@b4 looks like JP no longer employed at optimum.
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What’s Genuinely Good:
- Broadband losses dramatically improved:
- 35,300 in Q2 vs -61,900 in Q1 — that’s a 43% improvement in one quarter. This is the single most positive data point in the entire release. However a bulk agreement helped — meaning the underlying trend may not be as strong as it appears.
Mobile continues strong:
724,000 lines, +49,900 net adds, 40% revenue growth year over year to $53M.EBITDA margin expanding:
38.8% vs 37.4% last year — cost cutting is working on the margin front.Cash position improved:
$1.364B vs $1.141B at year end — the $300M private placement helped here.CapEx declining:
$320M vs $383M last year — preserving cash.
What’s Genuinely Bad:
- Revenue keeps declining:
- 5.8% year over year. Every product line losing revenue except mobile.
Free cash flow deeply negative:
($91.9M) in Q2 alone. Year to date ($229.3M). The company is burning cash faster than it generates it.CSC Holdings leverage worsening:
22.8x is catastrophic. The creditors controlling 99% of that debt are watching this number get worse every quarter.The debt maturity wall:
$2.225B revolving credit facility maturing 2027, $2.813B Term Loan B-5 maturing 2027 — that’s $5B+ due next year with no committed financing.Interest expense crushing:
$475.6M in interest expense in ONE QUARTER — nearly half a billion dollars every 90 days just in interest payments.
Dying on the vine
But John Pickett swore he would fire up sales when he came into that role in 2023. Look at the managers who have left or were pushed out in the 18 months. The entire B2B group was removed. If you think you’re going to survive on consumer/residential services, you’re nuts. When you’re parsing together 3rd party services, the likelihood you’ll be able to compete in marketplace is impaired. Just look at B2B Mobile. It was handcuffed from the start. Sales leaders wouldn’t push it as it was a target product and compensation was very weak for it. The senior management team was okay with this as they couldn’t do much to carve out a niche as T-Mobile has them by the ba!!s.
More cuts to come