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Shares of Altice USA Inc. rose in after-hours trading Wednesday despite the telecommunications company, which operates the Optimum brand, swinging to a loss in its latest quarter.
The company logged a fourth-quarter net loss of $193 million, or 43 cents a share, whereas it posted net income of $252 million, or 56 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting 21 cents in GAAP earnings.
Altice
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posted adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $913 million, down from $1.08 billion a year before, while analysts were modeling $947 million.
Revenue fell to $2.37 billion from $2.52 billion, whereas the FactSet consensus was for $2.40 billion.
While the company saw residential-ending customer relationships fall by 16,200 and broadband-ending subscribers decline by 7,700 in the fourth quarter relative to the third quarter, the sequential drops in subscribers were smaller than those seen in each of the prior two quarters.
“We are pleased with our momentum as demonstrated by the sequential improvement in our subscriber trends in the fourth quarter,” Chief Executive Dennis Mathew said in a release. “Looking ahead, we have a clear strategy centered around growing our broadband and mobile businesses by delivering best-in-class customer and employee experiences, and we are committed to executing with discipline, setting us on a path to return to sustainable customer, revenue and cash-flow growth.”
The company announced separately that Marc Sirota will begin as chief financial officer March 1 after working at Comcast Corp.
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Current CFO Michael Grau will stay on at Altice until early July to help with the transition.
For 2023, Altice anticipates $1.7 billion to $1.8 billion in capital expenditures as it continues to “invest in key growth initiatives.”
After initially sinking in after-hours trading Wednesday., shares ended the extended session up 3%.
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