WOW! Reports Third Quarter 2024 Results

WideOpenWest, Inc. (WOW!), a leading broadband provider in the United States, has released its financial and operating results for the third quarter ended September 30, 2024. The company, which serves nearly 2.0 million residential, business, and wholesale consumers, reported a mix of financial outcomes and strategic developments.

Financial Highlights

For the third quarter of 2024, WOW! reported a total revenue of $158.0 million, marking a decrease of 8.7% compared to the same period in 2023. The company experienced a net loss of $22.4 million, a significant improvement from the net loss of $104.5 million in the third quarter of 2023. Adjusted EBITDA increased by 9.0% to $77.3 million, reflecting the company's efforts to manage expenses and improve operational efficiency.

Business and Operational Highlights

WOW! continued to grow its penetration rates in expansion markets, passing approximately 1,700 new homes in Greenfield and Edge-out markets during the quarter. However, the company saw a net loss of 4,400 High-Speed Data (HSD) Revenue Generating Units (RGUs), partly due to the discontinuation of the Affordable Connectivity Program.

HSD revenue totaled $107.5 million, a slight decrease of 2.1% compared to the third quarter of 2023. The company also reported a decrease in total subscription revenue, driven by a reduction in RGUs and service volume, partially offset by an increase in average revenue per unit (ARPU).

Strategic Initiatives and Corporate Developments

On October 11, 2024, WOW! closed on a $200.0 million new super-priority term loan, which strengthened its balance sheet and improved liquidity. This financial move is expected to support the company's fiber expansion strategy in Greenfield markets.

Additionally, the company is evaluating an unsolicited non-binding preliminary acquisition proposal from DigitalBridge Investments, LLC and various Crestview entities. A special committee of independent directors has been formed to assess the proposal.

Management's Perspective

Teresa Elder, CEO of WOW!, highlighted the company's progress in expansion markets, particularly in Hernando County, Florida, where the all-fiber network was recently expanded. John Rego, CFO, emphasized the importance of the new term loan in reaccelerating the fiber expansion strategy and driving higher Adjusted EBITDA through aggressive expense management.

Future Outlook

For the full year 2024, WOW! has provided guidance with expectations of HSD revenue between $422.0 million and $426.0 million, total revenue between $629.0 million and $633.0 million, and Adjusted EBITDA between $284.0 million and $288.0 million. The company also anticipates HSD net additions to range from a loss of 19,500 to 16,500.

SEC Filing: WideOpenWest, Inc. [ WOW ] - 8-K - Nov. 04, 2024