WideOpenWest (WOW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $158.0 million, down 8.7%–9% year-over-year, with HSD revenue at $107.5 million, down 2.1%.

• Adjusted EBITDA rose 9.0% year-over-year to $77.3 million, with a margin of 48.9%.

• Net loss for Q3 2024 was $22.4 million, a significant improvement from $104.5 million loss in Q3 2023.

• Greenfield and Edge-out fiber expansion continued, with penetration rates rising and 1,700 new homes passed.

• Closed a $200 million super-priority term loan in October 2024 to support liquidity and fiber expansion.

Financial highlights

• Video revenue declined 28% year-over-year to $28.0 million; telephony revenue fell 9.5% to $10.5 million.

• Adjusted Unlevered Free Cash Flow for Q3 was $36.8 million, up from $6.4 million in Q3 2023.

• Operating expenses (excluding D&A) dropped 17% year-over-year, mainly due to lower programming and call center costs.

• Capital expenditures for Q3 2024 were $40.5 million, down $24.0 million year-over-year.

• Cash flow from operations for the nine months ended September 30, 2024, was $132.8 million.

Outlook and guidance

• FY 2024 guidance: HSD revenue $422.0–$426.0 million, total revenue $629.0–$633.0 million, Adjusted EBITDA $284.0–$288.0 million.

• HSD net additions expected to be between -19,500 and -16,500 for FY 2024, including losses from hurricanes and ACP discontinuation.

• Greenfield CapEx for 2024 expected to total around $70 million, with total CapEx in the $205–$210 million range.

• Sufficient liquidity is anticipated for the next 12 months, with ongoing evaluation of financing and strategic transactions.