• High-Speed Data Revenue: Decreased 3.5% year-over-year to $104.9 million in Q4, including $1.9 million in hurricane-related credits.
• Adjusted EBITDA: Increased 3.5% year-over-year to $73.7 million with a margin of 48.3% in Q4.
• Total Revenue: Decreased 9.6% to $152.6 million in Q4, with video and telephony revenues dropping 26.9% and 16.9%, respectively.
• Homes Passed in Greenfield Markets: Added 9,300 homes in Q4, totaling 31,500 new homes in 2024.
• Penetration Rate in New Markets: Increased from under 10% at the end of 2023 to 16.6% at the end of 2024.
• HSD Subscribers: Lost 10,200 in Q4, with 5,400 losses due to hurricanes; added 1,100 in greenfield and 800 in Edge-Out markets.
• ARPU: Increased by around 1% year-over-year to $73.50.
• Total Cash: Ended the quarter with $38.8 million.
• Total Outstanding Debt: $1.02 billion with a leverage ratio of 3.5 times.
• Capital Expenditure: Total spend of $51.7 million in Q4, with core CapEx efficiency at 27.7%.
• Unlevered Adjusted Free Cash Flow: $22 million for Q4.
• Q1 2025 Guidance: HSD revenue between $102 million and $104 million; total revenue between $147 million and $149 million; adjusted EBITDA between $72 million and $74 million; HSD net adds between negative 6,000 and negative 4,500.

• Warning! GuruFocus has detected 6 Warning Signs with WOW.

Release Date: March 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• WideOpenWest Inc (NYSE:WOW) successfully doubled its all-fiber footprint in 2024, adding 31,500 new homes.
• The company reported an increase in adjusted EBITDA by 3.5% year-over-year, reaching $73.7 million with a margin of 48.3%.
• WOW's greenfield markets showed strong performance, with penetration rates increasing from under 10% to 16.6% by the end of 2024.
• The company secured a $200 million super priority term loan, positioning it well for future investments in fiber expansion.
• WOW's ARPU increased by around 1% year-over-year to $73.50, indicating successful product marketing and sales strategies.

Negative Points

• High-speed data revenue decreased by 3.5% year-over-year to $104.9 million, partly due to hurricane-related revenue credits.
• The company experienced a loss of 10,200 HSD subscribers during the quarter, with 5,400 attributed to hurricane impacts.
• Total revenue for the fourth quarter decreased by 9.6% to $152.6 million, with significant declines in video and telephony revenues.
• WOW's traditional video business continued to decline, with a 33% decrease in subscribers from the previous year.
• The company anticipates further need for capital to achieve its goal of passing 400,000 new homes, indicating ongoing financial challenges.

Q & A Highlights

Q: Can you confirm if Crestview and DigitalBridge are still engaged with the acquisition offer? A: We don't have any updates on the acquisition offer at this time. - Teresa Elder, CEO

Q: With the new financing, how much liquidity does it provide, and how does it impact your CapEx goal for passing 400,000 homes? A: The $200 million financing, with an additional $175 million possible in October 2025, provides significant liquidity for our project, but additional capital may be needed. - John Rego, CFO

Q: What impact do you anticipate from competition in your footprint, and how are you addressing it? A: We are pleased with our results and expect improvement in 2025. Our simplified pricing and low churn are helping us compete effectively against traditional cable and fixed wireless competitors. - Teresa Elder, CEO

Q: How is the mobile product performing, and do you plan to push it more aggressively in 2025? A: While we have a mobile product, we focus on providing reliable high-speed internet and low churn through simplified pricing and YouTube TV, rather than aggressively pushing mobile. - Teresa Elder, CEO

Q: Can you explain the nonrecurring professional fees and M&A integration costs affecting adjusted EBITDA? A: These costs include the Sprint settlement, M&A activity, and restructuring costs. They are expected to decrease significantly after 2025. - John Rego, CFO

Q: How are you enhancing the competitiveness of your existing HFC topology? A: We are on the path to DOCSIS 4.0 and provide 1.2 gig speeds with DOCSIS 3.1. We balance CapEx spending to ensure competitiveness and return on investment. - Teresa Elder, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.