Altice reviewing its options for Lightpath

Altice USA (ATUS) is exploring strategic options for its Lightpath unit, CEO Dexter Goei said at an investor briefing following the release of fourth-quarter results late last month. Lightpath is the Altice unit that specializes in providing fiber-based solutions to large business customers.

When companies talk about exploring options for a business unit, selling part or all of the business in question are typically some of the options they consider. Without stating expressly that Altice is looking to sell Lightpath, CEO Goei offered several hints that a sale of the business may be a priority. For example, he described Lightpath as less central to Altice’s overall strategy. He also hinted that eliminating Lightpath could lead to faster growth in Altice’s business services arm because Lightpath is currently not growing as fast as the rest of the operations that fall under the Business Services segment.

Why Altice May Want to Sell Lightpath Unit

Altice could raise more cash capital with Lightpath sales

Altice’s business services division grew 5.3% YoY in the fourth quarter, which ended in December. Altice reported overall revenue of $2.5 billion for the December quarter, representing an increase of 4.0% YoY. Comcast (CMCSA) and Discovery Communications (DISCA) recorded revenue growth of 26% and 51% YoY, respectively, in the December quarter. Revenue rose 5.9% for Charter Communications (CHTR) but declined 5.1% YoY at Dish Network (DISH) in the December quarter.

Disposal of Lightpath would not only allow Altice to eliminate a slow-growing business, but it could also generate funds that it could reinvest in the remaining businesses to drive more growth.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.