Altice USA Lost 51,000 Broadband Subs in Q2
Seasonal university disconnects and the sunset of ACP are principal causes, Altice said
WASHINGTON, August 1, 2024 – Altice USA today reported that it lost 51,000 broadband subscribers in this year's second quarter, the third major cable Internet Service Provider since last week to report a customer decline.
New York-based Altice pinned the loss in part of the expiration of the Affordable Connectivity Program. The ACP, a federal internet subsidy program for 23 million low-income households, ran out of full funding on May 31.
“Broadband subscriber net losses in the quarter were principally driven by seasonal university disconnects, continued competitive and macro pressures, and less activity in the low-income segment which is partially attributable to the impact of ACP sunsetting," Altice said in a press release.
Altice currently has about 4.1 million broadband primary service units.
Altice lost 37,000 subscribers in the second quarter last year and 30,000 in the first quarter of this year.
Altice still generated approximately $2.2 billion in total revenue, marking a 3.6% decrease from the previous year. Net income attributable to stockholders was $15.4 million, down from $78.3 million in the second quarter of 2023.
Altice CEO Dennis Mathew said the company continue to invest in new technology in an effort to improve the company's competitive position.
"As we continue to face competitive and macro pressures, including higher interest rates, higher inflation, and increased competition. We've invested in people, data, and analytics and are starting to see returns in those investments," Mathew said on call today with Wall Street analysts.
T-Mobile yesterday reported an increase in broadband subscribers to its fixed wireless access service, though it was a decrease compared to the second quarter of the previous year.
T-Mobile added 406,000 fixed wireless access subscribers, bringing its total to 5.6 million. Meanwhile, Comcast and Charter lost 120,000 and 149,000 broadband customers, respectively, in the second quarter.
Verizon last week reported 378,000 new fixed wireless customers in the second quarter, with 218,000 residential and 160,000 business. Residential fixed wireless net adds were down from 251,000 in the second quarter in 2023, but in line with what analysts expected.
Verizon had 3.8 million fixed wireless customers at the end of the quarter.
