Optimum Communications (OPTU) risk factors, FY2024 10-K

Other

1. 01In addition, certain of our competitors own directly or are affiliated with companies that own programming content or have exclusive arrangements with content providers that may enable them to obtain lower programming costs or offer exclusive programming that may be attractive to prospective customers
2. 02We face significant risks as a result of rapid changes in technology, consumer expectations and behavior
3. 03We may not be able to successfully implement our growth strategy
4. 04The financial markets are subject to volatility and disruptions, which have in the past, and may in the future, adversely affect our business, including by affecting the cost of new capital and our ability to fund acquisitions or other strategic transactions
5. 05between Russia and Ukraine and in the Middle East. There can be no assurance that market conditions will not continue to be volatile or worsen in the future
6. 06Persistent disruptions in the capital markets as well as the broader global financial market could increase our interest expense, adversely affecting our business, financial position, results of operations and liquidity
7. 07We are highly leveraged and have substantial indebtedness, which reduces our capability to withstand adverse developments or business conditions. If we incur additional indebtedness, such indebtedness could further exacerbate the risks associated with our substantial indebtedness
8. 08We have in past periods incurred substantial losses from operations, and we may do so in the future, which may reduce our ability to raise needed capital
9. 09A lowering or withdrawal of the ratings assigned to our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital
10. 10Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds
11. 11We are subject to significant restrictive covenants under the agreements governing our indebtedness
12. 12These restrictions could have a material adverse effect on our ability to grow in accordance with our strategy and on the value of our debt and equity securities
13. 13Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding
14. 14Changes to trade policy, to the extent applicable to equipment we or our customers use, could adversely affect our business and results of operations
15. 15Our network, infrastructure and facilities are critical to our operating activities
16. 16In the conduct of our business, we rely on systems, networks and infrastructure to provide our services to our customers. Additionally, the nature of our business involves the receipt and storage of information about our customers and employees
17. 17Issues related to the use of AI in our business could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business
18. 18A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale
19. 19We have engaged and may in the future engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations
20. 20Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs
21. 21Our business depends on intellectual property rights and on not infringing on the intellectual property rights of others
22. 22We may be liable for the material that content providers distribute over our networks
23. 23If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected
24. 24Impairment of the Altice brand or Mr. Drahi's reputation could adversely affect current and future customers' perception of Altice USA
25. 25Macroeconomic developments may adversely affect our business
26. 26Online piracy of entertainment and media content could result in reduced revenues and increased expenditures which could materially harm our business, financial condition and results of operations
27. 27Our business is subject to extensive governmental legislation and regulation, which could adversely affect our business, increase our operational and administrative expenses and limit our revenues
28. 28Our cable system franchises are subject to non-renewal or termination. The failure to renew a franchise in one or more key markets could adversely affect our business
29. 29Our cable system franchises are non-exclusive. Accordingly, local and state franchising authorities can grant additional franchises and create competition in market areas where none existed previously, resulting in overbuilds, which could adversely affect our results of operations
30. 30Local franchising authorities have the ability to impose additional regulatory constraints on our business, which could reduce our revenues or increase our expenses
31. 31Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates to cover our increasing costs
32. 32We may be materially adversely affected by regulatory changes related to pole attachments and the regulatory environment related to pole attachments could impede our ability to expand into new markets
33. 33Changes in channel carriage regulations could impose significant additional costs on us
34. 34Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services
35. 35Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs
36. 36Our mobile service exposes us to regulatory risk
37. 37We may be materially adversely affected by regulatory, legal and economic changes relating to our physical plant
38. 38We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers run out
39. 39Risk Factors Relating to Ownership of Our Class A Common Stock and Class B Common Stock
40. 40Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock, which could reduce their influence over matters on which stockholders vote
41. 41Because we have no current plans to pay cash dividends on our Class A common stock or Class B common stock for the foreseeable future, our stockholders may not receive any return on investment unless they sell their Class A common stock or Class B common stock
42. 42Future sales, or the perception of future sales, by us or our existing stockholders in the public market could cause the market price of our Class A common stock to decline
43. 43Any shares held by our affiliates, as that term is defined under Rule 144 ("Rule 144") of the Securities Act of 1933, as amended (the "Securities Act"), including Next Alt and its affiliates, may be sold only in compliance with certain limitations
44. 44In addition, to the extent large holders of our common stock pledge some or all of the shares they own as collateral for loans, the forced sale of the common stock subject to a pledge into the market in a short period could negatively impact the market price of our common stock
45. 45Each share of Class B common stock is entitled to twenty-five votes per share and each share of Class A common stock is entitled to one vote per share. If we issue any shares of Class C common stock, they will be non-voting
46. 46Next Alt controls us and its interests may conflict with ours or our stockholders in the future
47. 47Anti-takeover provisions in our organizational documents could delay or prevent a change of control transaction
48. 48Holders of a single class of Altice USA common stock may not have any remedies if an action by our directors has an adverse effect on only that class of Altice USA common stock
49. 49We are a "controlled company" within the meaning of the rules of the NYSE. As a result, we qualify for, and rely on, exemptions from certain corporate governance requirements that would otherwise provide protection to stockholders of other companies
50. 50If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A common stock, or if our operating results do not meet their expectations, the market price of our Class A common stock could decline
51. 51We have been subject to securities class action litigation in the past and could be subject to securities class action litigation in the future