ATN International Q2 2025 Earnings Report

ATN International EPS Results

• Actual EPS: -$0.24
• Consensus EPS: -$0.07
• Beat/Miss: Missed by -$0.17
• One Year Ago EPS: N/A

ATN International Revenue Results

• Actual Revenue: $181.30 million
• Expected Revenue: $184.67 million
• Beat/Miss: Missed by -$3.37 million
• YoY Revenue Growth: N/A

ATN International Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: After Market Closes
• Conference Call Date: Friday, August 8, 2025
• Conference Call Time: 10:00AM ET

ATN International (NASDAQ:ATNI), through its subsidiaries, engages in the provision of digital infrastructure and communications services to residential, business, and government customers in the United States and internationally. The company operates through International Telecom and US Telecom segments. The company offers mobile, data, voice, broadband, and fixed services; handsets and accessories; and wholesale roaming, long distance voice services, and site maintenance services. It also leases critical network infrastructure, including towers and transport facilities; and provides managed information technology services, such as network, application, infrastructure, and hosting services. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.

ATN International Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 revenue declined 1% year-over-year due to subsidy wind-downs, but net cash from operations rose 2% to $60 million, and the Board approved a 15% dividend increase to $0.0275 per share, underscoring confidence in cash flow.
• Positive Sentiment: The International segment delivered 4% postpaid subscriber growth, 25% year-over-year increase in data plan consumption, and over 5% improvement in mobile churn for the second consecutive quarter, with adjusted EBITDA essentially flat.
• Neutral Sentiment: The U.S. segment saw a 1.7% revenue decline from program phase-outs, but consumer broadband subscribers grew over 10% and ARPU trends improved alongside $300 million+ in broadband infrastructure projects slated for completion.
• Negative Sentiment: Q2 net loss was $7 million (-$0.56/share) versus prior-year net income of $9 million, reflecting lower U.S. telecom revenues and $4.9 million in restructuring and reorganization charges.
• Neutral Sentiment: Management reaffirmed full-year 2025 guidance calling for flat revenue at ~$725 million, adjusted EBITDA of ~$184 million, net capital expenditures of $90–100 million, and a stable net debt ratio.

Presentation

[Operator]

At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To participate, you will need to press 11 on your telephone. Please note, this conference is being recorded. Now it's my pleasure to turn the call over to the VP Corporate Treasurer, Michelle Satrosky. Please proceed.

[Michele Satrowsky, VP & Corporate Treasurer at ATN International]

Thank you, operator, and good morning, everyone. I'm joined today by Brad Martin, ATM's Chief Executive Officer and Carlos Doblioli, ATM's Chief Financial Officer. This morning, we'll be reviewing our second quarter twenty twenty five results and reaffirming our 2025 outlook. As a reminder, we announced our twenty twenty five second quarter results yesterday afternoon after the market closed. Investors can find the earnings release and conference call slide presentation on our Investor Relations website.

[Michele Satrowsky, VP & Corporate Treasurer at ATN International]

Our earnings release and the presentation contain certain forward looking statements concerning our current expectations, objectives and underlying assumptions regarding our future operations. These statements are subject to risks and uncertainties that could cause actual results to differ from those described. Also, in an effort to provide useful information to investors, our comments today include non GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures and for further information regarding the factors that may affect our future operating results, please refer to our earnings release on our website at ir.atn.com or the eight ks filing provided to the SEC. Now I'll turn the call over to Brad.

[Brad Martin, CEO & Board Member at ATN International]

Good morning, and thank you for joining us today. Let me begin by recognizing our dedicated team across ATM for their unwavering focus on execution and continued progress in advancing our long term strategic priorities. Our Q2 results were in line with our expectations and reflect the steps we're taking to optimize our cost structure. As expected, revenue declined 1% year over year, primarily due to the wind down of subsidy programs. While adjusted EBITDA decreased 6%, net cash from operations rose 2% to approximately $60,000,000 Across the business, our focus on simplification, operational stability and disciplined capital allocation is driving stronger cash generation.

[Brad Martin, CEO & Board Member at ATN International]

Consistent with our commitment to delivering sustainable returns to shareholders, I'm pleased to highlight that our Board of Directors approved a 15% increase in our quarterly dividend, raising it up to $0.02 $75 per share. This reflects the confidence we have in the underlying strength and resilience of our cash flow. It also reinforces our commitment to delivering sustainable value to shareholders while maintaining a disciplined approach to capital allocation. The strategic investments we've made continue to deliver returns. In the second quarter, we expanded the number of broadband homes passed by high speed data services by 8% and grew our high speed subscriber base by 1% year over year.

[Brad Martin, CEO & Board Member at ATN International]

We remain firmly committed to our long term strategy, capitalizing on our fiber fiber fed and broader network infrastructure to deliver essential, high value services in underserved markets. This vision is underpinned by a solid and strengthening financial foundation. Let me take a moment to review the performance of our two business segments in the second quarter. In our International segment, we continued to make steady progress on our strategic priorities, enhancing global networks, improving subscriber and service quality and driving operational efficiency. These efforts are translating into tangible results.

[Brad Martin, CEO & Board Member at ATN International]

Adjusted EBITDA for the segment remained essentially flat compared to last year, reflecting the balance between strategic investment and disciplined cost management. Importantly, we are seeing improvements in the quality of our mobile consumer base. In our largest mobile market, postpaid subscribers grew by 4% year over year, and we continue to experience positive momentum in the number of customers purchasing and consuming data plans, which rose by 25% year over year. We've also delivered two consecutive quarters of improvement in customer retention. Mobile churn rates declined by more than 5% for the second quarter in a row, driven by better network performance, automation, and a sharper focus on operational execution.

[Brad Martin, CEO & Board Member at ATN International]

While overall consumer fixed revenue remained flat, we saw encouraging signs of stabilization and growth. High speed data ARPU and subscriber churn both improved by 3% year over year, offsetting the ongoing decline in legacy services. Our focus remains on driving sustainable value across our international footprint by deepening customer engagement, optimizing operations, and enhancing profitability. In The U. S.

[Brad Martin, CEO & Board Member at ATN International]

Segment, our performance continues to reflect the anticipated impacts of discontinued subsidy programs and the continued phase out of legacy consumer service technologies. Despite these now headwinds, we are seeing early signs of progress. The demand for carrier services such as backhaul is strong, and we are progressing nicely on our carrier managed services builds. Additionally, we have seen improvement in our sales execution, specifically in the rural health care marketplace. Although this segment is primarily focused on business and wholesale markets, we have made progress in delivering fiber and fiber fed high speed data broadband services.

[Brad Martin, CEO & Board Member at ATN International]

Our consumer broadband subscriber base grew more than 10 this quarter, and we are seeing positive trends in ARPU. We remain focused on the strategic transformation, expanding fiber and fiber fed fixed wireless across markets where we have durable consumer market presence while growing our base of business and carrier solutions. We are aligning our network go to market approach and capital investments with this long term vision. While the transition continues to weigh on revenue, we are laying the foundation for a more resilient and higher margin domestic business. We are moving forward with more than $300,000,000 in broadband infrastructure initiatives backed by government funding, with more than half of these projects slated for completion in 2025.

[Brad Martin, CEO & Board Member at ATN International]

These projects are a key pillar of our long term US growth strategy, allowing us to broaden our fiber network more efficiently and positioning us for future revenue gains as they come online. On the policy side, we continue to closely track evolving subsidy programs, FCC policy advancement, and trade and tariff developments. We remain confident in our ability to absorb any short term effects within the parameters of our current 2025 financial guidance. We're actively collaborating with vendor ecosystem, local and federal regulators and state broadband offices to manage outcomes in the best interest of ATM shareholders. Looking ahead, our improved cash generation in the first half reflects the disciplined approach we continue to take toward both cost management and capital deployment, positioning us well for the second half of the year.

[Brad Martin, CEO & Board Member at ATN International]

These early results reinforce our confidence in the path forward, and we are reaffirming our full year guidance as outlined during our fourth quarter earnings call. As we look to the remainder of 2025, our strategic priorities remain clear: continue improving quality and efficiency of our operations, especially in international markets where we see strong demand and steady performance advance the transition of our U. S. Business by growing fiber and carrier services while managing the phase out of nonstrategic legacy products and maintaining financial discipline to support long term value creation. While macroeconomic conditions and competitive dynamics remain fluid, our results this quarter demonstrate we are moving in the right direction, strengthening our operational base and positioning ATN for durable growth.

[Brad Martin, CEO & Board Member at ATN International]

With that, I'll turn it over to Carlos to review the numbers.

[Carlos Doglioli, CFO at ATN International]

Thank you, Brad. Good morning, everyone, and thanks for joining us. Today, I'll walk through our second quarter financial results and outlook for the 2025. Our second quarter results were consistent with our expectations and reflect disciplined execution across our operations. While year over year revenue comparisons continue to reflect headwinds, on a quarter over quarter basis, we're seeing improved top line momentum and benefit from our focus on operational efficiency, cost control and capital discipline.

[Carlos Doglioli, CFO at ATN International]

With that, let's now review our P and L results. Total company revenue for the quarter was $181,300,000 down 1% year over year. As expected, this decline reflects the wind down of certain subsidy programs and the decommissioning of legacy mobile consumer services, partially offset by an increase in construction revenue during the quarter. Operating income for the second quarter decreased to 200,000.0 versus $24,300,000 in the year ago period. The year ago quarter included a $15,900,000 gain from the disposition of assets in one of our international markets.

[Carlos Doglioli, CFO at ATN International]

The quarter's results reflect ongoing cost containment efforts, leading to a reduction in selling, general and administrative costs. These savings were partially offset by $4,900,000 in restructuring and reorganization charges. Net loss for the second quarter was 7,000,000 or $0.56 per share. This compares with the prior year's net income of $9,000,000 or $0.50 per share as the factors influencing operating income similarly impacted the net loss for the period. Adjusted EBITDA was $45,800,000 down 6% from the prior year, mainly due to the impact of lower U.

[Carlos Doglioli, CFO at ATN International]

S. Telecom revenues. Turning now to segment performance. Beginning with our International segment, Q2 revenues were essentially flat at approximately $95,000,000 as growth in fiber and fiber fed services was offset by a decline in legacy technology services and lower mobility equipment sales. During the quarter, we recorded restructuring and reorganization charges of $1,400,000 reflecting our ongoing efforts to simplify the organization and better position the business to improve margins over time.

[Carlos Doglioli, CFO at ATN International]

Adjusted EBITDA for the International segment was essentially flat at $33,300,000 for the quarter, reflecting our continued focus on cost containment. In our domestic segment, second quarter revenues were $86,400,000 down 1.7% year over year. As previously mentioned, revenue was impacted by the conclusion of the ECF and ACP programs as well as the decommissioning of our legacy consumer mobility solutions. This year over year decline was partially offset by an increase in construction revenues. In addition, we continued to gain traction in our carrier service revenue as we replaced legacy roaming contracts with carrier managed service solutions.

[Carlos Doglioli, CFO at ATN International]

During the quarter, we took restructuring and reorganization actions resulting in charges of 2,400,000.0 as part of our strategy to improve operational efficiency and drive margin improvement over time. Adjusted EBITDA for the quarter was $18,300,000 down 16.7% compared with the same quarter last year, primarily due to revenue performance and the timing of certain expenses in the prior year. Moving on to the balance sheet and cash flow highlights. We ended the quarter with $113,300,000 in cash, up from $97,300,000 at the end of Q1. Total debt stood at $583,400,000 and our net debt ratio was 2.58x.

[Carlos Doglioli, CFO at ATN International]

Net cash provided by operating activities for the first half of the year increased 2% year over year to approximately $60,000,000 driven largely by working capital improvements. Capital expenditures for the 2025 totaled $42,000,000 net of $45,900,000 in reimbursable capital spending. This compares to $61,800,000 in CapEx and $46,200,000 in reimbursables in the first half of last year, reflecting our plan to moderate spending and enhance operational cash flow. We returned 7,300,000 in capital to our shareholders in the form of dividends during the 2025. With that, let's move to our outlook for 2025.

[Carlos Doglioli, CFO at ATN International]

We are reaffirming the outlook for 2025 that we provided in our fourth quarter release. We continue to expect revenue for the year to be in line with 2024 of $725,000,000 excluding construction revenue adjusted EBITDA to be essentially flat with last year's $184,000,000 net capital expenditures between 90,000,000 and $100,000,000 down from $110,300,000 in 2024 and net debt ratio to remain flat to year end 2024 with a slight potential improvement exiting the year. We see positive momentum in the business as our efforts to stabilize revenues, gain operational efficiencies and increase cash flow are beginning to gain traction. As we look ahead to the balance of the year, we continue to expect the second half to contribute a larger share of full year results. The size of this quarter's restructuring and reorganization charges was greater than originally expected as we accelerated some actions planned for the upcoming quarters into the second quarter.

[Carlos Doglioli, CFO at ATN International]

As a result, we expect to incur a residual reorganization of restructuring expenses in the third quarter as we complete organizational transitions, although at a lower level than in the second quarter. To wrap up, we're executing against a clear set of priorities, managing costs, strengthening cash flow and positioning our network and services for sustainable growth. Our continued operational discipline and focus give us confidence in our ability to meet our 2025 targets and deliver long term value to our shareholders. Thank you. And now I'll hand the call back over to Brad.

[Brad Martin, CEO & Board Member at ATN International]

Thanks, Carlos. Before we open the call for questions, I want to leave you with a clear takeaway. We are focused on disciplined execution, grounded in financial responsibility and confident in the strategic path we've chosen. This is a year of transition where we're beginning to see encouraging momentum. We're generating stronger cash flow, advancing our grant funded bills, and digitally empowering people and communities so they can connect to the world and prosper.

[Brad Martin, CEO & Board Member at ATN International]

Our long term objective remains unchanged, to build a stronger, more efficient, and more resilient ATN for the future. With that, operator, we'd like to open it up for questions.

[Operator]

Thank you so much. It comes from Rick Prentiss with Raymond James. Please proceed.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

Yes. Good morning, everybody.

[Michele Satrowsky, VP & Corporate Treasurer at ATN International]

Hi, Rick.

[Carlos Doglioli, CFO at ATN International]

Hey, Rick.

[Brad Martin, CEO & Board Member at ATN International]

Good morning, Rick.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

Hey. Couple of questions on my side. First is, what was the impact of the one triple b bill on you guys? Anything on cash taxes? Anything on, other aspects of the of the bill?

[Carlos Doglioli, CFO at ATN International]

Hey, Rick. This is Carlos. Thanks for the question. At this point, it hasn't had an impact. You know, given our jurisdictions and tax positions, we're not expecting an impact in the short term.

[Carlos Doglioli, CFO at ATN International]

We're looking into it, but but that's the current read. We like some of the elements, obviously, the, you know, 100 depreciation and some of the those other elements. But at this point, we're not expecting a short term impact.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

Okay. Related question is there obviously is a fiber race going on in The United States. Other companies have talked about the the bill driving increased pacing of fiber deployment.

[Brad Martin, CEO & Board Member at ATN International]

How is that

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

gonna impact you all from a standpoint of either competition or access to labor and materials as as fiber kinda becomes a a heated up spot?

[Brad Martin, CEO & Board Member at ATN International]

Yeah. Rick, we know certainly, you know, those policies to help to really help expedite permitting are are gonna be very helpful for us. So, you know, where where we operate and build, we build a lot of your land management land. So, know, you these can be very slow permitting and regulatory process. So we do expect that's gonna help speed up pace.

[Brad Martin, CEO & Board Member at ATN International]

So we are looking forward to that, but that's still to be seen.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

And as far as access to to labor supply, materials, all that, there's certainly a little bit of buzz in the community about it's gonna tighten up stuff if if everybody starts trying to race ahead.

[Brad Martin, CEO & Board Member at ATN International]

And and we're not seeing that. Right? Like, we're we're seeing people coming to us quite regularly looking for looking for work. So

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

Okay.

[Brad Martin, CEO & Board Member at ATN International]

Yeah. No. We've not seen that yet. That could potentially be a constraint as things move forward. Right now, we're seeing that there's there's enough capacity to fill our needs.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

K. Last one for me. It's a kind of a bizarre question. But, since you do have fiber, have you ever looked into the possibility of could the fiber portion of the business be converted into a a REIT type of structure, a real estate investment trust for for taxation purposes? Still trying to figure out, obviously, towers are very readable, data centers.

[Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial]

So we, we see fiber as another digital infrastructure category that some people are trying to ponder. Is it something that could be turned into a REIT structure?

[Brad Martin, CEO & Board Member at ATN International]

So to this point, Rick, yeah, that's not something we've, you know, we've looked at. So there are def you know, as you as you mentioned, you know, there are certainly opportunities and towers beyond. And there are other mechanisms out there, asset backed securitization that, you know, kind of taking advantage of. But but from a retrospective, not yet.

[Carlos Doglioli, CFO at ATN International]

Okay. Thanks, guys. Have a good day.

[Operator]

Thank you. We have a question from the line of Greg Barnes with Sidoti. Please proceed.

[Brad Martin, CEO & Board Member at ATN International]

Good morning. In The US markets,

[Gregory Burns, Analyst at Sidoti & Company, LLC]

do you have a line of sight on when we might see the inflection of growth in the fiber led newer services finally offsetting the declines you're seeing in those legacy services and getting back to growth in that part of the business?

[Brad Martin, CEO & Board Member at ATN International]

Yeah. So so certainly, you know, our as we mentioned, you know, we're certainly right in the transition stage in our in our US market. It's something we're watching very closely. You know, we are we are optimistic with the process we've we've made with our partner builds, and we are seeing, you know, demand from carriers starting to increase. So we are seeing a decent pipeline.

[Brad Martin, CEO & Board Member at ATN International]

We are also seeing, you know, some better execution within our sales organizations in areas like World Health Care. So, again, we are expecting to see some improvements here in the second half of the year. We typically do see a better second half with with federal funding and state funding cycles and the consumer Q4 strength. So we are expecting to continue to see improvements. But again, the pipeline is building and getting through in Carlos' prepared remarks, I referenced the year to date CapEx of $42,000,000 in addition to the 40 almost $46,000,000 of reimbursable.

[Brad Martin, CEO & Board Member at ATN International]

That's all US. So there's quite a bit of activity, quite a bit of capital intensity happening in The US market. So so, yeah, we we have not guided, you know, beyond the '25 window. We'll be guiding for '26 on our q four earnings call. But, ultimately, you know, we are we are hopeful, and we are seeing the demand that that that is gonna start to lift, and we're working diligently to deliver that.

[Gregory Burns, Analyst at Sidoti & Company, LLC]

Alright. And then internationally, on the mobile side, I know the focus is on growing those higher valued postpaid subs, but it looks like the the competitive pressures have eased somewhat maybe a little bit on the the the prepaid side. Has there been any changes in the competitive dynamics, or has the market just kind of stabilized to a level where you're not going to see the types of declines we saw there over the last year or so?

[Brad Martin, CEO & Board Member at ATN International]

Yeah. Look, I still think there's competitive pressures, Greg. So, yeah, I do think the initial new entrant in our largest market, you know, that was disruptive last year even even in late twenty three. We think that is normalized to a degree. Again, our focus has been let's get the quality of our subscriber base moving, and that's true in all markets. So data consumption, data plan expansion, which we're seeing contract expansion, which we're seeing in our more mature markets.

[Brad Martin, CEO & Board Member at ATN International]

So that has been the thesis. We're we're we're happy with that thesis, but the competitive pressures are still there. And what we're seeing is the impact really on prepaid. You know, that's really where the competitors come into these markets. But, know, we're we're happy with where we're going.

[Brad Martin, CEO & Board Member at ATN International]

You know, we are really in a number one, number two position in most of these markets, so it's really a defense play going forward. So that's that's why it's important that we see these good trends in data consumption. Again, we're happy with that progress.

[Gregory Burns, Analyst at Sidoti & Company, LLC]

Alright. Thank you.

[Operator]

Thank you. As I see no further questions in the queue, I will turn the call back to Brad Martin for final comments.

[Brad Martin, CEO & Board Member at ATN International]

Great. Thank you, operator, and thank you all for joining us today. We appreciate your continued engagement as we execute on our strategy. We look forward to sharing more progress in the course ahead. Have a great day.

[Operator]

Thank you. And with that, ladies and gentlemen, we conclude our program today. Thank you for joining. You may And you may now disconnect.

Participants

Executives

• Michele Satrowsky, VP & Corporate Treasurer
• Brad Martin, CEO & Board Member
• Carlos Doglioli, CFO

Analysts

• Ric Prentiss, MD & Director - Telecommunications Services Research at Raymond James Financial
• Gregory Burns, Analyst at Sidoti & Company, LLC