Uniti Group (UNIT) TD Cowen's 54th Annual Technology, Media & Telecom Conference summary

M&A and asset optimization

• Open to various M&A structures, including outright sales or asset-specific deals, to maximize shareholder value in the near term.

• Willing to consider transactions focused on premium fiber assets, but also open to selling entire operations if it optimizes value.

• Valuations for fiber assets remain strong, with multiples holding steady at 10x-20x for fiber and 5x-6x for DSL copper.

• Non-core assets, such as excess fiber, spectrum, and real estate, are targeted for monetization over the next 12-36 months.

• Major shareholder Elliott maintains business-as-usual involvement, with no recent changes in influence or process.

Financial performance and guidance

• Q1 results exceeded EBITDA expectations, driven by significant one-time fiber sales and underlying momentum in both Kinetic and fiber infrastructure.

• Guidance for 2026 remains unchanged, with further visibility expected after Q2; timing of hyperscaler deals could impact revenue recognition.

• Revenue from hyperscaler sales-type lease agreements is recognized upfront per GAAP, differing from peers who amortize over contract life.

Kinetic and fiber business trends

• Record gross adds and historically low fiber churn, with churn down 25-30 basis points year-over-year and further improvements expected.

• ARPU up 5% year-over-year, but full-year growth expected to normalize to 2%-3% due to sustainable pricing and higher multi-gig adoption.

• LEO satellite competition mainly affects copper footprint; fiber builds in underserved areas achieve over 50% penetration and strong win-back rates.

• Targeting 3.5 million fiber passings, with potential for expansion via subsidies or improved economics; cost per passing remains at $900-$1,000.