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Cable One reports falling subscribers, amid debt paydown progress
In the second quarter, Cable One cut debt by $63 million, including nearly $60 million via voluntary repurchases at a discount.
Cable One (NYSE: CABO) laid out second-quarter results that contrasted stabilizing operational metrics with continued residential broadband subscriber losses, according to Yahoo Finance. The company pointed to improving connect activity, higher residential broadband average revenue per user, and an aggressive debt paydown as signs the underlying business is stabilizing.
Cable One said residential broadband connect activity improved sequentially from the first quarter and increased each month of Q2, helped by a shift toward door-to-door sales that more than doubled as a share of quarterly connects over the past year. It also reported residential broadband ARPU rose sequentially, supported by promotional roll-offs, changes to its AutoPay Plus program, and customers adding higher-value products, while it expects most customers on multi-gig infrastructure by year-end based on disciplined investment rather than new capital spending.
Despite those indicators, the company said it lost 17,000 residential broadband customers in the second quarter as elevated churn persisted. Residential data revenue fell 7.3% year over year, driven by a 6.6% decline in subscribers even as ARPU held roughly flat, and total revenue decreased to $348.9 million from $381.1 million a year earlier.
On the balance sheet, Cable One reported it reduced debt balances by $63 million in the quarter, with close to $60 million coming from voluntary repurchases at a discount, bringing year-to-date debt reduction to nearly $130 million. Yahoo Finance also noted adjusted EBITDA declined to $173.5 million, or 49.7% of revenue, from 53.3% a year earlier.