Charter Communications (CHTR, Financials) reported third-quarter revenue and profit on Friday, surpassing analysts' expectations and lifting shares 4%.
The Stamford, Connecticut-based cable and internet provider reported $10.8 billion in residential revenue for the quarter, with mobile service growing almost 38% offsetting voice and video declines. The average residential customer revenue rose from $120.77 to $121.47 in the third quarter.
Charter lost 110,00 internet users mostly because the FCC's Affordable Connectivity Program expired. This contrasts with a 63,000-customer increase online last year. The company ended the quarter with 30.3 million internet users and 9.4 million mobile lines after 545,000 mobile subscriptions.
On September 30, video customers dropped by 294,000 and wireline voice customers by 288,000, leaving 13 million video customers and 7.2 million wireline voice customers.
Charter reduced its capital expenditure forecast for the year from $12 billion to $11.5 billion. Network evolution and line extensions are expected to cost less in 2024, but plant restoration after recent hurricanes will increase.
Slightly higher than $1.26 billion a year ago, the company's net income for the quarter came at $1.28 billion. At $8.82, earnings per share exceeded the average projection by 27 cents.
Rising 1.5% to $13.8 billion, revenue exceeded the estimate by $140 million.
Early October 2024 saw Charter and NBCUniversal signing a multi-year distribution contract. This agreement guarantees ongoing carriage of NBCUniversal's broadcast and cable networks as well as access to the Peacock streaming service for Spectrum TV Select consumers at no further expense. This action fits Charter's approach to improve its offers by including streaming services into its cable bundles.
