Cable One, Inc. Q1 FY2025 earnings call

• Customer Performance: First quarter customer decline due to lower connects and unusual churn, but churn reverted to low levels. Piloted FlexConnect (rebranded paid product for value-conscious customers) showing growth in customer count and ARPU, and Internet Lift (product for value-by-need customers) as an incremental revenue opportunity.
• Infrastructure Innovations: Reengineering new build approach for more efficient customer acquisition, with early signs of stronger penetration.
• ARPU and Products: Slight ARPU dip due to promotions, but trends support growth; SecurePlus adoption up 15% since 2025 start, 17% of new customers choosing the ultimate WiFi bundle.
• Capital Allocation: Suspension of quarterly cash dividend to allocate funds to accelerate debt reduction and invest in organic growth.

For the first quarter of 2025, total revenues were $380.6 million. Residential data revenues decreased $10.7 million or 4.5% year-over-year, with subscribers and ARPU both decreasing by 1.1%. Residential video revenues decreased $9.6 million or 15.8% year-over-year due to video subscriber losses. Business data revenues grew by 1.2% year-over-year, with strong carrier and enterprise fiber businesses, including new long-term contracts adding recurring revenue and expanding network reach.

• Suspension of quarterly cash dividend to redirect approximately $67 million annually towards accelerated debt repayment and organic growth initiatives.
• Expecting total capital expenditures in the low 300s for the full year.
• Confidence in returning to residential broadband revenue growth in 2025.

• Unusual churn events in Q1 including billing migration, fixed wireless tower shutdowns, and weather-related issues.
• Competitive environment, including fixed wireless competition posing challenges.

Q: Reason for suspending dividend and going concern/debt covenant issues A: Todd Koetje stated it was due to capital allocation strategy to accelerate debt repayment, with no going concern or debt covenant issues Q: Confidence in broadband growth A: Julia Laulis mentioned teams and platforms in place, connects improved month-over-month, and plans for product rollouts to drive growth Q: Intake ARPU for FlexConnect/Lift and fiber footprint A: Julia Laulis said FlexConnect has speed tiers, Lift is for eligible value-by-need customers; Todd Koetje stated ~50% of footprint is overbuilt with fiber, and competing with fixed wireless in nearly all markets