Residential video and broadband subscriber metrics at Altice USA were basically in line with analysts expectations in Q1, while the company managed to squeeze out 1.2% revenue and 4.2% cash flow growth in the period. 

Altice USA added about 12,000 broadband customers in Q1, slightly less than the 13,000 some analysts predicted. The company shed about 54,000 video customers in the quarter, compared to the 56,000 losses predicted by some analysts. Overall revenue was up 1.2% to $2.5 billion and cash flow grew a healthy 4.2% to $1.1 billion. 

The subscriber growth was behind last year, when the pandemic was at its height and stay-at-home orders drove record growth in broadband. For Altice USA, one of the most heavily penetrated cable operators in the country, it added about 142,000 broadband customers in 2020 and lost about 237,000 video subscribers for the full year. 

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Analysts have been expecting growth to slow down this year after last year’s gains. In a research note, Wells Fargo media analyst Steven Cahall wrote that he expected broadband growth to be the big story for Altice USA during the quarter and the year. 

“The company will have to prove that it can continue to grow organically for investors to fully back the capital return story,” Cahall wrote. “If growth is tracking well then [Altice USA] is a [free cash flow] narrative at a 12% [free cash flow] yield. If growth stalls then that becomes the narrative.” 

In a press release, Altice USA CEO Dexter Goei said he was pleased with the results, which he added, position it well for the rest of the year.  

“We continue to see increased demand for broadband and higher speeds as we accelerate our best-in-class network performance through our investments in fiber and enhance our product offerings,” Goei said in the press release. “Our team's ongoing commitment to serving our customers continues to be reflected by our strong broadband customer results and financials in the quarter. Furthermore, we delivered best-ever first quarter free cash flow performance, supporting an incremental $523 million in share repurchases. Earlier this month we closed our Morris Broadband acquisition, and we continue to look for opportunities to expand our footprint to complement our numerous organic growth opportunities, including accelerated new builds and fiber upgrades."

Charter Communications surprised the cable community by actually adding video customers in Q2 during a pandemic, but chairman and CEO Tom Rutledge told an industry audience that the increases were no fluke and in fact are quite sustainable.

Charter added 102,000 video customers in Q2,  a time when other larger cable operators were shedding large numbers of pay TV subscribers as the pandemic forced some homes to opt for higher data speeds and a streaming video connection.  But Rutledge, speaking at the virtual Goldman Sachs Communacopia conference Wednesday, said that a combination of good service and a substantial number of customers defecting from satellite TV -- DirecTV lost about 886,000 subscribers in the same period  -- helped Charter reverse the trend.

Rutledge attributed the video growth to the strength of Charter’s Spectrum broadband offering -- it added 825,000 broadband customers in Q2, a record -- and the rapid decline of satellite TV. Satellite TV service providers DirecTV and Dish Network lost about 1 million subscribers in Q2 alone, and nearly 8 million customers since Q3 2018, according to MoffettNathanson.  

“We still have a macro trend of cord-cutting going on, meaning people have a hard time paying for the fat bundle of services, but we’re selling other products as well,” Rutledge said.

“We look at our future in video as more of a video store of a whole range of kinds of products, including tiers, sports channels, traditional video products, linear products, AVOD products and making that an easy transaction for the customer and make that part of the overall connectivity experience," he continued. “We think we can continue to do that and that is the fundamental aspect of video that we’re interested in.”

Rutledge said the health of the video business will continue to depend on the sustained growth of broadband -- he noted that satellite TV customers that switch to Charter often buy a broadband connection too. And broadband growth is showing no signs of letting up. 

"As they come loose from their satellite relationships, they are reevaluating their broadband connections as well,” Rutledge said.

Rutledge also was optimistic about the rapid growth of Charter’s Spectrum Mobile wireless service. Spectrum Mobile added about 325,000 customers in Q2, ending the period with 1.7 million subscribers.

“I think it will accelerate,” Rutledge said of Spectrum Mobile’s growth. “I think we’re just getting going.” 

Residential video subscriber losses doubled in the third quarter for Comcast, but high speed data customers rose at a record pace, driving profits for the period higher.

Comcast lost 238,000 video customers in Q3, more than twice the 106,000 video customers it shed in the same period last year. High-speed internet customers increased by 379,000 in the quarter -- its best Q3 in ten years -- outpacing the 363,000 additions last year.

Video losses, once the bane of cable operators, are now considered to be a nuisance at best, as higher-profit broadband service continues to drive the business. Even Wall Street analysts, once concerned with video share loss to over the top competitors, are taking video declines in stride. 

Related: Moffett: Video Just Doesn’t Matter 

That was more than evident at Comcast’s cable unit, which despite the increased video subscriber losses grew revenue by 4% to $14.6 billion and cash flow by 6.7% to $5.8 billion in the period. At its NBCUniversal division, revenue fell 3.5% to $8.3 billion and cash flow increased 1.6% to $2.1 billion, reflecting lower broadcast sales and cable network licensing revenue, offset partially by an increase in distribution revenue.

Overall, Comcast reported consolidated revenue of $26.8 billion, up 21.2% and cash flow of $8.6 billion, an increase of 17% and driven largely by increases at its Sky satellite unit in the U.K.

“We continued our long track record of highly-profitable growth, while also investing in our businesses to further strengthen our leading competitive position,” chairman and CEO Brian Roberts said in a press release. “Cable had its highest third quarter broadband net additions in 10 years, which drove its best quarterly net additions in total customer relationships on record; NBC ranked #1 in primetime for the sixth consecutive 52-week season; and Sky’s channels had a 10% increase in household viewership. These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences. Together, with our leading scale in high-value customer relationships and premium content, we are strategically positioned to thrive in our evolving global industry." 

Altice USA, parent company of Optimum and Suddenlink cable operations, reported its strongest financial quarter since joining the U.S. cable scene in 2014, as reduced video losses and steady broadband growth helped drive revenue up 4.1% and cash flow up 5.8% in the period.

Revenue for the period was $2.42 billion, driven by a 2.4% increase in residential sales, a 6% rise in commercial and a 37.8% increase in advertising revenue. Adjusted earnings before interest, taxes, depreciation and amortization was $1.07 billion, and the company reported its highest ever quarterly EBITDA margin of 44.3% in the quarter.

Free cash flow was up 28% to $276 million in the period.

Related: Altice USA Touts its 'Full MVNO' Mobile Approach

Altice lost about 28,000 video subscribers in the period, an improvement over the 33,000 it lost in the same period last year. Broadband customers grew by about 14,000 in Q3, inline with last year’s growth of 16,000 customers.

“We are extremely pleased to present Altice USA’s best financial performance yet, including improved subscriber trends, accelerated revenue growth, highest ever margin and material growth in free cash flow,” Altice USA CEO Dexter Goei said in a statement. “We are delivering on our differentiated investment thesis anchored in infrastructure-based investment to future-proof our business, to enhance the customer experience and services offered, and to reduce costs over the long-term.”

Altice said it has completed the launch of its Altice One entertainment platform, launched fiber to the home broadband services and is progressing with preparations for the launch of its mobile product next year.

Mediacom Communications reported fourth quarter results Thursday (Feb. 22), improving video losses significantly while stepping up gains in broadband and voice customers compared to the prior year.

Mediacom finished Q4 with 821,000 video subscribers, down by about 2,000 but still a big improvement over the same period in the prior year when the company lost 6,000 video customers. High-speed data subscriber additions also improved – to 15,000 compared with 11,000 in 2016. Voice customer additions also improved to 22,000 versus 12,000 in the prior year.

Revenue for the quarter was $471.8 million (up 2.5%), and operating income before depreciation and amortization (OIBDA, a measure of cash flow) was relatively flat at $184.1 million (up 0.5%). In a statement Mediacom said excluding advertising revenue – which benefitted from the 2016 presidential election – OIBDA would have increased by 3.1% and revenue would have been up 3.5% during the period.

For the full year, revenue of $1.88 billion increased 3.7% and OIBDA rose 2.6% to $712 million. Excluding advertising, Mediacom said revenue would have been up 4.6% and OIBDA would have increased 4.6% for the full year.

Mediacom is the fifth largest cable operator in the country, with 821,000 video customers and 1.4 million customer relationships.