• Full Year Revenue: $729 million, a 4% decrease from 2023.
• Adjusted EBITDA: $184 million for 2024, down from $189.5 million in 2023.
• Q4 Revenue: $180.5 million, down 9% year-over-year.
• Q4 Operating Income: $8.7 million, up from $3.3 million in Q4 2023.
• Full Year Operating Loss: $0.8 million, compared to an operating income of $13.2 million in 2023.
• Q4 Net Income: $3.6 million or $0.14 per share, compared to a net loss of $5.8 million or $0.46 per share in Q4 2023.
• Full Year Net Loss: $26.4 million or $2.10 per share, compared to a net loss of $14.5 million or $1.25 per share in 2023.
• International Segment Revenue: $377.5 million for 2024, up nearly 2% year-over-year.
• International Segment Adjusted EBITDA Growth: 9.7% for the full year.
• Domestic Segment Q4 Revenue: $85.8 million, down 18% year-over-year.
• Net Cash Provided by Operating Activities: $129.2 million for 2024, up from $111.6 million in 2023.
• Capital Expenditures: $110.4 million for 2024, net of $108.5 million in reimbursable capital expenditures.
• Government Grants: Over $370 million awarded for fiber deployments.

• Warning! GuruFocus has detected 7 Warning Signs with ATNI.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ATN International Inc (NASDAQ:ATNI) expanded its fiber route miles by 32% and doubled the number of broadband homes passed by high-speed services in 2024.
• The company increased its high-speed capable customers by 44%, positioning itself for future growth in fiber and fiber-fed services.
• International segment showed strong performance with a 10% year-over-year growth in adjusted EBITDA and a 21% increase in business mobility revenue.
• ATN International Inc (NASDAQ:ATNI) secured over $370 million in government grants to support fiber deployments, enhancing its infrastructure with lower capital intensity.
• The company improved cash flow from operations by 16% year-over-year, demonstrating strong cost discipline and operational efficiencies.

Negative Points

• Total company revenue for the fourth quarter was down 9% compared to the same period in 2023, primarily due to declines in the US Telecom segment.
• The US Telecom segment faced challenges with the conclusion of the Emergency Connectivity Fund and Affordable Care Program, impacting revenues.
• Full year 2024 saw a net loss of $26.4 million, reflecting a goodwill impairment charge of $35.3 million.
• Adjusted EBITDA for the fourth quarter decreased by 9% year-over-year, driven by declines in US Telecom revenues.
• The company anticipates short-term revenue decline in the US as it transitions away from legacy technologies to fiber-based revenue streams.

Q & A Highlights

Q: Can you explain the capital expenditure budget for 2025, as it seems higher than the previous guidance of 10% to 15% of revenue? A: Carlos Doglioli, CFO, stated that the guidance remains in line with the 10% to 15% expectation. They have scaled back CapEx significantly, with a 30% reduction in 2024 compared to the previous year, and expect continued improvement in 2025. Brad Martin, CEO, added that reimbursable CapEx from grants is a major factor.

Q: Are there any statistics on the traction in enterprise and carrier segments, given the shift in focus from homes passed? A: Brad Martin, CEO, noted that enterprise and carrier have been core focuses, especially in the US. Internationally, there was a 6.5% growth in business base and a 2.7% quarter-over-quarter growth in business customers in Q4. There is increasing pipeline demand for backhaul and Spectrum.

Q: What caused the decline in prepaid subscribers in the International segment? A: Brad Martin, CEO, explained that the decline was primarily due to competition, particularly in Guyana, where a new 5G entrant impacted the prepaid segment. The focus is on higher-value data plans, which saw a 26% year-over-year growth.

Q: What specific services are included in the carrier managed services, and how is Spectrum demand monetized? A: Brad Martin, CEO, stated that carrier managed services include lit services, dark services, tower lease, tower service maintenance, and backhaul services. Spectrum assets can be leased, though it's a smaller component. They continuously evaluate asset portfolios for shareholder value.

Q: How do you plan to stabilize the US Telecom segment in 2025, and what are the expectations for growth beyond that? A: Carlos Doglioli, CFO, mentioned that the focus is on stabilizing the US segment and expanding margins internationally. The expectation is to return to growth in 2026 and beyond, with changes in leadership and strategy to drive the business forward.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.