Charter Communications Inc (CHTR, Financial), the second-largest US cable company, reported its financial and operating results for the second quarter of 2024. The company, which serves approximately 57 million US homes and businesses under the Spectrum brand, highlighted several key metrics and financial achievements in its latest earnings release.
Performance Overview
Charter Communications Inc (CHTR, Financial) reported a slight year-over-year revenue increase of 0.2%, reaching $13.7 billion for the second quarter of 2024. This figure fell short of the analyst estimate of $13.89 billion. However, the company's earnings per share (EPS) of $8.58 exceeded the analyst estimate of $7.95.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenue | $13.7 billion | $13.7 billion | 0.2% |
| Net Income | $1.2 billion | $1.2 billion | 0.5% |
| Adjusted EBITDA | $5.7 billion | $5.5 billion | 2.6% |
| Free Cash Flow | $1.3 billion | $668 million | 94.0% |
Customer Metrics
Charter Communications Inc (CHTR, Financial) experienced a decrease in total residential and small and medium business (SMB) Internet customers by 149,000, bringing the total to 30.4 million as of June 30, 2024. Conversely, the company saw an increase in total residential and SMB mobile lines by 557,000, totaling 8.8 million mobile lines.
Revenue Breakdown
Residential revenue, which constitutes a significant portion of Charter's total revenue, decreased by 0.6% year-over-year to $10.8 billion. Internet revenue grew by 1.3% to $5.8 billion, while video revenue declined by 7.7% to $3.9 billion. Mobile service revenue saw a substantial increase of 36.9%, reaching $737 million.
Operational Highlights
Charter Communications Inc (CHTR, Financial) reported a net income attributable to shareholders of $1.2 billion for the second quarter, with an adjusted EBITDA of $5.7 billion, reflecting a 2.6% year-over-year growth. The company's capital expenditures for the quarter totaled $2.9 billion, including $1.1 billion for line extensions.
Cash Flow and Liquidity
Net cash flows from operating activities amounted to $3.9 billion, up from $3.3 billion in the prior year. Free cash flow increased significantly to $1.3 billion, primarily due to higher adjusted EBITDA, favorable changes in working capital, and lower cash taxes.
Share Repurchases
During the second quarter, Charter Communications Inc (CHTR, Financial) repurchased 1.5 million shares of its Class A common stock and Charter Holdings common units for $404 million.
Commentary
"We are executing well on several transformational initiatives, growing EBITDA through efficiencies, and improving our service and sales capabilities," said Chris Winfrey, President and CEO of Charter. "We remain fully focused on driving customer growth, with a unique, high-quality product set that continues to evolve, creating long-term value for shareholders."
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Charter Communications Inc for further details.
