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What changed in Optimum Communications, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Optimum Communications, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+408 added−390 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-15)

Top changes in Optimum Communications, Inc.'s 2024 10-K

408 paragraphs added · 390 removed · 316 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

100 edited+30 added−13 removed152 unchanged
Biggest changeThe California legislation took effect in March 2021, and was upheld in 2022 by the Ninth Circuit Court of Appeals against a challenge by internet service providers. New York has in place an executive order that requires entities contracting with state agencies to commit to and certify compliance with net neutrality principles across the market. Digital Discrimination.
Biggest changeA number of states, including California and New York, have adopted legislation or executive orders that apply "net neutrality" rules to ISPs. The California legislation took effect in March 2021, and was upheld in 2022 by the Ninth Circuit Court of Appeals against a challenge by internet service providers.
We are subject to various other regulations, including those related to political broadcasting; home wiring; the blackout of certain network and syndicated programming; prohibitions on transmitting obscene 14 programming; limitations on advertising in children's programming; and standards for emergency alerts, as well as telemarketing and general consumer protection laws, federal and state marketing and advertising standards and regulations, and equal employment opportunity obligations.
We are subject to various other regulations, including those related to political broadcasting; home wiring; the blackout of certain network and syndicated programming; prohibitions on transmitting obscene programming; limitations on advertising in children's programming; and standards for emergency alerts, as well as telemarketing and general consumer protection laws, federal and state marketing and advertising standards and regulations, and equal employment opportunity obligations.
These services are integrated into our overall IT ecosystems to ensure an efficient operation. Backup services are provided through alternate systems and infrastructure. 8 Suppliers Customer Premise and Network Equipment We purchase set-top boxes and other customer premise equipment from a limited number of vendors because our cable systems use one or two proprietary technology architectures.
These services are integrated into our overall IT ecosystems to ensure an efficient operation. Backup services are provided through alternate systems and infrastructure. Suppliers Customer Premise and Network Equipment We purchase set-top boxes and other customer premise equipment from a limited number of vendors because our cable systems use one or two proprietary technology architectures.
Suppliers typically insist that their most popular and attractive services be distributed to a minimum number or percentage of customers, which limits our ability to provide consumers full purchasing flexibility. Our cable programming costs for broadcast stations and cable networks have increased in excess of customary inflationary and cost-of-living type increases.
Suppliers typically insist that their most popular and attractive services be distributed to a minimum number or percentage of customers, which limits our ability to provide consumers with full purchasing flexibility. Our cable programming costs for broadcast stations and cable networks have increased in excess of customary inflationary and cost-of-living type increases.
Accordingly, we make a concerted effort to continually improve each customer interaction and have made significant investments in our people, processes and technology to enhance our customers' experience and to reduce the need for customers to contact us. The insights from operational customer service metrics and our customer surveys help us focus our product, technology, process, and network improvement efforts.
Accordingly, we make a concerted effort to continually improve each customer interaction and have made significant investments in our people, processes and technology to enhance our customers' experience and to reduce the need for customers to contact us. 7 The insights from operational customer service metrics and our customer surveys help us focus our product, technology, process, and network improvement efforts.
We do not charge early termination fees. We currently charge for service in whole-month increments other than where prohibited by state law, so the adoption of this proposal would affect our customer service practices. We cannot predict whether these rules and restrictions, if adopted, would affect our cable revenue and subscribership.
We do not charge early termination fees. We 12 currently charge for service in whole-month increments other than where prohibited by state law, so the adoption of this proposal would affect our customer service practices. We cannot predict whether these rules and restrictions, if adopted, would affect our cable revenue and subscribership.
Communications with our customers are also subject to FCC, FTC and state regulations on telemarketing and the sending of unsolicited commercial e-mail and fax messages, as well as additional privacy and data security requirements. 17 State Regulation. Our CLEC subsidiaries' telecommunications services are subject to regulation by state commissions in each state where we provide services.
Communications with our customers are also subject to FCC, FTC and state regulations on telemarketing and the sending of unsolicited commercial e-mail and fax messages, as well as additional privacy and data security requirements. State Regulation. Our CLEC subsidiaries' telecommunications services are subject to regulation by state commissions in each state where we provide services.
Cable network programming is usually made available to us for a license fee, which is generally paid based on the number of customers who subscribe to the level of service that provides such programming. Such license fees may include "volume" discounts available for higher numbers of customers, as well as discounts for channel placement or service penetration.
Cable network programming is usually 6 made available to us for a license fee, which is generally paid based on the number of customers who subscribe to the level of service that provides such programming. Such license fees may include "volume" discounts available for higher numbers of customers, as well as discounts for channel placement or service penetration.
Other Services We may provide other services and features over our cable system, such as games and interactive advertising, which may be subject to a range of federal, state and local laws, such as privacy and consumer protection regulations and federal and state standards and regulations. We also maintain various websites that provide information and content regarding our businesses.
Other Services We may provide other services and features over our cable system, such as games and interactive advertising, which may be subject to a range of federal, state and local laws, such as privacy and consumer protection regulations and 18 federal and state standards and regulations. We also maintain various websites that provide information and content regarding our businesses.
Although the terms of franchise agreements differ from jurisdiction to jurisdiction, they typically require payment of franchise fees and contain regulatory provisions 11 addressing, among other things, use of the right of way, service quality, cable service to schools and other public institutions, insurance, indemnity and sales of assets or changes in ownership.
Although the terms of franchise agreements differ from jurisdiction to jurisdiction, they typically require payment of franchise fees and contain regulatory provisions addressing, among other things, use of the right of way, service quality, cable service to schools and other public institutions, insurance, indemnity and sales of assets or changes in ownership.
As such, we have certain compliance obligations with EU member state, as well as UK laws and regulations, including compliance obligations under the GDPR and UK 18 GDPR, and bear potential enforcement risks and fines if we fail to comply, even as the application of those regulations to some of our operations are unclear or are unknown.
As such, we have certain compliance obligations with EU member state, as well as UK laws and regulations, including compliance obligations under the GDPR and UK GDPR, and bear potential enforcement risks and fines if we fail to comply, even as the application of those regulations to some of our operations are unclear or are unknown.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved," which could result in increased competition for our broadband services. 9 We face intense competition from broadband communications companies with fiber-based networks.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved," which could result in increased competition for our broadband services. We face intense competition from broadband communications companies with fiber-based networks.
Our mobile wireless strategy depends on the availability of wholesale access to radio access networks ("RAN") from one or more network-based providers with whom we are likely to compete. Our mobile service is vulnerable to constraints on the availability of wholesale access or increases in price from the incumbents.
Our mobile wireless strategy depends on the availability of wholesale access to radio access networks ("RAN") from one or more network-based providers with whom we are likely to compete. Our mobile service is vulnerable to 10 constraints on the availability of wholesale access or increases in price from the incumbents.
In August 2015, the FCC adopted new rules to improve the resiliency of the communications network. Under the new rules, providers of telephony services, including interconnected VoIP service providers, must make available twenty-four hours of standby backup power for consumers to purchase at the point of sale.
In August 2015, the FCC adopted rules to improve the resiliency of the communications network. Under the rules, providers of telephony services, including interconnected VoIP service providers, must make available twenty-four hours of standby backup power for consumers to purchase at the point of sale.
In addition, the FCC is currently considering whether to require VoIP providers to maintain backup power for certain network equipment, and California has adopted rules requiring VoIP providers to maintain seventy-two hours of network backup power in certain areas of the state facing elevated fire risks.
In addition, the FCC is currently considering whether to require VoIP providers to maintain backup power for certain network equipment, and California has adopted rules requiring VoIP providers to maintain seventy- 17 two hours of network backup power in certain areas of the state facing elevated fire risks.
We expect programming costs to continue to increase due to a variety 6 of factors including annual increases imposed by stations and programmers and additional programming being provided to customers, including HD, 4K UHD, digital and VOD programming. In particular, broadcast and sports programming costs continue to increase significantly.
We expect programming costs to continue to increase due to a variety of factors including annual increases imposed by stations and programmers and additional programming being provided to customers, including HD, 4K UHD, digital and VOD programming. In particular, broadcast and sports programming costs continue to increase significantly.
Verizon has constructed a FTTH network that passes a significant number of households in our New York metropolitan service area; and AT&T has constructed an FTTP/Fiber to the Node infrastructure in various markets in our south-central United States service area.
Verizon has constructed a FTTH network that passes a significant number of households in our New York metropolitan service area; and AT&T has constructed a FTTP/Fiber to the Node infrastructure in various markets in our south-central United States service area.
Cable systems generally may not carry a broadcast station that has elected 12 retransmission consent without the station's consent. The terms of retransmission consent agreements frequently include the payment of compensation to the station. Broadcast stations must elect either "must carry" or retransmission consent every three years.
Cable systems generally may not carry a broadcast station that has elected retransmission consent without the station's consent. The terms of retransmission consent agreements frequently include the payment of compensation to the station. Broadcast stations must elect either "must carry" or retransmission consent every three years.
The Communications Act requires most utilities to provide cable systems with access to poles and conduits to attach such facilities at regulated rates, but does not extend these requirements to other entities, such as municipalities and electric cooperatives.
The Communications Act requires most utilities to provide cable systems with 13 access to poles and conduits to attach such facilities at regulated rates, but does not extend these requirements to other entities, such as municipalities and electric cooperatives.
FCC rules also allow a competing distributor to bring a complaint against a 13 cable-affiliated terrestrially-delivered programmer or its affiliated cable operator for alleged violations of this rule, and seek reformed terms of carriage as a remedy. Program Carriage.
FCC rules also allow a competing distributor to bring a complaint against a cable-affiliated terrestrially-delivered programmer or its affiliated cable operator for alleged violations of this rule, and seek reformed terms of carriage as a remedy. Program Carriage.
Lightpath's enterprise customers include companies in health care, financial, education, legal and professional services, and other industries, as well as the public sector and communication providers, incumbent local exchange carriers ("ILEC"), and competitive local exchange carriers ("CLEC").
Lightpath's enterprise customers include companies in health care, financial, education, legal and professional services, and other industries, as well as the public sector and communication providers, incumbent local exchange carriers ("ILEC"), competitive local exchange carriers ("CLEC"), and hyperscaler customers.
Lightpath also provides managed services to 4 businesses, including hosted telephony services (cloud based SIP-based private branch exchange), managed WiFi, managed desktop and server backup and managed collaboration services including audio and web conferencing.
Lightpath also provides managed services to businesses, including hosted telephony services (cloud based SIP-based private branch exchange), managed WiFi, managed desktop and server backup and managed collaboration services including audio and web conferencing.
For home shopping channels, we receive a percentage of the revenue attributable to our customers' purchases, as well as, in some instances, incentives for channel placement. We typically seek flexible distribution terms that would permit services to be made available in a variety of retail packages and on a variety of platforms and devices in order to maximize consumer choice.
For home shopping channels, we receive a percentage of the revenue attributable to our customers' purchases, as well as, in some instances, incentives for channel placement. We typically seek flexible distribution terms that would permit services to be made available in a variety of retail offerings and on a variety of platforms and devices in order to maximize consumer choice.
Video Services We currently offer a variety of video services through Optimum TV, which include delivery of broadcast stations and cable networks, over the top ("OTT") services such as Netflix, YouTube and others, advanced digital video services, such as video-on-demand ("VOD"), HD channels, digital video recorder ("DVR") and pay-per-view, to our residential markets.
Video Services We currently offer a variety of video services through Optimum TV, which include delivery of broadcast stations and cable networks, over the top ("OTT") services such as Netflix, Amazon Prime, YouTube and others, advanced digital video services, such as video-on-demand ("VOD"), HD channels, digital video recorder ("DVR") and pay-per-view, to our residential markets.
The rules take effect in March 2024 and have been challenged in court. We cannot predict the outcome of the litigation or how these rules will affect our broadband business, including deployment and pricing. Consumer Labels. The FCC rules require broadband providers to display, at the point of sale, consumer labels with information about their broadband services.
The rules took effect in March 2024 and have been challenged in court. We cannot predict the outcome of the litigation or how these rules will affect our broadband business, including deployment and pricing. Consumer Labels. The FCC rules require broadband providers to display, at the point of sale, consumer labels with information about their broadband services.
See "Risk Factors—Risk Factors Relating to Our Business—We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business." Broadband and Telephone Connectivity We deliver broadband and telephony services through our HFC and fiber network.
See "Risk Factors—Risk Factors Relating to Our Business—We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business." Broadband and Telephone Connectivity We deliver broadband and telephony services through our HFC and FTTH network.
Customers can use our customer portal website and mobile app to manage and pay their bill online, obtain service and account information, and get self-help troubleshooting procedures. Our goal is to continue to improve upon those customer care experiences whether through traditional or digital methods (such as through the My Optimum app).
Customers can use our customer portal website and mobile app to manage and pay their bill online, obtain service and account information, and get self-help troubleshooting support. Our goal is to continue to improve upon those customer care experiences whether through traditional or digital methods (such as through the My Optimum app and chat).
We generally carry cable networks pursuant to written programming contracts, which continue for a fixed period of time, usually from three to five years, and are subject to negotiated renewal.
We generally carry cable networks pursuant to written programming contracts, which continue for a fixed period of time, usually from two to five years, and are subject to negotiated renewal.
The FCC's program carriage rules prohibit us from requiring an unaffiliated programmer to grant us a financial interest or exclusive carriage rights as a condition of its carriage on our cable systems and prohibit us from unfairly discriminating against unaffiliated programmers in the terms and conditions of carriage on the basis of their nonaffiliation. Exclusive Access to Multitenant Buildings.
The FCC's program carriage rules prohibit us from requiring an unaffiliated programmer to grant us a financial interest or exclusive carriage rights as a condition of its carriage on our cable systems and prohibit us from unfairly discriminating against unaffiliated programmers in the terms and conditions of carriage on the basis of their nonaffiliation.
In September 2019, we launched a mobile service using our own core infrastructure and our infrastructure mobile virtual network operator ("iMVNO") agreements with Sprint and other roaming partners, including AT&T.
In 2019, we launched a mobile service using our own core infrastructure and our infrastructure mobile virtual network operator ("iMVNO") agreements with Sprint (now T-Mobile) and other roaming partners, including AT&T.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and a fiber-to-the-home ("FTTH") network with approximately 9.6 million total passings as of December 31, 2023. Additionally, we offer news programming and advertising services.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and a fiber-to-the-home ("FTTH") network with approximately 9.8 million total passings as of December 31, 2024. Additionally, we offer news programming and advertising services.
Depending on the market and level of service, customers have access to local broadcast networks and independent television stations, news, information, sports and entertainment channels, regional sports networks, international channels and premium services such as Max (formerly known as HBO), Showtime and Starz.
Depending on the market and level of service, customers have access to local broadcast networks and independent television stations, news, information, sports and entertainment channels, regional sports networks, international channels and premium services such as Max, Showtime and Starz.
The FCC's rules also require the labels to itemize monthly charges and fees, including regulatory fees passed through to consumers for any individual consumer's location. The requirement to display labels takes effect in 2024. 15 Access for Persons with Disabilities.
The FCC's rules also require the labels to itemize monthly charges and fees, including regulatory fees passed through to consumers for any individual consumer's location. The requirement to display labels took effect in 2024. Access for Persons with Disabilities.
We principally provide broadband communications and video services in the United States and market our services primarily under the Optimum brand. We deliver broadband, video, telephony and mobile services to approximately 4.7 million residential and business customers across our footprint.
We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony and mobile services to approximately 4.6 million residential and business customers across our footprint.
Video Services Competition Our video services face competition from cable providers as well as direct broadcast satellite ("DBS") providers, such as DirecTV (which is co-owned by AT&T) and DISH Network Corporation ("DISH"). DirecTV and DISH offer one-way satellite-delivered pre-packaged programming services that are received by relatively small and inexpensive receiving dishes.
Video Services Competition Our video services face competition from cable providers as well as direct broadcast satellite ("DBS") providers, such as DirecTV (which is co-owned by AT&T) and DISH Network (a wholly-owned subsidiary of EchoStar Corporation, "DISH"). DirecTV and DISH offer one-way satellite-delivered pre-packaged programming services that are received by relatively small and inexpensive receiving dishes.
To support our mobile business, we have a nationwide mobile core network with multiple interconnection points (including Texas, California, Illinois, and two in New York), as well as the necessary interconnection points for our network partners T-Mobile and AT&T Inc. ("AT&T"), Appalachian Wireless and US Cellular.
To support our mobile business, we have a nationwide mobile core network with multiple interconnection points (including Texas, California, Illinois, and two in New York), as well as the necessary interconnection points for our network partners T-Mobile and AT&T Inc.
Mobile Wireless Competition Our mobile wireless service, launched in September 2019, faces competition from a number of national incumbent network-based mobile service providers, such as AT&T, T-Mobile and Verizon and smaller regional service providers, as well as a number of reseller or MVNO providers, such as Tracfone, Boost Mobile and Cricket Wireless, among others.
Mobile Wireless Competition Our mobile wireless service faces competition from a number of national incumbent network-based mobile service providers, such as AT&T, T-Mobile and Verizon and smaller regional service providers, as well as a number of reseller or MVNO providers, such as Tracfone, Boost Mobile and Cricket Wireless, among others.
As a result, the precise extent to which state rules may impose such requirements, as well as other regulatory obligations, on broadband Internet access service providers is not fully settled. The FCC, in 2023, proposed reclassifying broadband service as a common carrier telecommunications service under similar terms and conditions as the 2015 Order.
As a result, the precise extent to which state rules may impose such requirements, as well as other regulatory obligations, on broadband Internet access service providers is not fully settled. In 2024, the FCC reclassified broadband service as a common carrier telecommunications service under similar terms and conditions as the 2015 Order.
AT&T, Frontier Communications Corporation ("Frontier") and Verizon Communications Inc.'s ("Verizon") Fios are our primary fiber-based competitors. T-Mobile fixed wireless, Verizon fixed wireless and AT&T Internet Air are our primary wireless broadband competitors.
AT&T, Frontier 9 Communications Parent, Inc. ("Frontier") and Verizon Communications Inc.'s ("Verizon") Fios are our primary fiber-based competitors. T-Mobile fixed wireless, Verizon fixed wireless and AT&T Internet Air are our primary wireless broadband competitors.
The labels must disclose certain information about broadband prices, introductory rates, data allowances, and speeds, and include links to information about network management practices, privacy policies, and the FCC's Affordable Connectivity Program ("ACP") for low-income households.
The labels must disclose certain information about broadband prices, introductory rates, data allowances, and speeds, and include links to information about network management practices, privacy policies, and, while it was in effect, the FCC's Affordable Connectivity Program ("ACP") for low-income households.
We currently make available in a majority of our footprint 1 Gbps broadband services which provide a connectivity experience supporting the most data-intensive activities, including streaming 4K ultra-high-definition ("UHD") and high-definition ("HD") video on multiple devices, online multi-player video game streaming platforms, video chatting, streaming music, high-quality virtual-and augmented reality experiences, and downloading large files.
Currently we make available 1 Gbps broadband services in most of our HFC footprint and up to 8 Gbps symmetrical speeds in our FTTH footprint, which provide a connectivity experience supporting the most data-intensive activities, including streaming 4K ultra-high-definition ("UHD") and high-definition ("HD") video on multiple devices, online multi-player video game streaming platforms, video chatting, streaming music, high-quality virtual-and augmented reality experiences, and downloading large files.
We believe that our approach to the mobile wireless service offering, including the construction and operation of our own "mobile core" and the ability to bundle and promote the product to our existing customer base, gives us advantages over pure MVNO resellers, and differentiates us from incumbent network-based operators.
We believe that our approach to the mobile wireless service offering, including the ability to bundle and promote the product to our existing customer base, gives us advantages over pure MVNO resellers, and differentiates us from certain incumbent network-based operators.
News and Advertising News 12 Our News 12 networks consist of seven 24-hour local news channels in the New York metropolitan area—the Bronx, Brooklyn, Connecticut, Hudson Valley, Long Island, New Jersey and Westchester—providing each with complete access to hyper-local breaking news, traffic, weather, sports, and more. News 12 also includes a streaming OTT regional news channel, News 12 New York.
News and Advertising News 12 Our News 12 networks consist of seven 24-hour local news channels in the New York metropolitan area—the Bronx, Brooklyn, Connecticut, Hudson Valley, Long Island, New Jersey and Westchester—providing each with complete access to hyper-local breaking news, traffic, weather, sports, community news, and more.
The FCC prohibits cable operators from entering into or enforcing exclusive agreements with owners of multitenant buildings under which the operator is the only multichannel video programming distributor ("MVPD") with access to the building.
Some of our programming contracts include such provisions. Exclusive Access to Multitenant Buildings. The FCC prohibits cable operators from entering into or enforcing exclusive agreements with owners of multitenant buildings under which the operator is the only multichannel video programming distributor ("MVPD") with access to the building.
The FCC recently proposed that cable operators provide subscribers with a rebate if a broadcast station is blacked out during a retransmission consent dispute. The proposed rebate requirement would also apply if other video programming services are blacked out during a carriage dispute. Ownership Limitations.
The FCC has also proposed that cable operators provide subscribers with a rebate if a broadcast station is blacked out during a retransmission consent dispute. The proposed rebate requirement would also apply if other video programming services are blacked out during a carriage dispute. This proposal remains pending at the FCC. Ownership Limitations.
We have upgraded our networks, both through the deployment of our FTTH network and through new DOCSIS technologies, and we are delivering speeds of up to 1 Gbps in many areas of our footprint.
We have upgraded our networks, both through the deployment of our FTTH network and through new DOCSIS technologies, and we are delivering download speeds of up to 1 Gbps in most of our HFC footprint and up to 8 Gbps in our FTTH footprint.
We also have full product, features and marketing flexibility with our mobile service. Our mobile product is sold at Optimum stores, as well as online. Consumers can bring their own devices or purchase or finance a variety of phones (new or certified pre-owned) directly from us, including Apple, Samsung and Motorola devices.
Our mobile product is sold at Optimum stores, as well as online. Consumers can bring their own devices or purchase or finance a variety of phones (new or certified pre-owned) directly from us, including Apple, Samsung and Motorola devices.
Securities and Exchange Commission ("SEC"). Website references in this report are provided as a convenience and do not constitute, and should not be viewed as, incorporation by reference of the information contained on, or available through, the websites. Therefore, such information should not be considered part of this report. 19
Website references and social media channels in this report are provided as a convenience and do not constitute, and should not be viewed as, incorporation by reference of the information contained on, or available through, the sources. Therefore, such information should not be considered part of this report. 19
As with existing state consumer privacy laws in California, Virginia, and Connecticut, among other states, this law creates disclosure requirements, privacy protections, and consumer privacy rights for covered businesses. The Texas law will take effect July 1, 2024. Similarly, the New Jersey legislature passed a comprehensive consumer privacy law in January 2024, which will take effect in January 2025.
In 2024, Kentucky, among other states, passed a comprehensive consumer privacy law. As with existing state consumer privacy laws in California, Virginia, and Connecticut, among other states, this law creates disclosure requirements, privacy protections, and consumer privacy rights for covered businesses. The Kentucky law will take effect January 1, 2026.
Other forms of regulation of broadband Internet access service currently being considered by the FCC, Congress or state legislatures include consumer protection requirements, billing and notifications requirements, cybersecurity requirements, consumer service standards, requirements to contribute to universal service programs and requirements to protect personally identifiable customer data from theft.
The online content we provide is also subject to some of these laws. 16 Other forms of regulation of broadband Internet access service currently being considered by the FCC, Congress or state legislatures include consumer protection requirements, billing and notifications requirements, cybersecurity requirements, consumer service standards, requirements to contribute to universal service programs and requirements to protect personally identifiable customer data from theft.
December 31, 2023 2022 2021 (in thousands) Total residential customer relationships: 4,363.1 4,498.5 4,632.8 Broadband 4,169.0 4,282.9 4,386.2 Video 2,172.4 2,439.0 2,732.3 Telephony 1,515.3 1,764.1 2,005.2 The following table shows our revenues for broadband, video, telephony and mobile services provided to residential customers.
December 31, 2024 2023 2022 (in thousands) Total residential customer relationships: 4,173.7 4,363.1 4,498.5 Broadband 3,999.9 4,169.0 4,282.9 Video 1,880.1 2,172.4 2,439.0 Telephony 1,269.2 1,515.3 1,764.1 The following table shows our revenues for broadband, video, telephony and mobile services provided to residential customers.
Various other federal and state laws apply to providers of services that are accessible through broadband Internet access service, including copyright laws, telemarketing laws, prohibitions on obscenity, a ban on unsolicited commercial e-mail, and privacy and data security laws. The online content we provide is also subject to some of these laws.
Various other federal and state laws apply to providers of services that are accessible through broadband Internet access service, including copyright laws, telemarketing laws, prohibitions on obscenity, a ban on unsolicited commercial e-mail, and privacy and data security laws.
The following table presents certain financial data and metrics for Altice USA: Years ended December 31, 2023 2022 2021 (in thousands, except percentage data) Customer Relationships (a) 4,743.5 4,879.7 5,014.7 Revenue $ 9,237,064 $ 9,647,659 $ 10,090,849 Adjusted EBITDA (b) $ 3,608,890 $ 3,866,537 $ 4,427,251 Adjusted EBITDA as % of Revenue 39.1 % 40.1 % 43.9 % Net income attributable to Altice USA, Inc. stockholders $ 53,198 $ 194,563 $ 990,311 (a) Customer metrics do not include mobile customers.
The following table presents certain financial data and metrics for Altice USA: Years ended December 31, 2024 2023 2022 (in thousands, except percentage data) Customer Relationships (a) 4,550.3 4,743.5 4,879.7 Revenue $ 8,954,417 $ 9,237,064 $ 9,647,659 Adjusted EBITDA (b) $ 3,413,181 $ 3,608,890 $ 3,866,537 Adjusted EBITDA as % of Revenue 38.1 % 39.1 % 40.1 % Net income (loss) attributable to Altice USA, Inc. stockholders $ (102,918) $ 53,198 $ 194,563 (a) Customer metrics do not include mobile-only customers.
Additionally, through investment in our IT platforms and focus on process improvement, we have simplified and harmonized our service offering bundles and improved our technical service delivery and customer service capabilities. We contract with managed service providers to deliver certain core Business Support Systems and Operations Support Systems.
Additionally, through investment in our IT platforms, AI, machine learning, automation, and focus on process improvement, we continue to simplify and harmonize our service offering bundles and improve our technical service delivery and customer service capabilities. We contract with managed service providers to deliver certain core Business Support Systems and Operations Support Systems.
Our ongoing FTTH network build passing over 2.7 million homes as of December 31, 2023, has enabled us to deliver multi-gig broadband speeds to meet the growing data needs of residential and business customers.
Our ongoing FTTH network build passes approximately 3.0 million homes and businesses as of December 31, 2024, and has enabled us to deliver multi-gig broadband speeds to meet the growing data needs of residential and business customers.
The FCC and other federal agencies, as well as some states, direct subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved." Federal legislation and state programs have substantially increased the amount of such subsidies in recent years, and eligibility criteria for the use of such subsidies do not always limit their use exclusively to areas lacking broadband access.
Government Subsidies. The FCC and other federal agencies, as well as some states, direct subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved." Federal legislation and state programs have substantially increased the amount of such subsidies in recent years.
Additionally, customers can use their credentials to access apps provided by programmers and networks on platforms where these apps are offered, including access to premium direct-to-consumer products such as Max with eligible subscriptions.
Additionally, customers can use their credentials to access apps provided by programmers and networks on platforms where these apps are offered, including access to premium direct-to-consumer products such as Max with eligible subscriptions. In 2024, we launched three new video offerings, Entertainment TV, Extra TV, and Everything TV.
Enterprise Customers Lightpath, our fiber enterprise business, provides Ethernet, data transport, IP-based virtual private networks, Internet access, telephony services, including session initiated protocol ("SIP") trunking and VoIP services to the business market primarily in the New York metropolitan area.
We serve enterprise customers primarily through Cablevision Lightpath LLC ("Lightpath"), our 50.01% owned subsidiary. 4 Enterprise Customers Lightpath, our fiber enterprise business, provides ethernet, data transport, IP-based virtual private networks, Internet access, telephony services, including session-initiated protocol ("SIP") trunking and VoIP services to the business market primarily in the New York, Boston and Miami metropolitan areas.
Approximately 450 of our employees were represented by unions as of such date. Approximately 91% of our employees are U.S. based. Our employees perform work in a variety of environments, including customers’ homes or businesses, in the field, and on site in retail stores, centers or offices.
Human Capital Resources As of December 31, 2024, we had approximately 10,900 employees. Approximately 400 of our employees were represented by unions as of such date. Approximately 89% of our employees are U.S. based. Our employees perform work in a variety of environments, including customers’ homes or businesses, in the field, and on site in retail stores, centers or offices.
Information Technology Our information technology ("IT") systems consist of billing, customer relationship management, business and operational support and sales force management systems. We continue to update and simplify our IT infrastructure through further investments, focusing on cost efficiencies, improved system reliability, functionality and scalability and enhancing the ability of our IT infrastructure to meet our ongoing business objectives.
We continue to update and simplify our IT infrastructure through further investments, focusing on cost efficiencies, improved system reliability, functionality and scalability and enhancing the ability of our IT infrastructure to meet our ongoing business objectives.
Customers who subscribe to seasonal sports packages, international channels and premium services may be charged an additional monthly amount. We may also charge additional fees for pay-per-view programming and events, DVR and certain VOD services. We also provide advanced services, such as pay-per-view and VOD, that give residential video customers control over when they watch their favorite programming.
We may also charge additional fees for pay-per-view programming and events, DVR and certain VOD services. We also provide advanced services, such as pay-per-view and VOD, that give residential video customers control over when they watch their favorite programming.
Business Services We offer a wide and growing variety of products and services to both large enterprise and small and medium-sized business ("SMB") customers, including broadband, telephony, networking and video services. As of December 31, 2023, we served approximately 380 thousand SMB customers across our footprint. We serve enterprise customers primarily through Cablevision Lightpath LLC ("Lightpath"), our 50.01% owned subsidiary.
Business Services We offer a wide and growing variety of products and services to both large enterprise and small and medium-sized business ("SMB") customers, including broadband, telephony, networking and video services. As of December 31, 2024, we served approximately 376.6 thousand SMB customers across our footprint.
Years Ended December 31, 2023 2022 2021 Residential revenue: (in thousands) Broadband $ 3,824,472 $ 3,930,667 $ 3,925,089 Video 3,072,011 3,281,306 3,526,205 Telephony 300,198 332,406 404,813 Mobile 77,012 61,832 51,281 Broadband Services We offer a variety of broadband service tiers tailored to meet the different needs of our residential customers.
Years Ended December 31, 2024 2023 2022 Residential revenue: (in thousands) Broadband $ 3,645,460 $ 3,824,472 $ 3,930,667 Video 2,896,600 3,072,011 3,281,306 Telephony 277,938 300,198 332,406 Mobile 117,084 77,012 61,832 Broadband Services We provide a variety of broadband service tiers tailored to meet the needs of our customers.
Additionally, we provide app based solutions for TV, including a companion mobile app that allows viewing of television content on iOS or Android devices, as well as the available Optimum TV app on Apple TV, and on Optimum Stream for eligible customers. 3 Our residential customers pay a monthly charge based on the video programming level of service, tier or package they receive and the type of equipment they select.
Additionally, we provide 3 app based solutions for TV, including a companion mobile app that allows viewing of television content on iOS or Android devices, as well as the available Optimum TV app on Apple TV, and on Optimum Stream for eligible customers.
In 2023, the FCC proposed rules that would require cable operators to disclose the "all-in" price for service, including fees related to the provision of cable service such as network fees, sports and broadcast programming fees, in subscriber bills, advertising, and promotional materials. We currently assess a network enhancement fee, which may be subject to such a rule.
In 2024, the FCC adopted rules that require cable operators to disclose the "all-in" price for service, including fees related to the provision of cable service such as network fees, sports and broadcast programming fees, in subscriber bills, advertising, and promotional materials.
Substantially all of our HFC network is digital and DOCSIS 3.1 compatible, which allows us to provide HFC customers with advanced broadband, video and telephony services.
In addition, we are deploying Smart WiFi 6 and 6E routers to our customers to provide whole home WiFi coverage. Substantially all of our HFC network is digital and DOCSIS 3.1 compatible, which allows us to provide HFC customers with advanced broadband, video and telephony services.
Telephony Services We provide telephony services using VoIP technology ("interconnected VoIP") and traditional switched telephony via our CLEC subsidiaries. The FCC has adopted several regulations for interconnected VoIP services, as have several states, especially as it relates to core customer and safety issues such as E911, local number portability, disability access, outage reporting, universal service contributions, and regulatory reporting requirements.
The FCC has adopted several regulations for interconnected VoIP services, as have several states, especially as it relates to core customer and safety issues such as E911, local number portability, disability access, outage reporting, universal service contributions, and regulatory reporting requirements. The FCC has not, however, formally classified interconnected VoIP services as either information services or telecommunications services.
The FCC has not, however, formally classified interconnected VoIP services as either information services or telecommunications services. In this vacuum, some states have asserted more expansive rights to regulate interconnected VoIP services, while others have adopted laws that bar the state commission from regulating VoIP service.
In this vacuum, some states have asserted more expansive rights to regulate interconnected VoIP services, while others have adopted laws that bar the state commission from regulating VoIP service. Several advocacy and labor organizations petitioned the FCC in 2022 to formally classify VoIP as a telecommunications service; however, the FCC has not taken any action on the petition.
Current offers include download speeds up to 8 Gbps for our residential customers. Our FTTH broadband service is available to over 2.7 million homes, offering multi-gig symmetrical speed tiers to substantially all our FTTH customers and we plan to continue this expansion. We also are now deploying Smart WiFi 6 routers to certain of these customers.
Current offers include symmetrical speeds up to 8 Gbps for our residential customers. Our FTTH broadband service is available to approximately 3.0 million homes, offering multi-gig symmetrical speed tiers to substantially all our FTTH customers and we plan to continue this expansion.
We compete for advertising revenue against, among others, local broadcast stations, national cable and broadcast networks, radio stations, print media, social network platforms (such as Facebook and Instagram), and online advertising companies (such as Google), content providers (such as Disney) and connected TV providers. Employees and Labor Relations Human Capital As of December 31, 2023, we had approximately 10,600 employees.
We compete for advertising revenue against, among others, local broadcast stations, national cable and broadcast networks, radio stations, print media, social network platforms (such as Facebook and Instagram), online advertising companies (such as Google), content providers (such as Disney), connected TV providers, advertising agencies (such as Omnicom Group), measurement platforms, and digital advertising platforms.
Regulation General Company Regulation Our cable and other services are subject to a variety of federal, state and local law and regulations, as well as, in instances where we operate outside of the U.S., the laws and regulations of the countries and regions where we operate.
We also provide employees with tuition benefits to ensure access to educational resources they need to continue their development and pursue their goals. 11 Regulation General Company Regulation Our cable and other services are subject to a variety of federal, state and local law and regulations, as well as, in instances where we operate outside of the U.S., the laws and regulations of the countries and regions where we operate.
The FCC has announced that it expects funding for ACP to run out in May 2024. Other Regulation. Providers of broadband Internet access services must comply with the Communications Assistance for Law Enforcement Act ("CALEA"), which requires providers to make their services and facilities accessible for law enforcement intercept requests.
Providers of broadband Internet access services must comply with the Communications Assistance for Law Enforcement Act ("CALEA"), which requires providers to make their services and facilities accessible for law enforcement intercept requests.
We continue to work on simplifying and improving our agent toolset to better serve our customer needs. 7 We also offer our customers the ability to interact with us and get support through digital channels, whether via our website, chat, interactive voice support, text messaging, mobile app, or social media (X (formerly known as Twitter) and Facebook).
We also offer our customers the ability to interact with us and get support through digital channels, whether via our website, chat, interactive voice support, text messaging, mobile app, or social media (X and Meta).
These licensing fees have been the source of litigation in the past, and we cannot predict with certainty whether license fee disputes may arise in the future.
Similarly, we must obtain music rights for locally originated programming and advertising from the major music performing rights organizations. These licensing fees have been the source of litigation in the past, and we cannot predict with certainty whether license fee disputes may arise in the future.
SMB Customers We provide broadband, video and telephony services to SMB customers. In addition to these services, we also offer managed services, including hosted private branch exchange, managed WiFi, premiere technical support and network security for SMB customers. Telephony services include Optimum Voice for Business, Business Hosted Voice and Business Trunking (SIP and PRI).
SMB Customers We provide broadband (with symmetrical speeds up to 8 Gbps), video, mobile, and telephony services to SMB customers. In addition to these services, we also offer managed services, including hosted private branch exchange, managed WiFi, premiere technical support and network solutions, security and network access and equipment for SMB customers.
We have sought this funding as have many other entities, including broadband services competitors and new entrants into such services. We have also opposed subsidies directed to areas that we already serve. There is no assurance that we will be successful in securing such funding, nor any guarantee of the amount of funding we could receive.
We have sought this funding as have many other entities, including broadband services competitors and new entrants into such services. We have also opposed subsidies directed to areas that we already serve.
We estimate that Verizon is currently able to sell a fiber-based service, including broadband, video and telephony, to over two-thirds of the households in our New York metropolitan service area and that AT&T and new fiber-based service providers are able to sell fiber products to over one-quarter of the households in various markets in our south-central United States service area.
We estimate that Verizon, together with other fiber-based service providers, are able to sell fiber-based services to approximately two-thirds of the households in our footprint in New York, New Jersey and Connecticut combined and that AT&T and other fiber-based service providers are able to sell fiber products to more than one-third of the households in various markets in our south-central United States service area.
The FCC, in 2023, expanded its data breach notification reporting obligations applicable to telecommunications carriers and interconnected VoIP providers, which could cause us to incur additional compliance costs. In 2023, Texas, among other states, passed a comprehensive consumer privacy law.
The Texas Data Privacy and Security Act, which creates similar disclosure requirements, privacy protections, and consumer privacy rights, took effect on January 1, 2024. The FCC, in 2023, expanded its data breach notification reporting obligations applicable to telecommunications carriers and interconnected VoIP providers, which could cause us to incur additional compliance costs.
To ensure the highest quality support, we have call routing to specialized agents based on certain call types.
To ensure the highest quality support, we have call routing to specialized agents based on certain call types. We continue to work on simplifying and improving our agent toolset to better serve our customer needs.
Several advocacy and labor organizations petitioned the FCC in 2022 to formally classify VoIP as a telecommunications service; however, the FCC has not taken any action on the petition. Classification of our VoIP services as telecommunications services could result in additional regulatory requirements and compliance costs. 16 Universal Service.
Classification of our VoIP services as telecommunications services could result in additional regulatory requirements and compliance costs. In 2025, in response to increased regulation of VoIP providers in California, several providers petitioned the FCC to preempt California’s rules; the FCC has not yet taken action on that petition either. Universal Service.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese provisions provide for, among other things: • a tri-class common stock structure, as a result of which Next Alt generally will be able to control the outcome of all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets; • the ability of our Board of Directors to, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of 100,000,000 shares of preferred stock in one or more series and authorize their issuance; and • the ability of stockholders holding a majority of the voting power of our capital stock to call a special meeting of stockholders.
Biggest changeCertain provisions of our amended and restated certificate of incorporation and amended and restated bylaws may have an anti-takeover effect and may delay, defer or prevent a merger, acquisition, tender offer, takeover attempt or other change of control transaction that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares held by our stockholders. 41 These provisions provide for, among other things: • a tri-class common stock structure, as a result of which Next Alt generally will be able to control the outcome of all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets; • the ability of our Board of Directors to, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of 100,000,000 shares of preferred stock in one or more series and authorize their issuance; and • the ability of stockholders holding a majority of the voting power of our capital stock to call a special meeting of stockholders.
Volatility in the capital markets may be impacted by a number of factors. Some of the main factors which have recently contributed to capital markets volatility include, but are not limited to, inflationary pressures, the outlook for interest rates, the military conflicts 25 between Russia and Ukraine and in the Middle East.
Volatility in the capital markets may be impacted by a number of factors. Some of the main factors which have recently contributed to capital markets volatility include, but are not limited to, inflationary pressures, the outlook for interest rates, and the military conflicts 25 between Russia and Ukraine and in the Middle East.
In the United States, the Alternative Reference Rates Committee proposed the Term Secured Overnight Financing Rate ("Term 29 SOFR") as an alternative to LIBOR for use in contracts that were indexed to U.S. dollar LIBOR and proposed a phased market transition plan to Term SOFR.
In the United 29 States, the Alternative Reference Rates Committee proposed the Term Secured Overnight Financing Rate ("Term SOFR") as an alternative to LIBOR for use in contracts that were indexed to U.S. dollar LIBOR and proposed a phased market transition plan to Term SOFR.
If we are unable to transition our outstanding borrowings that accrue interest at alternative reference rates to Term SOFR, if there are any further significant changes to the setting of alternative interest rate benchmarks, and in the event of the discontinuation of, or changes in the manner of administration of, interest rate benchmarks, the interest rates on our borrowings could be materially different than expected.
If we are unable to transition our outstanding borrowings that accrue interest at alternative reference rates to Term SOFR, or if there are any further significant changes to the setting of alternative interest rate benchmarks, and in the event of the discontinuation of, or changes in the manner of administration of, interest rate benchmarks, the interest rates on our borrowings could be materially different than expected.
If we do not have access to such items on reasonable terms and on a timely basis, our ability to offer our products and services could be impaired, and our business, results of operations and financial condition could be adversely affected.
If we do not have access to such items and services on reasonable terms and on a timely basis, our ability to offer our products and services could be impaired, and our business, results of operations and financial condition could be adversely affected.
Asserted claims and/or initiated litigation can include claims against us or our manufacturers, suppliers or customers, alleging infringement of their proprietary rights with respect to our existing or future products and/or services or components of those products and/or services.
Asserted claims and initiated litigation can include claims against us or our manufacturers, suppliers or customers, alleging infringement of their proprietary rights with respect to our existing or future products or services or components of those products or services.
Continued uncertainty about global economic conditions poses a risk as consumers and businesses may postpone spending in response to tighter credit, unemployment, negative financial news, and/or declines in income or asset values, which could have a material negative effect on demand for our products and services.
Continued uncertainty about global economic conditions poses a risk as consumers and businesses may postpone spending in response to tighter credit, unemployment, negative financial news, and declines in income or asset values, which could have a material negative effect on demand for our products and services.
We and many other entities, including broadband services competitors and new entrants into such services, have applied for and/or received these funds. We have generally opposed such subsidies when directed to areas that we serve and have deployed broadband capable networks.
We and many other entities, including broadband services competitors and new entrants into such services, have applied for or received these funds. We have generally opposed such subsidies when directed to areas that we serve and have deployed broadband capable networks.
Risk Factors Relating to Regulatory and Legislative Matters • Our business is subject to extensive governmental legislation and regulation. • Our cable system franchises are subject to non-renewal or termination. • Our cable system franchises are non-exclusive. • Local franchising authorities have the ability to impose additional regulatory constraints on our business. • Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates. • We may be materially adversely affected by regulatory changes related to pole attachments and the regulatory environment related to pole attachments could impede our ability to expand into new markets. • Changes in channel carriage regulations could impose significant additional costs on us. • Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services. • Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs. • Our mobile service exposes us to regulatory risk. • We may be materially adversely affected by regulatory, legal and economic changes relating to our physical plant. • We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers run out .
Risk Factors Relating to Regulatory and Legislative Matters • Our business is subject to extensive governmental legislation and regulation. • Our cable system franchises are subject to non-renewal or termination. • Our cable system franchises are non-exclusive. • Local franchising authorities have the ability to impose additional regulatory constraints on our business. • Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates. • We may be materially adversely affected by regulatory changes related to pole attachments and the regulatory environment related to pole attachments could impede our ability to expand into new markets. • Changes in channel carriage regulations could impose significant additional costs on us. • Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services. • Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs. • Our mobile service exposes us to regulatory risk. • We may be materially adversely affected by regulatory, legal and economic changes relating to our physical plant. • We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers are modified or run out .
Many of our video customers take delivery of their services through our set-top box, although customers are increasingly able to enjoy these services through other devices, for example, Apple TV, which eliminates or reduces the need to use our devices. We may be required to make material capital and other investments to anticipate and to keep up with technological change.
Many of our video customers take delivery of their services through our set-top box, although customers are increasingly able to enjoy these services through other devices, for example, Apple TV, which eliminates or reduces the need to use our devices. We may be required to make material capital and other investments to keep up with technological change.
Moreover, expansion of our business into new areas, including areas where poles are operated by electric cooperatives or municipalities not subject to FCC or state regulation, may be frustrated by delays, capacity constraints, "makeready" demands or the general inability to secure appropriate pole or conduit rights, as well as higher pole and conduit access costs.
Moreover, expansion of our business into new areas, including areas where poles are operated by electric cooperatives or municipalities not subject to FCC or state regulation, may be frustrated by delays, capacity constraints, "makeready" 37 demands or the general inability to secure appropriate pole or conduit rights, as well as higher pole and conduit access costs.
Any of these events, if experienced by or directed at us or technologies or assets upon which we depend, could have adverse consequences on our network, infrastructure or facilities, as well as our customers and business, including degradation of service, service disruption, excessive call volume to call centers, and damage to our or our customers’ equipment and data.
Any of these events, if experienced by or directed at us or technologies or assets upon which we depend, could have adverse consequences on our network, infrastructure or facilities, as well as our customers and business, including 30 degradation of service, service disruption, excessive call volume to call centers, and damage to our or our customers’ equipment and data.
Regulatory changes in this area could disrupt existing programming commitments, interfere with our preferred use of limited channel capacity and limit our ability to offer services that would maximize our revenue potential. It is possible that other legal restraints will be adopted limiting our discretion over programming decisions.
Regulatory changes in this area could disrupt existing programming commitments and contracts, interfere with our preferred use of limited channel capacity and limit our ability to offer services that would maximize our revenue potential. It is possible that other legal restraints will be adopted limiting our discretion over programming decisions.
This could over time reduce the number of shares of Class B common stock outstanding and potentially further concentrate voting power with remaining holders of Class B common stock. Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock, which could reduce their influence over matters on which stockholders vote.
This could 39 over time reduce the number of shares of Class B common stock outstanding and potentially further concentrate voting power with remaining holders of Class B common stock. Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock, which could reduce their influence over matters on which stockholders vote.
Numerous states are also seeking to impose price caps on broadband service provided to low-income households as a condition of awarding subsidies for the construction of broadband networks to unserved and underserved areas. 38 Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs.
Numerous states are also seeking to impose price caps on broadband service provided to low-income households as a condition of awarding subsidies for the construction of broadband networks to unserved and underserved areas. Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs.
Among other things, the limitation of copyright liability for network operators with respect to materials transmitted over their networks is conditioned upon the network operators’ terminating the accounts of repeat infringers in certain circumstances, and the law is unsettled as to the circumstances in which such termination is required to maintain the operator’s limitation of liability.
Among other things, the limitation of copyright liability for network 33 operators with respect to materials transmitted over their networks is conditioned upon the network operators’ terminating the accounts of repeat infringers in certain circumstances, and the law is unsettled as to the circumstances in which such termination is required to maintain the operator’s limitation of liability.
Additionally, in order to contain this problem, we may have to implement elaborate and costly security and antipiracy measures, which could result in significant expenses and losses of revenue. There can be no assurance that even the highest levels of security and anti-piracy measures will prevent piracy.
Additionally, in order 34 to contain this problem, we may have to implement elaborate and costly security and antipiracy measures, which could result in significant expenses and losses of revenue. There can be no assurance that even the highest levels of security and anti-piracy measures will prevent piracy.
Certain states are also considering adopting energy efficiency regulations governing the operation of equipment that 35 we use, which could constrain innovation. Congress periodically considers whether to rewrite the entire Communications Act, or to adopt more focused changes to that Act, to account for changes in the communications marketplace.
Certain states are also considering adopting energy efficiency regulations governing the operation of equipment that we use, which could constrain innovation. Congress periodically considers whether to rewrite the entire Communications Act, or to adopt more focused changes to that Act, to account for changes in the communications marketplace.
While we have developed and maintain systems designed to prevent 30 service disruptions and shutdowns, and we have developed system redundancy and disaster recovery plans designed to mitigate such network and system-related disruptions and to expeditiously recover from such events, these measures may be ineffective or inadequate and may not be sufficient for all eventualities.
While we have developed and maintain systems designed to prevent service disruptions and shutdowns, and we have developed system redundancy and disaster recovery plans designed to mitigate such network and system-related disruptions and to expeditiously recover from such events, these measures may be ineffective or inadequate and may not be sufficient for all eventualities.
Consumers' video consumption patterns are also evolving, for example, with more content being downloaded for time-shifted consumption. A proliferation of delivery systems for video content can adversely affect our ability to attract and retain customers and the demand for our services and it can also decrease advertising demand on our delivery systems.
Consumers' video consumption patterns are also evolving, for example, with more content being downloaded for time-shifted consumption. A proliferation of delivery systems for video content can adversely affect our ability to attract and retain customers and demand for our services and it can also decrease advertising demand on our delivery systems.
In addition, there are a few cities that have constructed their own cable systems, in a 36 manner similar to city-provided utility services, and private cable companies not affiliated with established local exchange carriers have also demonstrated an interest in constructing overbuilds.
In addition, there are a few cities that have constructed their own cable systems, in a manner similar to city-provided utility services, and private cable companies not affiliated with established local exchange carriers have also demonstrated an interest in constructing overbuilds.
Severe weather events and other natural disasters, including, storms, floods, tornadoes, rising sea levels, solar events, electromagnetic events, or other natural disasters, could result in severe business disruptions, property damage, prolonged service disruption, significant decreases in revenues and earnings, or significant additional costs, reputational and regulatory consequences.
Severe weather events and other natural disasters, including storms, floods, fires, tornadoes, rising sea levels, solar events, electromagnetic events, could result in severe business disruptions, property damage, prolonged service disruption, significant decreases in revenues and earnings, or significant additional costs, reputational and regulatory consequences.
It is also possible that regulations will be adopted affecting the negotiations between MVPDs (like us) and programmers. While these 37 regulations might provide us with additional rights and protections in our programming negotiations, they might also limit our flexibility in ways that adversely affect our operations.
It is also possible that regulations will be adopted affecting the negotiations between MVPDs (like us) and programmers. While these regulations might provide us with additional rights and protections in our programming negotiations, they might also limit our flexibility in ways that adversely affect our operations.
The condition of the financial and credit markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the future. In addition, developments in our business and operations or the amount of indebtedness could lead to a ratings downgrade on our or our subsidiaries' indebtedness.
The condition of the financial and credit markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the future. In addition, developments in our business and operations or the amount of indebtedness incurred could lead to a ratings downgrade on our or our subsidiaries' indebtedness.
To the extent that we are a creditor of a subsidiary, our claims could be subordinated to any security interest in the assets of that subsidiary and/or any indebtedness of that subsidiary senior to that held by us. We are subject to significant restrictive covenants under the agreements governing our indebtedness.
To the extent that we are a creditor of a subsidiary, our claims could be subordinated to any security interest in the assets of that subsidiary or any indebtedness of that subsidiary senior to that held by us. We are subject to significant restrictive covenants under the agreements governing our indebtedness.
It remains unclear precisely to what extent federal and state regulators will subject VoIP services to traditional telephone service regulation. Expanding our offering of these services may require us to obtain certain authorizations, including federal and state licenses.
It remains unclear precisely to what extent federal and state regulators will subject VoIP services to traditional telephone service regulation. Expanding our 38 offering of these services may require us to obtain certain authorizations, including federal and state licenses.
The FCC has adopted rules that streamline entry for new competitors (including those affiliated with telephone companies) and reduce franchising burdens for these new entrants.
The FCC has adopted rules that streamline entry for new competitors (including 36 those affiliated with telephone companies) and reduce franchising burdens for these new entrants.
In addition, we may be required to make material capital and other investments to develop this business and to anticipate and keep up with technological change. These challenges could adversely affect our business, financial condition and results of operations. Programming and retransmission costs are increasing and we may not have the ability to pass these increases on to our customers.
In addition, we may be required to make material capital and other investments to develop and maintain this business and to keep up with technological change. These challenges could adversely affect our business, financial condition and results of operations. Programming and retransmission costs are increasing and we may not have the ability to pass these increases on to our customers.
Our advertising business faces competition from traditional and non-traditional media outlets, such as television and radio stations, traditional print media and the Internet, including Facebook, Google and others. 23 We face significant risks as a result of rapid changes in technology, consumer expectations and behavior.
Our advertising business faces competition from traditional and non-traditional media outlets, such as television and radio stations, traditional print media and the Internet, including Meta, Google and others. 23 We face significant risks as a result of rapid changes in technology, consumer expectations and behavior.
The termination or disruption in these relationships as a result of contractual disagreements, operational or financial failures on the part of our vendors, or other adverse events that prevent vendors from providing the equipment or services we need, with the level of quality we require, in a timely manner, and at reasonable prices, could result in significant costs to us and have a negative effect on our ability to provide our products and services.
The termination or disruption in these relationships as a result of contractual disagreements, operational or financial failures on the part of our vendors, the imposition of tariffs, or other events that prevent vendors from providing the equipment or services we need, with the level of quality we require, in a timely manner, and at reasonable prices, could result in significant costs to us and have a negative effect on our ability to provide our products and services.
However, because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or implement adequate preventive measures.
Further, because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or implement adequate preventive measures.
We took measures to secure against these attacks and responded by notifying affected persons, relevant state and federal agencies and law enforcement agencies. While the November 2019 attack has been contained both from an exposure and cost perspective, similar attacks could impose costs, liability and reputational harm that could adversely affect our operations and financial results.
We took measures to secure against these attacks and responded by notifying affected persons, relevant state and federal agencies and law enforcement agencies. While the November 2019 attack was contained both from an exposure and cost perspective, similar attacks could impose costs, liability and reputational harm that could adversely affect our operations and financial results.
A recurrence of these conditions may further adversely impact our business, financial condition and results of operations.
A recurrence of these conditions may adversely impact our business, financial condition and results of operations.
The debt ratings for our subsidiaries' debt securities and credit facilities are currently below the "investment grade" category, which results in higher borrowing costs and more restrictive covenants in our indentures and credit facilities, as well as a reduced pool of potential investors of that debt as some investors will not purchase debt securities or become lenders under credit facilities that are not rated in an investment grade rating category.
The debt ratings for our subsidiaries' debt securities and credit facilities are currently below the "investment grade" category, which could result in higher borrowing costs and more restrictive covenants in our indentures and credit facilities, as well as a reduced pool of potential investors of that debt as some investors will not purchase debt securities or become lenders under credit facilities that are not rated in an investment grade rating category.
To the extent we are unable to 24 reach agreement with certain programmers on terms we believe are reasonable, we may be forced to, or determine for strategic or business reasons to, remove certain programming channels from our line-up and may decide to replace such programming channels with other programming channels, which may not be available on acceptable terms or be as attractive to customers.
To the extent we are unable to reach agreement with certain programmers on terms we believe are reasonable, we may be forced to, or determine for strategic or business reasons to, cease negotiations with such 24 programmers and remove the associated programming channels from our line-up and may decide to replace such programming channels with other programming channels, which may not be available on acceptable terms or be as attractive to customers.
Labor disruptions could adversely affect our business, financial condition and results of operations. • A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. • We may engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations. • Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs. • Our business depends on intellectual property rights and on not infringing on others' intellectual property rights. • We may be liable for the material that content providers distribute over our networks. • If we are unable to retain key employees, our ability to manage our business could be adversely affected. • Impairment of the Altice brand or Mr.
Labor disruptions could adversely affect our business, financial condition and results of operations. • A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. • We have engaged and may in the future engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations. • Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs. • Our business depends on intellectual property rights and on not infringing on others' intellectual property rights. • We may be liable for the material that content providers distribute over our networks. • If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected. 20 • Impairment of the Altice brand or Mr.
Competition, market disruptions or deterioration in economic conditions could lead to lower demand for our products, as well as lower levels of advertising, and increased incidence of customers' inability to pay for the services we provide. These events would adversely impact our results of operations, cash flows and financial position.
Competition, market disruptions or deterioration in economic conditions have in the past, and could in the future, lead to lower demand for our products, as well as lower levels of advertising, and increased incidence of customers' inability to pay for the services we provide. These events would adversely impact our results of operations, cash flows and financial position.
It is possible that additional competitors will enter the market and begin providing video content over the Internet directly to customers. Increasingly, content owners, such as Max (formerly known as HBO), CBS, Disney and ESPN, are selling their programming directly to consumers over the Internet without requiring a video subscription.
It is possible that additional competitors will enter the market and begin providing video content over the Internet directly to customers. Increasingly, content owners, such as Max, CBS, Disney and ESPN, are selling their programming directly to consumers over the Internet without requiring a video subscription.
Our business has grown significantly as a result of acquisitions, which entail numerous risks including: • distraction of our management team in identifying potential acquisition targets, conducting due diligence and negotiating acquisition agreements; • difficulties in integrating the operations, personnel, products, technologies and systems of acquired businesses; • difficulties in enhancing our customer support resources to adequately service our existing customers and the customers of acquired businesses; • the potential loss of key employees or customers of the acquired businesses; • unanticipated liabilities or contingencies of acquired businesses; • unbudgeted costs which we may incur in connection with pursuing potential acquisitions which are not consummated; • failure to achieve projected cost savings or cash flow from acquired businesses, which are based on projections that are inherently uncertain; • fluctuations in our operating results caused by incurring considerable expenses to acquire and integrate businesses before receiving the anticipated revenues expected to result from the acquisitions; and • difficulties in obtaining regulatory approvals required to consummate acquisitions, or costs associated with obtaining such approvals in the form of additional expenses or ongoing conditions on the operation of the business.
Our business has grown significantly as a result of acquisitions, which entail numerous risks including: • distraction of our management team in identifying potential acquisition targets, conducting due diligence and negotiating acquisition agreements; • difficulties in integrating the operations, personnel, products, technologies and systems of acquired businesses; • difficulties in enhancing our customer support resources to adequately service our existing customers and the customers of acquired businesses; • the potential loss of key employees or customers of the acquired businesses; • unanticipated liabilities or contingencies of acquired businesses; • unbudgeted costs which we may incur in connection with pursuing potential acquisitions which are not consummated; • failure to achieve projected cost savings or cash flow from acquired businesses, which are based on projections that are inherently uncertain; • fluctuations in our operating results caused by incurring considerable expenses to acquire and integrate businesses before receiving the anticipated revenues expected to result from the acquisitions; and • difficulties in obtaining regulatory approvals required to consummate acquisitions, or costs associated with obtaining such approvals in the form of additional expenses or ongoing conditions on the operation of the business. 32 We also participate in competitive bidding processes, some of which may involve significant cable systems.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved" in the past year, which could result in increased competition for our broadband services. Mobile broadband providers increasingly provide Fixed Wireless Broadband ("FWB") services that can substitute for our fixed broadband service.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved" in recent years, which could result in increased competition for our broadband services. Mobile broadband providers increasingly provide Fixed Wireless Broadband ("FWB") services that can substitute for our fixed broadband service.
We have also incurred substantial indebtedness in order to offer new or upgraded services to our current and potential customers. At December 31, 2023, the carrying value of our total aggregate indebtedness, including finance leases, notes payable and supply chain financing was approximately $25.1 billion.
We have also incurred substantial indebtedness in order to offer new or upgraded services to our current and potential customers. At December 31, 2024, the carrying value of our total aggregate indebtedness, including finance leases and supply chain financing was approximately $25.1 billion.
Similarly, we may not be successful in growing our mobile voice and data services on our anticipated timeline or realize, in full or in part, the anticipated benefits we expect from the introduction thereof, and we may face technological, financial, legal, regulatory or other challenges in pursuing these or other initiatives.
Similarly, we may not be successful in growing our mobile voice and data services on our anticipated timeline or realize, in full or in part, the anticipated benefits we expect from offering such services, and we may face technological, financial, legal, regulatory or other challenges in pursuing these or other initiatives.
We may engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations.
We have engaged and may in the future engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations.
We may incur significant costs in defending these actions, and if we need to take measures to reduce our exposure to these risks or are required to pay damages in relation to, such claims or choose to settle such claims, our business, reputation, financial condition 33 and results of operations could be materially adversely affected. See " Note 17 .
We may incur significant costs in defending these or similar actions, and if we need to take measures to reduce our exposure to these risks or are required to pay damages in relation to, such claims or choose to settle such claims, our business, reputation, financial condition and results of operations could be materially adversely affected.
Under these rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements, including: • the requirement that a majority of our Board of Directors consists of "independent directors" as defined under the rules of the NYSE; and • the requirement that we have a governance and nominating committee. 42 Consistent with these exemptions, we will continue not to have a majority of independent directors on our Board of Directors or a nominating and governance committee.
Under these rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements, including: • the requirement that a majority of our Board of Directors consists of "independent directors" as defined under the rules of the NYSE; and • the requirement that we have a governance and nominating committee.
Pursuant to the terms of our credit facilities agreement, subsequent to the phase-out of LIBOR on June 30, 2023, the interest rate on our outstanding LIBOR-linked borrowings became linked to synthetic USD LIBOR, calculated as Term SOFR plus the spread adjustment for the corresponding LIBOR setting, until September 30, 2024.
Pursuant to the terms of our credit facilities agreement, subsequent to the phase-out of LIBOR on June 30, 2023, the interest rate on our outstanding LIBOR-linked borrowings became linked to synthetic USD LIBOR, calculated as Term SOFR plus the spread adjustment for the corresponding LIBOR setting, until March 31, 2025.
Commitments and Contingencies – Legal Matters." If we are unable to retain key employees, our ability to manage our business could be adversely affected. Our operational results have depended, and our future results will depend upon the retention and continued performance of our management team.
See " Note 17 . Commitments and Contingencies – Legal Matters." If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected. Our operational results have depended, and our future results will depend upon the retention and continued performance of our management team.
In recent years, the cost of programming in the cable and satellite video industries has increased significantly and is expected to continue to increase, particularly with respect to costs for sports programming and broadcast networks. We may not be able to pass programming cost increases on to our customers due to the increasingly competitive environment.
In recent years, the cost of programming in the multichannel video distribution industry has increased significantly and is expected to continue to increase, particularly with respect to costs for sports programming and broadcast networks. We may not be able to pass programming cost increases on to our customers due to the increasingly competitive environment.
Operating and maintaining our cable systems requires significant amounts of cash payments to third parties. Capital expenditures were $1,704.8 million, $1,914.3 million and $1,231.7 million in 2023, 2022 and 2021, respectively, and primarily include payments for customer premise equipment, network infrastructure, support and other costs.
Operating and maintaining our cable systems requires significant amounts of cash payments to third parties. Capital expenditures were $1,433.0 million, $1,704.8 million and $1,914.3 million in 2024, 2023 and 2022, respectively, and primarily include payments for customer premise equipment, network infrastructure, support and other costs.
Risk Factors Relating to Our Business • We operate in a highly competitive business environment. • We face significant risks as a result of rapid changes in technology, consumer expectations and behavior. • Programming and retransmission costs are increasing and disputes with programmers and the inability to retain or obtain popular programming can adversely affect our relationship with customers. • We may not be able to successfully implement our growth strategy. • The financial markets are subject to volatility and disruptions, which may adversely affect our business. • We are highly leveraged and have substantial indebtedness and may incur additional indebtedness. • We have in past periods incurred substantial losses from operations, and we may do so in the future. • A lowering or withdrawal of the ratings assigned to our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. • Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds. • We are subject to significant restrictive covenants under the agreements governing our indebtedness. • We will need to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing obligations and meet other obligations; we may also engage in extraordinary transactions that involve the incurrence of large amounts of indebtedness. • Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding. • We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business. • Labor shortages and supply chain disruptions could prevent us from meeting customer demand and negatively affect our financial results. • Disruptions to our networks, infrastructure and facilities could impair our operating activities and negatively impact our reputation and financial results. • If we experience a significant cybersecurity incident or fail to detect and appropriately respond to a significant cybersecurity incident, our results of operations and reputation could suffer. • The terms of existing or new collective bargaining agreements can increase our expenses.
Risk Factors Relating to Our Business • We operate in a highly competitive business environment. • We face significant risks as a result of rapid changes in technology, consumer expectations and behavior. • Programming and retransmission costs are increasing and disputes with programmers and the inability to retain or obtain popular programming can adversely affect our relationship with customers. • We may not be able to successfully implement our growth strategy. • The financial markets are subject to volatility and disruptions, which may adversely affect our business. • We are highly leveraged and have substantial indebtedness and may incur additional indebtedness. • We have in past periods incurred substantial losses from operations, and we may do so in the future. • A lowering or withdrawal of the ratings assigned to our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. • Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds. • We are subject to significant restrictive covenants under the agreements governing our indebtedness. • We will need to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing obligations and meet other obligations; we may also engage in extraordinary transactions that involve the incurrence of large amounts of indebtedness. • Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding. • We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business. • Changes to trade policy, to the extent applicable to equipment we or our customers use, could adversely affect our business and results of operations. • Disruptions to our networks, infrastructure and facilities could impair our operating activities and negatively impact our reputation and financial results. • If we experience a significant cybersecurity incident or fail to detect and appropriately respond to a significant cybersecurity incident, our results of operations and reputation could suffer. • Issues related to the use of AI in our business could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business. • The terms of existing or new collective bargaining agreements can increase our expenses.
A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. At December 31, 2023, we reported approximately $31.9 billion of consolidated total assets, of which approximately $22.5 billion were intangible.
A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. At December 31, 2024, we reported approximately $31.7 billion of consolidated total assets, of which approximately $22.2 billion were intangible.
Historical market disruptions have typically been accompanied by a broader economic downturn, which has historically led to lower demand for our products, such as video services, as well as lower levels of television advertising, and increased incidence of customers' inability to pay for the services we provide.
Financial market disruptions may be accompanied by a broader economic downturn, which historically has led to lower demand for our products, such as video services, as well as lower levels of television advertising, and increased incidence of customers' inability to pay for the services we provide.
Drahi's reputation in markets in which we do not operate could adversely affect current and future customers', regulators', investors' and others' perception of Altice USA. Macroeconomic developments may adversely affect our business. Our performance is subject to global economic conditions and the related impact on consumer spending levels.
Drahi's reputation could adversely affect current and future customers', regulators', investors' and others' perception of Altice USA. Macroeconomic developments may adversely affect our business. Our performance is subject to global economic conditions and the related impact on consumer spending levels.
We also face increasing competition from AT&T and new fiber-based service providers in various markets in our south-central United States service area, who we estimate are currently able to sell fiber products to over one-quarter of these households.
We also face increasing competition from AT&T and other fiber-based service providers in various markets in our south-central United States service area, who we estimate are currently able to sell fiber products to more than one-third of these households.
We have existing collective bargaining agreements with the CWA and IBEW that cover these employees in New York, New Jersey and West Virginia and expire at various times between April 2024 through December 2026.
We have existing collective bargaining agreements with the CWA and IBEW that cover these unionized employees in New York, New Jersey and West Virginia, which expire at various times between February 2026 through April 2027.
For example, there can be no assurance that we will be able to successfully implement our plan to build a FTTH network within the anticipated timeline or at all or within the cost parameters we currently expect.
For example, there can be no assurance that we will be able to successfully implement our plan to expand and upgrade our network within the anticipated timeline or at all or within the cost parameters we currently expect.
Any decrease in our revenues or an increase in operating costs (and corresponding reduction in our cash flows) would therefore adversely affect our ability to make interest or principal payments on our indebtedness as they come due.
Decreases in our revenues or increases in operating costs (and corresponding reduction in our cash flows) would therefore adversely affect our ability to make interest or principal payments on our indebtedness as they come due.
Our 27 credit rating (including the credit rating assigned to our subsidiaries’ debt securities and credit facilities) has in the past been and may continue to be impacted by a number of factors, including the effects of the U.S. economy experiencing an uneven recovery following a protracted slowdown, factors affecting the broadband communications and video service industry, our operating performance and our financing activities.
Our 27 credit rating (including the credit rating assigned to our subsidiaries’ debt securities and credit facilities) has in the past been and may continue to be impacted by a number of factors, including the state of the U.S. economy, factors affecting the broadband communications and video service industry, our operating performance and our financing activities.
Such disputes, or the removal or replacement of programming, may inconvenience some of our customers and can lead to customer dissatisfaction and, in certain cases, the loss of customers, which could have a material adverse effect on our business, financial condition, results of operations and liquidity.
Such disputes, or the removal or replacement of programming, may inconvenience some of our customers and can lead to customer dissatisfaction, negative publicity, regulatory inquiries, and the potential loss of customers, which could have a material adverse effect on our business, financial condition, results of operations and liquidity.
As of February 9, 2024, Next Alt and other entities controlled by Patrick Drahi own or have the right to vote approximately 49% of our issued and outstanding Class A and Class B common stock, which represents approximately 95% of the voting power of our outstanding capital stock.
As of February 7, 2025, Next Alt and other entities controlled by Patrick Drahi own or have the right to vote approximately 41% of our issued and outstanding Class A and Class B common stock, which represents approximately 94% of the voting power of our outstanding capital stock.
If our efforts to protect the security of information about our customers and employees are unsuccessful, a significant data security breach may result in costly government enforcement actions, private litigation and negative publicity resulting in reputation or brand damage with customers, and our financial condition and results of operations could suffer.
If our efforts to protect our systems, networks and infrastructure are unsuccessful, or the security of information about our customers and employees is compromised, a significant data security breach may harm our ability to provide services to our customers or result in costly government enforcement actions, private litigation and negative publicity resulting in reputation or brand damage, and our financial condition and results of operations could suffer.
If our acquisitions do not result in the anticipated operating efficiencies, are not effectively integrated, or result in costs which exceed our expectations, or if our dispositions fail to generate adequate consideration, result in contingent liabilities, adversely affect our ability to generate revenue or are disruptive to our other businesses, our business, financial condition and results of operations could be materially adversely affected. 32 Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs.
If our acquisitions do not result in the anticipated operating efficiencies, are not effectively integrated, or result in costs which exceed our expectations, or if our dispositions fail to generate adequate consideration, result in contingent liabilities, adversely affect our ability to generate revenue or are disruptive to our other businesses, our business, financial condition and results of operations could be materially adversely affected.
The rising popularity of bandwidth-intensive Internet-based services poses risks for our broadband and wireless services. Examples of such services include peer-to-peer file sharing services, gaming services and the delivery of video via streaming technology and by download.
Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs. The rising popularity of bandwidth-intensive Internet-based services poses risks for our broadband and wireless services. Examples of such services include gaming services, the delivery of video via streaming technology and by download and peer-to-peer file sharing services.
As such, we could be exposed to legal claims relating to content disseminated on our networks and/or asserting that we are not eligible for statutory limitations on liability for network operators with respect to such content. Claims could involve matters such as defamation, invasion of privacy or copyright infringement. For example, two complaints have been filed in the U.S.
As such, we could be exposed to legal claims relating to content disseminated on our networks or asserting that we are not eligible for statutory limitations on liability for network operators with respect to such content. Claims could involve matters such as defamation, invasion of privacy or copyright infringement.
Unauthorized parties may also attempt to gain access to our systems or facilities and to our proprietary business information. While we commit substantial resources to continuously monitor and further develop our network and infrastructure to detect, protect and address the risk of unauthorized access, misuse, computer viruses and other events, our security programs and measures do not prevent all intrusions.
While we commit substantial resources to continuously monitor and further develop our network and infrastructure to detect, protect and address the risk of unauthorized access, misuse, computer viruses and other events, our security programs and measures do not prevent all intrusions.
As of December 31, 2023, we had a total of 271.8 million shares of Class A common stock outstanding and 184.2 million shares of Class B common stock outstanding.
As of December 31, 2024, we had a total of 279.0 million shares of Class A common stock outstanding and 184.2 million shares of Class B common stock outstanding.
In addition, Next Alt may have an interest in pursuing acquisitions, divestitures and other transactions that, in its judgment, could enhance its investment or improve its financial condition, even though such transactions might involve risks to our stockholders.
In addition, Next Alt may have an interest in pursuing acquisitions, divestitures and other transactions that, in its judgment, could enhance its investment or improve its financial condition, even though such transactions might involve risks to our stockholders. For example, Next Alt could cause us to make acquisitions that increase our indebtedness or cause us to sell revenue-generating assets.
Since December 31, 2021, the ACP has provided broadband providers with a monthly reimbursement of up to $30 (up to $75 in Tribal areas) to offset the costs of providing a subscriber bill credit for broadband service to qualified ACP-enrolled low-income households. We currently receive reimbursement from the ACP.
From December 31, 2021 through June 1, 2024, the ACP provided broadband providers with a monthly reimbursement of up to $30 (up to $75 in Tribal areas) to offset the costs of providing a subscriber bill credit for broadband service to qualified ACP-enrolled low-income households. Funding for the ACP ended on June 1, 2024.
The loss of the services of key members of management and the inability or delay in hiring new key employees could adversely affect our ability to manage our business and our future operational and financial results. Impairment of the Altice brand or Mr. Drahi's reputation could adversely affect current and future customers' perception of Altice USA.
The loss of the services of key members of management and the inability or delay in hiring new key employees could adversely affect our ability to manage our business and our future operational and financial results.
For example, Next Alt could cause us to make acquisitions that increase our indebtedness or cause us to sell revenue-generating assets. 41 In addition, Next Alt is able to determine the outcome of all matters requiring stockholder approval and is able to cause or prevent a change of control of the Company or a change in the composition of our Board of Directors and could preclude any unsolicited acquisition of the Company.
In addition, Next Alt is able to determine the outcome of all matters requiring stockholder approval and is able to cause or prevent a change of control of the Company or a change in the composition of our Board of Directors and could preclude any unsolicited acquisition of the Company.
On certain occasions in the past, such negotiations have led to disputes with programmers that have resulted in temporary periods during which we did not carry or decided to stop carrying a particular broadcast network or programming service or services.
On certain occasions in the past, such negotiations have led to disputes with programmers that have resulted in periods during which we did not carry, or decided to stop carrying, a particular broadcast network or programming service or services. For example, in January 2025, we were unable to reach an agreement with Nexstar Media Group, Inc.
While neither the FCC nor states currently regulate the price for broadband services generally, the state of New York enacted legislation that would regulate the price and terms for the broadband service offered to low-income households. This law was enjoined by a New York federal court, and the ruling is currently on appeal.
While neither the FCC nor states currently regulate the price for broadband services generally, the state of New York enacted legislation that would regulate the price and terms for the broadband service offered to low-income households.
If we engage in acquisitions, dispositions or other strategic transactions in the future, we may incur additional debt, contingent liabilities and amortization expenses, which could materially adversely affect our business, financial condition and results of operations. We could also issue substantial additional equity which could dilute existing stockholders.
We also may sell all or portions of the businesses we own, including cable systems or business units. If we engage in acquisitions, dispositions or other strategic transactions in the future, we may incur additional debt, contingent liabilities and amortization expenses, which could materially adversely affect our business, financial condition and results of operations.
We cannot provide any assurance that we will realize, in full or in part, the anticipated benefits we expect from the introduction of our mobile voice and data services, or that they will be introduced to, or adopted by, customers to the extent or in the timeframe we anticipate.
We cannot provide any assurance that we will realize, in full or in part, the anticipated benefits we expect from offering mobile voice and data services to new or existing customers, in the timeframe we anticipate.
Moreover, if one or more of the analysts who cover us downgrades our Class A common stock, or if our operating results do not meet their expectations, the market price of our Class A common stock could decline.
Moreover, if one or more of the analysts who cover us downgrades our Class A common stock, or if our operating results do not meet their expectations, the market price of our Class A common stock could decline. 42 We have been subject to securities class action litigation in the past and could be subject to securities class action litigation in the future.
Any such fluctuation in the rating of us or our subsidiaries may impact our ability to access debt markets in the future or increase our cost of future debt which could have a material adverse effect on our business, financial condition and results of operations, which in return may adversely affect the market price of shares of our Class A common stock.
In 2024, S&P downgraded our credit rating to “CCC+” and Moody’s Investors Service downgraded our credit rating to “Caa2.” A deterioration of our financial position or a further downgrade of our or our subsidiaries' ratings for any reason may impact our ability to access debt markets in the future or increase our cost of future debt which could have a material adverse effect on our business, financial condition and results of operations, which in return may adversely affect the market price of shares of our Class A common stock.
We estimate that Verizon is currently able to sell fiber-based services, including broadband, video and telephony, to over two-thirds of the households in our New York metropolitan service area and may expand these and other service offerings to more customers in the future.
We estimate that Verizon, together with other fiber-based service providers, are able to sell fiber-based services to approximately two-thirds of the households in our footprint in New York, New Jersey and Connecticut combined and may expand these and other service offerings to more customers in the future.
Any shares held by our affiliates, as that term is defined under Rule 144 ("Rule 144") of the Securities Act of 1933, as amended (the "Securities Act"), including Next Alt and its affiliates, may be sold only in compliance with certain limitations. 40 Pursuant to a stockholders and registration rights agreement between us, Next Alt, Altice Europe and certain former shareholders, the Altice parties thereto have the right, subject to certain conditions, to require us to register the sale of their shares of our Class A common stock, or shares of Class A common stock issuable upon conversion of shares of our Class B common stock, under the Securities Act.
Pursuant to a stockholders and registration rights agreement between us, Next Alt, Altice N.V. and certain former shareholders, the Altice parties thereto have the right, subject to certain conditions, to require us to register the sale of their shares of our Class A common stock, or shares of Class A common stock issuable upon conversion of shares of our Class B common stock, under the Securities Act.
We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers run out.
Changes in governmental regulations or changes in these relationships could have a material adverse effect on our business and our results of operations. We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers run out.
As a result, the precise extent to which state rules may impose such requirements on broadband Internet access service providers, as well as other regulations that differ from federal requirements, is not fully settled. Additionally, Congress and some states are considering legislation that may codify "net neutrality" rules, which could include prohibitions on blocking, throttling and prioritizing Internet traffic.
As a result, the precise extent to which state rules may impose such requirements on broadband Internet access service providers, as well as other regulations that differ from federal requirements, is not fully settled. A number of states, including California and New York, have adopted legislation and executive orders that apply "net neutrality" rules to ISPs.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur CISO has 22 years of experience in cybersecurity and 16 years in cybersecurity management, received a bachelor of science in management information systems and a masters of business administration from Rochester Institute of Technology, and is a Certified Information Systems Security Professional.
Biggest changeOur corporate information security organization, led by our Chief Information Security Officer ("CISO"), develops and directs our information security strategy and policy, security engineering, operations and cyber threat detection and response. 43 Our CISO has 23 years of experience in cybersecurity and 17 years in cybersecurity management, received a Bachelor of Science in Management Information Systems and a Master of Business Administration from Rochester Institute of Technology, and is a Certified Information Systems Security Professional.
Our cybersecurity program utilizes various risk mitigation techniques to manage cybersecurity risk, including network segmentation, deployment of enhanced detection tools, and monitoring compliance with security standards.
Our cybersecurity program utilizes various risk mitigation techniques to manage cybersecurity risk, including network segmentation, deployment of detection tools, and monitoring compliance with security standards.
Cybersecurity strategy and updates are reviewed by our executive leadership team on a monthly basis and are presented to other internal committees. The audit committee receives a regularly scheduled report on cybersecurity matters and related risk exposure from our CISO, chief technology officer or other similar officers.
Cybersecurity strategy and updates are reviewed by our executive leadership team on a monthly basis and are presented to other internal committees. The audit committee receives a regularly scheduled report on cybersecurity matters and related risk exposure from our CISO.
We conduct cybersecurity risk assessments, penetration tests, purple team exercises, and data restoration testing through both internal subject matter experts and with the support of third parties to identify threats and vulnerabilities 43 that could adversely impact our business operations.
We conduct cybersecurity risk assessments (including in connection with our annual business risk assessment), penetration tests, purple team exercises, and data restoration testing and reviews through both internal subject matter experts and with the support of third parties to identify threats and vulnerabilities that could adversely impact our business operations.
Removed
Our corporate information security organization, led by our Chief Information Security Officer ("CISO"), develops and directs our information security strategy and policy, security engineering, operations and cyber threat detection and response.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeCustomer premise equipment consists of set-top devices, cable modems, Internet routers, wireless devices and media terminal adapters for telephone. Our cable plant and related equipment generally are attached to utility poles under pole rental agreements with local public utilities; although in some areas the distribution cable is buried in underground ducts or directly in trenches.
Biggest changeOur cable plant and related equipment generally are attached to utility poles under pole rental agreements with local public utilities; although in some areas the distribution cable is buried in underground ducts or directly in trenches. The physical components of the cable systems require maintenance and periodic upgrading to improve system performance and capacity.
In addition, we own or lease real estate throughout our operating areas where certain of our call centers, corporate facilities, business offices, earth stations, transponders, microwave towers, warehouses, headend equipment, hub sites, access studios, and microwave receiving antennae are located.
In addition, we own or lease real estate throughout our operating areas where certain of our call centers, corporate facilities, business offices, retail stores, earth stations, transponders, microwave towers, warehouses, headend equipment, hub sites, access studios, and microwave receiving antennae are located.
Item 2. Properties Our headquarters are located in Long Island City, New York, where we currently lease office space pursuant to a lease agreement which will expire in 2032. We also own a building located in Bethpage, New York, where we maintain administrative offices.
Item 2. Properties Our headquarters are located in Long Island City, New York, where we currently lease office space pursuant to a lease agreement which will expire in 2032. We have the option to extend this lease through 2037. We also own a building located in Bethpage, New York, where we maintain administrative offices.
We own most of our service vehicles. We believe our properties, both owned and leased, are in good condition and are suitable and adequate for our operations.
We believe our properties, both owned and leased, are in good condition and are suitable and adequate for our operations.
The physical components of the cable systems require maintenance and periodic upgrading to improve system performance and capacity. In addition, we operate a network operations center that monitors our network 24 hours a day, seven days a week, helping to ensure a high quality of service and reliability for both our residential and commercial customers.
In addition, we operate a network operations center that monitors our network 24 hours a day, seven days a week, helping to ensure a high quality of service and reliability for both our residential and commercial customers. We own most of our service vehicles.
Added
Customer premise equipment consists of set-top devices, cable modems, Internet routers, wireless devices and media terminal adapters for telephone. Our retail stores, which are branded Optimum, are utilized primarily for the purpose of providing assistance to and for the distribution of customer premise equipment, including mobile service.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeSee Note 1 to our consolidated financial statements for a discussion of our share repurchase program which expired in November 2023. 46 Altice USA Stock Performance Graph The graph below compares the performance of our Class A common stock with the performance of the S&P 500 Index and a Peer Group Index by measuring the changes in our Class A common stock prices from December 31, 2018 through December 31, 2023.
Biggest changeUnregistered Sales of Equity Securities and Use of Proceeds None. 45 Altice USA Stock Performance Graph The graph below compares the performance of our Class A common stock with the performance of the S&P 500 Index and a Peer Group Index by measuring the changes in our Class A common stock prices from December 31, 2019 through December 31, 2024.
The Peer Group Index is made up of companies that deliver broadband, video and telephony services as a significant element of their business, although not all of the companies included in the Peer Group Index participate in all of the lines of business in which we are engaged and some of the companies included in the Peer Group Index also engage in lines of business in which we do not participate.
The Peer Group Index is made up of companies that deliver broadband, video, telephony and mobile services as a significant element of their business, although not all of the companies included in the Peer Group Index participate in all of the lines of business in which we are engaged and some of the companies included in the Peer Group Index also engage in lines of business in which we do not participate.
The graph assumes $100 was invested on December 31, 2018 in our Class A common stock and in each of the following indices and reflects reinvestment of dividends and market capitalization weighting.
The graph assumes $100 was invested on December 31, 2019 in our Class A common stock and in each of the following indices and reflects reinvestment of dividends and market capitalization weighting.
As of February 9, 2024, there were four holders of record of Altice USA Class A common stock and two holders of record of ATUS Class B common stock. Stockholder Dividends and Distributions We may pay dividends on our capital stock only from net profits and surplus as determined under Delaware law.
As of February 7, 2025, there were six holders of record of Altice USA Class A common stock and two holders of record of ATUS Class B common stock. Stockholder Dividends and Distributions We may pay dividends on our capital stock only from net profits and surplus as determined under Delaware law.
Additionally, the market capitalizations of many of the companies included in the Peer Group are quite different from ours. The common stocks of the following companies have been included in the Peer Group Index: AT&T, Charter, Comcast, DISH, Frontier, Lumen, T-Mobile, and Verizon.
Additionally, the market capitalizations of many of the companies included in the Peer Group are quite different from ours. The common stocks of the following companies have been included in the Peer Group Index: AT&T, Charter, Comcast, DISH (included through December 31, 2023 due to its merger with Echostar Corporation in January 2024), Frontier, Lumen, T-Mobile, and Verizon.
Removed
Unregistered Sales of Equity Securities and Use of Proceeds (c) Purchases of Equity Securities by the Issuer We had no transactions under our share repurchase program for the quarter ended December 31, 2023.
Added
Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 ALTICE USA CLASS A $ 100.00 $ 138.51 $ 59.18 $ 16.83 $ 11.89 $ 8.81 S&P 500 Index $ 100.00 $ 116.26 $ 147.52 $ 118.84 $ 147.64 $ 182.05 Peer Group Index $ 100.00 $ 107.80 $ 102.04 $ 86.61 $ 95.28 $ 112.19 46
Removed
Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 ALTICE USA CLASS A $ 100.00 $ 165.50 $ 229.24 $ 97.94 $ 27.85 $ 19.67 S&P 500 Index $ 100.00 $ 128.88 $ 149.83 $ 190.13 $ 153.16 $ 190.27 Peer Group Index $ 100.00 $ 132.73 $ 138.17 $ 129.65 $ 111.77 $ 123.03 47

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

97 edited+30 added−27 removed56 unchanged
Biggest changePrior period amounts have been revised to conform with this presentation. 52 The following is a reconciliation of net income to Adjusted EBITDA and Operating Free Cash Flow: Years Ended December 31, 2023 2022 Net income $ 79,037 $ 220,889 Income tax expense 39,528 295,840 Other income, net (4,940) (8,535) Gain on interest rate swap contracts, net (32,664) (271,788) Loss (gain) on derivative contracts, net 166,489 (425,815) Loss (gain) on investments and sale of affiliate interests, net (180,237) 659,792 Loss (gain) on extinguishment of debt and write-off of deferred financing costs (4,393) 575 Interest expense, net 1,639,120 1,331,636 Depreciation and amortization 1,644,297 1,773,673 Restructuring, impairments and other operating items 214,727 130,285 Share-based compensation 47,926 159,985 Adjusted EBITDA 3,608,890 3,866,537 Capital expenditures (cash) 1,704,811 1,914,282 Operating Free Cash Flow $ 1,904,079 $ 1,952,255 The following is a reconciliation of net cash flow from operating activities to Free Cash Flow: Years Ended December 31, 2023 2022 Net cash flows from operating activities $ 1,826,398 $ 2,366,901 Less: Capital expenditures (cash) 1,704,811 1,914,282 Free Cash Flow $ 121,587 $ 452,619 The following table sets forth certain customer metrics (unaudited): December 31, Increase (Decrease) 2023 2022 Total passings (a) 9,628.7 9,463.8 164.9 Total customer relationships (b) 4,743.5 4,879.7 (136.2) Residential 4,363.1 4,498.5 (135.4) SMB 380.3 381.2 (0.9) Residential customers: Broadband 4,169.0 4,282.9 (113.9) Video 2,172.4 2,439.0 (266.6) Telephony 1,515.3 1,764.1 (248.8) Penetration of total passings (c) 49.3 % 51.6 % (2.3) % Average revenue per user ("ARPU") (d) $ 136.01 $ 135.86 $ 0.15 Total mobile lines (e) 322.2 240.3 81.9 FTTH total passings (f) 2,735.2 2,158.7 576.4 FTTH customer relationships (g) 341.4 171.7 169.7 FTTH Residential 333.8 170.0 163.8 FTTH SMB 7.6 1.7 5.9 Penetration of FTTH total passings (h) 12.5 % 8.0 % 4.5 % (a) Represents the estimated number of single residence homes, apartments and condominium units passed by our HFC and FTTH network in areas serviceable without further extending the transmission lines.
Biggest changeWe believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies. 50 Results of Operations - Altice USA Years Ended December 31, Favorable (Unfavorable) 2024 2023 Revenue: Broadband $ 3,645,460 $ 3,824,472 $ (179,012) Video 2,896,600 3,072,011 (175,411) Telephony 277,938 300,198 (22,260) Mobile 117,084 77,012 40,072 Residential revenue 6,937,082 7,273,693 (336,611) Business services and wholesale 1,471,764 1,467,149 4,615 News and advertising 486,172 447,742 38,430 Other 59,399 48,480 10,919 Total revenue 8,954,417 9,237,064 (282,647) Operating expenses: Programming and other direct costs 2,896,570 3,029,842 133,272 Other operating expenses 2,711,828 2,646,258 (65,570) Restructuring, impairments and other operating items 23,696 214,727 191,031 Depreciation and amortization 1,642,231 1,644,297 2,066 Operating income 1,680,092 1,701,940 (21,848) Other income (expense): Interest expense, net (1,763,166) (1,639,120) (124,046) Gain on investments and sale of affiliate interests, net 670 180,237 (179,567) Loss on derivative contracts, net — (166,489) 166,489 Gain on interest rate swap contracts, net 18,632 32,664 (14,032) Gain (loss) on extinguishment of debt and write-off of deferred financing costs (12,901) 4,393 (17,294) Other income (expense), net (5,675) 4,940 (10,615) Income (loss) before income taxes (82,348) 118,565 (200,913) Income tax benefit (expense) 4,071 (39,528) 43,599 Net income (loss) (78,277) 79,037 (157,314) Net income attributable to noncontrolling interests (24,641) (25,839) 1,198 Net income (loss) attributable to Altice USA, Inc. stockholders $ (102,918) $ 53,198 $ (156,116) 51 The following is a reconciliation of net income (loss) to Adjusted EBITDA (unaudited): Years Ended December 31, 2024 2023 Net income (loss) $ (78,277) $ 79,037 Income tax expense (benefit) (4,071) 39,528 Other expense (income), net 5,675 (4,940) Gain on interest rate swap contracts, net (18,632) (32,664) Loss on derivative contracts, net — 166,489 Gain on investments and sale of affiliate interests, net (670) (180,237) Loss (gain) on extinguishment of debt and write-off of deferred financing costs 12,901 (4,393) Interest expense, net 1,763,166 1,639,120 Depreciation and amortization 1,642,231 1,644,297 Restructuring, impairments and other operating items 23,696 214,727 Share-based compensation 67,162 47,926 Adjusted EBITDA $ 3,413,181 $ 3,608,890 The following is a reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited): Years Ended December 31, 2024 2023 Net cash flows from operating activities $ 1,582,401 $ 1,826,398 Less: Capital expenditures (cash) 1,433,013 1,704,811 Free Cash Flow $ 149,388 $ 121,587 The following table sets forth certain customer metrics (unaudited): December 31, Increase (Decrease) 2024 2023 (in thousands) Total passings (a) 9,830.8 9,628.7 202.1 Total customer relationships (b) 4,550.3 4,743.5 (193.2) Residential 4,173.7 4,363.1 (189.4) SMB 376.6 380.3 (3.7) Residential customers: Broadband 3,999.9 4,169.0 (169.1) Video 1,880.1 2,172.4 (292.3) Telephony 1,269.2 1,515.3 (246.1) Penetration of total passings (c) 46.3 % 49.3 % (3.0) % Average revenue per user ("ARPU") (d) $ 133.95 $ 136.01 $ (2.06) SMB customers: Broadband 346.1 348.9 (2.8) Video 81.0 89.6 (8.6) Telephony 194.5 203.2 (8.7) Total mobile lines (e) 459.6 322.2 137.4 FTTH total passings (f) 2,961.8 2,735.2 226.6 FTTH customer relationships (g) 538.2 341.4 196.8 FTTH Residential 523.4 333.8 189.6 FTTH SMB 14.7 7.6 7.1 Penetration of FTTH total passings (h) 18.2 % 12.5 % 5.7 % 52 (a) Represents the estimated number of single residence homes, apartments and condominium units passed by our HFC and FTTH network in areas serviceable without further extending the transmission lines.
We estimate the fair value of our reporting units by considering both (i) a discounted cash flow method, which is based on the present value of projected cash flows over a discrete projection period and a terminal value, which is based on the expected normalized cash flows of the reporting units following the discrete projection period, and (ii) a market approach, which includes the use of market multiples of publicly-traded companies whose services are comparable to ours.
We estimate the fair value of our reporting units by considering both (i) a discounted cash flow method, which is based on the present value of projected cash flows over a discrete projection period and a terminal value, which is based on the expected normalized cash flows of the reporting unit following the discrete projection period, and (ii) a market approach, which includes the use of market multiples of publicly-traded companies whose services are comparable to ours.
Our competitors include AT&T, DirecTV, DISH, Frontier, Lumen Technologies, Inc., T-Mobile US, and Verizon. Consumers' selection of an alternate source of service, whether due to economic constraints, technological advances, or preference, negatively impacts the demand for our services. For more information on our competitive landscape, see "Risk Factors" and "Business-Competition" included herein.
Our competitors include AT&T, DirecTV, DISH, Frontier, Lumen Technologies, Inc., T-Mobile, and Verizon. Consumers' selection of an alternate source of service, whether due to economic constraints, technological advances, or preference, negatively impacts the demand for our services. For more information on our competitive landscape, see "Risk Factors" and "Business-Competition" included herein.
See reconciliation of net income to Adjusted EBITDA below. Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance.
See reconciliation of net income (loss) to Adjusted EBITDA below. Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance.
In addition, it includes commercial 53 establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand passings and telephony services were not available to approximately 500 thousand passings. (b) Represents number of households/businesses that receive at least one of our fixed-line services.
In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand passings and telephony services were not available to approximately 500 thousand passings. (b) Represents number of households/businesses that receive at least one of our fixed-line services.
Significant judgments in estimating the fair value of our reporting units include cash flow projections and the selection of the discount rate. The estimates and assumptions utilized in estimating the fair value of our reporting units could have a significant impact on whether and to what extent an impairment charge is recognized.
Significant judgments in estimating the fair value of our reporting units include cash flow projections and the selection of the discount rate. The estimates and assumptions utilized in estimating the fair value of our reporting unit could have a significant impact on whether and to what extent an impairment charge is recognized.
In counting bulk residential customers, such as an apartment building, we count each subscribing family unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
In counting bulk residential customers, such as an apartment building, we count each subscribing family unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
Our programming costs, which are the most significant component of our operating expenses, are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, and new channel launches. We expect contractual rates to increase in the future.
Our programming costs, which are the most significant component of our operating expenses, are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, new channel launches, and channel drops. We expect contractual rates to increase in the future.
Non-GAAP Financial Measures We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, 50 impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
Non-GAAP Financial Measures We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, 49 impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
In addition, important factors that could cause our actual results to differ materially from those in our forward-looking statements include: • competition for broadband, video and telephony customers from existing competitors (such as broadband communications companies, DBS providers, wireless data and telephony providers, and Internet-based providers) and new fiber-based competitors entering our footprint; • changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies; • increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and/or the loss of popular programming; • increasing programming costs and delivery expenses related to our products and services; • our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy; • our ability to complete our capital investment plans on time and on budget, including our plan to build a parallel FTTH network; • our ability to develop mobile voice and data services and our ability to attract customers to these services; • the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services; • the effects of industry conditions; • demand for digital and linear advertising products and services; • our substantial indebtedness and debt service obligations; • adverse changes in the credit market; • changes as a result of any tax reforms that may affect our business; • financial community and rating agency perceptions of our business, operations, financial condition and the industries in which we operate; • the restrictions contained in our financing agreements; • our ability to generate sufficient cash flow to meet our debt service obligations; • fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter; • technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses and similar problems; • cybersecurity incidents as a result of hacking, phishing, denial of service attacks, dissemination of computer viruses, ransomware and other malicious software, misappropriation of data, and other malicious attempts; 48 • disruptions to our networks, infrastructure and facilities as a result of natural disasters, power outages, accidents, maintenance failures, telecommunications failures, degradation of plant assets, terrorist attacks and similar events; • labor shortages and supply chain disruptions; • our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs; • our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions, if any; • significant unanticipated increases in the use of bandwidth-intensive Internet-based services; • the outcome of litigation, government investigations and other proceedings; and • other risks and uncertainties inherent in our cable and broadband communications businesses and our other businesses, including those listed under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein.
In addition, important factors that could cause our actual results to differ materially from those in our forward-looking statements include: • competition for broadband, video and telephony customers from existing competitors (such as broadband communications companies, DBS providers, wireless data and telephony providers, and Internet-based providers) and new fiber-based competitors entering our footprint; • changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies; • increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and the loss of popular programming; • increasing programming costs and delivery expenses related to our products and services; • our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy; • our ability to complete our capital investment plans on time and on budget, including our plan to build a parallel FTTH network; • our ability to develop mobile voice and data services and our ability to attract customers to these services; • the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services; • the effects of industry conditions; • demand for digital and linear advertising products and services; • our substantial indebtedness and debt service obligations; • adverse changes in the credit market; • changes as a result of any tax reforms that may affect our business; • financial community and rating agency perceptions of our business, operations, financial condition and the industries in which we operate; • the restrictions contained in our financing agreements; • our ability to generate sufficient cash flow to meet our debt service obligations; • fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter; • technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses and similar problems; • cybersecurity incidents as a result of hacking, phishing, denial of service attacks, dissemination of computer viruses, ransomware and other malicious software, misappropriation of data, and other malicious attempts; 47 • disruptions to our networks, infrastructure and facilities as a result of natural disasters, power outages, accidents, maintenance failures, telecommunications failures, degradation of plant assets, terrorist attacks and similar events; • our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs; • our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions, if any; • significant unanticipated increases in the use of bandwidth-intensive Internet-based services; • the outcome of litigation, government investigations and other proceedings; and • other risks and uncertainties inherent in our cable and broadband communications businesses and our other businesses, including those listed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein.
These costs are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, and new channel launches.
These costs are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, new channel launches and channel drops.
In addition, we derive revenue from the sale of advertising inventory available on the programming carried on our cable television systems, as well as other systems (linear revenue), digital advertising, data analytics and affiliation fees for news programming, which accounted for approximately 5% of our consolidated revenue for the year ended December 31, 2023.
In addition, we derive revenue from the sale of advertising inventory available on the programming carried on our cable television systems, as well as other systems (linear revenue), digital advertising, data analytics and affiliation fees for news programming, which accounted for approximately 5% of our consolidated revenue for the year ended December 31, 2024.
The costs of redeployment of customer premise equipment is expensed as incurred. Other operating expenses also include costs related to our call center operations that handle customer inquiries and billing and collection activities, and sales and marketing costs, which include advertising production and placement costs associated with acquiring and retaining customers.
The costs of redeployment of customer premise equipment are expensed as incurred. Other operating expenses also include costs related to our call center operations that handle customer inquiries and billing and collection activities, and sales and marketing costs, which include advertising production and placement costs associated with acquiring and retaining customers.
Our ongoing FTTH network build has enabled us to deliver multi-gig broadband speeds to FTTH customers in order to meet the growing data needs of residential and business customers. In addition, we launched a full service mobile offering to consumers across our footprint.
Our ongoing FTTH network build has enabled us to deliver multi-gig broadband speeds to FTTH customers in order to meet the growing data needs of residential and business customers. In addition, we offer a full service mobile offering to consumers across our footprint.
Note 11 to our consolidated financial statements contains further information regarding our debt obligations, Note 17 contains information regarding our off-balance sheet obligations and Note 9 contains information regarding our leases. Managing our Interest Rate and Equity Price Risk See "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" for a discussion regarding interest rate risk and equity price risk.
Note 11 to our consolidated financial statements contains further information regarding our debt obligations, Note 17 contains information regarding our off-balance sheet obligations and Note 9 contains information regarding our leases. Managing our Interest Rate Risk See "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" for a discussion regarding interest rate risk.
The Restricted Group's principal uses of cash include: capital spending, in particular, the capital requirements associated with the upgrade of its digital broadband, video and telephony services, including costs to build our FTTH network; debt service; other corporate expenses and changes in working capital; and investments that it may fund from time to time.
The CSC Holdings Restricted Group's principal uses of cash include: capital spending, in particular, the capital requirements associated with the upgrade of our digital broadband, video and telephony services, including costs to build our FTTH network; debt service; other corporate expenses and changes in working capital; and investments that it may fund from time to time.
Revenue is impacted by rate increases, changes in promotional offerings, changes in the number of customers that subscribe to our services, including additional services sold to our existing customers, programming package changes by our video customers, speed tier changes by our broadband customers, additional services sold to our existing customers, changes in programming packages for our video customer, acquisitions/dispositions, and construction of cable systems that result in the addition of new customers.
Revenue is impacted by rate increases, changes in promotional offerings, changes in the number of customers that subscribe to our services, including additional services sold to our existing customers, programming package changes by our video customers, speed tier changes by our broadband customers, acquisitions/dispositions, and construction of cable systems that result in the addition of new customers.
As of December 31, 2023, Lightpath was in compliance with applicable financial covenants under each respective indenture by which the senior secured notes and senior notes were issued.
As of December 31, 2024, Lightpath was in compliance with applicable financial covenants under each respective indenture by which the senior secured notes and senior notes were issued.
The decrease in adjusted EBITDA for the year ended December 31, 2023 as compared to the prior year was due to the decrease in revenue, partially offset by a decrease in operating expenses during 2023 (excluding depreciation and 57 amortization, restructuring, impairments and other operating items and share-based compensation), as discussed above.
The decrease in Adjusted EBITDA for the year ended December 31, 2024 as compared to the prior year was due to the decrease in revenue, partially offset by a decrease in operating expenses during 2024 (excluding depreciation and amortization, restructuring, impairments and other operating items and share-based compensation), as discussed above.
If we are unable to do so, we will need to take other actions including deferring capital expenditures, selling assets, seeking strategic investments from third parties or reducing or eliminating stock repurchases and discretionary uses of cash. 61 Debt Outstanding The following tables summarize the carrying value of our outstanding debt, net of unamortized deferred financing costs, discounts and premiums (excluding accrued interest) as of December 31, 2023, as well as interest expense for the year ended December 31, 2023.
If we are unable to do so, we will need to take other actions including deferring capital expenditures, selling assets, seeking strategic investments from third parties or reducing discretionary uses of cash. 61 Debt Outstanding The following tables summarize the carrying value of our outstanding debt, net of unamortized deferred financing costs, discounts and premiums (excluding accrued interest) as of December 31, 2024, as well as interest expense for the year ended December 31, 2024.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich HFC broadband network and a FTTH network with approximately 9.6 million total passings as of December 31, 2023. Additionally, we offer news programming and advertising services.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich HFC broadband network and a FTTH network with approximately 9.8 million total passings as of December 31, 2024. Additionally, we offer news programming and advertising services.
Our residential broadband, video, telephony and mobile services accounted for approximately 41%, 33%, 3%, and 1% respectively, of our consolidated revenue for the year ended December 31, 2023. We also derive revenue from the sale of a wide and growing variety of products and services to both large enterprise and SMB customers, including broadband, telephony, networking, video and mobile services.
Our residential broadband, video, telephony and mobile services accounted for approximately 41%, 32%, 3%, and 1% respectively, of our consolidated revenue for the year ended December 31, 2024. We also derive revenue from the sale of a wide and growing variety of products and services to both large enterprise and SMB customers, including broadband, telephony, networking, video and mobile services.
It includes the following sections: • Our Business • Key Factors Impacting Operating Results and Financial Condition • Consolidated Results of Operations • Non-GAAP Financial Measures • Reconciliation of CSC Holdings Results of Operations to Altice USA's Results of Operations • Liquidity and Capital Resources • Critical Accounting Policies and Estimates In this Item 7, we discuss the results of operations for the years ended December 31, 2023 and 2022 and comparisons of the 2023 results to the 2022 results.
It includes the following sections: • Our Business • Key Factors Impacting Operating Results and Financial Condition • Consolidated Results of Operations • Non-GAAP Financial Measures • Reconciliation of CSC Holdings Results of Operations to Altice USA's Results of Operations • CSC Holdings Restricted Group Financial Information • Liquidity and Capital Resources • Critical Accounting Policies and Estimates In this Item 7, we discuss the results of operations for the years ended December 31, 2024 and 2023 and comparisons of the 2024 results to the 2023 results.
Our other revenue, which includes mobile equipment revenue, for the year ended December 31, 2023 accounted for approximately 1% of our consolidated revenue.
Our other revenue, which includes mobile equipment revenue, for the year ended December 31, 2024 accounted for approximately 1% of our consolidated revenue.
For the year ended December 31, 2023, 16% of our consolidated revenue was derived from these business services.
For the year ended December 31, 2024, 16% of our consolidated revenue was derived from these business services.
The proceeds from the sale of these notes were used to repay certain indebtedness including (i) the outstanding principal balance on the Term Loan B, (ii) the outstanding principal balance on the Incremental Term Loan B-3, and (iii) pay the fees, costs and expenses associated with these transactions.
The proceeds from the sale of these notes were used to (i) repay the outstanding principal balance of the Term Loan B, (ii) repay the outstanding principal balance of the Incremental Term Loan B-3, and (iii) pay the fees, costs and expenses associated with these transactions.
Our Business We principally provide broadband communications and video services in the United States and market our services primarily under the Optimum brand. We deliver broadband, video, telephony, and mobile services to approximately 49 4.7 million residential and business customers across our footprint.
Our Business We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony, and mobile services to approximately 4.6 million 48 residential and business customers across our footprint.
Additionally, we may, from time to time, depending on market conditions and other factors, use cash on hand and the proceeds from other borrowings to repay the outstanding debt securities through open market purchases, privately negotiated purchases, tender offers, or redemptions.
Additionally, we may, from time to time, depending on market conditions and other factors, use cash on hand and the proceeds from other borrowings to repay the outstanding debt through open market purchases, privately negotiated purchases, tender offers, exchange offers or redemptions, or engage in similar transactions.
Discussions of the results of operations for the year ended December 31, 2021 and comparisons of the 2022 results to the 2021 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 202 2 as filed on February 22 , 202 3 .
Discussions of the results of operations for the year ended December 31, 2022 and comparisons of the 2023 results to the 2022 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023 as filed on February 15, 2024 .
(d) Calculated by dividing the average monthly revenue for the respective quarter (fourth quarter for annual periods) derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period (excluding mobile-only customer relationships). ARPU amounts for prior periods have been adjusted to include mobile service revenue.
(d) Calculated by dividing the average monthly revenue for the respective quarter (fourth quarter for annual periods) derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period (excluding mobile-only customer relationships).
(h) Represents the number of total FTTH customer relationships divided by FTTH total passings. 54 Comparison of Results for the Year Ended December 31, 2023 to Results for the Year Ended December 31, 2022 Broadband Revenue Broadband revenue for the years ended December 31, 2023 and 2022 was $3,824,472 and $3,930,667, respectively.
(h) Represents the number of total FTTH customer relationships divided by FTTH total passings. 53 Comparison of Results for the Year Ended December 31, 2024 to Results for the Year Ended December 31, 2023 Broadband Revenue Broadband revenue for the years ended December 31, 2024 and 2023 was $3,645,460 and $3,824,472, respectively.
Business services and wholesale revenue is derived primarily from the sale of fiber-based telecommunications services to the business market, and the sale of broadband, video, telephony, and mobile services to SMB customers. Business services and wholesale revenue decreased $7,120 for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Business services and wholesale revenue is derived primarily from the sale of fiber-based telecommunications services to the business market, and the sale of broadband, video, telephony, and mobile services to SMB customers. Business services and wholesale revenue increased $4,615 for the year ended December 31, 2024 compared to the year ended December 31, 2023.
CSC Holdings Credit Facilities In October 2015, a wholly-owned subsidiary of Altice USA, which merged with and into CSC Holdings on June 21, 2016, entered into a senior secured credit facility, which currently provides U.S. dollar term loans currently in an aggregate principal amount of $3,000,000 ($1,520,483 outstanding at December 31, 2023) (the "Term Loan B"), and U.S. dollar revolving loan commitments in an aggregate principal amount of $2,475,000 ($825,000 outstanding at December 31, 2023) (the "CSC Revolving Credit Facility" and, together with the Term Loan B, the "CSC Credit Facilities"), which are governed by a credit facilities agreement entered into by, inter alios, CSC Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent and security agent (as amended, restated, supplemented or otherwise modified from time to time, the "CSC Credit Facilities Agreement").
CSC Holdings Credit Facilities In October 2015, a wholly-owned subsidiary of Altice USA, which merged with and into CSC Holdings on June 21, 2016, entered into a senior secured credit facility, which, as amended, currently provides for U.S. dollar term loans in an aggregate principal of $5,001,942, comprising (i) an incremental term loan amount of $3,000,000 ($2,857,500 outstanding as of December 31, 2024) (“Incremental Term Loan B-5”) and (ii) an incremental term loan in an aggregate principal amount of $2,001,942 ($1,966,908 outstanding as of December 31, 2024) (“Incremental Term Loan B-6”), and U.S. dollar revolving loan commitments in an aggregate principal amount of $2,475,000 ($1,700,000 outstanding as of December 31, 2024) (the "CSC Revolving Credit Facility" and, together with the Incremental Term Loan B-5 and Incremental Term B-6, the "CSC Credit Facilities"), which are governed by a credit facilities agreement entered into by, inter alios, CSC Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent and security agent (as amended, restated, supplemented or otherwise modified from time to time, the "CSC Credit Facilities Agreement").
Adjusted EBITDA is a non-GAAP measure that is defined as net income (loss) excluding income taxes, non-operating income or expenses, loss on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization (including impairments), share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
Adjusted EBITDA Adjusted EBITDA amounted to $3,413,181 and $3,608,890 for the years ended December 31, 2024 and 2023, respectively. 56 Adjusted EBITDA is a non-GAAP measure that is defined as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
The goodwill related to our Telecommunications reporting unit was recorded primarily in connection with the Cequel Acquisition in 2015 and the Cablevision Acquisition in 2016 and the goodwill related to our News and Advertising reporting unit was recorded primarily in connection with the acquisition of Cheddar Inc. in 2019.
The goodwill related to our Telecommunications reporting unit was recorded primarily in connection with the Cequel Acquisition in 2015 and the Cablevision Acquisition in 2016.
Based on this assessment, the estimated fair value of our Telecommunications reporting unit exceeded its carrying value and no impairment was recorded.
Based on the quantitative assessment performed as of our impairment test date, the estimated fair value of our Telecommunications reporting unit exceeded its carrying value and no impairment was recorded.
Income Tax Expense We recorded income tax expense of $39,528 for the year ended December 31, 2023, resulting in an effective tax rate of 33% and $295,840 for the year ended December 31, 2022, resulting in an effective tax rate of 57% (See Note 14 ).
Income Tax Benefit (Expense) We recorded an income tax benefit of $4,071 for the year ended December 31, 2024, resulting in an effective tax rate of 4.9% and an income tax expense of $(39,528) for the year ended December 31, 2023, resulting in an effective tax rate of 33% (See Note 14 ).
The obligations of the financial institutions under the revolving credit facilities are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others. See discussion below regarding the issuance of senior guaranteed notes in January 2024.
The obligations of the financial institutions under the revolving credit facilities are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others.
Free Cash Flow Free cash flow was $121,587 and $452,619 for the years ended December 31, 2023 and 2022, respectively. The decrease in free cash flow in 2023 as compared to 2022 is primarily due to a decrease in cash from operating activities, partially offset by a decrease in cash capital expenditures.
Free Cash Flow Free Cash Flow was $149,388 and $121,587 for the years ended December 31, 2024 and 2023, respectively. The increase in Free Cash Flow in 2024 as compared to 2023 is primarily due to a decrease in cash capital expenditures, partially offset by a decrease in cash from operating activities driven by timing of cash receipts and disbursements.
Interest expense, net Interest expense, net was $1,639,120 and $1,331,636 for the years ended December 31, 2023 and 2022, respectively.
Interest Expense, Net Interest expense, net was $1,763,166 and $1,639,120 for the years ended December 31, 2024 and 2023, respectively.
Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion.
Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion.
These costs include materials, subcontractor labor, internal labor, and other related costs associated with the connection activities. Departmental activities supporting the connection process are capitalized based on time-weighted activity allocations of costs. These installation costs are amortized over the estimated useful lives of the CPE.
Departmental activities supporting the connection process are capitalized based on time-weighted activity allocations of costs. These installation costs are amortized over the estimated useful lives of the CPE.
Financing Activities Net cash used in financing activities amounted to $122,591 and $335,906 for the years ended December 31, 2023 and 2022. In 2023, our financing activities consisted primarily of the repayment of debt of $2,688,009, and principal payments on finance lease obligations of $149,297, partially offset by net proceeds from long-term debt of $2,700,000.
In 2023, our financing activities consisted primarily of the repayment of long-term debt of $2,688,009, and principal payments on finance lease obligations of $149,297, partially offset by net proceeds from long-term debt of $2,700,000.
The decrease in depreciation and amortization of $129,376 (7%) for the year ended December 31, 2023 as compared to 2022 was due to lower amortization expense resulting from certain assets becoming fully amortized, partially offset by higher depreciation expense resulting from increased asset additions in 2023.
The decrease in depreciation and amortization of $2,066 for the year ended December 31, 2024 as compared to 2023 was due to lower expense resulting from certain assets becoming fully amortized, offset by higher depreciation expense resulting from increased asset additions in 2024, including losses related to the disposal of plant and equipment and accelerated depreciation.
CSC Holdings Restricted Group Sources of cash for the Restricted Group include primarily cash flow from the operations of the businesses in the Restricted Group, borrowings under its credit facility and issuance of securities in the capital markets, contributions from its parent, and, from time to time, distributions or loans from its subsidiaries.
The Lightpath silo includes all of its operating subsidiaries which are subject to the covenants and restrictions of the Lightpath credit facility and indentures governing the notes issued by Lightpath. 62 CSC Holdings Restricted Group Sources of cash for the CSC Holdings Restricted Group include primarily cash flow from the operations of the businesses in the CSC Holdings Restricted Group, borrowings under its credit facility and issuance of securities in the capital markets, contributions from its parent, and, from time to time, distributions or loans from its subsidiaries.
The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit or our indefinite-lived cable franchise rights is less than its carrying amount.
As of the annual impairment test date, goodwill amounted to $8,044,716 all of which is related to our Telecommunications reporting unit and indefinite-lived cable franchise rights amounted to $13,216,355. 66 The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit or our indefinite-lived cable franchise rights is less than its carrying amount.
Support and other capital expenditures include costs associated with the replacement or enhancement of non-network assets, such as software systems, vehicles, facilities, and office equipment.
Support and other capital expenditures include costs associated with the replacement or enhancement of non-network assets, such as software systems, vehicles, facilities, and office equipment. Business services capital expenditures include primarily equipment, support and other costs related to our fiber-based telecommunications business serving enterprise customers.
In January 2024, CSC Holdings issued $2,050,000 in aggregate principal amount of senior guaranteed notes due 2029. These notes bear interest at a rate of 11.750% and will mature on January 31, 2029.
See Note 11 to our consolidated financial statements for further information regarding the CSC Credit Facilities Agreement. Senior Guaranteed Notes and Senior Notes In January 2024, CSC Holdings issued $2,050,000 in aggregate principal amount of senior guaranteed notes due 2029. These notes bear interest at a rate of 11.750% and will mature on January 31, 2029.
Financing Activities Net cash used in financing activities amounted to $122,591 and $333,356 for the years ended December 31, 2023 and 2022, respectively. In 2023, our financing activities consisted primarily of the repayment of long-term debt of $2,688,009, and principal payments on finance lease obligations of $149,297, partially offset by net proceeds from long-term debt of $2,700,000.
Financing Activities Net cash used in financing activities amounted to $81,552 and $122,591 for the years ended December 31, 2024 and 2023, respectively. In 2024, our financing activities consisted primarily of the repayment of long-term debt of $4,225,233, and principal payments on finance lease obligations of $127,349, partially offset by net proceeds from long-term debt of $4,214,750.
These amounts include the non-service cost components of our pension plans and dividends received on Comcast common stock owned by us through January 24, 2023.
These amounts include the non-service benefit or cost components of our pension plans, and for the year ended December 31, 2024 the amount includes dividends received on Comcast common stock we owned through January 24, 2023.
Video revenue decreased $209,295 (6%) for the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was due primarily to a decline in video customers, partially offset by higher average recurring video revenue per video customer, primarily driven by certain rate increases.
The decrease was due primarily to a decline in video customers, partially offset by higher average recurring video revenue per video customer, primarily driven by certain rate increases. Telephony Revenue Telephony revenue for the years ended December 31, 2024 and 2023 was $277,938 and $300,198, respectively.
The decrease for the year ended December 31, 2023 was due primarily to a decrease in broadband customers and lower average recurring broadband revenue per broadband customer. Video Revenue Video revenue for the years ended December 31, 2023 and 2022 was $3,072,011 and $3,281,306, respectively. Video revenue is derived principally through monthly charges to residential customers of our video services.
Broadband revenue is derived principally through monthly charges to residential subscribers of our broadband services. Broadband revenue decreased $179,012 (5%) for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was primarily due to decreases in broadband customers and lower average recurring broadband revenue per broadband customer.
The Restricted Group is comprised of CSC Holdings and substantially 62 all of its wholly-owned operating subsidiaries excluding Lightpath. These Restricted Group subsidiaries are subject to the covenants and restrictions of the credit facility and indentures governing the notes issued by CSC Holdings.
These CSC Holdings Restricted Group subsidiaries are subject to the covenants and restrictions of CSC Holdings' credit facility and indentures governing the notes issued by CSC Holdings.
Gain (Loss) on Extinguishment of Debt and Write-off of Deferred Financing Costs Gain (loss) on extinguishment of debt and write-off of deferred financing costs amounted to $4,393 and $(575) for the years ended December 31, 2023 and 2022, respectively. 58 The following table provides a summary of the loss on extinguishment of debt and the write-off of deferred financing costs recorded by us: Years ended December 31, 2023 2022 Settlement of collateralized debt $ 4,393 $ — Refinancing of CSC Holdings Term Loan B and Incremental Term Loan B-3 — (575) $ 4,393 $ (575) Other Income, Net Other income, net amounted to $4,940 and $8,535 for the years ended December 31, 2023 and 2022, respectively.
Gain (Loss) on Extinguishment of Debt and Write-off of Deferred Financing Costs Gain (loss) on extinguishment of debt and write-off of deferred financing costs amounted to $(12,901) and $4,393 for the years ended December 31, 2024 and 2023, respectively. 57 The following table provides a summary of the gain (loss) on extinguishment of debt and the write-off of deferred financing costs recorded by us: Years ended December 31, 2024 2023 Settlement of collateralized debt $ — $ 4,393 Incremental borrowing on Lightpath's Term Loan Facility (5,866) — Repayment of CSC Holdings Term Loan B and Incremental Term Loan B-3 (2,598) Redemption of 5.250% Senior Notes and 5.250% Series B Senior Notes due June 2024 (4,437) $ (12,901) $ 4,393 Other Income (Expense), Net Other income (expense), net amounted to $(5,675) and $4,940 for the years ended December 31, 2024 and 2023, respectively.
Such costs are depreciated over the estimated life of our infrastructure and our headend facilities and related equipment (5 to 25 years). Costs of operating the plant and the technical facilities, including repairs and maintenance, are expensed as incurred. Costs associated with the initial deployment of new customer premise equipment ("CPE") necessary to provide services are also capitalized.
Costs of operating the plant and the technical facilities, including repairs and maintenance, are expensed as incurred. Costs associated with the initial deployment of new customer premise equipment ("CPE") necessary to provide services are also capitalized. These costs include materials, subcontractor labor, internal labor, and other related costs associated with the connection activities.
Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.
Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure.
Capital Expenditures The following table presents our capital expenditures: Years Ended December 31, 2023 2022 Customer premise equipment $ 277,194 $ 316,175 Network infrastructure 924,476 1,153,860 Support and other 242,235 270,149 Business services 260,906 174,098 Capital expenditures (cash basis) 1,704,811 1,914,282 Right-of-use assets acquired in exchange for finance lease obligations 133,056 160,542 Notes payable for the purchase of equipment and other assets 213,325 132,452 Change in accrued and unpaid purchases and other (169,953) 169,227 Capital expenditures (accrual basis) $ 1,881,239 $ 2,376,503 Customer premise equipment includes expenditures for drop cable, fiber gateways, modems, routers, and other equipment installed at customer locations.
See Note 12 of our consolidated financial statements for further details of our outstanding interest rate swap contracts. 64 Capital Expenditures The following table presents our capital expenditures: Years Ended December 31, 2024 2023 Customer premise equipment $ 407,898 $ 277,194 Network infrastructure 530,162 924,476 Support and other 285,636 242,235 Business services 209,317 260,906 Capital expenditures (cash basis) 1,433,013 1,704,811 Right-of-use assets acquired in exchange for finance lease obligations 38,830 133,056 Notes payable for the purchase of equipment and other assets 50,642 213,325 Change in accrued and unpaid purchases and other 64,277 (169,953) Capital expenditures (accrual basis) $ 1,586,762 $ 1,881,239 Customer premise equipment includes expenditures for drop cable, fiber gateways, modems, routers, and other equipment installed at customer locations.
As of December 31, 2023, CSC Holdings was in compliance with applicable financial covenants under each respective indenture by which the senior guaranteed notes and senior notes were issued. 63 Lightpath Sources of cash for Lightpath include existing cash balances, operating cash flows from its operating subsidiaries and availability under the revolving credit facility.
As of December 31, 2024, CSC Holdings was in compliance with applicable financial covenants under each respective indenture by which the senior guaranteed notes and senior notes were issued.
The amounts in the table above do not include the effects of the debt transactions discussed in Note 18 . For financing purposes, we have two debt silos: CSC Holdings and Lightpath. The CSC Holdings silo is structured as a restricted group (the "Restricted Group") and an unrestricted group, which includes certain designated subsidiaries and investments (the "Unrestricted Group").
For financing purposes, we have two debt silos: CSC Holdings and Lightpath. The CSC Holdings silo is structured as a restricted group (the "CSC Holdings Restricted Group") and an unrestricted group, which includes Lightpath and certain designated subsidiaries. The CSC Holdings Restricted Group is comprised of CSC Holdings and substantially all of its wholly-owned operating subsidiaries excluding Lightpath.
In 2022, our financing activities consisted primarily of the repayment of long-term debt of $4,469,727, and principal payments on finance lease obligations of $134,682, partially offset by net proceeds from long-term debt of $4,276,903. 65 Contractual Obligations and Off Balance Sheet Commitments Our contractual obligations as of December 31, 2023 consist primarily of our debt obligations, purchase obligations which primarily include contractual commitments with various programming vendors to provide video services to our customers and minimum purchase obligations to purchase goods or services, operating and finance lease obligations, outstanding letters of credit, and guarantees.
Contractual Obligations and Off Balance Sheet Commitments Our contractual obligations as of December 31, 2024 consist primarily of our debt obligations, purchase obligations which primarily include contractual commitments with various programming vendors to provide video services to our customers and minimum purchase obligations to purchase goods or services, operating and finance lease obligations, outstanding letters of credit, and guarantees.
Other operating expenses include staff costs and employee benefits including salaries of company employees and related taxes, benefits and other employee related expenses, as well as third-party labor costs.
Other Operating Expenses Other operating expenses for the years ended December 31, 2024 and 2023 amounted to $2,711,828 and $2,646,258, respectively. Other operating expenses include staff costs and employee benefits including salaries of company employees and related taxes, benefits and other employee related expenses, as well as third-party labor costs.
Telephony Revenue Telephony revenue for the years ended December 31, 2023 and 2022 was $300,198 and $332,406, respectively. Telephony revenue is derived principally through monthly charges to residential customers of our telephony services. Telephony revenue decreased $32,208 (10%) for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Video Revenue Video revenue for the years ended December 31, 2024 and 2023 was $2,896,600 and $3,072,011, respectively. Video revenue is derived principally through monthly charges to residential customers of our video services. Video revenue decreased $175,411 (6%) for the year ended December 31, 2024 compared to the year ended December 31, 2023.
See Note 11 to our consolidated financial statements for further information regarding the Lightpath credit agreement. As of December 31, 2023, Lightpath was in compliance with applicable financial covenants under its credit agreement and with applicable financial covenants under each respective indenture by which its senior secured notes and senior notes were issued.
During the year ended December 31, 2024, Lightpath borrowed and repaid $40,000 under its revolving credit facility. As of December 31, 2024, Lightpath was in compliance with applicable financial covenants under its credit agreement and with applicable financial covenants under each respective indenture by which its senior secured notes and senior notes were issued.
If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Estimates and assumptions utilized in estimating the fair value of our identifiable indefinite-lived intangible assets could have a significant impact on whether and to what extent an impairment charge is recognized.
Estimates and assumptions utilized in estimating the fair value of our identifiable indefinite-lived intangible assets could have a significant impact on whether and to what extent an impairment charge is recognized. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments.
Lightpath Interest Rate Swap Contract In April 2023, Lightpath entered into an interest rate swap contract, effective June 2023 on a notional amount of $180,000, whereby Lightpath pays interest of 3.523% through December 2026 and receives interest based on one-month SOFR. See Note 1 2 of our consolidated financial statements for further details of our outstanding interest rate swap contracts.
Lightpath Interest Rate Swap Contract In November 2024, Lightpath entered into an interest rate swap contract on a notional amount of $95,000, whereby Lightpath pays interest of 3.979% through December 2026 and receives interest based on one-month SOFR.
Lightpath Credit Facility Lightpath is party to a credit agreement which provides a term loan in an aggregate principal amount of $600,000 ($582,000 outstanding at December 31, 2023) and revolving loan commitments in an aggregate principal amount of $100,000. As of December 31, 2023, there were no borrowings outstanding under the Lightpath revolving credit facility.
Lightpath Sources of cash for Lightpath include existing cash balances, operating cash flows from its operating subsidiaries and availability under the revolving credit facility. 63 Lightpath Credit Facility Lightpath is party to a credit agreement which provides a term loan in an aggregate principal amount of $700,000, as amended ($676,000 outstanding at December 31, 2024) and revolving loan commitments in an aggregate principal amount of $115,000, as amended.
As of December 31, 2023, CSC Holdings was in compliance with applicable financial covenants under its credit facility. See Note 11 to our consolidated financial statements for further information regarding the CSC Credit Facilities Agreement.
As of December 31, 2024, there were no borrowings outstanding under the Lightpath revolving credit facility. See Note 11 to our consolidated financial statements for further information regarding the Lightpath credit agreement.
FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group.
(g) Represents number of households/businesses that receive at least one of our fixed-line services on our FTTH network. FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network.
The quantitative test for goodwill identifies potential impairment by comparing the fair value of the reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
If the carrying value of the reporting unit or the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. In 2024, we performed a quantitative assessment for our goodwill and indefinite-lived cable franchise rights recoverability tests.
In 2023, we performed a quantitative assessment for our goodwill recoverability test and a qualitative assessment for our indefinite-lived cable franchise rights recoverability test. Goodwill Goodwill resulted from business combinations and represents the excess amount of the consideration paid over the identifiable assets and liabilities recorded in acquisitions.
Goodwill Goodwill resulted from business combinations and represents the excess amount of the consideration paid over the identifiable assets and liabilities recorded in acquisitions. Our test for impairment in 2024 was performed for the Telecommunications reporting unit, as goodwill related to the News and Advertising reporting unit was fully impaired in 2023.
News and advertising revenue decreased $72,551 (14%) for the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was primarily due to a decrease in linear advertising revenue from political customers. Other Revenue Other revenue for the years ended December 31, 2023 and 2022 was $48,480 and $46,886, respectively.
News and advertising revenue increased $38,430 (9%) for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily due to increases in digital advertising, mainly political advertising. Other Revenue Other revenue for the years ended December 31, 2024 and 2023 was $59,399 and $48,480, respectively.
These costs consist of materials, subcontractor labor, direct consulting fees, and internal labor and related costs associated with the construction activities (including interest related to FTTH construction). Internal costs that are capitalized consist of salaries and benefits of our employees and a portion of facility costs, that supports the construction activities.
This includes headend facilities and initial placement of the feeder cable to connect a customer that had not been previously connected. These costs consist of materials, subcontractor labor, direct consulting fees, and internal labor and related costs associated with the construction activities (including interest related to FTTH construction).
During the year ended December 31, 2023, CSC Holdings borrowed $1,700,000 under its revolving credit facility and repaid $2,450,000 of amounts outstanding under the revolving credit facility. At December 31, 2023, $133,512 of the revolving credit facility was restricted for certain letters of credit issued on our behalf and $1,516,488 was undrawn and available, subject to covenant limitations.
At December 31, 2024, $163,738 of the CSC Revolving Credit Facility was restricted for certain letters of credit issued on our behalf and $611,262 was undrawn and available, subject to covenant limitations. As of December 31, 2024, CSC Holdings was in compliance with applicable financial covenants under its credit facility.
The increase of $15,180 (25%) was due primarily to an increase in mobile customers, as well as a decline in customers receiving free service as compared to the prior year. Business Services and Wholesale Revenue Business services and wholesale revenue for the years ended December 31, 2023 and 2022 was $1,467,149 and $1,474,269, respectively.
Mobile Service Revenue Mobile service revenue for the years ended December 31, 2024 and 2023 was $117,084 and $77,012, respectively. The increase of $40,072 (52%) was due primarily to an increase in mobile lines. Business Services and Wholesale Revenue Business services and wholesale revenue for the years ended December 31, 2024 and 2023 was $1,471,764 and $1,467,149, respectively.
Business services capital expenditures include primarily equipment, support and other costs related to our fiber-based telecommunications business serving enterprise customers. 64 Cash Flow Discussion Altice USA Operating Activities Net cash provided by operating activities amounted to $1,826,398 and $2,366,901 for the years ended December 31, 2023, and 2022, respectively.
Cash Flow Discussion Altice USA Operating Activities Net cash provided by operating activities amounted to $1,582,401 and $1,826,398 for the years ended December 31, 2024, and 2023, respectively.
Other revenue includes revenue from sales of mobile equipment and other miscellaneous revenue streams. 55 Programming and Other Direct Costs Programming and other direct costs for the years ended December 31, 2023 and 2022 amounted to $3,029,842 and $3,205,638, respectively.
The increase was primarily due to higher mobile equipment sales during 2024 as compared to 2023. 54 Programming and Other Direct Costs Programming and other direct costs for the years ended December 31, 2024 and 2023 amounted to $2,896,570 and $3,029,842, respectively.
The increase of $307,484 (23%) for the year ended December 31, 2023 as compared to the year ended December 31, 2022 was attributable to the following: Increase primarily due to an increase in interest rates, partially offset by a decrease in average debt balances $ 355,762 Other net decreases, primarily lower amortization of deferred financing costs and original issue discounts (43,315) Higher interest income (4,963) $ 307,484 Gain (Loss) on Investments and sale of affiliate interests, net Gain (loss) on investments and sale of affiliate interests, net for the years ended December 31, 2023 and 2022 of $180,237 and $(659,792) consisted primarily of the increase (decrease) in the fair value of the Comcast common stock owned by us through January 24, 2023.
The increase of $124,046 (8%) for the year ended December 31, 2024 as compared to the prior year was attributable to the following: Increase primarily due to an increase in interest rates $ 127,389 Lower capitalized interest related to FTTH network construction 13,110 Decrease related to higher interest income (1,641) Other net decreases, primarily amortization of deferred financing costs and original issue discounts (14,812) $ 124,046 Gain on Investments and Sale of Affiliate Interests, Net Gain on investments and sale of affiliate interests, net for the years ended December 31, 2024 and 2023 of $670 and $180,237.
The decrease was due to a decline in telephony customers, partially offset by higher average recurring revenue per telephony customer. Mobile Service Revenue Mobile service revenue for the years ended December 31, 2023 and 2022 was $77,012 and $61,832, respectively.
Telephony revenue is derived principally through monthly charges to residential customers of our telephony services. Telephony revenue decreased $22,260 (7%) for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was due to a decline in telephony customers, partially offset by higher average recurring telephony revenue per telephony customer.
The decrease of $175,796 (5%) for the year ended December 31, 2023, as compared to the prior year was primarily attributable to the following: Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases $ (171,258) Decrease in software license fees related to customer premise equipment (14,997) Decrease in taxes and surcharges primarily due to refunds (10,339) Increase in costs of media advertising spots for resale, primarily linear spots resulting from an acquisition in the third quarter of 2022 21,014 Other net decreases (216) $ (175,796) Programming costs Programming costs aggregated $2,456,158 and $2,627,416 for the years ended December 31, 2023 and 2022, respectively.
The decrease of $133,272 (4%) for the year ended December 31, 2024, as compared to the prior year was primarily attributable to the following: Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases $ (204,842) Increase in costs of media advertising spots for resale, primarily for digital spots for political advertising 34,229 Increase in cost of goods sold primarily from our mobile business 23,370 Increase in taxes and surcharges due primarily to refunds recognized in 2023 period 12,368 Other net increases 1,603 $ (133,272) Programming costs Programming costs aggregated $2,251,316 and $2,456,158 for the years ended December 31, 2024 and 2023, respectively.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFor the year ended December 31, 2023, we recorded a gain on interest rate swap contracts of $32,664, and had a fair value at December 31, 2023 of $112,914 recorded as other assets, long-term on the consolidated balance sheet . As of December 31, 2023, we did not hold and have not issued derivative instruments for trading or speculative purposes.
Biggest changeFor the year ended December 31, 2024 , we recorded a gain on interest rate swap contracts of $18,632, and had a fair value at December 31, 2024 of $8,466 recorded as other assets, long-term on the consolidated balance sheet .
See Note 12 to our consolidated financial statements for a summary of interest rate swap contracts outstanding at December 31, 2023. Our outstanding interest rate swap contracts are not designated as hedges for accounting purposes. Accordingly, the changes in the fair value of these interest rate swap contracts are recorded through the statements of operations.
See Note 12 to our consolidated financial statements for a summary of interest rate swap contracts outstanding at December 31, 2024 . Our outstanding interest rate swap contracts are not designated as hedges for accounting purposes. Accordingly, the changes in the fair value of these interest rate swap contracts are recorded through the statements of operations.
The effect of a hypothetical 100 basis point decrease in interest rates prevailing at December 31, 2023 would increase the estimated fair value of our fixed rate debt by $537,079 to $13,428,892. This estimate is based on the assumption of an immediate and parallel shift in interest rates across all maturities.
The effect of a hypothetical 100 basis point decrease in interest rates prevailing at December 31, 2024 would increase the estimated fair value of our fixed rate debt by $489,655 to $13,869,910. This estimate is based on the assumption of an immediate and parallel shift in interest rates across all maturities.
Fair Value of Debt 67 At December 31, 2023, the fair value of our fixed rate debt, comprised of senior guaranteed and senior secured notes, senior notes, notes payable and supply chain financing of $12,891,813 was lower than its carrying value of $16,588,923 by $3,697,110.
Fair Value of Debt At December 31, 2024, the fair value of our fixed rate debt, comprised of senior guaranteed and senior secured notes, senior notes, and supply chain financing of $13,380,255 was lower than its carrying value of $17,755,137 by $4,374,882.
Added
In September 2024, we terminated all our CSC Holdings interest rate swap agreements with an aggregate notional value of $3,000,000. These contracts were due to mature in January 2025 and December 2026.
Added
In connection with these early terminations, we received cash of $43,182 presented in operating activities in our consolidated statements of cash flows and incurred a loss of $52,943 which is included in the net gain on interest rate swap contracts reflected in our consolidated statements of operations. 68 In November 2024, Lightpath entered into an interest rate swap contract on a notional amount of $95,000, whereby Lightpath pays interest of 3.979% and it receives interest based on one-month SOFR through December 2026.
Added
As of December 31, 2024, we did not hold and have not issued derivative instruments for trading or speculative purposes.

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