Charter Communications Inc (CHTR, Financial) announced its financial results for Q3 2023 on October 27, 2023. The company reported a modest growth in total residential and small and medium business (SMB) Internet customers, with an increase of 63,000. As of September 30, 2023, Charter served a total of 30.6 million residential and SMB Internet customers.
Financial Performance
Charter's Q3 2023 revenue stood at $13.6 billion, marking a 0.2% year-over-year increase. This growth was primarily driven by a 3.7% increase in residential Internet revenue and a 33.8% increase in residential mobile service revenue. Other revenue also saw a significant growth of 28.8%, primarily driven by higher mobile device sales.
Net income attributable to Charter shareholders totaled $1.3 billion in Q3 2023. The company's Adjusted EBITDA for the same period was $5.4 billion, marking a 0.7% year-over-year growth. However, Q3 2023 free cash flow decreased from $1.5 billion in the prior year to $1.1 billion, primarily due to higher capital expenditures, mostly driven by Charter's network evolution and expansion initiatives.
Operational Highlights
Charter's Q3 2023 saw an increase in total residential and SMB mobile lines by 594,000. As of September 30, 2023, Charter served a total of 7.2 million mobile lines. However, the company reported a decrease in residential video customers by 320,000 in Q3 2023, compared to a decline of 211,000 in Q3 2022.
Capital Expenditures
Charter's Q3 2023 capital expenditures totaled $3.0 billion, including $1.1 billion of line extensions. This marked an increase from $2.4 billion during the same period in 2022. The increase was primarily due to Charter's network evolution and expansion initiatives.
Share Repurchases
During Q3 2023, Charter purchased 2.0 million shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units for $854 million.
Charter Communications Inc (CHTR, Financial) continues to make significant progress against the multi-year strategic initiatives outlined last year, according to Chris Winfrey, President and CEO of Charter. These initiatives are expected to drive significant, long-term growth in shareholder value.
Explore the complete 8-K earnings release (here) from Charter Communications Inc for further details.
