Cable One's Q1 2025: A Deep Dive into Contradictions on Dividends, Broadband Growth, and ARPU Expectations

Dividend suspension and capital allocation strategy, broadband growth and churn expectations, broadband subscriber growth timeline, ARPU stabilization and growth expectations are the key contradictions discussed in Cable One's latest 2025Q1 earnings call.



Broadband Customer Growth and Revenue Strategy:
- Cable One reported a decline in residential broadband subscribers in Q1 2025, driven by lower connects and unusual churn events.
- The company is focusing on enhancing Connect strategies, including new product rollouts like FlexConnect and Internet Lift, to drive long-term broadband revenue growth.

ARPU and Product Trends:
- ARPU saw a slight dip in Q1 2025 due to promotional offers and discounts, but trends support growth in the coming quarters.
- SecurePlus, a security-focused product, saw a 15% increase in customer adoption since the start of 2025, contributing to revenue growth.

Dividend Suspension and Capital Allocation:
- Cable One suspended its quarterly cash dividend to accelerate debt repayment and invest in organic growth initiatives.
- This strategic decision is aimed at bolstering financial strength and enhancing access to the capital markets on favorable terms.

Financial Performance and Debt Management:
- Total revenues for Q1 2025 were $380.6 million, a decrease from $404.3 million in Q1 2024.
- The company is focused on reducing its debt, repaying nearly $45 million in the quarter, and maintaining a net leverage ratio below 4 times.