Charter Communications Grows Revenue By 3% In Q3; Misses Consensus

Charter Communications Grows Revenue By 3% In Q3; Misses Consensus
  • Charter Communications, Inc CHTR reported third-quarter FY22 revenue growth of 3.1% year-on-year to $13.55 billion, missing the consensus of $13.68 billion.
  • Revenue growth of 0.7% in Residential, 40.2% in Mobile, and 22.9% in Advertising sales drove the top-line performance.
  • Charter added 61,000 residential Internet customers compared to 243,000 last year. Residential video customers decreased by 211,000 versus 133,000 decline in the prior year, partly driven by downgrades following an April pass-through of higher programming expenses.
  • Margin: Adjusted EBITDA margin contracted by 30 bps to 39.9%.
  • EPS of $7.38 missed the consensus of $8.28.
  • As of September 30, Charter served 30.3 million residential and SMB Internet customers.
  • Free cash flow totaled $1.5 billion, down by 39.1% Y/Y, primarily due to the capex associated with Charter's rural construction initiative. The company held $480 million in cash and equivalents.
  • "Charter now delivers the nation's first converged broadband, WiFi, and mobile experience at prices that generate significant savings for consumers," said Tom Rutledge, Chairman and CEO of Charter. 
  • Price Action: CHTR shares traded higher by 4.32% at $370.61 on the last check Friday.

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