Cable One's Q4 2024: Contradictory Signals on ARPU, Competition, and Subscriber Growth

These are the key contradictions discussed in Cable One's latest 2024Q4 earnings call, specifically including: ARPU stabilization and strategic focus on growth, the impact of fiber competition, ARPU stabilization expectations, churn performance, and subscriber growth expectations:



Revenue and Financial Performance:
- Cable One reported total revenues of $387.2 million for Q4 2024, a decrease of 6% compared to the previous year.
- The decline was primarily due to a 5.4% decrease in residential data revenues, largely influenced by the expiration of the Affordable Connectivity Program.

Residential Data and ARPU Trends:
- Residential data PSUs decreased by 5,500 during 2024, with ARPU for residential data customers at $80.39 for the year, a decrease of 4.9%.
- The decline in ARPU was attributed to strategic pricing and product positioning in specific markets to address competition, as well as a focus on value-conscious customers who tend to have lower sell-in rates.

Business Data Services Growth:
- Business data revenues increased by 2.6% year-over-year, driven by a gain of over 1400 PSUs.
- This growth was due to strong demand in the Carrier, Enterprise, and Wholesale segments, despite a 3.4% decrease in overall business services ARPU.

Network and Technology Investments:
- Cable One continued to enhance its network infrastructure by investing in capacities and AI-driven tools, focusing on expanding intelligence to meet future data demands.
- These investments are aimed at improving network reliability and customer experience, contributing to reduced churn and operational efficiency.