Uniti Q3 net income boosted by merger gain

Overview

• Uniti Q3 revenue of $722.6 mln missed analyst expectations

• Net income of $1.609 bln includes one-time gain from Windstream merger

• Consolidated fiber revenue grew 13% yr/yr in Q3

Outlook

• Company expects 2025 revenue between $2.215 bln and $2.265 bln

• Uniti projects 2025 net income of $1.440 bln to $1.490 bln

• Company anticipates 2025 Adjusted EBITDA of $1.110 bln to $1.160 bln

Result Drivers

• FIBER BUSINESS GROWTH - Significant growth in fiber business driven by strong demand from hyperscalers, large enterprises, and residential customers

• KINETIC CONSUMER FIBER - Kinetic Consumer Fiber revenue grew 26% yr/yr and subscribers increased 17% yr/yr

• FIBER INFRASTRUCTURE BOOKINGS - Fiber Infrastructure new bookings monthly recurring revenue reached $1.6 mln, highest in over 2 years

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Uniti Group Inc (Delaware) is $8.15, about 24.8% above its November 3 closing price of $6.13

Press Release: ID:nGNX10mM2B

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