ATN Q2 revenue misses estimates

Overview

• ATN Q2 revenue declines 1% to $181.3 mln, missing analyst expectations

• Adjusted EBITDA falls 6% but beats analyst estimates, per LSEG data

• Company reports net loss of $7.0 mln, impacted by subsidy wind-down

Outlook

• ATN expects 2025 revenue to match 2024's $725 mln, excluding construction

• Company anticipates 2025 Adjusted EBITDA to remain flat at $184 mln

• Capital expenditures for 2025 projected between $90 mln and $100 mln

• Net Debt Ratio expected to remain stable, slight improvement possible

Result Drivers

• SUBSIDY WIND-DOWN - Revenue decline attributed to the wind-down of subsidy programs and exit from legacy consumer solutions

• CONSTRUCTION REVENUE - Increase in construction revenue partially offset the decline in overall revenue

• COST STRUCTURE OPTIMIZATION - Efforts to optimize cost structure and enhance mobile networks internationally, per CEO Brad Martin

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for ATN International Inc is $29.00, about 43% above its August 6 closing price of $16.52

Press Release: ID:nGNX5NqJsQ