In This Article:
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ATN International Inc (NASDAQ:ATNI) reported a 2% growth in adjusted EBITDA, demonstrating early progress in executing their strategy.
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Cash from operations increased by 55% to $35.9 million, reflecting strong cash generation and operational efficiency.
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The company expanded its broadband reach, increasing the number of broadband homes passed by high-speed data services by 11% year over year.
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International segment showed improved operating efficiency with an 11% increase in adjusted EBITDA, driven by steady demand for high-speed broadband and business services.
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ATN International Inc (NASDAQ:ATNI) is advancing approximately $370 million in government-funded broadband infrastructure projects, with over half expected to be completed in 2025, supporting long-term US growth strategy.
Negative Points
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Total company revenue for the quarter was down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs in the US markets.
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Operating income decreased to $2.7 million, impacted by transaction-related expenses, losses on asset transfers, and restructuring expenses.
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Net loss for the first quarter was $8.9 million, compared to a net loss of $6.3 million in the prior year.
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Domestic segment revenues declined by 9.5% year over year, leading to a decrease in adjusted EBITDA by 15.4% compared to the same quarter last year.
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The company faces potential cost pressures from trade and tariffs, particularly on network infrastructure components, although they believe they can manage the impact within their existing 2025 financial outlook.
Q & A Highlights
Q: How is ATN International managing its supply chain in light of trade and tariff impacts, particularly concerning fiber and electronic components? A: Brad Martin, CEO, explained that a significant portion of their construction materials, including fiber, is sourced in the US, which helps mitigate tariff impacts. Electronics are sourced from various countries, but many projects have existing purchase orders that are immune to tariff changes. Additionally, their largest consumer markets are international, exempting them from US tariffs, allowing them to manage 2025 impacts within their financial outlook.
Q: What is the impact of foreign exchange rates on ATN International's international operations? A: Carlos Doguoli, CFO, noted that most international markets where ATN operates are pegged to the US dollar, minimizing significant fluctuations. In Guyana, the economy benefits from oil exports, providing a buffer against currency volatility.