Overview

ATN International is a leading provider of digital infrastructure and communications services, with a focus on rural and remote markets in the United States, Bermuda, and the Caribbean region. The company has developed significant operational expertise and resources to support its local operating subsidiaries, allowing them to improve their quality of service and achieve greater economies of scale.

ATN International operates in two main segments: International Telecom and US Telecom. The International Telecom segment offers fixed, carrier, mobility, and managed services in Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands. The US Telecom segment provides fixed, carrier, and managed services in Alaska and the western United States.

The company generates revenue from a variety of services, including:

• Mobility services for business and consumer customers
• Fixed broadband, voice, and video services for business and consumer customers
• Carrier services, such as leasing network infrastructure, wholesale roaming, and long-distance voice
• Managed IT services, including network, application, and hosting services

ATN International also participates in various government funding programs, such as the Universal Service Fund, the Alaska Connect Fund, and the Rural Digital Opportunity Fund, which provide support for deploying and operating telecommunications networks in high-cost and underserved areas.

Segment Financial Performance

For the three months ended March 31, 2025, the International Telecom segment generated $94.5 million in revenue and $14.8 million in operating income, an increase of 1.5% and 26.5% respectively compared to the same period in 2024. This was driven by growth in carrier services revenue and cost savings initiatives.

The US Telecom segment reported $84.8 million in revenue and a $2.4 million operating loss for the three months ended March 31, 2025, compared to $93.7 million in revenue and $0.6 million in operating income for the same period in 2024. The decrease was primarily due to lower fixed, carrier, and mobility revenues, partially offset by reduced operating expenses.

Regulatory and Funding Matters

ATN International receives various forms of high-cost universal service support, including from the Alaska Connect Fund, the Enhanced Alternative Connect America Model, and the Connect America Fund II program. The company is required to meet certain broadband deployment and service obligations in exchange for this funding.

The company was also approved to participate in the FCC’s Secure and Trusted Communications Networks Reimbursement Program, which is providing up to $517 million to replace communications equipment deemed to pose a national security risk.

In addition, ATN International partners with tribal governments to obtain grants under programs like the Tribal Broadband Connectivity Program and the Rural Development Broadband ReConnect Program to deploy broadband in underserved areas.

Liquidity and Capital Resources

As of March 31, 2025, ATN International had $97.3 million in cash, cash equivalents, and restricted cash, as well as $562.4 million in total debt, net of unamortized costs. The company’s primary sources of liquidity include cash from operations, availability under its credit facilities, and proceeds from dispositions.

ATN International continues to invest in its telecommunications networks and systems, with $43.3 million in capital expenditures during the first quarter of 2025. The company expects total non-reimbursable capital expenditures of $90-100 million for the full year 2025 to support network expansion and upgrades.

The company’s liquidity could be impacted by factors such as demand for its services, regulatory changes, economic conditions, and inflation. ATN International actively manages its liquidity and capital resources to fund its operations, capital expenditures, and strategic initiatives.

Overall, ATN International’s financial performance in the first quarter of 2025 was mixed, with the International Telecom segment showing growth while the US Telecom segment faced headwinds. The company continues to navigate regulatory and funding matters, while investing in its networks and exploring strategic opportunities to drive long-term shareholder value.