Uniti Group Inc. Q4 FY2024 earnings call

• 2024 was a consequential year with strategic and balance sheet moves, achieving ~5% strategic recurring revenue growth, ~8% adjusted EBITDA growth, and ~27% consolidated bookings growth. - Strong balance sheet and liquidity, first commercial fiber provider to access ABS market successfully. - Pending merger with Windstream: received PUC approval from 16 of 18 jurisdictions, shareholder vote set for April 2, on track to close in second half of 2025. - 2025 priorities: focus on best-in-class execution, mid-single-digit top-line growth, high single-digit adjusted EBITDA growth, build new fiber especially in Connecticut. - Hyperscaler demand: demand for mission-critical communications fiber continues to grow, hyperscaler bookings now ~20% of full-year bookings, and progress made with hyperscaler deals with combined yields close to 20%. - 2024 results in line with original guidance range, 2025 outlook includes impact from ABS finance, free cash flow positive in 2025.

In the fourth quarter of 2024, Uniti Leasing reported segment revenues of $222 million and adjusted EBITDA of $214 million, with an adjusted EBITDA margin of 97%. Uniti Fiber had revenues of $72 million and adjusted EBITDA of $31 million, resulting in an adjusted EBITDA margin of 43%. For 2025, Uniti Leasing is expected to have revenues of $902 million and adjusted EBITDA of $872 million at the midpoint. Uniti Fiber is expected to have revenues of $304 million and adjusted EBITDA of $125 million at the midpoint for full-year 2025, representing an EBITDA margin of approximately 41%.

• 2025 outlook includes estimated impact from recent ABS finance, excludes impact from merger with Windstream. - Uniti Leasing: revenues and adjusted EBITDA expected to be $902 million and $872 million respectively at midpoint, $185 million of success-based CapEx deployed, $175 million related to Windstream GCI investments in Q1. - Uniti Fiber: revenues and adjusted EBITDA expected to be $304 million and $125 million respectively at midpoint, net success-based CapEx of $85 million, capital intensity of 28%. - Standalone Uniti expected to be free cash flow positive in 2025, full-year AFFO range $1.40-$1.47 per diluted common share, midpoint $1.43 per diluted share (6% increase from prior year).

• Numerous factors could cause actual results to differ materially from forward-looking statements, including those in the Form S-4 Risk Factors section.

Q: Greg Williams asked about the timing of the inference phase and the AI bidding environment.

A: Kenny Gunderman said inference phase spend is growing, tier 2 and 3 markets will get inference demand as it follows similar pattern to previous tech trends; competitive environment has been rational so far, with Uniti winning deals at good economics.

Q: Frank Louthan asked about ABS funding mix and Kinetic home build.

A: Paul Bullington said hard to box into exact ABS vs other debt mix, will move where market offers best cost of capital; Kenny Gunderman said Windstream expects to roughly double targeted homes passed with fiber in 2025 over 2024, aiming for 2 million homes by end of 2025, focusing on strategic builds with marketing in lockstep.

Q: Bora Lee asked about how hyperscalers' needs change fiber build and wireless bookings outlook.

A: Kenny Gunderman said hyperscalers have increased fiber strand count needs, changed approach to new builds including more excess conduit capacity, working on ILA facility upgrades; wireless bookings were flat in 2024 but expected to be up in 2025 with activity seen at start of 2025.