1. WOW! expanded into new markets, reaching 75,600 homes with 16.3% penetration. 2. Adjusted EBITDA increased by 13.8%, indicating improved management efficiency. 3. Total revenue fell to $150 million, down 7.1% from last year. 4. Subscriber count declined by 5%, reflecting challenges amid changing service demands. 5. A special committee is evaluating a potential acquisition proposal from DigitalBridge.
Despite operational efficiency gains, declining revenue and subscribers signal potential instability.
The financial results and market dynamics could directly affect investor sentiment and stock valuation.
The effects of subscriber losses and revenue decline are likely to be felt immediately.
ENGLEWOOD, Colo., May 6, 2025 /PRNewswire/ -- WideOpenWest, Inc. ("WOW!" or the "Company") (NYSE: WOW), one of the nation's leading broadband providers, with an efficient, high-performing network that passes nearly 2.0 million residential, business and wholesale consumers, today announced financial and operating results for the first quarter ended March 31, 2025.
"Our first quarter results build on the momentum in our Greenfield markets that we carried forward from last year. We have now passed 75,600 homes across our new markets in Hernando Beach, Florida, Central Florida, Brighton, Michigan and Greenville County, South Carolina," said Teresa Elder, WOW!'s CEO. "Combined with low-churn and record ARPU, our expansion strategy continues to drive growth in our new markets."
"Effective cost management, and strategic investment in both our Greenfield and legacy markets, led to Adjusted EBITDA growth of 13.8% year-over-year and record Adjusted EBITDA margins of 51.1%," said John Rego, WOW!'s CFO. "Strong results in our Greenfield markets reinforces our confidence in our strategy and commitment to further build on this success."
Total Revenue was $150.0 million for the quarter ended March 31, 2025, down $11.5 million, or 7.1%, as compared to the corresponding period in 2024.
Total Subscription Revenue for the quarter ended March 31, 2025 was $138.5 million, down $10.5 million, or 7.0%, as compared to the corresponding period in 2024. The decrease is primarily driven by a $10.5 million shift in service offering mix as a result of the reduction in RGUs, coupled with a $7.4 million decrease in volume across all services. This decrease was partially offset by a $7.4 million increase in average revenue per unit ("ARPU") as a result of rate increases in the fourth quarter of 2024 and the first quarter of 2025.
Operating Expenses (excluding Depreciation and Amortization) totaled $59.0 million for the quarter ended March 31, 2025, down $8.5 million, or 12.6%, compared to the corresponding period in 2024.
Net Loss for the quarter ended March 31, 2025 was $13.9 million as compared to net loss of $15.0 million for the quarter ended March 31, 2024.
Adjusted EBITDA for the quarter ended March 31, 2025 was $76.7 million, an increase of $9.3 million compared to the corresponding period in 2024. Adjusted EBITDA margin was 51.1% for the quarter ended March 31, 2025, as compared to 41.7% for the quarter ended March 31, 2024.
WOW! reported Total Subscribers of approximately 473,800 as of March 31, 2025, a decrease of 26,900, or 5%, compared to March 31, 2024.
Market Expansion projects passed an additional 15,200 homes for the quarter ended March 31, 2025, including 13,700 additional homes in Greenfield markets and 1,500 additional homes in Edge-out projects.
Capital Expenditures totaled $38.9 million for the quarter ended March 31, 2025, representing a $33.6 million decrease compared to the quarter ended March 31, 2024.
As of March 31, 2025, the total outstanding amount of long-term debt and finance lease obligations was $1,033.9 million, and cash was $28.8 million.
On May 2, 2024, the WOW! Board of Directors received an unsolicited non-binding preliminary acquisition proposal from DigitalBridge Investments, LLC and various Crestview entities. A special committee of independent directors has been formed to evaluate the Proposal.
Q2 2025 HSD Revenue: $101.0-$104.0
Total Revenue: $141.0-$144.0
Adjusted EBITDA: $65.0-$68.0
HSD net additions: (6,500)-(4,500)
For more details, visit the Company's investor relations website at ir.wowway.com.
SOURCE WideOpenWest, Inc.