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Cable One (CABO)

Participants
Steven Cochran Chief Financial Officer
Julie Laulis Chairman, President & Chief Executive Officer
Craig Moffett MoffettNathanson
Frank Louthan Raymond James
Phil Cusick JPMorgan
Steven Cahall Wells Fargo
Brandon Nispel KeyBanc Capital Markets
Call transcript
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Operator

Good day, and welcome to the Cable One Second Quarter 2021 Earnings Call. All participants are in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Steven Cochran, Chief Financial Officer. ahead. go Please

Steven Cochran

Good quarter Cole. you welcome Cable to us Thank earnings afternoon, call. second results. our XXXX we have We're One's as you, review and glad join to

statements to proceed, we that contains events and I involve like relating Before remind future to would today's you discussion risks uncertainties. that forward-looking

filings. factors in cause from SEC Cable under find to its is statements discussed result by whether today's any forward-looking events and obligation, our the except disclaims release Cable during actual One in future results can You a no call, One's that could today's earnings and materially expressly to update differ or obligation as as otherwise. of information, required forward-looking law, new alter or statements recent

will that to a directly financial GAAP. with in or on include measures in conformity our Reconciliations certain of discussed earnings can are release, call be the measures Generally financial presented at on remarks Accepted Principles, ir.cableone.net. measures U.S. website discussion the of most Additionally, Accounting or GAAP our not today's comparable found non-GAAP

our Joining to and on Julia. is call that President turn call today's With CEO, Julia over let me me Laulis. the

Julie Laulis

and joining appreciate everyone. afternoon, for today's us call. Thank We Steven, you, good you

year, of the marks instead Company. throughout quarter last formally The our focused sixth We celebrate communities our anniversary Washington on our pandemic. were of but from second The XXXX anniversary Xth Post Graham the supporting spin-off Holdings Company, set to

associates communities adjusted we over has the and needed of than matters continue customers has enterprise time. we'd EBITDA keep over XXX%. $XXX more increased the period some annualized million, since expanded our In and spin, not to pivot our is incredible share pandemic of spin, remain last our $XXX from as over of to of have in all quarter to million most. while ability had results the Since we and connecting the what our that like safe, our recognition to While effort confident value our our operations yet, to associates

on focus to and video our efficient and of We of family brands, ways the with found HSD costs, at across services business reliability. or be quality have strategic maintained deemphasized but not expense our continually

invest billion. serve capacity entered or total into balance acquisitions approximately our of total used rural well. $X.X investment ventures either with XX, from the ahead. XXXX, in what end XXXX the billion track transactions $X.X in have the our record great as us approximately contributed June of we have markets so to a joint lies $XX enterprise of sheet a in of compounded growth and to-date of business XX.X% revenue no over Holdings, over unlocked have rate during quarter subsidiary with compounded of revenue of expectations six-year ended XXXX. HSD growth XX% also points period margins to control basis XX.X% from growth a a results annual services annualized compounded June new EBITDA exceeded Last EBITDA our annual X,XXX residential at grew plank the XX% spend adjusted Since to to strategic aggregate billion value we annual [Phonetic] This took These and allocation period growth the adjusted of gives strategy. same XX, our Our we of capital expanded as XX.X%. Since we The the confidence Graham in were significantly approximately made a and longer of or quarter. XX

what's long-term for next focus, One. always, on remains future Our and Cable as the

quarter our results. second Turning to

XX.X%. basis growth. margin customer and improved a are with financial continued once We Revenues delivered since quarter. pleased exemplifies compared adjusted again have that to trajectory prior-year to points and XX.X% increased increased EBITDA strong our XXX XX.X% Adjusted to spin-off EBITDA quarter

revenues and EBITDA margin XX% and respectively, was and X% EBITDA impact the adjusted Hargray by XX.X%. Excluding of adjusted Operations, increased

trends. continues growth customer above on course HSD residential Our a pre-pandemic well

customers. basis XXXX, of growth XX,XXX us quarter on residential through as June penetration quarter XX.X%, has second times to XXXX. residential relative sequential HSD HSD XXXX we our Since our have of how XX XX.X% That beginning that XXXX the the the we from increased capture. over in remains more added opportunity than points Hargray, a higher a XX, is significant On a than Hargray, HSD customers added far over highlighting available excluding of basis, XX,XXX again, as well we to come XXX second basis. over for Excluding year-over-year growth to

XX%. migration year-over-year for and tiers the contributed higher selecting existing or rented for on currently sell-in their unlimited this lands demand and our their qualifying service customers. with XX% enrolled equipment. support premium continued tier and current continues, HSD are tribal Broadband the growth. based critical have results, for participants our bill. We off those take more provides monthly nearly connectivity data customers as on with live We a XXX by FCC's packages to in who have Internet offerings up through download in of $XX speed Emergency can customers been speeds EBB the $XX second megs the continue residential those of product offering sell-in into customers And approximately XX% benefit financially pandemic impacted May of receive gig megs than increased Residential by off receive to of who to Of monthly than tier enrolled, nearly up program. or our in program COVID-XX. ARPU and was higher to Benefit The This those our XXX XX% rates new to participating EBB plan to or their sell-in greater X,XXX data quarter less began speed with bill offering of reached greater. X.X% product

continued were our revenues The Payson, XX% XXX seek to to miles businesses internet rate XXXX, will team services continues County, broadband we entire network we speed three Hargray As partner new start awarded of increase rural that to we on opportunities of tiers across fast and within Once Gila Arizona. our project to for XXXX and haven't fall fiber completed will the million at a momentum reliable, is X.X% from businesses positive we nearly them projects largest XXXX, incredible and recently to a resiliency growth customers services of of in shown with had a miles, in COVID-XX, business completed, a show Businesses optic to construction to packaging $XX provide schools, portion provide our to this when footprint. entities and with -- route local consist impacted who a small higher single legacy actually services systems this quarter, on more worked have than expand the reminder, since closely communities. decreased construction year-over-year legacy business launched prices pricing been We by our and building the fiber high and Business making government to XX,XXX date. project, of libraries operations. excluding in Cable and agencies it one Arizona. service have In connectivity of adversely have consider those throughout ourselves we One's the partner who with pandemic. that and fiber trusted the

SMB of new the by pre-pandemic sequential where we revenue XXXX, numbers, strong HSD each and residential have quarter the strong X,XXX basis segment. and through accelerating X.X% back on enterprise of a a business round in While both services To total to added aren't demand another seen minority fueled business out customers we connectivity grew for our we customers. approximately data and growth, investments, turned by residential month to

as in operating included and this figure. strategic As with demonstrate a are as no well results focus consolidated reminder, partners. longer HSD demand shared our Hargray services net of results adds the the continued are quality now These our for

to our both network. downstream improved averages peak per gigabits meaningfully and XXX XX% from to XX%. grew from for slightly and to Plant Average approximately utilization upstream upstream was traffic. Turning during below year-over-year XX% data usage utilization XX% now month. Downstream XX%

and a capacity, upgrades result ongoing investment well ahead at demand. of expanding As to stay targeted of continue the we our

on Teams to continue across focus brands company our together. Moving new from bringing integration. to the

able performance developing having relationships leaders between we've focus we develop that ahead exchange and of to is knowledge where are as plan, pivot map. road our three-year Given Fidelity's Hargray, primary our been we to peer

In start learned, execute resource strategy. in we to we mentioned, strategic believe expect core continues XXXX. Hargray meantime, previously on years integration competencies. Through lessons work, business hard As of our to its allocation, the successfully of realizing is synergies one now

Hargray the of that offer higher. close in or approximately our markets speeds we the now megs of XX% service Internet transaction, download of XXX With compete residential providers with broadband

if continue run and to still low as offering business competitive, market local our and needs. competitive services award-winning While is customer every focus on products maintaining highly profile, a relatively we a

from call the Stephen, other to like few Before events a over to handing mention this quarter. notable I'd

XXXX the Magazine's of to honored have service through award nation test reliable in providers. were top are list fastest the confidence we engineered this robust third height pandemic, PC have Internet XX our Speed -- built. the named of on and conducted in network affirms during and the which for the conducted the We

Fund, that dedicated top We over surge our efforts communities, have our the our to named in we past organizations digital the through also so company's reliability to and in and our initiatives our supporting but philanthropic are service annually Charitable in Businesses throughout gave more Charitable associates, In commitment $XXX,XXX $XXX,XXX concentrate services, by organizations Internet pandemic business Fund, communities. keeping been The few. share These customers marks XX-state only this through to across name fifth and development. met than education will award are provider products to to our awarded across our support usage support grants nonprofit business who through Sparklight the Internet been launched to provided partnerships, in overall Sparklight areas in of Magazine, proud XX local recently have literacy, January in a was our footprint has to and the X.X relief the of without have our to Giving XXXX. hunger a footprint remain not connectivity the which in which critical markets, and PC would cost, with the community ranking grants and nonprofit Giving supporting tireless satisfaction, nation. we in was top years. and not awards that pleased possible

to Technology, he to us join comes and Finally, Director Managing and as will September. Vice as leadership And XX who financial team. Koetje, Todd in welcome served valuable of Todd Securities capital telecom leverage company President more relevant Business of most Cable team. from I'd years Development brings industry where of to Senior recently a Truist Finance, the Steven. like leadership Telecommunications now, finance the markets, than experience, One him making and Media He addition

Steven Cochran

Julie. Thanks,

which have Approximately increased by increased revenue revenue revenues would by was of $XX.X Hargray increase, XXX,XXX in XX.X% and second operations acquisition, quarter or of year-over-year. X.X%. to quarter prior Anniston approximately residential XX.X% the HSD of approximately This to Revenues XXXX which to a year Residential were business grew second $XXX.X included October increased Residential Hargray by seen When XX%. data and exclude by in in XXXX quarter service revenues Hargray the a services million One for $XXX,XXX residential quarter we XX.X% HSD second million million the of The PSUs revenue customers from financial compared contributed XX.X% of X% generated Exchange quarter, business results. exceptional came Cable in total Hargray and $XXX.X increase were by fueled results, second we XXXX. increase the a HSD XX,XXX revenue increase.

programming compared on noncash added we second expenses gain of million equity Net Net year of the a by $XXX.X and general improvement, noncash the and year revenues XXX-basis million on quarter. remaining in compensation $XX.X customers, adjustments in driven XX% included for customers call $XX compared quarter expenses. the associated basis. revenues were Hargray, second the quarter. million. $XXX to in a in in expenses income of decrease quarter Mega and XX.X% investments. on year the $XX.X a $XX in of million Excluding with over quarter, fair administrative value fair Selling, interest or revenues compared to second were $XXX.X the largely XX,XXX revenues value investment of or XXXX the income with These was were to second sequential the partially XXXX residential existing prior HSD prior the the million quarter million a Broadband in by Hargray Operating million XX.X% point quarter expenses prior of offset in options a company's put in to adjustments loss associated acquire XX.X%

from the are nonoperating resulting quarterly these As could on used which share, results prior mentioned. exercised assumption decrease GAAP the fluctuations in was in or options the gains changes basis fair options accounting $XX.XX could and a values was increase next. Net our turn just million increased fully to are to per valuation, Until expire, reminder, losses any share cause the the significant the second financial or per quarter diluted subject one a the in mark-to-market on income their and $XXX.X Adjusted quarter. of to EBITDA MBI year a quarter basis. noncash inclusive XX.X% determine from for

of For reference, Hargray's million this of EBITDA operating two quarter. contributed months results adjusted $XX.X

Our adjusted XXX totaled to second XX.X% $XX.X EBITDA. from the EBITDA for XX.X% quarter year-over-year of basis expenditures XXXX, adjusted of margin points which XX.X%. increased going million Capital to equates

paid million to and from million of in Hargray EBITDA, capital transaction value XXXX, million $XX.X quarter, implied year for closed quarter of network debt-free May quarter. quarter in that our on the bringing own. integration prior the for In $X.X we $X.X equity $X.X million, the a During $XX.X dividends we Adjusted XXX% $XXX.X enterprise already Hargray respectively. shareholders. for year CapEx XX% total we increased second expenditures, cash-free, invested second total didn't a XXXX, the expansion activities, remaining we and was $XX.X approximately interest XX.X% basis. less our for On billion of million to The the X, purchase million the and for of

deducting proceeds Hargray May million finance costs. partially $XXX.X XX on of The term was equivalents From and were X, had $XXX we million to loans, standpoint, of loan, June in lease approximately finance Additionally, million significant balance cash of liabilities. cash as $XXX matures to on million notes a we $X.X At convertible cash approximately billion, the after $XXX an issuance liquidity in consisting hand obtained and XXXX. notes we billion of million generate and debt offering XXXX, flow. net unsecured which the in continue of and quarter-end, free $X.X $XXX $X.X our in million term acquisition,

had we as last available questions. XX. debt our was also are EBITDA questions. netting XX. we under revolver quarter times cash million June $XXX hand against Overall, Cole, We of at ready for additional now on Cole, as debt for for our X.X borrowings June of annualized are adjusted now after to ready

Operator

with Instructions] you. question Our Please go [Operator Thank from Cusick first JPMorgan. today come will ahead. Phil

Phil Cusick

a in I and The the sustainable to if further pace How questions, an support that, of especially residential great organic the future? the adds on think result Two when Thanks. and potential is basis. guys. Hi, can. going broadband about quarter, the XX,XXX., you programs EBB federal

Julie Laulis

world Julie. probably out Phil, schools the versus ball. or would those and business. going and to us impacts the it's what's forward we're crazy likely that crystal we I mean, none year know I that that. XXXX. I mean, going a with that confident. look of happen it's it's start because in, planned with don't pandemic -- the but of this knowing thinking But not the not with thinking is of have I'll half with I pretty pointed feel impact going just as to like our I things back sort don't know of to thinking, certainly, living

Now at that, that we're too, the this of we having said that a and said long by clearly, beginning shot. year outpacing

The capture. but real can don't know, handle growth answer is the that EBB the still we So interesting. pretty we're prepared we to is

to now. just on the the noted, customers. our customers under honestly, word I bit likely part that of and a of a quite is onerous And As new out the bit getting come enroll little that is right XX% process have

the as with which It to that. those a interesting that existing a pretty we what note So they interesting can at to see of of customers, to be on upgrading majority program pivot longer-term times customer. same are non-EBB is bring the see it we EBB will to customers, were rate X

a the portion people this government speeds, So to but more with putting more bill. taking get are these are that opportunity that data more of throughput,

Phil Cusick

Okay. rates are you I down that low. money How debt-to-LQA-EBITDA over do times. you're The And think then coming about X.X raising if amazingly second, time? can,

does make more with in doing. Stevens' I And that were you think little past? than the comfortable leverage taking a it's you on more all

Steven Cochran

to the we debt with look will that what part I them level was means over place. standpoint Well, able anticipate of a we low doing clearly at able associated probably I we those to that borrow service I leverage just that think before took cost that we from we just much quasi converts a as were the that. leverage hadn't what in we're think And big them debt. and time, did they're of there's convert put anticipated probably of not the where And Unfortunately, not very clearly, either. and to -- think

And mind include I to being said, think quickly. number so grow to I that quarter of Hargray. full us not I allows leverage that a think -- we that very continue did all of gave in Keep that

of you it So the the will leverage drop on in our top growth. loan, and continued that add

anyway. being themselves, are I years So relatively two place. ago, kind probably definitely with a were I think the de-lever That comfortable as opportunities we put higher structure leverage we'll before in quickly than of present think more said, we we

Phil Cusick

I Thank question. want it you complicated. much. was too yes, that to Yes, very my didn't But make

Operator

ahead. will question Louthan next with Raymond Please come our And Frank from James. go

Frank Louthan

in expect Hargray mix, that Thanks. -- how in fiber the drive there. about you the that your where with extensive think that is they Walk opportunity little to you. more and those through bit fits that us network thank trends business little you and and the of Great, and what particular, about what you're us with a to talk a bit can we getting kind with subs, get

Steven Cochran

I looks get the have, type company of and then very Sure, lot and Julie in ours from I I mean, a and they serve, foremost, add of similar Frank, ways customers the a think they start-off in. type that on the can to first, focused associates first -- that and serve. and kind think associates standpoint I'll of markets and the we their of of communities we

of piece that probably higher foundational have penetration, so look higher the things And us. slightly have they slightly to markets of than that have we there, which kind they is it, that demos is generally at,

their that so, also XX% said, that's they And fiber. of already have being network

mind have of nature Keep Head in to some the some to and too, area especially that a them a more well ties think higher and higher of others, they of so Hilton in kind Hilton penetration is demos I competitive And town. actually at puts the standpoint positioned. around the the to type what resort Head

to lot of as growth over opportunity we and there, And when what well I we that which through margins then drive top a margins, both allow is accelerated real think from from for end, so so is the our business just more higher as opportunity ability We aligned with growth standpoint, flow our that look services a a will yes, time, the the EBITDA. growth will have overall think be revenue at letting focus, HSD growth. on which

Frank Louthan

great. Right,

Julie Laulis

you footprint so Yes. organically, from it, the grow mean, just we another footprint in the too, footprint choose to growth I nailed to the -- edge gives No, future. people, out us I the but if markets, think actually their know-how, the leadership, the the not

Steven Cochran

now profile that Edge tuck-in didn't us or four and beforehand. acquisitions as I that M&A, the there's states fit think think more for in out five into future, we about that

Frank Louthan

that the take with sort a investment you remind then time And the just All larger potentially Broadband what's again, optionality and you through the walk the line right. stake that us a the Mega you -- business? have. soonest us That's have Can of could of you that follow-up in helpful.

Steven Cochran

Yes.

the XXXX. of we window at end X.X So of quarter time that begins the years first have

of third period still So to obviously, time starting we them quarter then of quarters that and have the within in end notify toward each exercising have approvals we're option. XXXX, there's those we through. of go XXXX, stuff it. can the the that And a There's that

have a would announce closed, nonetheless. -- through just go can which So but to be long it to you and process, process you the get it wouldn't then

of of the to to lot as at So factors where time where incremental from play that are I are from capital capital think into that, we we'll integration there'll ability we close raise need on everything Hargray the transaction. as that well part markets be the a and

in So we'll did the -- we was get the we don't it reasons conditions can is level happen. going we of it. the and as that allow that in we But needed soon optionality just the case that's structured one thought to want some deal as way of

Frank Louthan

Okay, you. Thank great.

Operator

Moffett next And will ahead. MoffettNathanson. go Craig our Please question from with come

Craig Moffett

going I the for growth about and the Hi. if of markets, maybe wonder seeing seeing is much the your wireless Boise, particularly markets those couple expansion you're with could years? what are if see your you What dynamics Thank doing in you fixed in terms about could where taking fiber of think to just you there's people competitive you just quantify of new like competitive been fiber? Idaho, overlapped And you entry of next sort your for in footprint that best question. markets you're and you for like do talk fiber T-Mobile in be today broadband. estimate so talk -- what example, percent

Julie Laulis

one, big a That's Craig.

least of they it's a to happening bigger, into the do in mom-and-pop some XX% smaller see? But our not get a competitor footprint performing relatively also insight wanting our how it, offering of has because So -- our XX% some provider small. XXX at has that is What encroachment About do so now, vis-a-vis that we one fiber of hear We of markets megs. provider but we clear any each right see footprint thing. smaller a pretty is we usually have have. business broadband into might growing folks

CenturyLink, it's winning in occurring Fiber. we this we that And we are type have AT&T and ground. this point being know That has, it In DSL are time, at we in out in whether actually At not of our on some So markets or might the Fiber, of said, we coming that those what's technology competitor AT&T or about what markets, diligent time. the are share, point what winner we DSL. does are not incredibly we boots share, have about is them. matter winning

are our We operations communities. call centers, big local aggregated or in cities. like We in overseas have don't

our are local markets. associates Our located in

run. if there's is or city that So that are as what there know time. see seeing not of ground, on We're to ready better meet anything than coming on in Again, we care more the talking something boots focused officials if locates make customers' taking we anybody a we will the competition. customers, from than us really meets for T-Mobile sure out are I at so long already in we on make our that provide this going our point to I better we're so needs the them Competition can as think long don't them. that with

Steven Cochran

at usage attention people still I we don't another XX% be that's paying to, big are would the I though. is as us. a XX% XXX that, they add, but successful and -- we DSL, are it XXX think approaching of average we're targeting going I customer won't what don't that are see same or think think them in And think there's taking they is some obviously because after. of there. megs and And may threat of to our higher competitive customers and gigs, meg at if mean just I taking doesn't or successful Yes. about not base because you be of T-Mobile markets customers XXX It our the

Craig Moffett

you. Thank helpful. That's

Operator

Markets. will next question from Nispel KeyBanc our come go ahead. Brandon Please Capital with And

Brandon Nispel

question. for Thank Great. taking want Julie. I for to you Craig's follow-up questions on the

So you're that to market-by-market One, data just today? Hargray? basis, legacy even about Thanks. the It where is if your of to how a construct, close markets common street-by-street confirm talk to Julie, fiber can seems services have the it's about that. price wanted on talk ARPU, sophistication in you able but pretty the where or can pricing Secondly, Cable you as you ARPU for competition,

Julie Laulis

All right. Sure.

have, there which they Texas and Norfolk, We past, order in And seen a have a we mindset. into to of is efficiency, there's in in have Southeast. some mid-West, up well. our then in the as we grown is competition, ALLO increased in markets, well, And Boise. TDS fits teeny that the markets all. size fiber rapidly smaller And in one had competition -- provider this the we and changed do bit AT&T one have called footprint our we mentality starting and in that our So drive Nebraska, as have

so just mean that share could ARPU. as And honestly. fidelity, ARPU competitive now And strategy to We street of far open mentioned, different pricing have can months that And us found and we market have I just in pricing don't Hargray, we advance. pricing street. that to you time. in literally, pricing by Connect. and in quite it don't more talk called ARPU We where can so pricing well to can open between to I that and work for time. up balance open offer our offer we go is in Freedom terms maintaining We the

Steven Cochran

where in bit the their bit the our Hargray a for commercial higher quite the commercial higher, was quite than is Cable ARPU side, is ARPU So One. similar the One commercial on in guess ARPU, in is except Cable Hargray ARPU markets a I what very to it

to So from a up pull you'll pretty close same. standpoint, the residential we total the there. were see that But

Brandon Nispel

Okay. questions. taking Thanks the for

Steven Cochran

the would I just add side. competitive on

it over years three she has on I was been joined I focus said, that efficiencies. time, the change be to develop to the wasn't, and have mindset, Julie's think, of focus an intense here pretty focus focused three competitive ago, -- kind and much would we wasn't and on was say think I very that it at I would a And it say now I dramatic. I the didn't have or, and it as years

really also organization. good but this drive focus of mindset done competitive continuing we've margin, throughout job the on a I think to

Brandon Nispel

thank Great, you.

Operator

And our from go Steven next Please Wells question Fargo. ahead. will come Cahall with

Steven Cahall

things just curious the think And subscriber of broadband had you that Thank talk of to you fresh this as how good last are feel from the for kind be strong I'm companies had And quarter, minority And well. commentary any it could continued you a quick through then out talked into coming kind performing subscriber Julie, uncertainty? maybe about net period on about call Is that result basis of a investment of Hargray's follow-up. pretty of consistent and kind trends your that? a quarter. April. you. add other on I how in

Julie Laulis

year would I strong. I we like was quarter with quarter were you I the May better, the very think started this quarter. June in in sub I mean, first were was mean, in in we XXXX very And So better XX% Phil, say this April -- for we XXXX, trends, the as were strong. discussion out heard. than and strong. very

plan typical They've gives obviously, They have I we start Connected XXXX, hit. which be as lower, have especially pandemic, expected So have summer, But also mean higher low, even trends our on be height it's works the and doing XXXX. seeing But in. in of they of driving people choice of drive churn to they continues we're providers. but that believe choice a were the -- churn plans, a and the we for -- of to summer we so set to of a and track have And the as when found were XXXX, pledge. found choice. value. continues really to them of Churn Like, them that unbelievably Keep than the not during year, the Americans high pandemic down before low. we core course,

that going are the the So this is have And Their an longer quarter on -- school back here brings effect kids to or not Hargray think. we do, numbers kids school, be as back an no the I of to how going fall does to investment. so included.

for quarter, in weren't they for Now were they a two months. in full

Steven Cochran

And that Right. the we of that of was one the kind they Hargray, thing XX,XXX, X,XXX the XX,XXX. in organic did wasn't have part which technically mentioned, excluding quarter

is of the to our we organic, similar last fast but had we other than as So not businesses, X.X% you as growth XX,XXX include been they investments continue see which what trends in truly mentioned, if as But it continue historic. kind still that better to time as then sequential as year, other think this I us, has to, was organic.

Steven Cahall

maybe peers. that bit the markets than penetration your I've being what maybe headroom gig into in megabits, there. of sell-in, bit on these historically, in than XXX trends that the thought about you you're a sell-in But the could might a see penetration being thought just take Great. do just seeing you curious as then some lower penetration. And if strong impact well? more as your more we as your historically at little the of thoughts there churn do inform headroom EBB, on dynamic So -- you have little

Julie Laulis

that's customers are a profile Yes, our I the credit have case. I very on coming that They now, is as that mean, at we look are do think customers. to who similar they? current

to Many fiber again, the to DSL, quality are us wireless who were have from, to mean, are prior So Could during to cell-only, to I people choice were so be stickier be customers come them only. are good COVID, them. of a say, And Many March making home. the us other could these customers. XXXX, come them of that from providers. than of group,

that those low is new the This had us that stickier. the since on joined And been very churn. that even than So has the cohort curve retention it's anyone pandemic past. in the in say to customers, better is is cohort past,

and penetration robust service. where can go, of terms a HSD for the the pandemic accelerated reliable, In we need

to see And to network. can this and that continue just innovators our over innovation great going so be now and there's can that exists, services products that network ride

don't this got of quite capturing penetration I drive honestly, and to sure. really point terms of time, front lot of we've us our work in margins. see continuing a in in So at

Steven Cochran

not think, And been to mindset we've targeted just say would think base. narrow also a we of impacts more done I with think piece, that I we've positively side on. I kind one much Yes. the to main I that you marketing because definitely And group become that were has focused able different groups, on also that, what the that pretty to

feel lot industry We soon, the aren't the we've got penetration we've upside. maybe a reasons, think but than industry got more I what lot probably of a upside averages I those does. of upside, all for we catching continued think anytime

Steven Cahall

thanks. Yes,

Operator

conference over conclude And our back for answer turn session. to and any to this will like the I'd question Julie remarks. closing

Julie Laulis

to and joining look us quarter. you, speaking well. forward today's We next you call for appreciate Thank again with Cole. all Be everyone

Operator

Thank now is presentation. conference concluded. The today's attending you for

now lines time. at may this great disconnect your You day. And have a