WideOpenWest, Inc. ("WOW!" or the "Company") (NYSE: WOW), one of the nation's leading broadband providers, with an efficient, high-performing network ...

WOW! REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

<article style="font-family: Arial, sans-serif; line-height: 1.6; color: #333;">
    <h1 style="color: #0056b3;">Penetration Rates increased in 2024 to 16.6% in Greenfield Markets</h1>
    <p style="font-weight: bold;">ENGLEWOOD, Colo., March 14, 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 quarter and year ended December 31, 2024.</p>

    <h2 style="color: #0056b3;">Financial Highlights</h2>
    <p style="font-style: italic;">"I am pleased with the progress we made in 2024, especially in our Greenfield markets where we passed an additional 31,500 new homes and increased our penetration rate to 16.6%," said Teresa Elder, WOW!'s CEO. "We continue to see the success of our simplified pricing strategy which contributed to year-over-year ARPU growth, reinforcing our commitment to our strategy."</p>

    <p style="font-style: italic;">"Our fourth quarter results reflect continued momentum in our Greenfield fiber expansion markets and strong cost management," said John Rego, WOW!'s CFO. "We saw 4.7% year-over-year growth in our Adjusted EBITDA, as we drove efficiencies in our business and re-accelerated our investments in new markets."</p>
    
    <h2 style="color: #0056b3;">Revenue</h2>
    <p>Total Revenue was $152.6 million and $630.9 million for the quarter and year ended December 31, 2024, down $16.2 million and $55.8 million as compared to the corresponding periods in 2023.</p>
    <p>Total Subscription Revenue for the quarter and year ended December 31, 2024 was $140.3 million and $581.8 million, down $15.2 million, or 9.8%, and $53.8 million, or 8.5%, as compared to the corresponding periods in 2023. The decrease was the result of a $49.6 million shift in service offering mix primarily driven by the reduction in Video and HSD RGUs, and a $25.5 million decrease in volume across all services. The decrease was partially offset by a $21.3 million increase in average revenue per unit ("ARPU"), inclusive of $2.5 million of revenue credits issued for Hurricanes Helene and Milton, and rate increases issued for Video services and, to a lesser extent, HSD services, during 2024. ARPU is calculated as subscription revenue for each of the HSD, Video, and Telephony services divided by the average total RGUs for each service category for the respective period.</p>

    <h2 style="color: #0056b3;">Other Business Services Revenue</h2>
    <p>Other Business Services Revenue totaled $4.8 million and $19.6 million for the quarter and year ended December 31, 2024, down $0.5 million, or 9.4%, and $1.4 million, or 6.7%, as compared to the corresponding periods in 2023. The decrease in each period was primarily due to decreases in data center revenue.</p>

    <h2 style="color: #0056b3;">Costs and Expenses</h2>
    <p>Operating Expenses (excluding Depreciation and Amortization) totaled $62.1 million and $256.8 million for the quarter and year ended December 31, 2024, down $9.6 million, or 13.4%, and $44.2 million, or 14.7%, compared to the corresponding periods in 2023. The decreases are primarily driven by reduction in direct operating expenses, specifically programming expenses of $35.4 million, which aligns with the reduction in Video RGUs between periods, increases in capitalizable activity, as well as decreases in bad debt expenses, call center costs, and stock compensation, partially offset by increases in compensation related expenses.</p>

    <h2 style="color: #0056b3;">Net Loss</h2>
    <p>Net Loss for the quarter and year ended December 31, 2024 was $10.6 million and $58.8 million, compared to $43.5 million and $287.7 million for the quarter and year ended December 31, 2023. The net profit margin was (6.9)% and (9.3)% for the quarter and year ended December 31, 2024 as compared to a net profit margin of (25.8)% and (41.9)% for the quarter and year ended December 31, 2023.</p>

    <h2 style="color: #0056b3;">Adjusted EBITDA</h2>
    <p>Adjusted EBITDA for the quarter and year ended December 31, 2024 was $73.7 million and $288.4 million, an increase of $2.5 million and an increase of $13.0 million, compared to the corresponding periods in 2023. Adjusted EBITDA Margin was 48.3% and 45.7% for the quarter and year ended December 31, 2024 as compared to 42.2% and 40.1% for the quarter and year ended December 31, 2023.</p>

    <h2 style="color: #0056b3;">Subscribers</h2>
    <p>WOW! reported Total Subscribers of 478,700 as of December 31, 2024, a decrease of 25,400 compared to December 31, 2023, down 11,800 compared to September 30, 2024.</p>
    
    <h2 style="color: #0056b3;">Market Expansion</h2>
    <p>Market Expansion projects passed an additional 11,600 homes for the quarter ended December 31, 2024, including 9,300 additional homes in Greenfield markets and 2,300 additional homes in Edge-out projects. As of December 31, 2024, Greenfield initiatives passed a total of 61,900 homes and 10,300 subscribers, representing a 16.6% penetration rate.</p>

    <h2 style="color: #0056b3;">Capital Expenditures</h2>
    <p>Capital Expenditures totaled $215.8 million for the year ended December 31, 2024, representing a $53.1 million, or 19.7%, decrease compared to the year ended December 31, 2023. The decrease is primarily related to decreases in line extensions as the Company paused market expansion construction during the third quarter of 2024 pending the additional liquidity provided by our Priority Credit Agreement.</p>

    <h2 style="color: #0056b3;">Liquidity and Leverage</h2>
    <p>During the fourth quarter of 2024, the Company entered into a new Priority Credit Agreement which refinanced our prior indebtedness and included $200.0 million in new borrowings. As of December 31, 2024, the total outstanding amount of long-term debt and finance lease obligations was $1,017.4 million, and cash and cash equivalents were $38.8 million.</p>

    <h2 style="color: #0056b3;">Acquisition Proposal Update</h2>
    <p>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. The Special Committee has retained financial and legal advisors for further considerations.</p>

    <h2 style="color: #0056b3;">First Quarter 2025 Guidance</h2>
    <p><strong>Q1 2025</strong></p>
    <ul>
        <li><strong>HSD Revenue:</strong> $102.0 - $104.0 million</li>
        <li><strong>Total Revenue:</strong> $147.0 - $149.0 million</li>
        <li><strong>Adjusted EBITDA:</strong> $72.0 - $74.0 million</li>
        <li><strong>HSD net additions:</strong> (6,000 - 4,500)</li>
    </ul>

    <h2 style="color: #0056b3;">Webcast</h2>
    <p>WOW! will host a webcast on Friday, March 14, 2025, at 8:00 a.m. Eastern to discuss the operating and financial results contained in this press release. The conference call and webcast will be broadcast live on the Company's investor relations website at <a href="http://ir.wowway.com" style="color: #0056b3;">ir.wowway.com</a>. </p>

    <h2 style="color: #0056b3;">Company Overview</h2>
    <p>WOW! is one of the nation's leading broadband providers, with an efficient and high-performing network that passes nearly 2 million residential, business and wholesale consumers. The company is dedicated to providing outstanding service at affordable prices and has been recognized multiple times for its exceptional human resources practices.</p>

    <h2 style="color: #0056b3;">Cautionary Statement Regarding Forward-Looking Statements</h2>
    <p>Certain statements in this press release that are not historical facts contain "forward-looking statements". These forward-looking statements represent our goals, beliefs, plans, and expectations about our prospects for the future and other future events.</p>

    <h2 style="color: #0056b3;">Non-GAAP Financial Measures</h2>
    <p>The Company has included certain non-GAAP financial measures in this release. The terms such as Adjusted EBITDA are defined and should not be considered as alternatives to financial measures derived in accordance with GAAP.</p>
    
    <h2 style="color: #0056b3;">Subscriber Information</h2>
    <p>The Company uses terms such as "Homes passed" and "Total Subscribers" throughout this release and periodically reviews its policy for accuracy.</p>
</article>

WOW increased penetration in Greenfield markets to 16.6%.
Total revenue decreased by $12.4 million year-over-year.
Net loss improved to $10.6 million from $43.5 million in 2023.
Adjusted EBITDA rose by 4.7%, indicating strong operational efficiency.
Acquisition proposal under review by WOW's board, which may influence future strategy.

WOW! REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

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