ALTICE USA Reports USD 2324.3 Million in Revenue in Q2 FY2023, Down 5.6% YOY
August 25, 2023
🌥️Earnings Overview
For the second quarter of fiscal year 2023, ending June 30 2023, Altice ($NYSE:ATUS) USA reported total revenue of USD 2324.3 million, a 5.6% decrease from the same period in the previous year. Net income for this quarter was USD 78.3 million, representing a 26.3% decline year over year.
Analysis
GoodWhale recently completed an analysis of ALTICE USA‘s financials, and based on the Star Chart classification of this company as an ‘elephant’, it is likely that the company has a strong asset base after deducting off liabilities. ALTICE USA has an intermediate health score of 6/10, as per GoodWhale’s assessment, which implies that the company is likely to have enough cash flow and debt options to sustain its operations even in times of crisis. Moreover, ALTICE USA has a strong profitability rating while being weak in terms of asset, dividend and growth metrics. Investors who are looking for a solid asset base and stability in times of crisis may find ALTICE USA a good potential investment option. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Altice Usa. More…
| Total Revenues | Net Income | Net Margin |
| 9.38k | -4 | 0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Altice Usa. More…
| Operations | Investing | Financing |
| 1.95k | -2.1k | 140.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Altice Usa. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 31.99k | 32.49k | -1.04 |
Key Ratios Snapshot
Some of the financial key ratios for Altice Usa are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.6% | -2.0% | 19.1% |
| FCF Margin | ROE | ROA |
| -1.6% | -237.9% | 3.5% |
Peers
In the telecommunications industry, there is intense competition between Altice USA Inc and its major competitors: Charter Communications Inc, Comcast Corp, and Verizon Communications Inc. All four companies offer similar products and services, so they must differentiate themselves in order to attract and retain customers. Price is often a major factor in deciding which company to choose. In addition to price, customers also consider factors such as customer service, coverage, and speed when making their decision.
– Charter Communications Inc ($NASDAQ:CHTR)
Charter Communications Inc is a leading American telecommunications and mass media company with a market cap of 58.28B as of 2022. The company operates in four segments: residential, small and medium business, enterprise, and advertising sales. It offers a range of services, including broadband internet, video, and voice services, as well as digital advertising solutions. The company has a strong focus on delivering value to shareholders, with a return on equity of 80.45%.
– Comcast Corp ($NASDAQ:CMCSA)
Comcast Corporation is an American telecommunications conglomerate that provides cable television, internet, telephone, and wireless services to consumer under the Xfinity brand. It is the second-largest broadcasting and cable television company in the world by revenue and the largest pay-TV company, the largest cable TV company and largest home Internet service provider in the United States, and the nation’s third-largest home telephone service provider. Comcast has a market cap of 149.16B as of 2022 and a Return on Equity of 9.26%. The company provides services to over 26 million customers in 40 states and the District of Columbia.
– Verizon Communications Inc ($NYSE:VZ)
Verizon Communications Inc is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company has a market cap of 161.9B as of 2022 and a Return on Equity of 20.79%. Verizon was formed in 2000 by the merger of Bell Atlantic and GTE. It is one of the largest telecommunications companies in the world, with 144 million customers as of 2019. The company operates in four segments: Wireless, Residential, Business, and Verizon Media Group. Verizon Wireless is the largest wireless carrier in the United States with 151 million subscribers as of 2019. Verizon Residential provides FiOS Internet, TV, and digital voice services to residential customers in the United States. Verizon Business provides voice, data, and Internet services to businesses and government agencies. Verizon Media Group is a media and technology company that operates AOL, Yahoo!, HuffPost, TechCrunch, and other brands.
Summary
Investors in ALTICE USA received disappointing news as the telecom giant reported a 5.6% decrease in total revenue and a 26.3% decline in net income for the second quarter of FY2023. This has led to a decrease in the stock price on the same day. For investors looking to diversify their portfolio, it may be wise to research further before investing in the company. It is important to assess ALTICE USA’s performance in comparison to its peers, as well as to consider any trends or changes in the industry that could affect its future financial health.
Additionally, investors should take into account the company’s management structure, risk management policies, and capital structure when making decisions.
