Todd Koetje: Hi Brandon, this is Todd. As we’ve shared about in the past and discuss broadly at 35% now versus many of the peer group in the high 40s, low 50s, getting that extra percentage point of penetration is going to be much more achievable for us, especially with some of these new tactics and strategies, closing that gap completely is not what we have talked about.
Julia Laulis: Right. Similar.
Todd Koetje: Yes.
Brandon Nispel: Sure. So I guess, again, the question is if you expect to close the gap, at what ARPU level do, you expect to be at when you are closing the gap?
Julia Laulis: Well, I think that’s a great question. I mean, again, if we use the seesaw analogy, while our penetration is going up and our ARPUs tilting down, their ARPU is going up, all their penetration is tilting down. And somewhere, we’re all going to meet. You can tell me where you think that is. I think it’s for any of us to guess.
Todd Koetje: Recall also that our ARPU that we’re looking at is a data-only ARPU for the vast majority of everything you look at, so the important element to think about as you look at comparing the benchmarks, if you will.
Julia Laulis: But I think what we’re trying to suggest without giving too much leading guidance because none of us has a crystal ball but we’ve taken some big steps and we expect to see the ARPU slide ameliorate.
Brandon Nispel: Great. Thanks for taking the questions.
Operator: Your next question will come from the line of Greg Williams with TD Cowen. Please go ahead.
Greg Williams: Great. Thanks for taking my questions. I’ll take the subscriber question another way, too. So you mentioned you’re poised for sustained momentum here. So you’re the only cable company that provide positive subs this quarter. So have we reached a steady state, you think now of positive subscriber growth, absent ACP next quarter? And second question then is on EBITDA. Todd, can you remind me if there’s any first quarter seasonal impacts and how much they were? And you mentioned the OpEx cost for systems and platforms and you’re retiring 30 different systems. Can you give us a some help on how much that would cost sort of upfront and then when you realize these millions in savings that you alluded to, when will that realization occur? Thanks.
Julia Laulis: Sustained momentum, it certainly feels like it. But quite honestly, my hope is that our team is thinking the way, the Cable One team usually thinks which is about continuous improvement and betting that thus the agile mindset and more trialing like – look, what we have found things that work, how many other things work that have we not tried yet? So I do think we have great momentum going forward. As you mentioned, ups in [ph] ACP, I wouldn’t put a cap on it yet.
Todd Koetje: And Greg, as it relates to seasonality question on EBITDA, I wouldn’t look at that as something that would be a meaningful impact to Q1. I think you appropriately asked about the investments in these long-term platforms and the cost of those investments as we’ve discussed now for a couple of quarters, those costs are going to impact 2024 as it relates to both OpEx and some SG&A, but these are long-term investments and overall efficiencies in terms of how we deliver the product, how we support the product, how we create a better customer experience and how we create a better associate experience. And we referred to several millions of dollars in our prepared remarks on the back end of that. And there is an investment and investment that we think is critical to make this year.
Julia Laulis: And that was related to just the billing platform implementation.
Greg Williams: Got it. Thank you.
Operator: Your next question will come from the line of Frank Louthan with Raymond James. Please go ahead.
Frank Louthan: Great. Thank you. As you’ve been growing those customers, can you give us a sense, is that coming from improving the gross adds or is it a little bit of less affection or how should we think about that? And we can kind of back into the math, but if you want to give us some color on what the range of the multiples are with the put for MBI? Thanks.
Julia Laulis: Frank, its Julie. We grew customers by increasing connects and reducing churn. Again, we – depending on where you’re talking about, all connects increase anywhere from high single digits to mid-double digits, the likes of which we haven’t seen since 2020 and churn is at all-time lows, especially in markets where we responded strongly to competition.
Todd Koetje: And then Frank, on the MBI front, I guess, Julie added definitely some additional commentary in her remarks. I supplemented that in my remarks. I would say the most important thing as it relates to that is, its performance trends are extremely impressive. Where it is from a network perspective is highly aligned with us where it is from a leadership and cultural perspective, checks every box that we look at as it relates to ongoing investments in partners, both investments as well as acquisitions. And we are very mindful of maintaining a very conservative balance sheet approach, both from a leverage perimeter and also how we think about funding perspective transactions like that. And I think you heard me mention that we see a path to where we do not have to go to the capital markets to affect that transaction, given all the proactive planning that we’ve been doing now for the last two years.
Frank Louthan: All right. [Indiscernible]. Thank you.
Operator: Your next question will come from the line of Steven Cahall with Wells Fargo. Please go ahead.
Steven Cahall: Thank you. I wanted to maybe come at the subscriber trends from a slightly different direction. So I understand your strategy of targeting more of the value-conscious consumer, and thank you for talking through that a bit and the implications on ARPU going forward. I think the bit that I’m trying to understand is that it looked like residential data revenue was down sequentially about 3%. It was down, I think, year-on-year, about 3% as well. I think a lot of that has to do with the competition that you’re facing and seeing lower ARPU on existing subs despite all those other trends. So because it’s such a high gross margin business, how do we think about when your residential revenue for broadband might start to stabilize versus continuing to decline?
