Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- WideOpenWest Inc (WOW, Financial) reported a 13.8% year-over-year increase in adjusted EBITDA, reaching $76.7 million with a record margin of 51.1%.
- The company successfully expanded its fiber network, passing an additional 13,700 homes in greenfield markets, bringing the total to 75,600 homes.
- Penetration rates in greenfield markets remained strong at 16.3%, with the 2025 Edge-Out vintage achieving a penetration rate close to 27%.
- ARPU reached a record high, increasing 3.7% year over year to $75, reflecting the success of WOW's simplified pricing strategy.
- WOW's transition to YouTube TV has been successful, with a significant increase in subscribers, aiding in the reduction of video platform costs.
Negative Points
- High-speed data revenue decreased by 0.8% year over year to $105.4 million, reflecting a decline in HSD subscribers.
- Total revenue for the quarter decreased by 7.1% to $150 million, driven by declines in video and telephony revenue.
- The company lost a total of 4,500 HSD subscribers during the quarter, despite gains in greenfield and Edge-Out markets.
- Traditional video business continued to decline, with subscribers dropping 38% from the same period last year.
- Weather issues in new markets slowed down construction, resulting in lower-than-expected greenfield CapEx spending.
Q & A Highlights
Q: Could you talk about your pace of capital spending in the back half of the year and how that will translate into the new greenfield homes passed?
A: John Rego, CFO: We spent $10.8 million in greenfield CapEx in the first quarter, but we plan to spend $60 million to $70 million for the year. The spending will be more back-end loaded due to weather delays, but we intend to meet our annual target.
Q: What does the competitive landscape look like? Is competitive activity increasing?
A: Teresa Elder, CEO: We continue to see similar competition, especially in legacy markets. WOW! has always been a challenger brand with low churn aided by our simplified pricing. Our competitive position remains strong, particularly in greenfield and Edge-Out markets, with penetration rates outperforming our models.
Q: How are you thinking about net adds and the cadence of net adds throughout the remainder of the year?
A: Teresa Elder, CEO: We expect net adds to be similar to the first quarter. A video rate increase may cause some churn, but the addition of new homes in greenfield and Edge-Out areas will drive growth in the second half of the year.
Q: Could you touch on the mobile products and any relevant stats you have there on adoption?
A: Teresa Elder, CEO: Our mobile offering is not a major driver of acquisition or churn reduction. We focus on our core broadband product and YouTube TV services, which maintain low churn levels and strong customer satisfaction.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
