ATN International, Inc. Q4 FY2025 earnings call

1. Recognized exceptional work of teams across all markets. 2. Fourth quarter results show continued execution of strategic plan with revenue growth, adjusted EBITDA expansion, etc. 3. International segment: Network investments and focus on service quality driving growth in subscribers and adjusted EBITDA. 4. U.S. segment: Benefits from strategic shift, including pivoting away from legacy offerings, structural cost actions driving higher operating income. 5. Advancement of strategic initiatives: Received notice of provisional BEAT awards, completed sale of certain U.S. spectrum assets, announced pending sale of Southwest U.S. Tower Portfolio. 6. 2025 was a turning point with improved financial performance, cash generation, and alignment with strategic focus

International Segment: Fourth quarter revenues increased nearly 3% to $97.3 million from $94.8 million in the prior year quarter. Full year 2025 revenue was up 1% to $381.9 million from $377.5 million in 2024. Adjusted EBITDA for the international segment increased 1% to $32.7 million for the fourth quarter and approximately 4% to $131.6 million for the full year. Domestic Segment: Fourth quarter revenues increased 1% to $86.9 million from $85.8 million in the prior year quarter. Full year 2025 revenue declined just under 2% to $346.1 million compared with $351.6 million in 2024. Adjusted EBITDA for the domestic segment increased 11% to $21.6 million for the fourth quarter and declined approximately 2% to $78.5 million for the full year

1. Excluding impact from pending sale of US Tower portfolio, expect adjusted EBITDA to increase modestly from 2025 levels to $190 million to $200 million in 2026. 2. Headwind of approximately $5 million related to conclusion of high-cost funding support for US Virgin Islands market. 3. Anticipate reduction of approximately $6 million to $8 million to annual adjusted EBITDA outlook based on second quarter timing of initial closing for tower sale. 4. Expect capital expenditures to remain within $105 million to $115 million net of reimbursable expenditures. 5. Expect adjusted EBITDA to improve in first quarter 2026 and majority of annual results in second half, with restructuring and reorganization expenses of $3 million to $4 million in first half

None explicitly discussed in the provided transcript

Q: Can you just help us understand maybe how the sale of the tower assets might impact your business model in the U.S.? Does that in any way impact your ability to provide managed services to carriers?

A: Morning, Greg. Yeah, so really it's an unchanging business model. Today we provide our carrier-managed services on third-party towers and owned towers, almost about half and half. So really, the continuation of the business model will remain. We'll just be doing more on third-party towers.

Q: You're continuing to grow your high-speed data subscribers. Total broadband subscribers continue to decline. Are we getting to the Are we nearing a point where maybe some of these legacy services that you're turning down or deemphasizing stop detracting from the overall growth of that business? What should we expect next year in terms of maybe your view on broadband subscriber growth?

A: Greg, yeah, as you mentioned, some of the broadband reductions have been from us shutting down legacy services. That is inclusive of legacy copper services in some markets where we've overbuilt and shut down services and decided not to rebuild in areas. And similarly, in areas in the Southwest where we've taken down, where we had unprofitable areas and we decided to not necessarily compete at the consumer level, as we mentioned in my prepared remarks, we will be continuing to partner with major carriers. You know, we do have, you know, bead outcomes I spoke to in my remarks. We do expect that to be a key driver in the out years to expand our high-speed subscriber, you know, subscriber base and obviously expand our assets and facilities.

Q: With the expansion of the high-speed data, the reach of your network in Alaska, could you just talk about maybe some of the changes you've made in your go-to-market or sales strategy to kind of start to accelerate maybe the penetration and growth of your services?

A: Yeah, so Alaska, our Alaska market has been historically heavily weighted towards enterprise and carrier. In this past year, they announced a pretty large build out of a fixed wireless solution. We have been building fiber facilities, fiber to the home in certain areas in Alaska as well. We do have a new leadership team in Alaska in the last couple of years. We are investing in back office platforms to effectively enhance the customer interaction. So it's something we're targeting and continuing to focus on improving our ability to execute there. But we have work to do. We did see some progress in the back half of the year on subscriber acquisition, specifically in Alaska, albeit starting on a small base, but we did actually show over 11% year-over-year improvement in our high-speed data subscribers