Altice USA is the 4th largest cable operator in the U.S.
The company should continue to grow its broadband Internet business thanks to demand for data and speed in the next few years.
Altice USA’s shares are fairly valued.
Investment Thesis
Altice USA (ATUS) delivered a strong Q1 2019 with top and bottom lines growth. In the past quarter, the company’s growth in broadband subscribers had more than enough to offset the loss in its telephony and video subscribers. We think Altice USA will continue to grow its broadband business thanks to the demand for data usages and higher speeds. However, its shares are not cheap at this price. Therefore, we recommend investors to wait on the sideline.
$ Million
Q1 19
Q1 18
Change (%)
Video
1,017.3
1,033.7
(1.6)
Broadband
775.6
701.6
10.5
Telephony
154.5
166.0
(6.9)
Source: Created by author
While Altice USA lost about 10 thousand video subscribers in Q1 2019, the company gained 37 thousand broadband subscribers. As a result, the company was able to grow its residential revenue by 2.4% year over year. It was also able to increase its average revenue per user to $143. This was an increase of 2.1% year over year.