By Shares of WideOpenWest, also known as WOW!, experienced a decline after the broadband provider adjusted its full-year sales forecast. This adjustment came as a result of customers transitioning from WideOpenWest’s cable TV service to its new bundled YouTube TV offering.
In morning trading, the stock dropped approximately 6% to $7.76. Over the past year, shares have seen a decrease of about 61%, in contrast to the S&P 500’s 8% gain.
Based in Englewood, Colo., the company revised its full-year sales outlook to a range of $691 million to $696 million, down from the previous projections of $703 million to $707 million.
In May, WideOpenWest announced a partnership with Alphabet’s Google to provide its customers access to YouTube TV, a pay-TV subscription service, as part of a bundled package including internet services. Consequently, WideOpenWest stopped marketing its own TV services.
“Our transition to YouTube TV is impacting our outlook,” stated Chief Financial Officer John Rego during an analyst conference call. He further explained that the company will now recognize YouTube TV revenue on a net basis, shifting away from the gross-basis method used for previous video revenue recognition.
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