Altice USA (NYSE:ATUS) Q2 2019 Earnings Conference Call Transcript
Jul 31, 2019 • 04:30 pm ET
Good afternoon. My name is Jesse and I'll be your conference operator today. At this time, I would like to welcome everyone to the Altice USA Q2 2019 Earnings Presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.
Nick Brown, Head of Investor Relations, you may begin your conference.
Hello, everyone, and thank you for joining. In a moment I'll hand over to Dexter and Charlie who will take you through the presentation and then we'll move to Q&A. As today's presentation may contain forward-looking statements, please read the disclaimer on Page 2. The slides are available on the company's website and a replay of the call will be made available.
And now I'll hand over to Altice USA's CEO, Dexter Goei.
Thanks, Nick. Hello, everyone. I'm very pleased to report that Altice USA had an excellent second quarter as we continue to successfully execute against our strategic priorities. To summarize on Slide 3, we saw accelerated revenue growth in Q2 to 3.7%, and as the company is performing better than expected we have increased our revenue guidance for the year. We now expect 3% to 3.5% growth for 2019, up from 2.5% to 3% previously. Much of this improved performance is attributable to Altice One in our continuous network investments, which are driving both improved video and approved data customer trends. We are consistently demonstrating that it is possible to achieve this higher growth while still enhancing profitability. And this is before the complete execution of our new growth initiatives.
The launch of Altice Mobile is now imminent with multiple network and handset partnerships in place, putting us in a really unique position to enter the wireless market. The roll-out of our fiber network and new home build activity continues at an accelerated pace. Last month, we completed the Cheddar acquisition to fuel growth in news and advertising, and our advanced advertising platform continued to deliver positive results.
Finally, we executed on 600 million of share repurchase in the Q2, bringing our total year-to-date to 1.2 billion. Altice USA's Board has authorized a new incremental three year buyback authorization of $5 billion as we're coming to the end of last year's original $2 billion authorization, underscoring the company's commitment to return capital to shareholders. Once again, I'd like to thank again all of our dedicated employees as all of their hard work is paying off and we've had such a great momentum right now.
On Slide 4, we show the breakdown of total revenue growth, which was up 3.7% in Q2. Our residential business grew 3.4% and business services grew 6.1%. We benefit from broadband customer trends, a significant increase and the take rate of higher data speeds and data consumption which supported broadband revenue up 13% plus the recent rate event at the end of Q1. Remember, we will lap the later than normal rate event from last year in Q3,