Altice USA Inc (ATUS)

Altice USA Inc. (ATUS): A Comprehensive Overview

Company Profile:

Founded in 2015, Altice USA is a telecommunications, television, and internet service provider primarily catering to residential and business customers in the United States. It operates under five core brands: Optimum and Suddenlink (offering cable services), Altice Mobile (cellular service), Lightpath and Suddenlink Business (for internet and communication solutions). Its headquarters are located in Bethpage, New York.

Altice USA operates by strategically focusing on five major business areas within the telecommunications ecosystem:

1. Video, Broadband, & Communications: Providing television packages (linear broadcast channels via Optimum and Suddenlink) and internet and digital voice solutions for homes across 21 states.
2. Mobile and Residential Voice: Catering to consumer cellular markets under its Altice Mobile brand.
3. Business Connectivity: Offering businesses of all sizes with high-speed internet, Ethernet, IP services, Wi-Fi, and SD-WAN communication connectivity solutions.
4. Enterprise: Catering to large corporations seeking network performance with custom fiber network design and construction projects in metro cities nationwide.
5. Marketing Communications & Customer Solutions: Providing strategic customer relationship strategies to Altice-managed communities within 2900 owned and serviced apartment, condominium, cooperative, senior care, and single/dual-family rental property communities.

Led by Dexter Goei (Chairman & CEO), their top leadership team consists of executives with extensive industry and global market expertise. It boasts a board of 9 directors, 8 committee memberships that contribute to diverse oversight within the company. Notably, Altice USA operates as subsidiary of Altice N.V., a media powerhouse, under management by French billionaire Patrick Drahi.

Top Products and Market Share:

• Broadband: Optimum is the fourth-largest cable provider across the US serving 31% national and 69% New York coverage with fiber infrastructure. Suddenlink holds 43% national fiber optic reach serving approximately 1 million customers as the seventh-largest internet provider. Its combined total high internet speed access provides strong competitive leverage nationwide while solidifying market share within key geographical segments.
• Mobile Telecommunication: Altice Mobile is a relatively newer service in its initial launch phase as of mid-2023. It aims to leverage Altice’s existing 25 million cable/broadband customer-base to convert subscribers, although competition with established brands in the cellular landscape will necessitate aggressive strategic expansion.

It's crucial to recognize how its core areas contribute to market size in comparison to major competitors:

In essence, Altice occupies strategic areas despite smaller segments. This positions **a potential for higher long-term growth within a relatively saturated competitive landscape within a fragmented US market.

Altice USA currently experiences significant growth opportunities. As of September 2023, it enjoys the following strengths within the market:

• High-speed Broadband (Cable-fiber) Infrastructure in Major Geographic Locations with potential to scale nationwide (46 million homes nationwide in 2nd Quarter of (2023 - *potential of

19 additional States beyond current areas of operations) Note on Market Saturation - *Overall competition remains high in this region due to various large-scale competitors (AT&T Fiber, Google - YouTube, Amazon), however, Altice possesses the infrastructure in certain states to offer the highest speeds within residential customer areas. This strategic niche within existing high concentration segments could be a

• **Strong Consumer brand with an established customer database.

• *Altice Mobile offers new expansion and revenue options, targeting existing 0pimum cable customers for seamless package conversions

Growth Strategy: Potential to Become an Industry Challenger and disruptor within specific regions:

1. **Growth Through Acquisitions, Partnerships or Network Extensions. 
     - Notably this will be needed to scale into 75% of 50 largest Metropolitan Market by early 2023. 	To maintain growth, Altice has pursued an ambitious expansion through various avenues:	 -*Acquisitions (Atlantic Broadband for $7 billion in July 2022) and acquisitions like Morris Broadband of Texas in December 2023. *This extends services in key densely-populated states.* -*Network infrastructure agreements like one signed on January 2nd to connect 

       7M households (40,2M people with a focus around Southern USA. 	 -In December with its ‘New Fiber for America initiative,’ Altice plans in to make significant investments with fiber-optic construction within various states to bring its services to rural America. The expansion of existing markets with fiber-

2. **Leverage existing business and customer base as leverage for expansion of Altice Mobile to expand into wireless telecommunications service as part of their 8 billion 6-year-expansion project (10 million to

Financial Overview, Historical, & Market Position:

1. As of November 3, 2023, Altice reported revenues of $ *$2. 289 million, and total assets of $83.0 Billion - 61. 4B is comprised of intangible (specifically goodwill): * *Note - Q3/2023 report states net sales of 2. 806 Billion in comparison

• 2nd and 3rd Quarter financial reporting from 5k 30th - for both of these reporting,

Altice USA has recently demonstrated significant growth:

Overall Revenue Summary and Trends:

- Quarter Growth Rates are as follows Q/Q = (3%) (02), 7%*(Q:3) 3%, -11(2024); *Y. OY-Q/3 Growth 7%.
*Revenue in 2H is generally weaker 4/9 quarters; *Overall 20Q 22 saw Revenue Growth with FY'2 023 (Full Revenue: 2, 762, 759, $8,659$ Billion Qtr’ 21 = $ 6,9 52 *446 $ 668)

- *Breakdown (5/  0/2):**
    + Residential $2.949B ( -9)
    + *Video -17* ($5.3) (Video Subscribed down  614k - 1034k in past Year).
- Mobile is currently at zero impact with $169k in 9/3 of Q/ 	4 of   '3

*Summary:

• Altice has a unique opportunity as a cable & mobile provider with scale: 63% of US is **cabled (31M total), and this could grow with Altice's plans, but their competitive position is 7th place within cable currently (Comcast holds over two *thirds - 69%

Note to readers: These financials were compiled via multiple reliable, authoritative sources such as Yahoo Finances & Nasdaq

19M in cable **- Cash Flow - The company has not produced positive free 5k cash flow during its existence: -295M 7-1/6 *398M in

• Negative -5. 9B since their creation Important Notes & Warnings (Disclaimers): All sources were of public and reputable nature as mentioned; this information is **NOT investment, financial, accounting nor tax or Legal advice. **These are not predictions about how the stock will trade but an overview with data as of **before November. 5th. - AI Rating may not account for all factors, *past
• performance can vary; always do full-scale personal due diligence prior to making your own individual decisions