Uniti Group (UNIT) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic progress and merger integration

• Successfully closed and integrated the Windstream merger, achieving targeted synergies and cost savings, including a 600 basis point improvement in bond yields.

• Accelerated fiber build at Kinetic, with a focus on strategic markets and clustering builds for operational efficiency.

• Transitioned from subsidized, patchwork builds to market-driven, clustered builds, leveraging third-party contractors for faster expansion.

• Onboarded a new leadership team with experience from Frontier, Brightspeed, and Ziply, driving an insurgent, share-taking mentality.

• Achieved favorable trends in build cost, execution, penetration, churn, and ARPU, with penetration and churn outperforming expectations.

Fiber build and market strategy

• Built 220,000 homes in the prior year, aiming to more than double that in the current year, with recent months reaching 45,000 homes built per month.

• Focused on responsible capital allocation, balancing build speed with organizational readiness to sell and service customers.

• Penetration rates and customer retention are exceeding expectations, with churn improving and bonus metrics aligned to these goals.

• Strategic focus on white space markets with low fiber penetration, minimizing overbuilder competition and leveraging unique backhaul positions.

• Upside potential seen in terminal penetration rates above the current 40% guidance, with higher margins expected as penetration increases.

Competitive landscape and customer dynamics

• Overbuilders have largely stayed away from the footprint, with only 50% overlap with big cable and limited impact from cable's pricing strategies.

• Fixed wireless and LEO are the main competitors in unbuilt markets, but fiber builds are winning back lost share.

• Ability to be nimble in pricing and marketing on a market-by-market basis provides a competitive edge.

• Customer education and value perception of fiber remain strong, even in rural markets.