Consolidated Communications Holdings (CNSL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 3% year-over-year to $268.7 million, with a net loss of $66.7 million, reflecting ongoing industry challenges and a strategic shift to fiber-first operations.

• Adjusted EBITDA increased 9% to $84.2 million for Q2 2024, driven by broadband growth and cost savings.

• Broadband revenue grew 14% year-over-year, offsetting declines in voice and video; video services discontinued in all markets by July 2024.

• Sale of Washington operations completed in May 2024 for $67.8 million, with proceeds used to fund fiber expansion.

• A $3.1 billion all-cash acquisition by Searchlight Capital Partners and British Columbia Investment Management Corporation is pending, expected to close late Q4 2024 or early Q1 2025.

Financial highlights

• Q2 2024 net revenues: $268.7 million, down from $275.2 million in Q2 2023.

• Net loss per share: $(0.58) for Q2 2024, compared to $(1.05) in Q2 2023.

• Adjusted EBITDA: $84.2 million, up from $76.9 million in Q2 2023.

• Operating expenses and SG&A decreased year-over-year, driven by lower video programming, labor, and access costs.

• Net interest expense rose to $44.1 million, up $7.2 million year-over-year due to higher rates and lower cash holdings.

Outlook and guidance

• Plans to upgrade 150,000 homes and small businesses to fiber in 2024, with 43,700 passings upgraded and 36,600 new fiber subscribers added in the first half.

• Capital expenditures for 2024 focused on fiber expansion, with $183.6 million spent in the first half and $102.7 million in Q2.

• Management expects sufficient liquidity for at least the next twelve months, supported by cash, credit facility, and asset sales.

• No earnings conference call will be held due to the pending transaction.