In This Article:
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Consolidated Revenue: $292 million for Q3 2024.
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Consolidated Adjusted EBITDA: $235 million for Q3 2024.
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AFFO Attributed to Common Shareholders: $87 million for Q3 2024.
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AFFO per Diluted Common Share: $0.33 for Q3 2024.
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Core Recurring Strategic Fiber Revenue Growth: 3% year-over-year for Q3 2024.
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Uniti Leasing Segment Revenue: $223 million for Q3 2024.
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Uniti Leasing Adjusted EBITDA Margin: 97% for Q3 2024.
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Uniti Fiber Segment Revenue: $69 million for Q3 2024.
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Uniti Fiber Adjusted EBITDA: $26 million for Q3 2024.
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Net Capital Intensity: 21% for Q3 2024, down from 41% in the prior year period.
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Full-Year AFFO Guidance: $1.32 to $1.39 per diluted common share.
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Leverage Ratio: 6.05 times based on net debt to Q3 2024 annualized adjusted EBITDA.
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Cash and Cash Equivalents: $529 million at quarter end.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Uniti Group Inc (NASDAQ:UNIT) reported a solid quarter with strong demand for its fiber infrastructure, particularly from hyperscalers.
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The company increased its full-year 2024 revenue outlook due to strong demand.
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Core recurring strategic fiber business grew by 3% in the third quarter, with enterprise, wholesale, and dark fiber revenue increasing by 10%, 14%, and 18%, respectively.
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Uniti Group Inc (NASDAQ:UNIT) is experiencing a significant increase in bookings from fiber-to-the-home carriers, with a threefold increase in 2023 compared to 2022.
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The company is well-positioned for future growth with strategic hyperscaler deals that align with its anchor plus lease-up model, providing potential for future lease-up opportunities.
Negative Points
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Wireless bookings have remained muted, although there is optimism for a pickup in activity towards the end of the year and into 2025.
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The company's adjusted EBITDA guidance remains unchanged despite an increase in revenue outlook, due to higher corporate SG&A expenses.
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Uniti Group Inc (NASDAQ:UNIT) faces competitive dynamics in the RFP process, particularly in lucrative GenAI fiber opportunities.
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There is concern about high upfront NRCs with some deals, which may not yield substantial recurring MRR cash.
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The company's leverage ratio remains high at 6.05 times, which could pose financial risks.
Q & A Highlights
Q: Can you provide more color on the recent win with the Montgomery Metro rings in terms of MRR and bookings, and address concerns about high upfront NRCs with low recurring MRR cash and yields? Also, discuss the competitive dynamics in the RFP process for GenAI fiber opportunities. A: Kenneth Gunderman, CEO: The Montgomery Metro rings are part of strategic fiber builds with hyperscalers, focusing on core network areas with high lease-up potential. These deals fit our anchor plus lease-up model, often exceeding initial yield expectations due to higher NRCs. The competitive dynamic is less like a traditional RFP and more about engaging with hyperscalers who prioritize robust networks and timely delivery, areas where Uniti excels.