Atn International’s Mixed Earnings Call: Growth Amidst Challenges

Atn International, Inc. ((ATNI)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call of Atn International, Inc. painted a mixed picture for investors. While there were notable improvements in cash flow and dividend increases, these positive developments were offset by revenue declines, a reported net loss, and challenges in the domestic segment. The company’s strategic focus on broadband expansion and operational efficiency indicates positive momentum, yet financial setbacks suggest a cautious outlook.

Quarterly Dividend Increase

The Board of Directors at Atn International approved a 15% increase in the quarterly dividend, raising it to $0.275 per share. This decision reflects the company’s confidence in its cash flow strength, signaling a positive outlook for shareholders.

Broadband Expansion

Atn International expanded its broadband reach by increasing the number of homes passed by high-speed data services by 8%. Additionally, the high-speed subscriber base grew by 1% year-over-year, demonstrating the company’s commitment to expanding its broadband infrastructure.

International Segment Stability

The International segment showed stability with adjusted EBITDA remaining flat. Notably, postpaid subscribers grew by 4%, and data plan consumption increased by 25% year-over-year, indicating robust demand in international markets.

Improved Mobile Churn Rates

The company reported an improvement in mobile churn rates by more than 5% for the second consecutive quarter. This improvement is attributed to better network performance and operational execution.

Cash Flow Improvements

Net cash from operations rose by 2% to approximately $60 million. This improvement, alongside moderated capital expenditures totaling $42 million for the first half of 2025, reflects the company’s efforts to enhance cash flow generation.

Revenue Decline

Revenue declined by 1% year-over-year, primarily due to the wind-down of subsidy programs and the decommissioning of legacy mobile consumer services. This decline highlights the challenges faced in maintaining revenue growth amidst strategic transitions.

Decreased Operating Income

Operating income for the second quarter decreased significantly to $0.2 million from $24.3 million in the previous year. This decline was influenced by the absence of a $15.9 million gain recorded in the prior year.

Net Loss Reported

Atn International reported a net loss of $7 million, or $0.56 per share, compared to a net income of $9 million, or $0.50 per share, in the prior year. This shift to a net loss underscores the financial challenges encountered during the quarter.

Domestic Segment Challenges

The Domestic segment faced challenges with second-quarter revenues declining to $86.4 million, down 1.7% year-over-year. This decline was impacted by the conclusion of subsidy programs and the phaseout of legacy services.

Forward-Looking Guidance

During the earnings call, Atn International reaffirmed its 2025 financial guidance amidst a year of strategic transitions. Despite a 1% revenue decline to $181.3 million and a 6% decrease in adjusted EBITDA to $45.8 million, net cash from operations rose by 2%. The company is advancing over $300 million in broadband infrastructure initiatives, with significant completion expected in 2025, supported by government funding. Atn remains focused on enhancing operational efficiency and maintaining financial discipline to support long-term value creation.

In summary, Atn International’s earnings call reflected a mixed sentiment, with positive strides in cash flow and dividends juxtaposed against revenue declines and net losses. The company’s strategic focus on broadband expansion and operational efficiency offers potential for future growth, yet financial challenges necessitate a cautious approach moving forward.