Q3 2024 Uniti Group Inc Earnings Call Transcript
Key Points
- Uniti Group Inc (UNIT) reported a solid quarter with strong demand for its fiber infrastructure, particularly from hyperscalers.
- The company increased its full-year 2024 revenue outlook due to strong demand.
- Core recurring strategic fiber business grew by 3% in the third quarter, with enterprise, wholesale, and dark fiber revenue increasing by 10%, 14%, and 18%, respectively.
- Uniti Group Inc (UNIT) is experiencing a significant increase in bookings from fiber-to-the-home carriers, with a threefold increase in 2023 compared to 2022.
- The company is well-positioned for future growth with strategic hyperscaler deals that align with its anchor plus lease-up model, providing potential for future lease-up opportunities.
- Wireless bookings have remained muted, although there is optimism for a pickup in activity towards the end of the year and into 2025.
- The company's adjusted EBITDA guidance remains unchanged despite an increase in revenue outlook, due to higher corporate SG&A expenses.
- Uniti Group Inc (UNIT) faces competitive dynamics in the RFP process, particularly in lucrative GenAI fiber opportunities.
- There is concern about high upfront NRCs with some deals, which may not yield substantial recurring MRR cash.
- The company's leverage ratio remains high at 6.05 times, which could pose financial risks.
Good morning and welcome to today's conference call to discuss the Unitiâs third quarter 2024 earnings results. My name is Gigi and I'll be your operator for today. Today's call is being recorded and a webcast will be available on the company's investor relations website investor.uniti.com, beginning today and will remain available for 365 days. At this time, all participants are in a listen-only mode. Participants on the call will have the opportunity to ask questions following the company's prepared comments.
It is now my pleasure to introduce Bill DiTullio, Uniti's Vice President of Investor Relations and Treasury. Please begin.
Thanks, Gigi. Good morning everyone and thank you for joining today's conference call to discuss Uniti's third quarter 2024 results. Speaking on the call today will be Kenny Gunderman, our CEO; and Paul Bullington, Uniti's CFO.
Before we get started, I would like to quickly cover our Safe Harbor statement. Please note that today's
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