially over the past three quarters.

Marc Sirota: Erasing significant declines.

Marc Sirota: We've previously experienced in so.

Marc Sirota: Just note as we've talked about previously video losses will continue to weigh on <unk> declines, but we're offsetting these.

Marc Sirota: That exposure would be just more disciplined around price with retention, around gross ad acquisition offers, and selling incremental services like mobile. And we're passing on more of the programming costs to our customers as well. And then we're really just excited about how we're leveraging advanced analytics and AI tools with our frontline employees to help them guide each and every individual customer interaction. So we feel like we have a real path to sustain a balanced approach to ARPU, and we're optimistic about that.

Marc Sirota: That exposure would have been just more disciplined around price with retention around gross add acquisition offers.

Marc Sirota: Selling incremental services like mobile.

Marc Sirota: And we are passing on more of the programming costs it costs to our customers as well.

Marc Sirota: And then really just excited about how we're leveraging advanced analytics and AI tools with our frontline employees to help them guide each and every individual customer interaction.

Marc Sirota: So we feel like we have a real path to sustain a balanced approach on <unk>.

Marc Sirota: And we're optimistic around that.

Speaker Change: Got it thank you.

Marc Sirota: Okay.

Jessica Reif-Ehrlich: Our next question is from Jessica Reif-Ehrlich with Bank of America. Please proceed with your question.

Speaker Change: Our next question is from Jessica Reif Ehrlich with Bank of America. Please proceed with your question.

Dennis Mathew: Thanks. I have a question about video and a question about advertising. On video, can you talk about efforts to keep programming costs per sub down and maybe some color on, Dennis said, more optionality for video packages? This is still video, but it looks like, for the first time, I think, ever, we're starting to see cable over-building each other. Can you talk about what strategies you're employing to differentiate? Anything you can say about the over-building for cable? And then just advertising quickly, your numbers were really strong, even without politics. Can you give us some color on where that's coming from in progress in advertising initiatives?

Jessica Reif-Ehrlich: Thanks have a question on video question on advertising.

Dennis Mathew: On video can you talk about what.

Dennis Mathew: Efforts to keep programming costs per sub down and maybe some color on Dennis said, some more optionality for video packages.

Dennis Mathew: This is still video, but it looks like for the first time I think ever we're starting to see cable overbuilding.

Dennis Mathew: Each other and can you talk about what strategies, you're employing to differentiate it.

Dennis Mathew: Anything you can say on the overbuilding for cable.

Dennis Mathew: And then just advertising quickly.

Dennis Mathew: The numbers.

Dennis Mathew: Really strong even without political can you give us some color on where that's coming from and progress and advertising initiatives. Thank you.

Dennis Mathew: Hi Jessica. I'll talk a little bit about video and the overbuild strategy, and then, Marc, if you want to talk about advertising. But on video programming costs, you know, I'm really proud of the team and the way we're working together better than ever, and our head of programming working across with our finance organizations to really leverage data in ways that we've never done before, to be able to go into these conversations much more informed.

Speaker Change: Hi, Jessica I'll talk a little bit about the video and the overbuild strategy and then Mark if you want to talk about advertising, but on the video programming.

Speaker Change: Of course.

Dennis Mathew: I'm really proud of the team and the way, we're working together better than ever and our head of programming working across with our finance organizations to really leverage data.

Dennis Mathew: In ways that we've never done before to be able to go into these conversations much more informed.

Dennis Mathew: And so we're continuing to drive down programming cost inflation per sub and really having open, honest conversations about how broken the model is. As we all know, linear video viewing is at all-time lows, costs are at all-time highs, and direct-to-consumer option availability is at all-time highs. We continue to package in content that folks have no interest in watching. And so those are the conversations we're having.

Dennis Mathew: And so we're continuing to drive down.

Dennis Mathew: Programming cost inflation per sub.

Dennis Mathew: And really having open honest conversations about how broken the model is as we know as we all know linear video viewing us all.

Dennis Mathew: All time lows costs are at all time highs direct to consumer option availability is at all time highs.

Dennis Mathew: We continue to package in content that folks have no interest in watching and so those are the conversations we're having we're putting the customer at.

Dennis Mathew: We're putting the customer at the forefront and having these conversations in a way that we're hoping ultimately will become a win-win. And those conversations continue, and as we have those discussions, the team is now working on some new video packages, as I mentioned, which I think will provide just some more optionality for customers. We have more work to do in the second quarter to really finalize the content, pricing, and go-to-market strategy, but I'm confident it will just provide more optionality for customers in the second half of the year.

Dennis Mathew: At the forefront and having these conversations in a way that we're hoping ultimately become a win win and.

Dennis Mathew: And those conversations continue and as we have those discussions.

Dennis Mathew: The team is now working on some new video packages as I mentioned, which I think will provide just some more optionality for our customers.

Dennis Mathew: More work to do in the second quarter to really finalize the content and pricing and go to market strategy, but confident that we will just provide more optionality for our customers in the second half of the year.

Dennis Mathew: And we want to be able to provide products that allow customers to watch what they want when they want it. And so our new Streambox, which is an Android-based box, we've launched it across the East footprint. We're now launching it across the West, and that'll allow customers to watch linear video as well as direct-to-consumer options. And also, we are making this box self-installable so that folks can install it themselves and have it up and running in a very simple way.

Dennis Mathew: And we want to be able to provide products that allow customers to watch what they want when they want it and so our new stream box, which is an Android based box, we've launched it across the east footprint.

Dennis Mathew: We're now launching it across the west and that will allow customers to watch linear video as well as direct to consumer options and also.

Dennis Mathew: We are making this box self installed so that folks can.

Dennis Mathew: Install it themselves and have it up and running in a very simple way. So we're excited about.

Marc Sirota: So we're excited about, you know, video continues to be important in the portfolio, and video is the number one thing that people do on our connectivity solutions. And we're working hard to make sure that we provide the best options to our customers. From an overbill perspective, especially as we look at places like Montclair and West Orange, you know, we have facilities that are very close by. And so it allows us to deploy capital and build in a very efficient manner.

Marc Sirota: <unk> continues to be important in the portfolio.

Marc Sirota: Video is the number one.

Marc Sirota: Thing that people do on the on our connectivity solutions and we're working hard to make sure that we provide the best options to our customers from an overbuild perspective, especially as we look at places like Montclair and West Orange, we have facilities that are very close by and so that.

Marc Sirota: It allows us to deploy capital and build in a very efficient manner and we're excited to bring our incredible products to these customers eight gig symmetrical speeds our stream box our optimum complete.

Marc Sirota: And we're excited to bring our incredible products to these customers. You know, 8-gig symmetrical speeds, our Streambox, our Optimum Complete solutions. We have an opportunity to bring the fastest, most reliable internet to these customers. And we think that we can provide these customers with great products, great quality, great value, and we're continuing to look at every opportunity. The way that we're expanding and driving new builds is transforming the way we do it in the past, and we're looking at all of these opportunities with a new lens and a new financial discipline. Mark, you want to talk about advertising? Yeah, Jessica, about advertising. We are very pleased with the sales channel.

Marc Sirota: Solutions, we have an opportunity to bring the fastest most reliable internet to these customers and we think that we can.

Mark: Provide these customers with great products, great great quality, great value and we're continuing to look at every opportunity the way that we're expanding and driving newbuild.

Mark: We're transforming the way we've done it in the past and we're looking at all of these opportunities with the new lens and a new financial discipline.

Marc Sirota: Mark do you want to talk about advertising Jessica on advertising. We are very pleased the sales channels are operating at the highest levels.

Marc Sirota: Yeah, Jessica, on advertising, we are very pleased. The sales channels are operating at the highest levels.

Marc Sirota: And what we're really encouraged by is the partnership now that's forming between our ad sales and our B2B sales organizations, and we think that actually accelerates growth even further. And we're making strategic investments in our advanced advertising platforms, which I think is setting us apart from the rest. So we're very pleased with the path we're on, and as you mentioned, we see politics as a nice tailwind as we enter into the second half of this year. So optimistic in our news and advertising.

Mark: And what we're really encouraged by is the partnership now thats form in between our AD sales in our <unk> sales organizations, and we think that actually accelerate growth, even further and we're making strategic investments in our advanced advertising platform, which I think is setting us apart from the rest. So we're very pleased on the <unk>.

Marc Sirota: <unk>.

Marc Sirota: And as you mentioned, we see political is.

Marc Sirota: A nice tailwind as we enter into the second half of this year, so optimistic around our news and advertising business.

Speaker Change: Thank you.

Marc Sirota: Yes.

Marc Sirota: Yes.

Frank Garrett Louthan: Our next question is from Frank Luthan with Raymond James. Please proceed with your question.

Marc Sirota: Our next question is from Frank Louthan with Raymond James. Please proceed with your question.

Dennis Mathew: Great, thank you. On the wireless side, we've made good progress getting the gross margin positive. How long can we reach a scale to get to approach something close to your break-even on EBITDA, and what is the goal there? And as you see, we generally see across the board with pricing for broadband, some of your competitors, obviously, some of your peers taking prices up, and we see a lot of the fiber overbuilders and the telcos taking prices up. At what point do you think you have an opportunity there to participate in some of that upward price movement we see across the industry? Thanks.

Frank Garrett Louthan: Great. Thank you on the wireless.

Dennis Mathew: Good progress getting the gross margin positive how long can we reach a scale to get to approach something close to breakeven on EBITDA and what is the goal there and as you see we can see across the board with with pricing for broadband.

Dennis Mathew: Some of your competitors, obviously take some of your peers, taking pricing up and we see a lot of the fiber over builders and the telcos taking pricing up at what point do you think you have some opportunity there to participate in some of that upward price movement, we see across the industry.

Dennis Mathew: Okay.

Marc Sirota: Hey, Frank, I'll talk a bit about the wireless mobile strategy. And, you know, Marc, if you want to chime in at all on the financials, I'm happy to talk about our pricing strategy generally, but we're very pleased with mobile. We continue to see, you know, really strong performance, and we're still in the early days, you know, 3.8x improvement year over year. And really, the channels are just starting to get into a rhythm.

Speaker Change: Hey, Frank I'll talk a bit about the wireless mobile strategy.

Marc Sirota: You know Mark if you want to chime in at all on the financials and happy to talk about our pricing strategy generally, but we're very pleased with mobile we.

Marc Sirota: We continue to see really strong performance and we are still in the early days, so <unk> eight X improvement year over year.

Marc Sirota: And really the channels are just starting to get into a rhythm we've launched some new channels in the last few months and Theyre starting to come online and perform like our care and retention team now selling mobile as well we've transformed our retail centers into mobile sales centers than we are.

Dennis Mathew: We've launched some new channels in the last few months, and they're starting to come online and perform like our care and retention teams are now selling mobile as well. We've transformed our retail centers into mobile sales centers, and we're continuing to operate and sell in ways that we've never done before. And we're focused on quality. You know, we've seen a $4 improvement in ARPU, we're selling unlimited data, and we're just continuing to drive attach across the board and lines.

Dennis Mathew: Wing to operate and sell in ways that we've never done and we're focused on quality, we've seen a $4 improvement in our pool, we're selling in.

Dennis Mathew: Unlimited and we're just continuing to drive attach across the board in lines and so we're really pleased with the mobile and the opportunity we're going to continue to drive mobile and <unk> as well, we just launched that recently and we're excited for the growth and particularly the <unk>.

Dennis Mathew: And so we're really pleased with mobile and the opportunity to drive mobile in B2B as well. We just launched that recently. And we're excited for the growth and, particularly, the churn benefits. You know, we're already seeing a 20% benefit to our customers when taking mobile. And so this is going to, this is a core part of our portfolio that we have more work to do. We have more products to launch; we have watches and tablets and others coming later this year.

Dennis Mathew: The benefits, we're already seeing 20% benefit to our customers when taking.

Dennis Mathew: Mobile and so this is this is a core part of our portfolio that we have more work to do we have more products to launch we have watches and tablets and others.

Dennis Mathew: And we're going to continue to drive profitability as well, as we start to look at other products later in the year and focus on insurance and accessories. We're very happy with where we are, and we're confident that we can get to a pacing in line with peers in our industry.

Dennis Mathew: Coming later this year and we're we're going to continue to drive profitability as well as we start to look at other products later in the year and focus on insurance and accessories.

Dennis Mathew: We're very happy with where we are and we're confident that we can get to a pacing in line with peers in our industry.

Marc Sirota: And Frank on pricing, again, we're pleased with the stabilization that you see in our overall ARPU rates. And again, we're doing that in a multifaceted way.

Dennis Mathew: And Frank on pricing again, we're we're pleased with the stabilization that youll see in our overall <unk> rates.

Marc Sirota: And again, we're doing that in a multifaceted way, we're focused on being disciplined around price both in retention and acquisition.

Marc Sirota: We're focused on being disciplined around price, both in retention and acquisition. We're selling incremental services and certainly trying to drive more mobile and just being disciplined on the video side of the house. And so we feel like there is a path for sustained ARPU growth. We think we'll do slightly better than what we saw last year. And, yeah, we're pleased with our trajectory in the way we've been able to kind of move.

Marc Sirota: We're selling and incremental services.

Marc Sirota: Certainly trying to drive more mobile and just being disciplined on the video side of the house and so we feel like there is a path for sustained <unk> growth we think.

Marc Sirota: We will do slightly better than what we saw last year.

Marc Sirota: And.

Marc Sirota: Yes, we're pleased on our trajectory in the way, we've been able to kind of moderate and stabilize our pool.

Marc Sirota: moderate and stabilize our poo, and certainly we'll look at the holistic book of business around one we take and how we take price increases, but we're doing it in just more of a scientific manner at this. But we feel like we're on a nice path to sustained growth.

Marc Sirota: And certainly we will look at the holistic book of business.

Marc Sirota: One we've taken we've taken price increases, but we're doing it is just more of a scientific manner at this point.

Marc Sirota: We feel like we're on a nice path to sustained growth.

Operator: All right, great, thank you very much.

Speaker Change: Alright, great. Thank you very much.

Operator: Yep.

Sebastiano Carmine Petti: Thank you. Our next question is from Sebastian O Petty with J.P. Morgan. Please continue with your questions.

Operator: Thank you. Our next question is from Sebastian <unk> with Jpmorgan. Please proceed with your question.

Dennis Mathew: Hi, thank you for taking the question. I was wondering if you could perhaps update us on the pace of incremental builds in terms of fiber, both in the East and in the Western markets. Obviously, in the East, you have files that are a bit more mature, but, you know, they continue to expand somewhat incrementally. But, you know, Frontier, I think, has put out a target about the amount of net new locations they plan to fiberize in Connecticut over time.

Speaker Change: Hi, Thank you for taking the question I was I was wondering if you could update us perhaps on what youre seeing from the pace of incremental build in terms of fiber both in the east and in the Western markets, obviously in the east Cam cloud a bit more mature, but they continue to expand somewhat incrementally, but frontier I think had put out a target about the.

Dennis Mathew: Out of net new locations they plan to Fiberize in Connecticut overtime, So any change there and then in the west.

Dennis Mathew: So, any change there? And then in the West, obviously, you called out, you know, incremental overbuilders and legacy or traditional DSL markets. Has that pace slowed? Have you seen anything from some of the open access announcements we've also seen? And while, and maybe you can give us an update on where you think fiber overlap is, what the terminal penetration is, perhaps in the Western markets. I think in the past, Altice did talk about that. Thank you.

Dennis Mathew: You called out incremental over builders and legacy or traditional DSL markets.

Dennis Mathew: Has that pace slowed have you seen anything from some of the open access announcements, we've also seen as well.

Dennis Mathew: And while.

Dennis Mathew: Maybe you can give us an update on where do you think fiber overlap.

Dennis Mathew: With a terminal penetration is perhaps in the western markets I think in the past.

Speaker Change: <unk> didn't talk about that thank you.

Dennis Mathew: Hey Sebastiano, we see the pace remaining fairly consistent, honestly, across the East and the West. As we know, there's been a faster pace in the West. I mentioned we saw about 200,000 incremental overbuilds in the second half of last year. We continue to see, you know, Verizon and Frontier edge out at the rates that they've been edging out in the past. All that being said, our ability to continue to compete at a hyper-local level continues to progress.

Speaker Change: Hey, Sebastiano, we see the pace.

Dennis Mathew: Remaining fairly consistent honestly across the east and the west.

Dennis Mathew: We know there has been.

Dennis Mathew: Faster paced in the West I mentioned, we've seen about 200000 incremental overbuild in the second half of last year.

Dennis Mathew: We continue to see.

Dennis Mathew: Verizon and frontier edge out.

Dennis Mathew: At the paces that they've been edging out in the past all that being said.

Dennis Mathew: Our ability to continue to compete at a hyper local level continues to progress that's why I'm. So excited about the new brand platform that we've launched as well as these new local.

Dennis Mathew: That's why I'm so excited about the new brand platform that we've launched, as well as these new local go-to-market playbooks. Ultimately, I believe we have the right products and the right portfolio and offers to be able to compete. You know, starting to take some share, but then we're able to compete very effectively after that initial launch. And so, that's what we're focused on: controlling what we can control. We continue to see sales channels improve in productivity and in yield.

Dennis Mathew: Go to market Playbooks and ultimately I believe we have the right products and the right portfolio.

Dennis Mathew: And offers to be able to compete we do see as I mentioned in the west in particular as some folks launch into some of these markets that were DSL markets.

Dennis Mathew: Starting to take some share, but then we're able to compete very effectively after that initial launch and so that's what we're focused on controlling what we can control we continue to see sales channels improving in productivity and in yield we continue to see.

Dennis Mathew: We continue to see churn stabilize as we continue to deliver quality, quality network, service, experience, and products. And so, that's our focus, and we're continuing to expand our footprint as well and continuing to drive. We operate in four of the fastest-growing cities in the country, four of the top 16. All of those are in the West.

Dennis Mathew: <unk> stable stabilize as we continue to deliver quality quality network and service and experience in products and so that's our focus and we're continuing to expand our footprint as well and continuing to drive.

Dennis Mathew: We operate in four of the fastest growing cities in the country for the top 16 all of those are in the west and we're bringing a new level of discipline in terms of how we drive our own overbuild and Newbuild, which will help us continue to grow from a footprint and a subscriber.

Dennis Mathew: And we're bringing a new level of discipline in terms of how we drive our own overbuild and new build, which will help us continue to grow from a footprint and a subscriber base.

Dennis Mathew: Respective as well.

Dennis Mathew: I could quickly follow up. You kind of alluded to it somewhat in discussing your network expansion efforts, but I think a key debate in the investment community is the ability for cable providers to incite and improve the trajectory of gross additions. I mean, how are you thinking about that? Do you see this FWA competition and maybe some of the incremental fiber overlap as the pace of that abates, then perhaps Altice USA should think about or project an inflection within gross additions, or is it more on a... The Growth Algorithm on Broadband Subscribers, you know, is being driven more so by retention and slowing attrition rates. I think it's absolutely both. It's absolutely both.

Speaker Change: If I could quickly follow up.

Dennis Mathew: I alluded to it somewhat.

Dennis Mathew: Discussing your.

Dennis Mathew: Network expansion efforts, but I think a key debate from an investment in the investment community is the ability for cable providers to improve.

Dennis Mathew: Collect and improve the trajectory of gross additions.

Dennis Mathew: I mean, how do you how are you thinking about that I mean do you see this at February competition, and maybe some of the incremental fiber overlap.

Dennis Mathew: As the pace of that Abates, then, perhaps altice USA should.

Dennis Mathew: Think about projecting inflection within gross additions or is it more on a ah.

Dennis Mathew: Current environment around the churn basis, where you see the.

Dennis Mathew: The growth algorithm on broadband subscribers being driven more so by retention and slowing attrition rates I think personally I think its absolutely both.

Dennis Mathew: I mean, for us at Churn, you know, our levels are the best in the industry. And that being said, we're in a new environment, and we need to be better. And so we're going to drive a level of quality and excellence in operations and continue to focus on leveraging tools and analytics to be able to perform with even more precision. On gross ads, you know, we're a bit different in the industry because we're in a transformation mode. So we brought on a brand new chief marketing officer, Jen Garrett, at the end of last year. She's transforming her team.

Dennis Mathew: Absolutely both I mean for us on churn.

Dennis Mathew: Our levels are best in the industry.

Dennis Mathew: And that being said, we're in a new environment and we need to be better.

Dennis Mathew: So we're going to drive.

Dennis Mathew: Our level of quality and excellence in operating.

Dennis Mathew: And continue to focus on leveraging tools and analytics to be able to.

Dennis Mathew: Perform with even more precision.

Dennis Mathew: So we need to continue to improve on the gross adds.

Dennis Mathew: We are a bit different than the than the <unk>.

Dennis Mathew: Industry, because we're in a transformation mode. So we brought on a brand new Chief marketing Officer Jen Gareth at the end of last year. She is transforming her team and then we brought on a new agency of record and so I absolutely believe that there are there is an opportunity for us to perform at a higher <unk>.

Dennis Mathew: And then we brought on a new agency of record, and so I absolutely believe that there is an opportunity for us to perform at a higher gear from a gross ad, top of the funnel perspective. And so we are coming at it from both angles, and we will bend the curve on both ends of the spectrum. And the hyperlocal playbooks, to be quite frank, we were, you know, historically on the reactive at best.

Dennis Mathew: Gear from a gross add top of the funnel perspective, and so we are coming at it from both.

Dennis Mathew: Both angles, and we will bend the curve in both.

Dennis Mathew: On both ends of the spectrum and the hyper local.

Dennis Mathew: Playbooks to be quite Frank we were you know historically on our play reactive at best and we're going on the offensive.

Dennis Mathew: And as you think about, you know, how we compete, we have to compete at a hyperlocal level at the town level based on the competitive landscape, which we have not done before. We put in a new leadership structure, our OMS structure, optimum market structure, to allow us to compete at a much more effective level locally. And you'll see that in our new marketing, where we are competing at the town by town level in our marketing. And I'm confident that that is going to start to translate into gross additions as we move into the year.

Dennis Mathew: And as you think about it.

Dennis Mathew: How we compete we have to compete at a hyper local level at the town level based on the competitive landscape, which we have not done before we've put in a new leadership structure.

Dennis Mathew: Yes.

Dennis Mathew: Structure optimal market structure to allow us to compete at a much more effective level locally and youll see that in our new marketing.

Dennis Mathew: Where we are competing at the town by town level in our marketing.

Dennis Mathew: I'm confident that that is going to start to translate into.

Dennis Mathew: Into gross additions as we move into the year.

Speaker Change: Great. Thank you for the color.

Dennis Mathew: Yes.

Arun Seshadri: Thank you. Our next question is from Arun Seshadri with BNP Paribas. Please proceed with your question.

Dennis Mathew: Thank you. Our next question is from Arun Seshadri with BNP Paribas. Please proceed with your question.

Arun Seshadri: Yes, hi. Thanks for taking my question. Just one from me.

Arun Seshadri: Yes, hi, Thanks for taking my question just one from me I guess.

Arun Seshadri: Bond price performance in the last few weeks.

Arun Seshadri: It appears to have been impacted by general concerns around the capital structure.

Marc Sirota: I guess the bond price performance in the last few weeks appears to have been impacted by general concerns around the capital structure. I guess given the prices of your debt, it seems to open the door for deleveraging via discount capture. Is that something you're looking at? I think the commentary that you made, Marc, earlier in the call seems to have added a line regarding all options to maintain a viable capital structure. I don't know if I imagined that, but just any thoughts on either of those would be helpful. Thanks. Yeah, Rune, as we said before, our

Arun Seshadri: I guess given given prices of your debt it seems to open the door for deleveraging via discount capture is that something youre looking at I think the the commentary that you made mark earlier on in the call. It seems to have added.

Marc Sirota: Align regarding all options to maintain a viable capital structure I don't know if I imagine that but just any any thoughts on either of those would be helpful. Thanks.

Marc Sirota: Yeah, as we said before, our focus is operating the business and getting back to sustainable long-term subscriber EBITDA and free cash flow growth. Certainly, clearing out the near-term maturities at the beginning of the year has given us runway. But as we also talked about, interest rates remain high, move activity remains low, consumer spending pressured, and with sustained, uh, competition. As we position the business for the long term, we need to be proactively managing our capital against the current environment.

Rune: Yes, Arun as we've said before our focus is operating the business and getting back to sustainable long term subscriber EBITDA and free cash flow growth certainly clearing up the near term maturities and the beginning of the year has given us runway.

Marc Sirota: But also as we also talked about the interest rates remained high and move activity remains low consumer spending.

Marc Sirota: Pressured and with fish sustained <unk>.

Marc Sirota: Competition so.

Marc Sirota: As we position the business for the long term, we need to be proactively managing our capital against the current environment, So that and we're well positioned in the near term.

Marc Sirota: To that end, we're well positioned in the near term, but we are looking at all options to address our debt maturity profile and maintain a capital structure that best supports our long-term strategic objectives. Beyond that, we have nothing further to share. But, of course, we'll update the market as required if and when we have something.

Marc Sirota: But we are looking at all options to address our debt maturity profile.

Marc Sirota: Maintain a capital structure that best supports our long term strategic objectives.

Marc Sirota: Beyond that we have nothing further to share but of course, we will update the market as required if and when we have something to announce.

Marc Sirota: Okay.

Sarah Freedman: Thank you. There are no further questions at this time. I'd like to hand the floor back over to Sarah Freedman for any closing comments. Thank you all for joining us. Please reach out to Investor Relations with any additional questions. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Marc Sirota: Thank you there are no further questions at this time I'd like to hand, the floor back over to Sarah Friedman for any closing comments.

Sarah Freedman: Thank you all for joining please reach out to Investor relations with any additional questions.

Sarah Freedman: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

Sarah Freedman: Yeah.