Cable One, Inc. Q4 FY2024 earnings call

• Broadband growth: Focus on market and segment-specific approach, with ARPU stabilized in Q4 2024, gig sell-in up 10% sequentially, and initiatives like AutoPayPlus. Pay-as-you-go product growing. - Network strength: Emphasized network reliability and moving to proactive support with tools like intelligent Wi-Fi and customer-facing app. - Strategic initiatives: Migrated acquired operations to unified billing system, completed rebranding, started fiber instant-on MDU trial, increased adoption of Intelligent Wi-Fi and SecurePlus, and integrated AI into business for customer experience and efficiency.

For the fourth quarter of 2024, total revenues were $387.2 million, down 6% year-over-year. Residential data revenues decreased 5.4%, with ARPU at $79.72, down 5% year-over-year but up $0.11 sequentially. Business data revenues increased 2.3%. For the full year 2024, total revenues were $1.58 billion, down 5.9% from 2023. Residential data revenues declined 5.5% with ARPU at $80.39, down 4.9% from 2023. Business data revenues increased 2.6%. Residential data PSUs decreased by 5,500 in 2024, excluding ACP losses. Business data PSUs grew by over 1,400. Revenue contribution: Residential data and business data are the key segments, with business data showing growth while residential data faced challenges from ACP and other factors.

• Broadband revenue growth remains top priority for 2025, with market and segment-specific approaches. - Capital expenditures expected to trend towards low 300s in 2025. - MBI amendment provides capital flexibility and enhanced liquidity, with expected purchase price for MBI acquisition ranging between ~$410 million and $550 million by October 2026.

• Competitive landscape: New competition from third-party overbuilders moderating, but incumbents' fiber deployments pose challenges. - MBI-related risks: Uncertainties around MBI's future financial performance and purchase price. - Market dynamics: Impact of ACP program end on residential PSUs and potential challenges in attracting new customers.

Q: About MBI and converts, and ARPU stability.

A: Todd discussed MBI's capital flexibility and monetization of assets, while Julie mentioned ARPU can be influenced by unit growth and ARPU expansion across market segments.

Q: On mobile and gross additions.

A: Julia and Todd stated focus on organic broadband growth rather than immediate mobile partnership, with confidence in tools to drive growth.

Q: On churn and ARPU penetration.

A: Todd noted Q4 churn was second lowest in 3 years, and Julia discussed low penetration of Intelligent Wi-Fi and SecurePlus among customers.

Q: On competitive overlap and subscriber losses.

A: Todd talked about competitive overlap in high 40% area with incumbent telcos, and Julia mentioned unique Q4 headwinds affecting subscriber losses in 2025.

Q: On subs, ARPU, and CapEx.

A: Julia addressed unique Q4 headwinds affecting subs, and Todd discussed minimal overlap with Optimum and CapEx trends towards 4.0 network upgrades