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Charter Communications (CHTR) Q1 Earnings Beat, Revenues Up Y/Y

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Charter Communications CHTR delivered first-quarter 2022 earnings of $6.90 per share, beating the Zacks Consensus Estimate by 6.8%. The reported figure surged 67.9% year over year.

Revenues of $13.20 billion increased 5.4% on a year-over-year basis, owing to Internet, mobile and advertising sales growth. The top line missed the consensus mark by 0.1%.

Segmental Details

Residential revenues came in at $10.19 billion, up 3.7% year over year.

Monthly residential revenues per customer (excluding mobile) totaled $113.28, up 1% year over year.

Charter Communications, Inc. Price

Charter Communications, Inc. Price
Charter Communications, Inc. Price

Charter Communications, Inc. price | Charter Communications, Inc. Quote

Internet revenues rose 7.2% year over year to $5.45 billion.

Video revenues climbed 0.1% to $4.34 billion. Voice revenues declined 2.1% to $391 million.

Commercial revenues rose 4.3% year over year to $1.72 billion.

Small and medium business revenues came in at $1.06 billion, up 4.6% year over year, reflecting customer relationship growth.

Enterprise revenues were up 3.7% year over year to $661 million.

Advertising sales increased 11.5% year over year to $383 million.

Mobile revenues surged 40.2% year over year to $690 million. Other revenues came in at $218 million, up 5.2% year over year.

Subscriber Statistics

As of Mar 31, 2022, Charter had 32.198 million total customer relationships, with 766K net new customer relationships added over the past 12 months.

The company had 30.274 million Internet customers, up 3.6% year over year. Charter added 185K Internet customers in the reported quarter.

Currently, 200 Mbps is the minimum speed offered to new Spectrum Internet customers across Charter's footprint. As of Mar 31, 2022, over 80% of total Internet customers subscribed to tiers that provided 200 Mbps or more of speed. Charter also offers Spectrum Internet Ultra (400 Mbps) and Spectrum Internet Gig (1 Gbps) across its entire footprint.

Charter added 373K mobile lines in the March-end quarter. As of Mar 31, 2022, the company has served a total of 3.94 million mobile lines.

As of Mar 31, 2022, Charter had 15.72 million video customers, down 2.1% year over year. However, the company lost 112K video customers in the reported quarter.

Moreover, Charter had 9.75 million voice customers, down 5.8% year over year. The company lost 150K video customers in the reported quarter.

Operating Details

Total operating costs and expenses increased 5.4% from the year-ago quarter to $7.99 billion.

Programming costs dropped 0.4% year over year to $2.98 billion. Regulatory, connectivity and produced-content costs were down 7.4% to $556 million.

Costs to service customers inched up 5.3% year over year to $1.90 billion. Marketing costs were $826 million, up 10.1% year over year.

Notably, mobile costs jumped 32.8% year over year to $760 million.

Adjusted EBITDA increased 5.4% year over year to $5.21 billion. Moreover, the adjusted EBITDA margin was unchanged at 39.5%.

Balance Sheet & Cash Flow

As of Mar 31, 2022, cash and cash equivalents were $2.43 billion compared with $601 million as of Dec 31, 2021.

As of Mar 31, 2022, the total debt was $95.2 billion compared with $91.2 billion as of Dec 31, 2021.

Cash flows from operating activities totaled $3.6 billion compared with the year-ago quarter’s $4.2 billion.

Free cash flow was $1.8 billion compared with the previous quarter’s $2.3 billion.

In the reported quarter, Charter repurchased six million shares of Charter Class A common stock and Charter Communications Holdings, LLC common units for approximately $3.6 billion.

Zacks Rank & Stocks to Consider

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

Funko FNKO, fuboTV FUBO and News Corporation NWSA are some better-ranked stocks that investors can consider in the broader sector. While Funko and News Corporation sport Zacks Rank #1 (Strong Buy), fuboTV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Funko shares have outperformed the Zacks Consumer Discretionary sector year to date. Funko shares are down 10.9%.

FNKO is set to report first-quarter fiscal 2022 on May 5, 2022.

fuboTV shares have underperformed the Zacks Consumer Discretionary sector year-to-date. FUBO shares are down 73.7%.

fuboTV is set to report first-quarter 2022 results on May 5.

News Corporation shares are down 10.9% year to date.

NWSA is set to report third-quarter fiscal 2022 results on May 5.


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