Call Start: 08:30 January 1, 0000 9:14 AM ET

Uniti Group, Inc. (NASDAQ:UNIT)

Q2 2023 Earnings Conference Call

August 03, 2023, 08:30 ET

Company Participants

Kenneth Gunderman - President, CEO & Director

Paul Bullington - SVP, CFO & Treasurer

Conference Call Participants

Gregory Williams - TD Cowen

David Barden - Bank of America Merrill Lynch

Frank Louthan - Raymond James & Associates

Operator

Hello and welcome to Uniti Group's Second Quarter 2023 Conference Call. My name is [indiscernible] and I will be your operator for today. A webcast of this call will be available on the company's website, www.uniti.com, beginning today and will remain available for 14 days. At this time, all participants are in a listen-only mode. Participants on the call we have the opportunity to ask questions following the company's prepared comments.

The company would like to remind you that today's remarks include forward-looking statements and actual results could differ materially from those projected in these statements. The factors that could cause actual results to differ are discussed in the company's filings with the SEC. The company's remarks this morning were reference slides posted on its website and you are encouraged to refer to those materials during this call. Discussions during the call will also include certain financial measures that were not prepared in accordance with the generally accepted accounting principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the company's current report on Form 8-K dated today.

I would now like to turn the call over to Uniti Group's Chief Executive Officer, Kenny Gunderman. Please go ahead, sir.

Kenneth Gunderman

Thank you. Good morning, everyone and thank you for joining. Starting on Slide 3, Uniti posted another quarter of solid operating performance. And as a result, we're reiterating our consolidated full year 2023 revenue adjusted EBITDA and AFFO outlook. Our consolidated core recurring revenue grew 4% during the second quarter from the prior year, while our Uniti Fiber core recurring revenue grew 5%. Our lease-up revenue categories continue to reap terrific results with non-wireless wholesale, enterprise and dark fiber lease-up revenue growing at 7%, 15% and 25%, respectively, during the quarter. We also signed a new 10-gig upgrade agreement with one of our major wireless carriers during the quarter. The agreement covers approximately 1,100 lit backhaul sites and extends the contract term from a blended term remaining of less than a year to now 7 years.