Mobile momentum continues
Altice USA’s mobile momentum continued in the second quarter as the service provider added about 38,000 new customers.
The company’s results represented year-over-year acceleration in mobile line growth but similarly a sequential slowdown.
Matthew said this quarter's mobile performance reflected typical seasonal trends, ongoing macro and competitive pressures, and a focus on customer quality.
“We are prioritizing higher-quality acquisitions, strengthening verification processes and emphasizing mobile offerings designed to support long-term retention, such as primary number reporting, unlimited plans and device financing,” he said.
Altice USA’s plans are bearing fruit. During the second quarter, 57% of mobile line gross additions ported their phone number compared to 34% a year ago, and 31% of mobile line additions purchased a finance device with us compared to 25% in the second quarter of 2024. At the end of the second quarter, 74% of total mobile lines were on unlimited or unlimited max plans, up from 65% last year.
“Together, these improvements contributed to a stronger mobile churn profile with annualized churn improving by nearly 600 basis points year-over-year,” Matthew said. “We remain focused on driving convergence and maximizing customer lifetime value through a disciplined and strategic approach. We anticipate the pace of mobile additions will continue to accelerate year-over-year as we turn to the second half of 2025.”
Broadband headwinds and opportunities
Broadband continued to see headwinds and opportunities in the second quarter. While it saw an addition of new fiber customers, Altice USA’s overall broadband base declined.
Through a combination of new customer acquisitions and migrations of existing customers, Altice USA added about 56,000 customers to its fiber network in the second quarter. It ended the quarter with 663,000 fiber customers, representing a 22% penetration rate across its fiber network.
“On a year-over-year basis, the pace of fiber net additions accelerated to 1.4x the rate we saw in the second quarter of last year,” Matthew said.
He added that Altice USA sees numerous benefits from expanding the reach of its fiber broadband network. “We’re excited about fiber,” Matthew said. “We continue to drive it because we see better net promoter scores (NPS), an improved churn profile, and strong ARPU.”
Despite fiber’s potential, Altice USA isn’t immune to broadband churn as it shed 35,000 customers during the quarter. However, it narrowed its broadband losses by 31%.
Matthew said new initiatives it has taken over the past 24 months are giving it a foundation to turn the broadband decline around throughout its key markets. The service provider enhanced its churn reduction programs, expanded localized offers, improved sales channel performance, and invested in its networks.
“In our East footprint, we delivered our best net add trend in 10 quarters, driven by stronger win share performance against ILECs and fixed wireless, along with lower churn,” he said. “In the West, while competition remains strong, especially from fiber overbuilders in FWA, performance improved year-over-year. Including fewer seasonal disconnects. This progress is especially notable given that the second quarter typically brings seasonal softness.”
Broadband customer acquisition continues to be challenged by macroeconomic pressures, low move activity, and increased competition from fiber and fixed wireless.
However, Matthew maintains Altice USA is seeing encouraging signs of improvement. “While gross adds remain below prior year levels, the pace of decline is slowing to the lowest quarterly year-over-year index in the last two years, reflecting improved sales channel performance and early traction in our go-to-market execution,” he said.
