Trading On margin

Charter Communications Leads Q2 and Increases Margin with Affordable Broadband Plans

  • Charter Communications, Inc. CHTR announced second-quarter FY22 revenue growth of 6.2% year-on-year to $13.6 billion, beating consensus of $13.42 billion.
  • Revenue growth of 4.5% in Residential, 39.8% in Mobile and 4.2% in Commercial drove the revenue performance.
  • Charter added 17,000 residential Internet customers compared to 365,000 last year due to the discontinuation of the Emergency Broadband Benefit program and additional Affordable Connectivity program requirements. The number of residential video customers fell by 240,000 compared to 63,000 the previous year, partly due to downgrades following the impact in April of higher programming expenses.
  • Margin: Adjusted EBITDA margin increased by 130 basis points to 40.5%.
  • EPS of $8.80 beat the consensus of $6.84.
  • As of June 30, Charter served 32.1 million residential and small business Internet customers.
  • Free cash flow from operating activities totaled $3.7 billion. The company held $483 million in cash and cash equivalents.
  • “Our growth has always been driven by providing value-added packages at affordable prices for customers,” said Tom Rutledge, President and CEO. “Looking forward, we remain well positioned to grow our business using this same strategy. Our fixed and mobile broadband services continue to converge and we offer a single connectivity package while significantly reducing customer bills.
  • Price action: Shares of CHTR closed down 8.48% at $435.58 on Thursday.