ATN International (NASDAQ:ATNI) executives outlined the company’s broadband and wireless strategy, recent asset sale and capital allocation plans during a presentation at a Three Part Advisors IDEAS conference.
Chief Executive Officer Naji Khoury, who said he joined ATN about two months ago after a long career in telecom, described the company as a provider of digital infrastructure and communications services across two segments: international telecom operations in the Caribbean region and parts of South America, and U.S. operations focused largely on Alaska and the Four Corners region.
International Markets Seen as Stable, With Guyana Highlighted
Khoury said ATN’s international segment includes Bermuda, the Cayman Islands, the Virgin Islands and Guyana. He characterized those markets as stable and generally operating in duopoly environments, with ATN offering fixed broadband and mobile services in most of them.
Guyana was highlighted as a key growth market. Khoury said the country is growing rapidly due to oil and gas activity, and that ATN is the incumbent provider there. He said the company covers about 80% of homes in Guyana with fiber, while penetration remains low and average revenue per subscriber is increasing.
Khoury also said broadband penetration in ATN’s international markets remains below levels seen in the U.S., leaving room for additional growth. He said the company has improved international margins by about 200 basis points from 2021 to 2025 and sees further opportunities to improve operations and costs.
In individual markets, Khoury said ATN is the challenger in the Cayman Islands, where it is building fiber, and the market leader in Bermuda, where it is converting from coax to fiber. In the U.S. Virgin Islands, he said recent volatility was tied mostly to changes in government subsidies after COVID, but that the market has stabilized.
U.S. Strategy Focuses on Fiber in Rural Markets
In the U.S. segment, Khoury focused on Alaska and New Mexico. He said ATN has opportunities to deploy fiber in rural areas where competition is limited, including in the Four Corners region, and that government funding is helping support those deployments.
Khoury said ATN is building fiber in Alaska to replace copper and take market share from larger incumbent competitor GCI, which he said has about 90% market share. He said ATN has spent recent years investing in network construction and is now focused on connecting homes and increasing share.
Khoury also pointed to a government broadband award, saying ATN recently received about $120 million in BEAD funding to build fiber in Alaska. Chief Financial Officer Carlos Doglioli later referred to a BEAD allocation of around $150 million, calling it a significant catalyst for consumer opportunities in U.S. markets.
Tower Sale Strengthens Balance Sheet
Doglioli discussed ATN’s recently announced tower sale, saying the company completed an initial close last week. The transaction covers 214 towers in the southwestern United States, with total expected proceeds of approximately $298 million. Doglioli said the initial close brought in $268 million.
As part of the transaction, Doglioli said ATN paid down roughly $65 million to $70 million of revolver debt. He also said about 25% to 30% of proceeds are expected to go toward taxes and minority leakage.
Doglioli said the tower sale unlocked value and strengthened the company’s balance sheet. He said ATN had about $300 million in liquidity before the transaction, including credit facility availability and approximately $120 million of cash at the end of the first quarter. He said the company’s leverage ratio was 2.3 times before the transaction, which he described as low for the industry, and noted that about 60% of debt is at the subsidiary level and non-recourse to the parent.
Guidance and Capital Allocation
ATN reiterated adjusted EBITDA guidance of $183 million to $193 million, reflecting the impact of the tower sale’s initial close. Doglioli said capital expenditure guidance remained unchanged at $105 million to $115 million.
Doglioli said ATN has returned close to $100 million to shareholders over the past five years and has paid uninterrupted quarterly dividends since 1999. He also said capital intensity has moderated after heavier investment in 2022 and 2023, returning to what the company views as a more normalized investment level of 10% to 15%.
Satellite Competition Addressed in Q&A
During a question-and-answer session, Khoury addressed satellite-based broadband competition. He said satellite service should not be ignored and can win in areas where no other service is available. However, he argued that fiber has a clear advantage when available.
“Fiber will always win over satellite,” Khoury said, adding that fiber pricing in some ATN markets can be 30% to 40% lower than Starlink, with less upfront investment for consumers.
Khoury also said ATN can use satellite as a backup for customers requiring high availability and can provide services such as backhaul to satellite providers.
Asked about growth, Khoury said he is focused not only on top-line expansion but on translating revenue into free cash flow. He said some markets may be limited to low-single-digit revenue growth, but that improved cost management and capital discipline could support stronger free cash flow growth.
Khoury said he sees room for margin expansion, citing his experience operating Caribbean telecom markets with margins between 40% and 50% and saying U.S. peers typically operate in the mid-30% range. He said ATN’s U.S. and Caribbean segments have room to close the gap through better management and cost structure improvements.
About ATN International (NASDAQ:ATNI)
ATN International, Inc (NASDAQ: ATNI) is a diversified provider of telecommunications services that operates through a combination of wireless, wireline and broadband networks. Headquartered in Beverly, Massachusetts, the company offers a range of voice and data solutions to residential, commercial and wholesale customers. Its core offerings include long-distance voice services, fixed-line telephony, broadband internet access and network infrastructure solutions.
Through its business segments, ATN delivers tailored communications products to underserved markets across the Caribbean, Latin America, parts of the Pacific and select rural regions of the United States.
