Altice USA reported a net loss of 35,000 video subscribers in the second quarter but nevertheless still grew its residential and overall revenues.
The 35,000 represented a slight acceleration compared with the 21,000 net video subscribers lost in the same quarter last year. When adjusted for the FCC Pledge and New Jersey executive order non-pays, video net losses would have totaled 43,000.
During the second quarter, Altice USA said it saw “best-ever customer net additions” thanks to broadband growth offsetting video subscriber losses. The cable operator also increased revenue, net income and adjusted EBITDA year over year and began to see a recovery in its news and advertising business toward the end of the quarter.
“While the pandemic continues to pose some uncertainty in the back half of the year, we are encouraged by the strength and resilience of our business, and by the opportunity set presented. We are, therefore, reinstating guidance for full-year revenue and EBITDA growth,” said Altice USA CEO Dexter Goei in a statement.
Altice’s news and advertising revenue decreased 15.6% in the second quarter and the company largely attributed it to a decline in national branded and linear advertising associated with the COVID-19 pandemic. The company said Cheddar traffic was up 72% in June (relative to February, prior to pandemic-related stay-at-home restrictions), and its user base was up 86% over the same time frame.
Total revenue grew 1% year over year to $2.47 billion while residential revenue grew 0.8% year over year and business services grew 2.2% year over year. Net income attributable to stockholders was $111 million for the second quarter and adjusted EBITDA increased 2.5% year over year to $1.11 billion.