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1. Company Snapshot

1.a. Company Description

WideOpenWest, Inc.provides high speed data, cable television, and digital telephony services to residential and business services customers in the United States.Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; WOW tv+ that offers traditional cable video and cloud DVR functionality, voice remote with Google Assistant, and Netflix integration along with access to various streaming services and apps through the Google Play Store; and ultra-video products, as well as offers commercial-free movies, TV shows, sports, and other special event entertainment programs.


The company's telephony services consist of local and long-distance telephone services; business telephony and data services include fiber based, office-to-office metro Ethernet, session initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services.As of December 31, 2021, it served approximately 1.9 million home and business, and 532,900 customers in the states of Alabama, Florida, Georgia, Michigan, South Carolina, and Tennessee.The company was formerly known as WideOpenWest Kite, Inc.


and changed its name to WideOpenWest, Inc.in March 2017.WideOpenWest, Inc.


was founded in 2001 and is based in Englewood, Colorado.

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1.b. Last Insights on WOW

WideOpenWest, Inc.'s recent performance was driven by its announcement to be taken private by DigitalBridge Group, Inc. and Crestview Partners in a $1.5 billion transaction. The deal, which values the company at $5.20 per share, has sparked investigations by several law firms, including Halper Sadeh LLC, Julie & Holleman LLP, and Wohl & Fruchter LLP, regarding the fairness of the sale to shareholders. The company's Q2 2025 earnings call and report showed a quarterly loss of $0.22 per share, beating revenue estimates. Additionally, WOW! was named a Best and Brightest Company to Work For in the Nation for the eighth consecutive year.

1.c. Company Highlights

2. Disappointing Q3 Earnings Amidst Pending Acquisition

The company's Q3 2025 earnings report was marked by a decline in financial performance, with actual EPS coming in at '-0.43' relative to estimates of '-0.2'. Revenue growth was not explicitly stated, but analysts estimate a decline of 6.4% for the next year, indicating a challenging environment for the company. The pending acquisition by affiliated investment funds of DigitalBridge investments and Crestview Partners likely influenced the company's decision not to comment on the results.

Publication Date: Nov -24

📋 Highlights
  • Legacy Market Performance:: Strong HSD ARPU growth and churn near record lows despite challenges from Comcast and Charter.
  • Greenfield Expansion:: Added 15,000 homes in Q3 2025, totaling 106,000 Greenfield homes with 16% penetration.
  • Edge-Out Strategy Success:: Gained 3,700 homes in legacy markets, with 2025 vintage nearing 30% penetration.
  • Customer Value Proposition:: No-contract, no-data-caps, and simplified pricing drive competitive advantage.
  • Response to Mobility Competition:: All-in pricing and optional price lock counter Charter/Comcast’s national mobile ad campaigns.

Operational Highlights

The company reported strong HSD ARPU growth and near-record low churn in legacy markets, despite facing challenges from Comcast and Charter. In Greenfield, the company added over 15,000 homes, bringing the total to 106,000, with a penetration rate of 16%. The edge-out strategy in legacy markets also showed success, with 3,700 homes added and a penetration rate near 30% for the '25 vintage. As CEO Teresa Elder noted, customers continue to resonate with the company's no-contract, no-data-caps, reliable network, and simplified pricing.

Valuation and Outlook

Given the company's current financial performance, its valuation metrics are worth examining. The P/S Ratio stands at 0.75, indicating that investors are pricing in a significant decline in revenue. The EV/EBITDA ratio is 10.66, suggesting that the company's enterprise value is still relatively high compared to its EBITDA. Additionally, the ROE is -42.52%, and the ROIC is 0.46%, indicating poor profitability. With a Net Debt / EBITDA ratio of 7.53, the company's debt burden is a concern. As the company navigates the pending acquisition, investors will be watching to see how these challenges are addressed.

Market Positioning

The company's competitive positioning remains strong, with a focus on all-in pricing, optional price lock, and clear value helping to maintain a strong position in the market. However, the challenges posed by Comcast and Charter's national advertising emphasizing mobile services are a concern. The company's approach to competing with cable companies, new fiber entrants, and fixed wireless in Greenfield has shown success, but the legacy markets continue to be a challenge.

3. NewsRoom

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2 Stocks to Watch From a Challenging Cable Television Industry

Nov -26

Source: zacks.com

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WOW Alert: Monsey Firm of Wohl & Fruchter Renews Investigation Into the Proposed Sale of WideOpenWest to DigitalBridge Group and Crestview Partners

Nov -17

Source: globenewswire.com

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Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches in the WideOpenWest Buyout by DigitalBridge and Crestview Partners

Nov -06

Source: newsfilecorp.com

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WideOpenWest (WOW) Reports Q3 Loss, Beats Revenue Estimates

Nov -05

Source: zacks.com

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WideOpenWest, Inc. (WOW) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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WOW! REPORTS THIRD QUARTER 2025 RESULTS

Nov -05

Source: prnewswire.com

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WideOpenWest, Inc., to Announce Third Quarter 2025 Financial Results

Nov -04

Source: prnewswire.com

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Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches in the WideOpenWest Buyout by DigitalBridge and Crestview Partners

Oct -28

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

High-Speed Data

Expected Growth: 4.83%

WideOpenWest's high-speed data growth is driven by increasing demand for streaming services, online gaming, and remote work, coupled with the company's strategic network investments and competitive pricing. Additionally, the growing need for reliable and fast internet connectivity in underserved markets contributes to the 4.83% growth rate.

Video

Expected Growth: 4.65%

WideOpenWest's 4.65% growth is driven by increasing demand for high-speed internet and data services, expansion into new markets, and strategic investments in network infrastructure. Additionally, the company's focus on customer experience and retention has led to reduced churn rates, contributing to revenue growth.

Telephony

Expected Growth: 4.33%

WideOpenWest's telephony segment growth of 4.33% is driven by increasing demand for high-speed internet and voice services, particularly in rural areas. The company's fiber-based network expansion, competitive pricing, and bundled service offerings also contribute to growth. Additionally, the shift towards remote work and virtual communication fuels demand for reliable and high-quality telephony services.

Other

Expected Growth: 4.83%

WideOpenWest's 4.83% growth is driven by increasing demand for high-speed internet and data services, particularly in underserved markets. The company's focus on fiber-based infrastructure and strategic network upgrades have improved service quality, leading to customer retention and acquisition. Additionally, the growing need for reliable connectivity in the wake of the pandemic has boosted demand for WOW's services.

Other Business Services

Expected Growth: 7.3%

WideOpenWest's Other Business Services segment growth of 7.3% is driven by increasing demand for cloud-based services, cybersecurity solutions, and IT consulting. Additionally, the company's strategic partnerships and acquisitions have expanded its service offerings, contributing to revenue growth. Furthermore, the rising need for digital transformation among businesses has led to increased adoption of WideOpenWest's services, fueling segment growth.

7. Detailed Products

High-Speed Internet

WideOpenWest, Inc. offers high-speed internet plans with speeds up to 1 Gbps, enabling customers to stream, game, and work online without interruptions.

TV Services

WideOpenWest, Inc. provides TV services with a range of channels, including local networks, sports, and premium channels, along with features like DVR and On Demand.

Phone Services

WideOpenWest, Inc. offers home phone services with features like unlimited local and long-distance calling, voicemail, and caller ID.

Business Internet

WideOpenWest, Inc. provides business internet plans with speeds up to 10 Gbps, designed to meet the needs of small to large businesses.

Business Phone

WideOpenWest, Inc. offers business phone services with features like hosted VoIP, SIP trunking, and business phone systems.

Fiber-Based Services

WideOpenWest, Inc. provides fiber-based services, including fiber-to-the-home and fiber-to-the-business, offering high-speed internet, TV, and phone services.

8. WideOpenWest, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WideOpenWest, Inc. faces moderate threat from substitutes due to the availability of alternative internet and cable services from competitors.

Bargaining Power Of Customers

WideOpenWest, Inc. has a low bargaining power of customers due to the lack of switching options and high switching costs.

Bargaining Power Of Suppliers

WideOpenWest, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

WideOpenWest, Inc. faces a low threat of new entrants due to the high barriers to entry and significant capital requirements.

Intensity Of Rivalry

WideOpenWest, Inc. operates in a highly competitive industry with intense rivalry among existing players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.18%
Debt Cost 9.91%
Equity Weight 21.82%
Equity Cost 10.89%
WACC 10.13%
Leverage 358.33%

11. Quality Control: WideOpenWest, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.17$

Current Price

5.17$

Potential

-0.00%

Expected Cash-Flows