11/6/2025

speaker
Operator
Conference Operator

Good day and thank you for standing by. Welcome to the ATN International Q3 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michelle Citrowski, Head of Investor Relations. Please go ahead.

speaker
Michelle Citrowski
Head of Investor Relations

Thank you, operator, and good morning, everyone. I'm joined today by Brad Martin, APN's Chief Executive Officer, and Carlos Doglioli, APN's Chief Financial Officer. This morning, we'll be reviewing our third quarter 2025 results and our outlook for the remainder of 2025. As a reminder, we announced our 2025 third quarter results yesterday afternoon after the market closed. Investors can find the earnings release and conference call slide presentation on our investor relations website. Our earnings release and the presentation contain forward-looking statements concerning our current expectations, objectives, and underlying assumptions regarding our future operations. These statements are subject to risks and uncertainties that could cause actual results to differ from those described. Also, in an effort to provide useful information for investors, our comments today include non-GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures, And for further information regarding the factors that may affect our future operating results, please refer to our earnings release on our website, ir.atni.com, or the 8K filing provided to the SEC. Now, I'll turn the call over to Brad.

speaker
Brad Martin
Chief Executive Officer

Good morning, and thank you for joining us to discuss ATN's third quarter 2025 results. Before I dive into our performance, I want to take a moment to recognize the exceptional work of our teams across our markets. Today's results reflect their commitment to operational excellence and their dedication to building long-term value. Our third quarter results show the continued execution of our strategic plan and validate the operational improvements we've been implementing across our business segment. The 3% revenue growth and 9% increase in adjusted EBITDA year over year demonstrate the positive momentum we've been building and the effectiveness of our operational efficiency initiatives. During the third quarter, we grew our high-speed broadband homes past by 8% and increased our total high-speed subscriber base by 1% year-over-year. These operational metrics underscore the value creation potential of our fiber and broadband investments. Let me take a moment to review the performance of our two business segments in the third quarter. In our international segment, we continue to make steady progress on our key priorities, enhancing mobile networks, improving service quality, and driving operational efficiency. The investments we've made in network quality and data capabilities are translating into measurable results, better customer retention, and higher average revenue per user, preparing the segment for sustained profitable growth. Third quarter revenues were up 1% with adjusted EBITDA growing 3%. The stronger EBITDA growth reflects the operational leverage we're achieving through improved efficiency initiatives. We remain focused on driving sustainable value across our international markets by deepening customer engagement, optimizing operations, and enhancing profitability. In our U.S. segment, we're seeing tangible benefits from our investments in carrier and enterprise solutions, with new site activations from our carrier-made services efforts and continued momentum in our fiber-fed deployments. We're particularly encouraged by gains in Alaska's enterprise revenue and consumer-fixed wireless wins, demonstrating improved operational execution and stronger pipeline conversions compared with last year. Third quarter revenues in the U.S. segment increased 4.6% year-over-year, with sequential improvement driven primarily by carrier services growth. Adjusted EBITDA for the quarter was up 19.6% compared with the same quarter last year. reflecting both our strategic transition from legacy revenue streams to higher growth higher margin services and recovery from a challenging third quarter last year we remain focused on our key priorities expanding fiber and fiber fed fixed wireless across markets where we have a durable consumer presence while growing our base of business and carrier solutions we are aligning our network strategy and capital deployment with this long-term vision And while the transition continues, we're building the foundation for a more resilient, higher margin domestic business. Domestically, our broadband infrastructure expansion continues to progress as planned, with several government-funded projects advancing through key milestones during the quarter. These fiber network investments remain central to our long-term U.S. growth strategy, enhancing our network capabilities while creating new revenue opportunities as deployments reach completion. We continue to actively monitor federal broadband policy developments and funding mechanisms, including BEAD, which offer opportunities to further penetrate underserved areas. As always, we're maintaining our careful approach to capital deployment while positioning ATN for additional infrastructure opportunities. Across our international operations, we are tracking geopolitical developments and the conclusion of hurricane season in our Caribbean markets. with business continuity and network resilience remaining key priorities. Our network teams work collaboratively with local authorities and partners to address potential disruptions while maintaining our service standards. To support these strategic and operational initiatives, we remain focused on the strength of our cash flow from operations to support our business initiatives while preserving the financial flexibility needed to capitalize on growth opportunities. Looking ahead, we're encouraged by the steady momentum across our business segments and remain focused on executing our operational roadmap. The revenue growth in our domestic operations led by carrier managed services expansion and targeted enterprise sales execution reinforces our confidence in the direction we've set. While internationally, we're seeing stabilization in mobility trends and improving operational metrics. With three-quarters of solid execution behind us, we are refining our adjusted EBITDA outlook while reaffirming our guidance for revenue, capital expenditure, and net debt ratio. We're methodically strengthening our operational foundation and improving our cost structure to position the business for sustainable growth as we move towards 2026. We remain confident in our ability to generate long-term value for our shareholders. With that, I'll turn it over to Carlos for a detailed review of our financial performance.

Disclaimer

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