On August 8, 2024, WideOpenWest Inc (WOW, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. WideOpenWest Inc is a cable operator and broadband service provider serving residential, business, and wholesale customers across several states, including Illinois, Michigan, Indiana, Ohio, Kansas, Tennessee, Maryland, and South Carolina. The company offers high-speed internet, data, voice, cloud, and cable television services.
Performance Overview
WideOpenWest Inc (WOW, Financial) reported total revenue of $158.8 million for Q2 2024, falling short of the analyst estimate of $159.15 million. This represents an 8.0% decline compared to the same period in 2023. The company also reported a net loss of $10.8 million, a significant improvement from the $101.7 million net loss in Q2 2023.
Key Financial Metrics
Despite the revenue decline, WideOpenWest Inc (WOW, Financial) achieved an adjusted EBITDA of $70 million, up from $68.1 million in Q2 2023. The adjusted EBITDA margin improved to 44.1% from 39.5% in the same period last year. CFO John Rego commented, "Our results this quarter include strong adjusted EBITDA growth and effective cost management through a challenging cycle in our industry."
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $158.8 million | $172.6 million |
| Net Loss | $10.8 million | $101.7 million |
| Adjusted EBITDA | $70 million | $68.1 million |
| Adjusted EBITDA Margin | 44.1% | 39.5% |
Revenue Breakdown and Challenges
Total subscription revenue for Q2 2024 was $146.5 million, down 8.7% from the same period in 2023. This decline was primarily driven by a reduction in Video and High-Speed Data (HSD) Revenue Generating Units (RGUs) and a decrease in volume across all services. However, the average revenue per unit (ARPU) saw an increase due to rate hikes implemented in Q3 2023 and Q1 2024.
Cost Management and Operational Efficiency
Operating expenses (excluding depreciation and amortization) were $64.6 million, a 15% decrease from Q2 2023. This reduction was mainly due to lower programming expenses and other cost-saving measures. Selling, General, and Administrative expenses also decreased by 13% to $37.8 million, driven by lower restructuring costs and marketing expenses.
Subscriber Metrics and Market Expansion
As of June 30, 2024, WOW! reported a total of 495,200 subscribers, a 5% decrease from the previous year. The company passed an additional 8,900 homes in Greenfield and Edge-out markets during the quarter, reflecting its ongoing market expansion efforts.
Capital Expenditures and Liquidity
Capital expenditures for Q2 2024 totaled $51.1 million, down $12.5 million from Q2 2023. The decrease was primarily related to reduced spending on market expansion initiatives. As of June 30, 2024, the company had $20.7 million in cash and cash equivalents and a total long-term debt of $974.5 million.
Acquisition Proposal Update
On May 2, 2024, WideOpenWest Inc (WOW, Financial) received an unsolicited acquisition proposal from DigitalBridge Investments, LLC and various Crestview entities. A special committee of independent directors has been formed to evaluate the proposal, and the work is ongoing.
For more detailed financial information, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from WideOpenWest Inc for further details.
