WideOpenWest’s first quarter results reflected revenue declines but highlighted operational progress in its fiber expansion strategy. CEO Teresa Elder pointed to strong momentum in greenfield markets, noting, “Our all-fiber new-builds in Central Florida, Hernando Beach, Florida, Brighton, Michigan and Greenville, South Carolina have clearly demonstrated consumers' desire for exceptional fiber-to-the-home broadband.” Elder also underscored the impact of shifting away from legacy video services and maintaining cost discipline, which contributed to improved operating margins.
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WideOpenWest (WOW) Q1 CY2025 Highlights:
- Revenue: $150 million vs analyst estimates of $148 million (7.1% year-on-year decline, 1.3% beat)
- EPS (GAAP): -$0.17 vs analyst estimates of -$0.19 (11.3% beat)
- Adjusted EBITDA: $59.5 million vs analyst estimates of $72.7 million (39.7% margin, 18.2% miss)
- Revenue Guidance for Q2 CY2025 is $142.5 million at the midpoint, below analyst estimates of $144.8 million
- EBITDA guidance for Q2 CY2025 is $66.5 million at the midpoint, below analyst estimates of $69.21 million
- Operating Margin: 5.8%, up from 3.2% in the same quarter last year
- Subscribers: 473,800, down 26,900 year on year
- Market Capitalization: $339.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions WideOpenWest’s Q1 Earnings Call
- Tyler (KeyBanc Capital) asked about the timing of capital expenditures and how it would affect new greenfield homes passed. CFO John Rego explained that spending will increase later in the year due to earlier weather delays.
- Tyler (KeyBanc Capital) inquired about the current competitive landscape and its impact on net subscriber additions. CEO Teresa Elder said competitive dynamics remain similar to prior periods, with greenfield and Edge-out penetration outperforming initial expectations.
- Tyler (KeyBanc Capital) asked about the effectiveness of mobile products in reducing churn or driving growth. Elder responded that mobile is not a major factor in acquisition or churn reduction, and the company is focused on its core broadband and video transition strategy.
- No other analyst questions were asked on the call.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will focus on (1) the pace and success of greenfield market expansion and the resulting new subscriber activations, (2) the impact of ongoing subscriber losses in legacy video and telephony services on overall revenue trends, and (3) the company’s ability to maintain or improve operating margins as it invests in growth and navigates industry competition. We will also monitor how capital allocation decisions and pricing strategies shape future performance.
WideOpenWest currently trades at $4.06, down from $4.35 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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