Altice USA, parent company of Optimum and Suddenlink cable operations, reported its strongest financial quarter since joining the U.S. cable scene in 2014, as reduced video losses and steady broadband growth helped drive revenue up 4.1% and cash flow up 5.8% in the period.
Revenue for the period was $2.42 billion, driven by a 2.4% increase in residential sales, a 6% rise in commercial and a 37.8% increase in advertising revenue. Adjusted earnings before interest, taxes, depreciation and amortization was $1.07 billion, and the company reported its highest ever quarterly EBITDA margin of 44.3% in the quarter.
Free cash flow was up 28% to $276 million in the period.
Altice lost about 28,000 video subscribers in the period, an improvement over the 33,000 it lost in the same period last year. Broadband customers grew by about 14,000 in Q3, inline with last year’s growth of 16,000 customers.
“We are extremely pleased to present Altice USA’s best financial performance yet, including improved subscriber trends, accelerated revenue growth, highest ever margin and material growth in free cash flow,” Altice USA CEO Dexter Goei said in a statement. “We are delivering on our differentiated investment thesis anchored in infrastructure-based investment to future-proof our business, to enhance the customer experience and services offered, and to reduce costs over the long-term.”
Altice said it has completed the launch of its Altice One entertainment platform, launched fiber to the home broadband services and is progressing with preparations for the launch of its mobile product next year.