WideOpenWest (WOW) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue was $158.8 million, down 8% year-over-year, with high-speed data revenue at $105.0 million, down 1.6% year-over-year.

• Adjusted EBITDA rose 2.8% year-over-year to $70.0 million, with a margin of 44.1%.

• Net loss for Q2 2024 was $10.8 million, a significant improvement from a $101.7 million net loss in Q2 2023, which included a $128.1 million non-cash impairment charge.

• Net loss of 4,700 high-speed data subscribers, including 5,000 from the discontinuation of the ACP program.

• A special committee is evaluating an unsolicited acquisition proposal; no actions required from shareholders at this time.

Financial highlights

• High-speed data revenue was $105.0 million, down 1.6% year-over-year; video revenue declined 26% to $30.8 million, and telephony revenue fell 11.6% to $10.7 million.

• Adjusted EBITDA increased to $70.0 million from $68.1 million year-over-year, with margin improving to 44.1%.

• Unlevered adjusted free cash flow was $18.9 million, up from $4.5 million year-over-year, driven by reduced expansion CapEx.

• Total capital expenditures for Q2 2024 were $51.1 million, down $12.5 million year-over-year and 19.7% year-over-year.

• Net profit margin improved to (6.8)% from (58.9)% year-over-year.

Outlook and guidance

• Q3 2024 guidance: HSD revenue of $106.0–$109.0 million, total revenue of $157.0–$160.0 million, adjusted EBITDA of $67.0–$70.0 million, and HSD net losses of 3,000–5,000.

• Greenfield expansion CapEx for the year expected to be no more than $60 million.

• Management expects strong demand for HSD services and ongoing network expansion, with cash flow from operations and cash on hand expected to fund obligations and liquidity needs over the next 12 months.