Cable One Expects High $200 Million CapEx as ARPU Falls About $2 Sequentially

Cable One expects full-year capital expenditures in the high $200 million range as it invests while focusing on debt reduction. In the third quarter, average revenue per user (ARPU) fell about $2 from the previous quarter amid competitive pricing and promotions.

Residential data revenue declined 10.3% from a year earlier. Management expects ARPU to decline somewhat as Cable One pursues subscriber penetration gains.

Customer losses narrowed to about 7,500 in the third quarter from about 17,100 in the second quarter. The company’s total revenue and adjusted EBITDA also declined year over year.

Cable One drew a net $500 million under its revolver during the quarter. Gross debt was $3.55 billion, and net leverage was 4.1 times.