Uniti Group (UNIT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $294.9–$295 million, up 4% year-over-year, with Adjusted EBITDA of $236.7–$237 million and net income of $17.6–$18.3 million, driven by strong fiber demand and operational improvements.

• AFFO to common shareholders was $92–$92.3 million, or $0.34 per diluted share.

• Bookings momentum was led by hyperscaler and AI demand, with consolidated bookings MRR up 50% year-over-year to $1.1 million.

• Progress continues on the merger with Windstream, targeting closure in H2 2025, to create "New Uniti" with a national footprint and significant Tier II/III market presence.

• Dividends suspended (except for REIT compliance) until merger completion.

Financial highlights

• Q2 2024 consolidated revenue: $294.9–$295 million; Adjusted EBITDA: $236.7–$237 million; AFFO per diluted share: $0.34.

• Uniti Leasing Q2 revenue: $218–$218.3 million; Adjusted EBITDA: $210.9–$211 million (97% margin); Uniti Fiber Q2 revenue: $76.7–$77 million; Adjusted EBITDA: $31–$31.1 million (40% margin).

• Net capital intensity declined to 27–31% from 44% year-over-year.

• Interest expense rose to $127.5 million in Q2 2024, mainly due to new debt issuances.

• Cash and equivalents at quarter end: $118.8–$131.5 million; $500–$619 million in combined liquidity.

Outlook and guidance

• 2024 consolidated revenue guidance: $1,154–$1,174 million; Adjusted EBITDA: $930–$950 million; AFFO per diluted share: $1.33–$1.40.

• Full-year AFFO guidance midpoint is $1.36 per diluted share, lowered due to higher interest expense.

• Guidance excludes impacts from the Windstream merger and future acquisitions.

• Second-half revenue and EBITDA expected to be more weighted to Q4 due to timing of strategic sales.

• Leasing lease-up revenue expected to grow over 20% year-over-year in 2024.