Summary
Charter Communications, Inc. reported solid revenue growth for the nine months ended September 30, 2022, with total revenues increasing by 4.9% to $40.3 billion. This growth was primarily driven by increases in residential internet, mobile, and commercial customers, as well as strategic price adjustments. Despite revenue growth, net income attributable to Charter shareholders saw a slight decrease of 2.1% for the nine-month period to $3.86 billion, impacted by increased operating costs, notably in mobile services and customer servicing. The company continues to invest heavily in network expansion and product development, including its rural construction initiative and the rollout of advanced WiFi services. While the company added a significant number of mobile lines and internet customers, the mobile segment continues to be a drag on Adjusted EBITDA and free cash flow due to customer acquisition costs. Charter's balance sheet shows a substantial increase in long-term debt to $95.5 billion, largely to fund its strategic initiatives and share repurchases. However, the company maintains sufficient liquidity through its cash on hand and credit facilities to meet its obligations.
Financial Highlights
46 data points| Revenue | $13.55B |
| Operating Expenses | $10.63B |
| Operating Income | $2.92B |
| Net Income | $1.19B |
| EPS (Basic) | $7.51 |
| EPS (Diluted) | $7.38 |
| Shares Outstanding (Basic) | 157.97M |
| Shares Outstanding (Diluted) | 160.64M |
Key Highlights
- 1Total revenues increased by 3.1% to $13.55 billion for the third quarter and by 4.9% to $40.35 billion for the nine months ended September 30, 2022.
- 2Net income attributable to Charter shareholders decreased by 2.4% to $1.185 billion in Q3 2022, but increased by 26.6% to $3.859 billion for the nine months ended September 30, 2022.
- 3Long-term debt increased significantly to $95.5 billion as of September 30, 2022, up from $88.6 billion at the end of 2021, primarily due to new debt issuances.
- 4The company added 75,000 internet customers and 396,000 mobile lines in the third quarter of 2022, contributing to overall customer base growth.
- 5Free cash flow decreased by 59.8% to $1.507 billion in Q3 2022 and by 22.2% to $4.966 billion for the nine months ended September 30, 2022, mainly due to higher capital expenditures.
- 6Capital expenditures increased to $6.46 billion for the nine months ended September 30, 2022, from $5.56 billion in the prior year, driven by the rural construction initiative.
- 7The company is facing a significant legal challenge related to a fatal stabbing incident, with a jury awarding $7.375 billion in damages (later proposed to be reduced to $1.144 billion), though Charter has not accrued a liability due to expected appeals.