Altice USA reported nearly 3 percent revenue growth in the fourth quarter as the operator saw gains across its residential, business and advertising segments.

Revenue for the period was up 2.6 percent year over year to $2.37 billion, driven by residential revenue growth of 1.8 percent, business services growth of 5.1 percent and advertising revenue growth of 9.9 percent.

Altice lost 25,000 pay TV subscribers in Q4, compared to losses of 21,000 a year ago. The company added 25,000 residential broadband subscribers, down from gains of 36,000 in the fourth quarter of 2016, and added 10,000 voice customers.

Total customer relationships ticked up slightly, with 6,000 adds for the quarter.

“Despite these relatively tepid unit growth rates, Altice continues to generate respectable revenue growth,” MoffettNathanson analysts wrote in a note to investors.

The analysts pointed to total ARPU per customer relationship growth of 1.5 percent year over year, driven by strong growth in residential broadband, which was up 10.6 percent to $55.90. Much of that growth is due to customers choosing higher speed service tiers, rather than simple rate increases. Altice noted that 90 percent of its residential broadband gross additions were opting for download speeds of 100 Mbps or higher at the end of Q4.

“Nevertheless, if there is a concern here it is only that this growth rate is too high – unsustainably so – and, in a competitive market (versus Fios) raises obvious risks,” MoffettNathanson analysts said.

In a statement, Altice USA Dexter Goei said that during 2017 the company made significant investments in customer experience as well as strategic moves regarding offerings.

“This includes expanding the availability of ultra-fast broadband speeds, launching our new integrated entertainment platform Altice One, expanding our content line-up, commencing the rollout of a state-of-the-art fiber (FTTH) network, signing a full MVNO agreement to be able to launch mobile services for our customers and investing in a multiscreen addressable and national advertising platform,” Goei said.

“We continued to have great momentum and delivered strong financial results by growing our customer base, revenues and margins with high free cash flow growth,” he noted.

Altice’s fiber-to-the-home deployment is underway with construction to connect several hundred thousand homes in New York, New Jersey and Connecticut. The network build is expected to accelerate in 2018 with FTTH services being commercialized later this year.

The company is also pushing ahead under its MVNO agreement with Sprint, with plans to launch a wireless mobile service by 2019.