Altice USA Dials Back Fiber Strategy as Revenue Remains Under Pressure

Altice USA showed some improvement during the fourth quarter but still posted a generally weak end to a difficult 2022. New CEO Dennis Mathew used the earnings release to signal significant changes ahead, appointing four new senior executives (three of whom hail from Comcast, Mathew’s former employer) and sharply curtailing the firm’s fiber expansion plans. We don’t expect to significantly change our $19 fair value estimate, but we reiterate that Altice’s equity value is tiny relative to its debt load, making this a highly volatile investment.