© Reuters.
ENGLEWOOD, Colo. – WideOpenWest, Inc. (NYSE: WOW), a prominent broadband provider, reported a challenging fourth quarter, with both earnings and revenue falling short of Wall Street estimates.
The company’s Q4 EPS showed a significant loss of -$0.54, a stark contrast to the analyst estimate of -$0.01. Revenue also declined, coming in at $168.8 million against the expected $170.57 million.
The company’s stock dropped by 4.34% in premarket trading, indicating investor disappointment following the earnings and revenue miss, coupled with guidance that did not meet expectations. For the first quarter of 2024, WideOpenWest anticipates revenue to be between $159 million and $162 million, which is below the consensus estimate of $164.9 million.
Despite the overall revenue decline of 6% compared to the fourth quarter of 2022, the company did see a silver lining with a 1% increase in High-Speed Data (HSD) revenue, totaling $108.7 million for the quarter. This growth aligns with the company’s strategic focus on being a broadband-first provider, as noted by CEO Teresa Elder. She highlighted the expansion efforts, stating, “We continue to make great progress in our expansion markets, passing 48,400 homes in 2023, including nearly 23,000 in the fourth quarter, the most robust quarterly expansion of our network in our 25-year history, which puts us in a strong position to grow our footprint and subscriber base in 2024.”
CFO John Rego commented on the financial outcomes, “Our financial results this year continue to reflect the progress we are making as a broadband-first company including full-year HSD revenue growth and an Adjusted EBITDA Margin of 40.1%.” Despite these positive aspects, the company’s net loss widened to $43.5 million for the quarter, a significant increase from the $12.7 million loss in the same quarter last year.
The company’s total subscribers decreased to 504,100 as of December 31, 2023, a reduction from the previous year’s count. The decrease in subscribers and a shift in service offering mix, mainly a reduction in Video and Telephony RGUs, contributed to the overall revenue decline.
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