ATN International's Q4 2024: Unpacking Contradictions in Spectrum Strategy, Cost Management, and Growth Focus

These are the key contradictions discussed in ATN International's latest 2024Q4 earnings call, specifically including: Spectrum Asset Evaluation and Utilization, U.S. Telecom Segment Cost Management, Carrier Managed Services Focus and Spectrum Monetization, Capital Expenditure Budget, and Enterprise and Carrier Focus:



Revenue and Profitability Trends:
- ATN International reported full-year 2024 revenue of $729 million, with an adjusted EBITDA of $184 million.
- The company experienced a 4% decrease in revenue and a $35.3 million goodwill impairment charge, impacting profitability.
- The decline was mainly due to the sunset of significant government programs in the U.S. and the strategic shift away from legacy services.

International Segment Performance:
- The International segment achieved nearly 2% revenue growth for the full year 2024, with adjusted EBITDA growing by 10% year-over-year.
- This growth was driven by high-speed broadband subscriber growth and operational efficiencies.
- The strong performance in the international markets offset the declining revenue in the U.S. segment.

U.S. Segment Transformation:
- The U.S. segment's revenue decreased by 10% for the full year, primarily due to the conclusion of government programs and the focus on enterprise and carrier solutions.
- The company exited lower margin services and invested in infrastructure to expand fiber networks in higher-value markets.
- The transformation aims to stabilize the domestic business and create a sustainable revenue base moving forward.

Capital Expenditure and Infrastructure Investment:
- Capital expenditures for 2024 totaled $110.4 million net of reimbursable capital expenditures, a 30% decrease from the previous year.
- The company plans to maintain capital expenditures between $90 million and $100 million net of reimbursements in 2025.
- The reduction in CapEx reflects the conclusion of a three-year investment strategy, focusing on financial discipline and operational efficiency.