Summary
Charter Communications, Inc. reported solid revenue growth of 5.1% year-over-year for the third quarter of 2019, reaching $11.45 billion. This growth was primarily driven by an increase in residential internet subscribers and commercial business customers, alongside the continued expansion of its mobile service launched in the latter half of 2018. Despite revenue growth, net income attributable to Charter shareholders saw a decrease to $387 million from $493 million in the prior year's quarter. This was largely due to an increase in operating costs and expenses, particularly those related to the mobile service launch and programming costs, and higher interest expenses on increased debt. The company continued to make significant capital expenditures, though at a reduced pace compared to the prior year, indicating a strategic shift towards operational efficiency post-integration. Strong free cash flow generation of $1.27 billion for the quarter highlights the company's ability to convert operational performance into cash, providing flexibility for debt management, strategic investments, and shareholder returns through its ongoing share repurchase program.
Financial Highlights
48 data points| Revenue | $11.45B |
| Operating Expenses | $9.86B |
| Operating Income | $1.59B |
| Net Income | $387.00M |
| EPS (Basic) | $1.77 |
| EPS (Diluted) | $1.74 |
| Shares Outstanding (Basic) | 218.50M |
| Shares Outstanding (Diluted) | 222.36M |
Key Highlights
- 1Total revenues increased by 5.1% to $11.45 billion in Q3 2019 compared to Q3 2018, driven by residential internet and commercial customer growth and the mobile service offering.
- 2Net income attributable to Charter shareholders decreased to $387 million in Q3 2019 from $493 million in Q3 2018, impacted by higher operating expenses and interest costs.
- 3Capital expenditures decreased year-over-year, reflecting the completion of major integration and infrastructure projects.
- 4Free cash flow significantly increased to $1.27 billion in Q3 2019 from $532 million in Q3 2018, demonstrating improved operational cash generation.
- 5The company repurchased approximately 6.9 million shares of Class A common stock for $2.7 billion during the third quarter.
- 6The mobile service, launched in H2 2018, generated $192 million in revenue in Q3 2019, though it also contributed to increased operating expenses.
- 7Total debt remained substantial at $74.2 billion as of September 30, 2019, with ongoing efforts to manage maturities and leverage.