Summary
Charter Communications, Inc. reported a net loss of $96 million for the three months ended June 30, 2013, a slight increase from $83 million in the same period last year. For the six months ended June 30, 2013, the net loss narrowed to $138 million from $177 million in the prior year. Revenue grew by 5% year-over-year for both the quarter and the first six months, driven by increases in residential Internet and commercial customer growth, and price adjustments. However, this growth was partially offset by a decline in video customers and lower advertising sales. Financially, the company continues to manage a significant debt load of approximately $12.9 billion. Despite the net losses, Charter generated positive operating cash flow and free cash flow. Significant debt refinancing activities occurred during the period, including the issuance of new notes and amendments to credit facilities, which resulted in losses on extinguishment of debt but improved the company's debt maturity profile and interest rates. The acquisition of Bresnan Broadband Holdings, LLC in July 2013 for $1.625 billion is a significant strategic move that will expand the company's footprint. The company also saw a significant investment from Liberty Media, which now holds a 27% stake and has gained board representation, signaling a new strategic chapter for Charter.
Financial Highlights
44 data points| Revenue | $1.97B |
| Operating Expenses | $1.74B |
| Operating Income | $234.00M |
| Interest Expense | $211.00M |
| Net Income | -$96.00M |
| EPS (Basic) | $-0.96 |
| Shares Outstanding (Basic) | 100.60M |
Key Highlights
- 1Revenue increased by 5% for both the three and six months ended June 30, 2013, compared to the prior year periods, reaching $1.97 billion and $3.89 billion, respectively.
- 2Net loss for the quarter was $96 million, a slight increase from $83 million in Q2 2012, while the six-month net loss narrowed to $138 million from $177 million in the prior year.
- 3The company maintained a substantial long-term debt of $12.8 billion as of June 30, 2013, though recent debt management activities have improved its structure and reduced interest expenses.
- 4Operating cash flow remained strong, with $1.03 billion generated for the first six months of 2013, supporting capital expenditures and debt servicing.
- 5Free cash flow increased significantly year-over-year, reaching $75 million for the quarter and $193 million for the six months, indicating improved operational cash generation.
- 6In July 2013, Charter completed the acquisition of Bresnan Broadband Holdings, LLC for $1.625 billion, expanding its service footprint into new territories.
- 7Liberty Media Corporation acquired a 27% stake in Charter in May 2013, bringing significant strategic investment and board influence, including the appointment of John Malone and Gregory Maffei to the board.