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Charter (CHTR) Q3 Earnings Lag, Internet User Base Up Y/Y

Charter Communications CHTR delivered third-quarter 2022 earnings of $7.38 per share, missing the Zacks Consensus Estimate by 7.05%. However, the reported figure increased 13.5% year over year.

Revenues of $13.598 billion increased 6.2% on a year-over-year basis, owing to the residential, mobile and advertising sales growth. The top line missed the consensus mark by 0.82%.

Segmental Details

Residential revenues came in at $10.34 billion, up 0.7% year over year. Monthly residential revenues per customer (excluding mobile) totaled $115.16, unchanged year over year.

Internet revenues rose 3.9% year over year to $5.57 billion due to growth in Internet customers, promotional rate step-ups and reduced bundled discounts.

Video revenues declined 2.7% to $4.38 billion. Voice revenues decreased 4.6% to $391 million.

Charter Communications, Inc. Price, Consensus and EPS Surprise

Charter Communications, Inc. Price, Consensus and EPS Surprise
Charter Communications, Inc. Price, Consensus and EPS Surprise

Charter Communications, Inc. price-consensus-eps-surprise-chart | Charter Communications, Inc. Quote

Commercial revenues rose 2.2% year over year to $1.76 billion.

Small and medium business revenues came in at $1.08 billion, up 1.9% year over year, reflecting customer relationship growth.

Enterprise revenues were up 2.6% year over year to $673 million.

Advertising sales increased 22.9% year over year to $481 million.

Mobile revenues jumped 40.2% year over year to $750 million.

Other revenues came in at $223 million, down 2.1% year over year.

Subscriber Statistics

As of Sep 30, 2022, Charter had 32.141 million total customer relationships, up 0.6% year over year.

The company had 30.328 million Internet customers, up 1.4% year over year. Charter gained 75K Internet customers in the reported quarter.

Charter added 396K mobile lines in the reported quarter. As of Sep 30, 2022, the company served a total of 4.68 million mobile lines.

As of Sep 30, 2022, Charter had 15.291 million video customers, down 3.8% year over year. However, the company lost 204K video customers in the reported quarter.

Moreover, Charter had 9.22 million voice customers, down 8.4% year over year. The company lost 271K video customers in the reported quarter.

Operating Details

Total operating costs and expenses increased 3.5% from the year-ago quarter to $8.14 billion.

Programming costs dropped 3.8% year over year to $2.87 billion. Regulatory, connectivity and produced-content costs were down 7.4% to $587 million.

Costs to service customers inched up 4.4% year over year to $1.98 billion. Marketing costs were $861 million, up 9.3% year over year.

Mobile costs jumped 39.4% year over year to $846 million.

Adjusted EBITDA increased 2.4% year over year to $5.41 billion.

Balance Sheet & Cash Flow

As of Sep 30, 2022, cash and cash equivalents were $480 million compared with $483 million as of Jun 30, 2022.

As of Sep 30, 2022, total debt was $97.03 billion compared with $96 billion as of Jun 30, 2022.

Cash flows from operating activities totaled $3.8 billion compared with the previous quarter’s $3.7 billion.

Free cash flow was $1.5 billion compared with the previous quarter’s $1.7 billion.

In the reported quarter, Charter repurchased 5.8 million shares for approximately $2.6 billion.

Zacks Rank & Stocks to Consider

Charter currently holds a Zacks Rank #3 (Hold).

Cumulus Media CMLS, fubo TV FUBO and AMC Entertainment AMC are some better-ranked stocks that investors can consider in the broader sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cumulus Media is set to announce its third-quarter 2022 results on Oct 28. CMLS shares have been down 35.2% year to date.

fubo TV is set to announce its third-quarter 2022 results on Nov 4. FUBO shares have been down 77.4% year to date.

AMC Entertainment is set to announce its third-quarter fiscal 2022 results on Nov 8. AMC shares have been down 76.6% year to date.


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