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Charter (CHTR) Q3 Earnings Lag, Internet User Base Up Y/Y
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Charter Communications (CHTR - Free Report) 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
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.
Image: Bigstock
Charter (CHTR) Q3 Earnings Lag, Internet User Base Up Y/Y
Charter Communications (CHTR - Free Report) 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-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 - Free Report) , fubo TV (FUBO - Free Report) and AMC Entertainment (AMC - Free Report) 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.