Summary
Charter Communications, Inc. reported solid revenue growth in the first quarter of 2018, driven primarily by increases in residential Internet and commercial business customers. Total revenues rose by 4.9% year-over-year to $10.7 billion, with Internet revenue showing a robust 9.1% increase. While video revenue saw a modest increase, it was due to price adjustments and bundle allocations, as the company experienced a decline in residential video customers. The company is actively integrating the Time Warner Cable and Bright House networks, which is expected to continue throughout 2018 and into 2019, with a focus on enhancing customer experience and insourcing operations. Financially, Charter maintained profitability with net income attributable to Charter shareholders of $168 million, a slight increase from the prior year. However, the company's free cash flow saw a significant decrease to negative $49 million from $1.1 billion in the prior-year period, largely attributed to unfavorable changes in working capital and increased capital expenditures. The company has also continued its debt management, issuing new notes and using proceeds to repay existing indebtedness. Charter emphasizes its strong liquidity position with substantial availability under its credit facilities and significant cash on hand to manage its debt obligations and fund ongoing investments.
Financial Highlights
49 data points| Revenue | $10.66B |
| Operating Expenses | $9.62B |
| Operating Income | $1.04B |
| Net Income | $168.00M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 237.76M |
| Shares Outstanding (Diluted) | 241.42M |
Key Highlights
- 1Total revenues increased by 4.9% to $10.7 billion in Q1 2018, primarily driven by growth in Internet and commercial services.
- 2Residential Internet revenue saw a significant increase of 9.1%, reflecting strong customer acquisition and adoption.
- 3Net income attributable to Charter shareholders was $168 million, a modest increase from $155 million in the prior year's quarter.
- 4Free cash flow declined substantially to -$49 million in Q1 2018 from $1.1 billion in Q1 2017, largely due to working capital changes and higher capital expenditures.
- 5Capital expenditures increased significantly to $2.2 billion in Q1 2018, up from $1.6 billion in Q1 2017, driven by customer premise equipment and infrastructure investments.
- 6The company continued its debt management strategy by issuing new debt and using proceeds for repayment and general corporate purposes.
- 7Charter is actively integrating the acquired Time Warner Cable and Bright House Networks, with the aim of completing substantial integration by 2019.