Investment research report for CHTR

Table of Contents

Executive Summary
Valuation Analysis
Industry and Competitors Analysis
Financial Analysis
Earnings Call Multi-Year Analysis
Financial Statements Multi Year
Insider Trading Analysis
Management Compensation Benchmark Analysis
Proxy Statement Analysis
News Analysis
Technical Indicators Analysis
Financial Statements Annual
Financial Statements Quarterly
Earnings Call Analysis

Executive Summary

Company Description

Charter Communications, Inc. (CHTR) is a leading broadband connectivity and cable operator in the United States. The company provides a range of services, including internet, video, voice, and mobile, to residential and commercial customers across 41 states. With a focus on delivering high-speed internet and bundled connectivity offerings, Charter is well-positioned to capitalize on the growing demand for broadband and converged services.

Strategic Initiatives and Growth Drivers

  1. Network Evolution and Capacity Upgrades: Charter is making significant investments in evolving its network infrastructure through technologies like high-split upgrades, distributed access architecture, and eventually DOCSIS 4.0. These upgrades will enable faster speeds, increased capacity, and lower operating costs, positioning Charter well to meet growing bandwidth demands cost-effectively.

  2. Broadband and Mobile Convergence Strategy: Charter sees a major opportunity in bundling its broadband, WiFi, and mobile offerings through products like Spectrum One. This convergence strategy aims to provide superior value to customers, drive mobile and broadband penetration, reduce churn, and increase share of household connectivity spend.

  3. Rural Broadband Expansion: Charter is aggressively expanding its broadband footprint into unserved and underserved rural areas through initiatives like RDOF, state grants, and the upcoming BEAD program. Early penetration rates in these rural builds have exceeded expectations, unlocking new growth opportunities.

Financial Performance and Capital Allocation

Charter has demonstrated consistent revenue growth and profitability, driven by increases in residential internet, mobile services, and commercial customers. The company maintains a leverage ratio within its target range and ample liquidity to fund operations and investments. Charter continues to repurchase shares, demonstrating a commitment to returning capital to shareholders while also investing in network upgrades and expansion.

Competitive Landscape and Challenges

Despite competition from fixed wireless and overbuilders, Charter believes its superior network capabilities, bundled offerings, and focus on providing value will allow it to continue gaining market share over time. However, the company faces challenges from traditional cable and telecommunications companies, as well as emerging streaming services and over-the-top (OTT) providers. Additionally, potential changes to broadband subsidies could impact Charter’s ability to serve low-income customers and profitability.

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Valuation Analysis

PE Ratio

The PE ratio for company CHTR is as follows:

  • Low: 2.07752554586639
  • Base: 29.28816605466262
  • High: 56.49880656345886

PB Ratio

The PB ratio for company CHTR is as follows:

  • Low: 1.1227805906281798
  • Base: 4.288667676843542
  • High: 7.454554763058905

Recommendation

Unable to provide price targets since this company’s financials are highly unstable. We recommend not to hold this stock in your portfolio.

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Industry and Competitors Analysis

Major competitors

CHTR’s main competitors include other large telecommunications and cable companies such as T-Mobile (TMUS), Verizon (VZ), AT&T (T), Comcast (CMCSA), and DISH Network (DISH).

Financial performance

CHTR has shown consistent revenue growth and profitability over the past few years. Its revenue increased from $51.7 billion in 2021 to $54.6 billion in 2023 (projected), with net income ranging from $4.6 billion to $5.1 billion during this period.

Market position

With a market capitalization of around $43 billion, CHTR is one of the largest cable operators in the United States. It serves approximately 32 million customers across 41 states, offering a bundled suite of services, including video, internet, and voice.

Competitive advantages

CHTR’s extensive fiber-optic network infrastructure and its ability to offer bundled services at competitive prices give it an advantage over some competitors. Additionally, its acquisition of Time Warner Cable and Bright House Networks in 2016 has strengthened its market position.

Challenges

CHTR faces competition from traditional cable and telecommunications companies, as well as emerging streaming services and over-the-top (OTT) providers. It also faces regulatory challenges and the need to continuously invest in network upgrades and new technologies.

Overall, CHTR appears to be a significant player in the telecommunications services industry, with a strong market position and financial performance. However, it operates in a highly competitive and rapidly evolving industry, which requires continuous innovation and adaptation to maintain its competitive edge.

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Chart of Competitors

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Financial Analysis

Financial Strength

The company has a high debt-to-equity ratio, ranging from around 2-11 over the years, indicating a highly leveraged capital structure. This could pose risks if the company faces challenges servicing its debt obligations. Interest coverage ratios are generally above 2, suggesting the company can cover its interest expenses reasonably well from operating profits. The current ratio is quite low, often below 0.5, which could indicate potential liquidity issues in meeting short-term obligations.

Potential for Growth

Revenue growth has been modest, often in the low single digits or negative in some quarters, suggesting challenges in driving top-line growth. Operating cash flow growth has been volatile, with some periods of decline, which could limit the company’s ability to fund growth initiatives. The company appears to be focused on shareholder returns through share buybacks, as evidenced by the declining weighted average shares outstanding.

Competitive Advantage

As a major cable and broadband provider, Charter likely benefits from network effects and high switching costs for customers. However, the industry faces increasing competition from streaming services and alternative internet providers, which could pressure Charter’s competitive position.

Quality of Management

Profitability metrics like return on equity and return on assets have been relatively low, which could indicate potential inefficiencies or challenges in managing the business effectively. The company’s high leverage levels could also be a reflection of management’s risk appetite or capital allocation decisions.

Shareholder Friendliness

The company does not pay dividends, which may not appeal to income-oriented investors. However, the share buyback program could be viewed as a way to return capital to shareholders and potentially boost earnings per share.

Valuation

Price-to-earnings and price-to-free-cash-flow ratios have varied significantly over the years, making it difficult to assess the company’s valuation based solely on this data. Analyst estimates suggest expectations of modest revenue and earnings growth in the coming years, which could influence the company’s valuation going forward.

Overall, while Charter Communications operates in a relatively mature industry, its high leverage, modest growth prospects, and competitive pressures could be areas of concern. The company’s ability to manage its debt, drive operational efficiencies, and adapt to industry changes will likely be crucial factors in determining its long-term financial performance and valuation.

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Chart of Key Per Share Metrics

"Chart of Key Per Share Metrics"

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Chart of Absolute Metrics

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Earnings Call Multi-Year Analysis

Network Evolution and Capacity Upgrades

Charter is making significant investments to evolve its network infrastructure through technologies like high-split upgrades, distributed access architecture, and eventually DOCSIS 4.0. These upgrades will enable faster speeds, increased capacity, and lower operating costs – positioning Charter well to meet growing bandwidth demands cost-effectively.

Broadband and Mobile Convergence Strategy

Charter sees a major opportunity in bundling its broadband, WiFi, and mobile offerings through products like Spectrum One. This convergence strategy aims to provide superior value to customers, drive mobile and broadband penetration, reduce churn, and increase share of household connectivity spend.

Rural Broadband Expansion

Charter is aggressively expanding its broadband footprint into unserved and underserved rural areas through initiatives like RDOF, state grants, and the upcoming BEAD program. Early penetration rates in these rural builds have exceeded expectations, unlocking new growth opportunities.

Competitive Positioning and Value Proposition

Despite competition from fixed wireless and overbuilders, Charter believes its superior network capabilities, bundled offerings, and focus on providing value will allow it to continue gaining market share over time, especially as market activity normalizes post-pandemic.

Financial Discipline and Capital Allocation

Charter remains committed to its target leverage range, with plans to continue share buybacks. The company expects capital intensity to decline after completing its network evolution investments, supporting strong free cash flow generation.

Operational Efficiency and Customer Experience

Charter is focused on digitizing customer service, improving employee retention, and leveraging its network upgrades to drive operational efficiencies and enhance the customer experience – key factors for long-term growth and profitability.

Overall, the key insights highlight Charter’s strategic investments and initiatives aimed at driving sustainable long-term growth through network superiority, product convergence, footprint expansion, operational excellence, and disciplined capital allocation.

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Financial Statements Multi Year

Revenue Growth

Charter is seeing steady revenue growth driven by increases in residential internet, mobile services, and commercial customers, offsetting declines in video and advertising revenues. Revenue grew in the low single-digits year-over-year.

Profitability

Adjusted EBITDA and operating income are growing modestly, indicating Charter’s ability to manage costs and maintain profitability despite revenue mix shifts.

Charter is adding internet and mobile customers but losing video and voice customers, reflecting broader industry trends. The mobile business is a key growth driver.

Capital Investments

Charter is making significant capital expenditures, especially in rural broadband expansion and network upgrades, positioning it for future growth but pressuring free cash flow.

Shareholder Returns

Charter continues repurchasing shares, demonstrating commitment to returning capital to shareholders when possible.

Leverage and Liquidity

Charter maintains a leverage ratio within its target range and ample liquidity to fund operations and investments.

Regulatory Risks

Potential changes to broadband subsidies could impact Charter’s ability to serve low-income customers and profitability.

Overall, the financials suggest Charter is navigating industry shifts well, investing for long-term growth in key areas like mobile and broadband, while balancing profitability, cash flows, and shareholder returns. However, elevated capex and regulatory risks are factors to monitor.

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Insider Trading Analysis

The Newhouse family, through their entities ADVANCE/NEWHOUSE PARTNERSHIP and Newhouse Michael A, have consistently been the largest insider shareholders, holding over 18 million Class B Common Units of Charter Communications Holdings, LLC. This indicates they have maintained a significant long-term stake in the company.

Liberty Broadband Corp, another major shareholder, has also consistently increased its stake in Charter Communications over the years through regular open market purchases and stock distributions.

The CEO, Thomas Rutledge, has been actively selling shares in recent months, offloading over 200,000 shares in November 2023 at prices ranging from $407-$420 per share. This suggests he may be taking some profits off the table.

Other senior executives like Christopher Winfrey (CFO) and Richard DiGeronimo have also been awarded and exercising stock options and restricted stock units, indicating ongoing equity-based compensation.

There have been some smaller open market purchases by executives like Zinterhofer and Miron, but these are relatively minor compared to the large holdings and transactions by the Newhouse family and Liberty Broadband.

Implications

The consistent long-term holdings by the Newhouse family and Liberty Broadband suggest they remain confident in Charter Communications’ long-term prospects.

The selling activity by the CEO may indicate he believes the stock is fairly valued or overvalued in the near-term, though his overall ownership remains substantial.

The equity awards to other executives point to an ongoing focus on aligning management incentives with shareholder interests through stock-based compensation.

Overall, the insider trading activity suggests a mixed picture, with the large long-term holders maintaining their positions, while the CEO takes some profits off the table. This could signal a belief that the stock is fairly valued in the short-term, but the company’s fundamentals remain strong in the long run.

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Management Compensation Benchmark Analysis

Base Salary Portion of Total Compensation

Based on the executive compensation details provided, here are the key insights for a long-term investor in CHTR:

The base salary portion of total compensation for CHTR executives is relatively low, averaging around 22% across all reported years and executives. This suggests that a significant portion of their compensation is tied to performance-based incentives like stock awards and incentive plan compensation.

Comparing to other companies:
– TMUS executives have a higher base salary portion of around 9% on average.
– VZ executives have a higher base salary portion of around 11% on average.
– DISH executives have a much higher base salary portion of around 60% on average.

Alignment with Shareholder Value Creation

The low base salary portion and higher performance-based compensation for CHTR executives indicates that their pay is more closely aligned with creating long-term shareholder value, as a larger portion of their compensation is tied to the company’s stock performance and financial results.

This pay structure provides strong incentives for the CHTR executives to focus on the company’s long-term success and growth, which should benefit shareholders over the long run.

Conclusion

In summary, the executive compensation structure at CHTR appears to be designed to incentivize the leadership team to drive the company’s long-term performance and shareholder value creation. The low base salary portion and heavy reliance on variable, performance-based compensation is a positive sign for long-term investors in CHTR.

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Proxy Statement Analysis

Proxy Statement Overview

The following analysis is based on the latest proxy statement of CHTR. Based on the information provided, I do not have enough details to confidently assess whether the executives at this company are compensated in a way that aligns with creating long-term shareholder value. The document appears to be focused on a shareholder proposal requesting disclosure of the company’s political spending.

Limitations of the Proxy Statement

While transparency around political contributions is an important governance issue, the document does not provide insights into the company’s executive compensation practices or how they are structured to incentivize long-term value creation.

Necessary Information for Evaluation

To evaluate the alignment of executive pay with long-term shareholder interests, I would need to review details such as:

  • The components of executive compensation (base salary, annual bonuses, long-term incentives)
  • The performance metrics used for incentive pay and whether they emphasize long-term strategic goals
  • The balance between short-term and long-term incentives
  • The presence of mechanisms like equity ownership requirements, clawback policies, etc.
  • How pay levels and practices compare to peers and best practices

Conclusion

Without access to this type of information on the company’s compensation philosophy and pay practices, I cannot provide confident insights for a long-term investor regarding the alignment of executive compensation to sustainable value creation. The provided document is focused on a different corporate governance matter.

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News Analysis

Positives

Based on the recent news articles, Charter Communications (CHTR) reported better-than-expected Q2 2023 results, with internet subscriber growth and robust mobile net adds, indicating continued demand for its broadband and mobile services. The company is investing heavily in network upgrades and expansion to support future growth in broadband and mobile, which could pay off in the long run. Charter’s high free cash flow yield (around 8%) and share buybacks provide support for the stock valuation. Some analysts see Charter’s current valuation as attractive and expect strong returns going forward as broadband demand remains resilient.

Negatives

There are concerns around slowing broadband subscriber growth as competition intensifies from fiber and fixed wireless providers. The decline in traditional video subscribers continues, though this is an industry-wide trend. Charter’s high debt levels and elevated capital expenditures to build out networks are a risk factor. The dispute with Disney over carriage fees highlights the challenges traditional cable providers face from streaming disruption.

Overall

While Charter faces industry headwinds from cord-cutting and new competition, its focus on broadband internet and mobile services positions it well for future growth. However, the high debt, elevated capex, and disruption risks warrant caution. A long-term investor should monitor Charter’s ability to execute on its broadband/mobile strategy and sustain robust free cash flows to determine if the current valuation provides an attractive entry point.

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Technical Indicators Analysis

Next Week Trading

The recent price action and technical indicators suggest a neutral to slightly bullish outlook for the next week. The 10-day RSI is in the mid-60s, indicating the stock is not overbought or oversold. The 20-day TEMA is above the current price, providing potential support. However, the 14-day ADX is around 43, suggesting the trend may be weakening. A short-term trader may look for opportunities to enter long positions on dips towards the 20-day SMA around $286.

Resistance and Support Levels

The key resistance levels appear to be around $304 (recent high) and the 200-day SMA at $338. Support levels are found at the 20-day SMA ($286) and the 50-day SMA ($277). A break above $304 or below $277 could signal the start of a new trend.

Short-Term Investor

The technical indicators paint a mixed picture for the short-term investor. The rising 20-day and 50-day SMAs provide a bullish backdrop, but the weakening ADX and overbought RSI suggest the stock may be due for a pullback in the near term. A short-term investor may consider taking profits around resistance levels and looking for opportunities to re-enter on dips towards support.

Long-Term Investor

For the long-term investor, the overall trend remains bullish. The 200-day SMA is well above the current price, and the stock has been trading above this key moving average for the majority of the period shown. The rising 20-day and 50-day SMAs also indicate a positive long-term outlook. A long-term investor may consider this stock as a potential addition to their portfolio, with a focus on the long-term fundamentals and growth prospects of the company.

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Chart of Valuation History

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Financial Statements Annual

Financial Statements Annual 2024 Q3

Revenue Growth

Charter’s total revenues grew by 1.1% in 2023 compared to 2022, driven primarily by growth in residential internet, mobile device sales, and residential mobile service revenues. This was partially offset by declines in residential video and advertising sales revenues.

Profitability

Charter’s income from operations increased by 5.0% in 2023 compared to 2022, driven by revenue growth and lower depreciation and amortization expenses, partially offset by higher operating costs and expenses. Net income attributable to Charter shareholders declined by 9.9% in 2023 compared to 2022, primarily due to higher interest expense.

Charter added 132,000 residential internet customers in 2023, but lost 994,000 residential video customers and 985,000 residential voice customers. The company added 2,403,000 residential mobile lines in 2023.

Capital Expenditures

Charter’s capital expenditures increased by 18.5% in 2023 compared to 2022, primarily due to higher spending on the company’s subsidized rural construction initiative and continued residential and commercial network expansion.

Debt and Leverage

As of December 31, 2023, Charter had $97.8 billion in total debt, with a weighted average interest rate of 5.3%. The company’s leverage ratio, as measured by net debt to the last twelve months’ Adjusted EBITDA, was 4.42x, within the company’s target range of 4.0x to 4.5x.

Share Repurchases

During 2023, Charter repurchased approximately 8.4 million shares of its Class A common stock for $3.2 billion. As of December 31, 2023, the company had $170 million remaining under its share repurchase authorization.

Overall, the financial statements indicate that Charter continues to execute on its strategic priorities of growing its internet and mobile businesses, while managing costs and capital expenditures. The company’s strong cash flow and balance sheet provide flexibility to invest in its network, return capital to shareholders, and pursue strategic opportunities.

Financial Statements Annual for Charter Communications, Inc 2024 2024 Q2

Revenue Growth

Charter’s total revenues grew by 1.1% in 2023 compared to 2022, driven primarily by growth in residential internet, mobile service, and enterprise revenues, partially offset by declines in residential video and advertising sales revenues.

Profitability

Charter’s income from operations increased by 5.0% in 2023 compared to 2022, driven by revenue growth and lower depreciation and amortization expenses, partially offset by higher operating costs and expenses. Net income attributable to Charter shareholders declined by 9.9% in 2023 compared to 2022, primarily due to higher interest expense.

Customer Growth

Charter added 155,000 net new residential internet customers and 2,474,000 net new mobile lines in 2023. However, the company lost 994,000 net residential video customers.

Capital Expenditures

Charter’s capital expenditures increased by 18.5% in 2023 compared to 2022, primarily due to higher spending on the company’s subsidized rural construction initiative and network evolution.

Debt and Leverage

As of December 31, 2023, Charter had $97.8 billion in total debt, with a weighted average interest rate of 5.3%. The company’s leverage ratio, as measured by net debt to last twelve months Adjusted EBITDA, was 4.42x.

Share Repurchases

During 2023, Charter repurchased approximately 8.4 million shares of its Class A common stock for $3.2 billion. The company had $170 million remaining under its current share repurchase authorization as of December 31, 2023.

Pension Plan Termination

In 2023, Charter purchased a group annuity contract and announced plans to fully terminate its qualified pension plan, which had a projected benefit obligation of $24 billion as of December 31, 2023.

Overall, the financial statements indicate that Charter continues to execute on its strategic priorities of growing its residential internet and mobile customer base, investing in network infrastructure, and returning capital to shareholders through share repurchases, while managing its significant debt load.

Financial Statements Annual 2023 Q3

Revenue Growth

Charter’s total revenues grew 4.5% in 2022 compared to 2021, driven by increases in residential Internet, mobile, and commercial customers, as well as higher advertising sales.

Profitability

Charter’s income from operations increased 13.6% in 2022, while net income attributable to Charter shareholders grew 8.6% compared to 2021. This was driven by revenue growth and operational efficiencies.

Leverage and Liquidity

As of December 31, 2022, Charter had $97.6 billion in total debt, with a leverage ratio of 4.47x Adjusted EBITDA. The company has $40 billion in available credit facility capacity and $645 million in cash, providing ample liquidity.

Capital Expenditures

Charter’s capital expenditures increased 22.8% in 2022 to $9.4 billion, primarily due to investments in its rural construction initiative, which aims to expand the company’s network to over 1 million additional passings.

Shareholder Returns

During 2022, Charter repurchased $10.3 billion of its Class A common stock and Charter Holdings common units, including $3 billion from Liberty Broadband and $1.6 billion from AdvanceNewhouse. The company had $414 million remaining under its stock repurchase authorization as of December 31, 2022.

Pension Plan

Charter’s defined benefit pension plans were overfunded by $340 million as of December 31, 2022, with the company not making any cash contributions during the year.

Charter is subject to various regulatory requirements and legal proceedings, including an ongoing investigation by the California Attorney General and a lawsuit related to a fatal incident involving one of its technicians. The company does not expect these matters to have a material impact on its operations or financial condition.

Overall, Charter’s financial performance in 2022 demonstrated continued growth, profitability, and strong liquidity, while the company made significant investments in network expansion and returned capital to shareholders.

Financial Statements Annual for Charter Communications, Inc 2023 2023 Q2

Revenue Growth

Charter’s total revenues grew 4.5% in 2022 compared to 2021, driven by increases in residential Internet, mobile, and commercial customers, as well as higher advertising sales.

Profitability

Charter’s income from operations increased 13.6% in 2022, while net income attributable to Charter shareholders grew 8.6% compared to 2021. This was driven by revenue growth and operational efficiencies.

Leverage and Liquidity

As of December 31, 2022, Charter had $97.6 billion in total debt, with a leverage ratio of 4.47x Adjusted EBITDA. The company has $40 billion in available credit facility capacity and $645 million in cash, providing ample liquidity.

Capital Expenditures

Charter’s capital expenditures increased 22.8% in 2022 to $9.4 billion, primarily due to investments in its rural construction initiative, which aims to expand the company’s network to over 1 million additional passings.

Shareholder Returns

During 2022, Charter repurchased $10.3 billion of its Class A common stock and Charter Holdings common units, including $3 billion from Liberty Broadband and $1.6 billion from AdvanceNewhouse. The company had $414 million remaining under its stock repurchase authorization as of December 31, 2022.

Pension Plan

Charter’s defined benefit pension plans were overfunded by $340 million as of December 31, 2022, with the company not making any cash contributions during the year.

Charter is subject to various regulatory requirements and legal proceedings, including an ongoing investigation by the California Attorney General and a lawsuit related to a fatal incident involving one of its technicians. The company does not expect these matters to have a material impact on its operations or financial condition.

Overall, Charter’s financial performance in 2022 demonstrated continued growth, profitability, and strong liquidity, while the company made significant investments in network expansion and returned capital to shareholders.

Financial Statements Annual 2022 Q3

Strong Revenue Growth

Charter’s total revenues grew 7.5% in 2021 compared to 2020, driven by increases in residential internet, mobile, and commercial customers as well as price adjustments.

Profitability Improvement

Charter’s income from operations increased 25.2% in 2021 compared to 2020, and net income attributable to Charter shareholders grew 44.4% over the same period. This was driven by the revenue growth as well as increases in operating costs and expenses.

Mobile Business Expansion

Charter’s mobile business continues to grow, with mobile revenues increasing 59.6% in 2021. However, the mobile business also had a negative impact on Adjusted EBITDA (-$311 million) and free cash flow (-$853 million) due to growth-related costs.

Shareholder Returns

Charter repurchased $15.4 billion of its Class A common stock and Charter Holdings common units in 2021, up from $11.2 billion in 2020, reflecting its commitment to returning capital to shareholders.

Leverage and Liquidity

Charter maintains a leverage ratio of 4.4x Adjusted EBITDA as of December 31, 2021, within its target range of 4-4.5x. The company has $3.9 billion available under its credit facilities and $601 million in cash, providing ample liquidity.

Ongoing Investments

Charter continues to invest in its network, including a multi-year rural broadband construction initiative, as well as the buildout of its CBRS spectrum for mobile services. These investments are expected to drive future growth.

Overall, Charter delivered strong financial performance in 2021, with growth in its core residential and commercial businesses, continued mobile expansion, and disciplined capital allocation, while also investing for the future.

Financial Statements Annual for Charter Communications, Inc 2022 2022 Q2

Strong Revenue Growth

Charter’s total revenues grew 7.5% in 2021 compared to 2020, driven by increases in residential internet, mobile, and commercial customers as well as price adjustments.

Profitability Improvement

Charter’s Adjusted EBITDA grew 11.4% and income from operations grew 25.2% in 2021 compared to 2020, despite increases in operating costs and expenses primarily related to mobile, programming, and regulatory connectivity costs.

Significant Mobile Business Investment

Charter’s mobile business continued to be a drag on profitability, reducing Adjusted EBITDA by approximately $311 million and free cash flow by $853 million in 2021. However, Charter expects mobile to drive higher sales of core products, longer customer lives, and increased profitability over time.

Robust Free Cash Flow

Charter generated $8.7 billion in free cash flow in 2021, up $1.6 billion from 2020, driven by higher Adjusted EBITDA and lower capital expenditures.

Ongoing Share Repurchases

Charter repurchased $15.4 billion of its Class A common stock and Charter Holdings common units in 2021, reflecting its commitment to return capital to shareholders.

Elevated Debt Levels

Charter’s total debt stood at $91.6 billion as of December 31, 2021, with a leverage ratio of 4.4x Adjusted EBITDA. However, the company has ample liquidity and access to capital markets to fund its operations and growth initiatives.

Continued Network Investments

Charter plans to invest significantly in expanding its network, including a multi-billion dollar rural broadband construction initiative and the buildout of its CBRS spectrum, to drive long-term growth.

Overall, Charter’s financial performance in 2021 demonstrates its ability to grow its core connectivity business while investing in new growth opportunities like mobile, despite the near-term profitability impact.

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Financial Statements Quarterly

Financial Statements Quarterly 2024 Q3

Revenue Growth

Total revenue grew 0.2% year-over-year, driven by increases in residential mobile service, residential internet, and advertising sales, partially offset by lower residential video revenue.

Profitability

Adjusted EBITDA grew 2.8% year-over-year, and income from operations grew 7.0%, driven by revenue growth and lower operating costs, particularly programming expenses.

Residential internet customers decreased by 7,000, while residential video customers decreased by 1,149,000. However, residential mobile lines increased by 2,210,000, demonstrating strong growth in the mobile business.

Capital Expenditures

Capital expenditures increased by $327 million year-over-year, primarily due to higher spending on network evolution, customer premise equipment, and the subsidized rural construction initiative. This indicates continued investment in the network and infrastructure.

Free Cash Flow

Free cash flow decreased by $306 million year-over-year, mainly due to the increase in capital expenditures, higher interest and tax payments, and changes in working capital related to mobile device sales.

Debt and Liquidity

The company has a strong liquidity position, with $29 billion available under its credit facilities and $661 million in cash on hand as of March 31, 2024. The company’s leverage ratio remains within its target range of 4.0-4.5x Adjusted EBITDA.

Regulatory Risks

The potential elimination or reduction of the federal broadband Affordable Connectivity Program (ACP) subsidy could have a significant impact on the company’s ability to serve low-income households and its financial performance.

Overall, Charter’s financial performance remains strong, with growth in key areas like mobile and profitability. However, the potential regulatory changes around the ACP subsidy and the ongoing need for capital investments could present challenges for the company in the long run.

Financial Statements Quarterly 2024 Q2

Revenue Growth

Charter saw solid revenue growth of 2% and 14% in the third quarter and first nine months of 2023 respectively, driven by increases in residential internet and mobile services, partially offset by declines in video and advertising revenues.

Profitability

Adjusted EBITDA grew 0.7% and 1.2% in the third quarter and first nine months of 2023 respectively, indicating the company’s ability to manage costs and maintain profitability. Operating income also grew 6.9% and 4.2% in the respective periods.

Customer Growth

Charter added 594,000 mobile lines, 63,000 internet customers, and 8,000 residential/SMB customer relationships in Q3 2023, demonstrating continued momentum in its core services.

Network Investments

The company spent $512 million and $1.4 billion on its subsidized rural construction initiative in Q3 and the first nine months of 2023, expanding its network reach and positioning it for future growth.

Capital Allocation

Charter continued to repurchase its shares, buying back $776 million and $1.9 billion worth of stock in Q3 and the first nine months of 2023 respectively, while also investing in its business and maintaining a leverage ratio within its target range.

Liquidity and Debt Management

With $33 billion in available credit facility capacity and $571 million in cash, Charter appears to have ample liquidity to fund its operations and investments. The company also actively manages its debt, as evidenced by the recent refinancing and amendments to its credit facilities.

Overall, Charter’s financial performance and strategic initiatives suggest the company is well-positioned to continue growing its customer base, investing in its network, and generating strong cash flows to support its long-term objectives and shareholder value creation.

Financial Statements Quarterly 2024 Q1

Revenue Growth

Charter saw solid revenue growth of 5% and 19% for the three and six months ended June 30, 2023 respectively, driven primarily by increases in residential internet customers and mobile lines, partially offset by declines in residential video and advertising revenues.

Profitability

Adjusted EBITDA grew 2% and 14% for the three and six months ended June 30, 2023 respectively, indicating the company’s ability to manage costs and maintain profitability. Income from operations also grew 4% and 28% over the same periods.

Charter added 648,000 mobile lines and 77,000 internet customers in Q2 2023, demonstrating continued strong demand for its connectivity services. However, the company lost 782,000 residential video customers over the past year, highlighting the ongoing secular decline in traditional pay-TV.

Capital Expenditures

Charter increased its capital expenditures, particularly for its subsidized rural construction initiative and network evolution, investing $5.3 billion in the first half of 2023. This suggests the company is focused on expanding its footprint and upgrading its network to support future growth.

Leverage and Liquidity

Charter’s leverage ratio remained within its target range of 4-4.5x net debt to Adjusted EBITDA. The company has ample liquidity with $32 billion available under its credit facilities and $478 million in cash, providing flexibility to fund operations, investments, and shareholder returns.

Shareholder Returns

Charter continued its share repurchase program, buying back $1.2 billion of its Class A common stock in the first half of 2023. This demonstrates the company’s commitment to returning capital to shareholders.

Overall, Charter’s financial performance and strategic initiatives suggest the company is well-positioned to navigate the evolving media and telecommunications landscape and continue delivering value to long-term investors.

Financial Statements Quarterly 2023 Q4

Revenue Growth

Charter’s total revenues grew by 3.4% year-over-year, driven by price adjustments, increases in the number of residential mobile, internet, and commercial customers.

Adjusted EBITDA Growth

Adjusted EBITDA grew by 2.6% year-over-year, reflecting the revenue growth and partially offset by increases in operating costs and expenses.

Customer Metrics

  • Residential internet customers grew by 178,000 from Q1 2022 to Q1 2023.
  • Residential video customers decreased by 833,000 from Q1 2022 to Q1 2023.
  • Residential voice customers decreased by 992,000 from Q1 2022 to Q1 2023.
  • Mobile lines increased by 1,977,000 from Q1 2022 to Q1 2023.

Capital Expenditures

Total capital expenditures increased by 32.6% year-over-year, primarily due to higher spending on the subsidized rural construction initiative and continued residential and commercial network expansion.

Free Cash Flow

Free cash flow decreased by $1.1 billion year-over-year, mainly due to higher capital expenditures, increased interest payments, and changes in working capital.

Debt and Liquidity

As of March 31, 2023, Charter had $97.8 billion in principal amount of debt and $33 billion in available borrowing capacity under its credit facilities, providing ample liquidity to fund operations and investments.

Stock Repurchases

During the quarter, Charter repurchased approximately 2.5 million shares of its Class A common stock for $912 million, including purchases from Liberty Broadband and AdvanceNewhouse.

Overall, the financial statements demonstrate Charter’s continued growth in key customer metrics, particularly in mobile and internet services, while managing increased capital expenditures and debt levels to support its network expansion and evolution initiatives.

Financial Statements Quarterly for Charter Communications, Inc 2023 Q3 2023 Q3

Revenue Growth

Charter has seen strong revenue growth, with a 3.1% increase in the third quarter and 4.9% increase in the first nine months of 2022 compared to the prior year periods. This was driven by growth in residential internet, mobile, and commercial customers, as well as price adjustments.

Profitability and Cash Flow

  • Adjusted EBITDA grew 2.4% in Q3 and 5.8% in the first nine months, indicating solid profitability.
  • Free cash flow declined $969 million in Q3 and $1.4 billion in the first nine months, primarily due to increased capital expenditures for the rural construction initiative, higher cash taxes, and continued investment in mobile.

Capital Allocation

  • Charter has been actively repurchasing its own stock, spending $2.2 billion in Q3 and $9.2 billion in the first nine months, including $796 million and $2.6 billion from Liberty Broadband, respectively.
  • The company has remaining board authorization of $680 million for additional share repurchases, excluding purchases from Liberty Broadband.

Leverage and Liquidity

  • Charter’s leverage ratio was 4.5x Adjusted EBITDA as of September 30, 2022, within its target range of 4-4.5x.
  • The company has $46 billion of availability under its credit facilities and $480 million in cash, providing ample liquidity to fund operations, capital expenditures, and strategic initiatives.

Mobile Business Impact

  • The mobile business continues to be a drag on profitability and free cash flow, with a $208 million and $768 million negative impact in Q3 and the first nine months, respectively.
  • As Charter scales its mobile offering, the associated costs and working capital requirements will likely continue to weigh on near-term financial performance.

Overall, Charter is demonstrating solid revenue growth and profitability, while actively managing its capital structure and investing in strategic initiatives like rural expansion and mobile. The mobile business remains a near-term headwind, but the long-term potential appears promising for a well-capitalized market leader like Charter.

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Earnings Call Analysis

Earnings Call Analysis 2024 Q2

Short-term challenges

Charter is facing near-term headwinds from the end of the Affordable Connectivity Program (ACP), lower internet sales, and continued competition from fixed wireless and wireline overbuilders. This is expected to impact subscriber growth in the near-term.

Long-term growth potential

Despite the short-term challenges, Charter remains confident in its long-term growth prospects. The company believes it has a structural advantage with its superior network, converged connectivity products, and ability to offer significant cost savings to customers by bundling internet and mobile.

Expense management

Charter is focused on carefully managing expenses across the business to maintain EBITDA growth, even during the current investment cycle. The company expects EBITDA growth to accelerate in the back half of the year.

Capital allocation

Charter is being responsive to rating agencies and debt holders by navigating towards the middle of its target leverage range, providing some financial flexibility. However, the company remains committed to its levered equity strategy and share buybacks.

Video strategy

Charter is working to reshape the video ecosystem by offering more bundled and a la carte options that provide value and utility to customers. This may involve some near-term pain but the goal is to recreate a video model that works for customers, programmers, and distributors.

Overall, the key message is that Charter is focused on executing through the short-term challenges while positioning the business for sustainable long-term growth and value creation. The company appears to be taking a balanced approach to capital allocation and expense management during this investment cycle.

Earnings Call Analysis 2024 Q1

Competitive Pressures

Fixed wireless access and wireline overbuilds continue to have a temporary impact on Charter’s internet customer growth, especially in non-fiber overlap areas. However, Charter believes these impacts are manageable and expects to return to more normalized internet growth over time.

Strategic Initiatives

Charter is focused on long-term growth through initiatives like footprint expansion, customer experience improvements, and network evolution. These initiatives are progressing well and expected to drive future growth.

The company is closely monitoring the potential end of the Affordable Connectivity Program (ACP) and has plans to help affected customers stay connected.

Financial Performance

Charter is actively managing expenses to maintain EBITDA growth in the near-term, while continuing to invest for long-term growth.

The company provided a detailed multi-year CapEx outlook, showing declining capital intensity after the completion of network upgrades.

Charter remains committed to its target leverage range and plans to continue share repurchases.

Competitive Positioning

Charter believes its converged connectivity services, including Spectrum One, offer superior quality and value compared to competitors like fixed wireless.

The company expects bandwidth needs to continue increasing, which should benefit its high-speed internet product over time.

Overall, Charter appears focused on executing its long-term strategic plan, while being responsive to near-term competitive dynamics. The company’s detailed CapEx outlook and commitment to shareholder returns suggest confidence in its ability to generate strong free cash flow over time.

Earnings Call Analysis 2023 Q4

Broadband growth

The company is seeing strong progress in its subsidized rural broadband expansion, with 12-month penetration rates exceeding initial expectations. However, the core broadband markets have seen some slower growth, potentially due to factors like fixed wireless competition in lower-end segments.

Video business transformation

Charter is working to modernize its video distribution agreements with programmers, aiming to create a “state-of-the-art video marketplace” that integrates linear and direct-to-consumer content. The company sees opportunities to enhance the value of its video offerings by bundling them with broadband and mobile services.

Capital expenditures and network evolution

Charter may slightly slow the pace of its network evolution initiative to better balance capital investments between network upgrades and rural expansion. The company is providing more transparency around the value creation from its rural broadband build-out, which could be an important consideration for long-term investors.

Cost management and EBITDA outlook

The company expects cost efficiencies and easier year-over-year comparisons to drive EBITDA growth acceleration in 2024, after investments pressured growth in 2023. Factors like the rolloff of mobile free line offers and the return of political advertising revenue should also contribute to the EBITDA improvement.

Regulatory environment

Charter is closely monitoring the BEAD program guidelines and may selectively participate in states where the rules are conducive to private investment. The company remains disciplined in its rural expansion, focusing on opportunities that can generate healthy financial returns.

Overall, the key insights highlight Charter’s strategic initiatives to drive long-term growth through broadband expansion, video transformation, and cost management, while navigating a dynamic regulatory environment. Investors should closely monitor the company’s execution on these fronts and the resulting financial and operational performance.

Earnings Call Analysis 2023 Q3

Spectrum One Convergence Product

The Spectrum One convergence product is performing well and providing significant value to customers through bundled internet, WiFi, and mobile services. The company expects the promotional roll-off of Spectrum One to be manageable as the product offers unmatched quality and pricing.

Network Evolution Plan

The company’s network evolution plan is progressing well, allowing it to maintain industry-leading internet and WiFi speeds while also lowering future operating and capital costs. This uniform network deployment across the entire footprint positions Charter well competitively.

Rural Construction Initiatives

The company’s rural construction initiatives are accelerating, with 68,000 new subsidized rural passings activated in Q2. Charter is the largest and fastest-growing rural broadband provider and is well-positioned to benefit from potential BEAD infrastructure funding.

Spectrum Mobile Performance

Spectrum Mobile continues to perform strongly, with over 11% of internet customers now taking the mobile service. The company sees opportunities to further increase mobile lines per customer and penetration in the small and medium business segment.

Video Business Challenges

While the video business remains challenging due to programming cost inflation, Charter is focused on providing flexible packaging and pricing to retain customers, including the upcoming launch of the Xumo video platform.

Long-Term Operating Strategy

The company remains committed to its long-term operating strategy focused on providing great products, pricing, and service to drive customer growth and lower costs, which it believes will create significant shareholder value.

Overall, the key insights highlight Charter’s focus on executing its strategic initiatives around network evolution, expansion, and operational excellence, which position the company well for long-term growth and value creation.

Earnings Call Analysis 2023 Q2

Network Evolution

Charter is making significant investments to enhance its network capacity and capabilities, including upgrading to 1.2 GHz high-split and deploying distributed access architecture. This will allow them to offer faster speeds and more advanced services.

Convergence and Mobile Growth

Charter is seeing strong growth in its Spectrum Mobile offering, with over 6 million total mobile lines. The Spectrum One converged product bundle is performing well and driving mobile penetration among existing internet customers.

Rural Expansion

Charter is rapidly expanding its footprint to unserved and underserved rural areas, with 44,000 subsidized rural passings activated in Q1. Penetration of these rural areas is exceeding expectations.

Operational Efficiency

Charter is investing in its workforce to improve employee tenure and reduce service transactions. This, combined with network upgrades and digital service platforms, is expected to drive long-term cost savings and customer satisfaction.

Financial Outlook

Charter expects capital expenditures to decline after the completion of its network evolution initiative by 2025/2026. The company remains focused on prudent capital allocation and maintaining its target leverage range.

Overall, the key insights point to Charter making strategic investments to drive long-term customer growth, operational efficiency, and cash flow generation – positioning the company well for a strong competitive position in the evolving broadband and connectivity landscape.

Earnings Call Analysis 2023 Q1

Network Evolution

Charter is focused on evolving its network to ubiquitously offer symmetrical and multi-gigabit speeds at a much faster pace and lower cost than competitors. This will allow them to maintain marketing speed claims.

Convergence and Mobile

Charter’s Spectrum One offering that combines internet, WiFi, and mobile is driving strong mobile line growth, with over 1.7 million net additions in 2022. Mobile is helping drive lower churn and potentially higher internet acquisitions, though the full impact is still largely untapped.

Footprint Expansion

Charter is aggressively expanding its footprint through line extensions, RDOF builds, and participation in state/local grants and the upcoming BEAD program. Early rural builds are seeing strong 40% penetration rates within 6 months.

Operational Execution

Charter is focused on digitizing customer service, proactive maintenance, and improving employee tenure to enhance customer experience and drive growth.

Margin Outlook

While mobile subscriber acquisition costs are high, Charter expects mobile margins to continue improving as the business scales. Programming costs are expected to be roughly flat year-over-year.

Capital Allocation

Charter has a disciplined approach to capital allocation, balancing organic investment, expansion, and shareholder returns through buybacks.

Overall, Charter appears well-positioned to drive long-term shareholder value through network evolution, convergence, footprint expansion, and operational excellence, though the pace of broadband net adds remains uncertain in the near-term.

Earnings Call Analysis 2022 Q4

Broadband Growth Remains Challenged

Broadband growth remains challenged due to low market activity, not price sensitivity. Charter is not seeing significant broadband disconnects, indicating customers still value the service.

Converged Connectivity Offerings

Charter is focused on driving growth through its converged connectivity offerings like Spectrum One, which bundles broadband, WiFi, and mobile services. This strategy aims to increase customer value and save them money compared to standalone services.

Opportunity to Increase Household Spend

Charter sees significant long-term opportunity to increase its share of the combined household spend on wireline and mobile connectivity, as it currently only captures 28% of this opportunity within its footprint.

Network Upgrades and Investments

The company is making capital-efficient network upgrades like spectrum splits and preparing for DOCSIS 4.0 to maintain a state-of-the-art network and offer faster speeds at lower costs.

Expectations for Normalized Growth

While near-term broadband growth may be pressured, Charter expects to return to more normalized growth levels as market activity improves. The company remains committed to its strategy of driving volume growth and providing value to customers.

Long-Term Focus

Analysts should be cautious about reading too much into short-term financial metrics, as Charter is focused on the long-term opportunity and is willing to invest for future growth, even if it impacts near-term profitability.

Overall, the key message is that Charter sees a large long-term opportunity ahead and is positioning itself to capitalize on it through network investments and converged connectivity offerings, despite near-term growth challenges.

Earnings Call Analysis 2022 Q3

Competitive Landscape

Charter is facing some competition from new fixed wireless and fiber entrants, but this is not the major driver of their current growth slowdown. The bigger impact has been lower overall market activity and selling opportunities compared to the post-pandemic period. Charter remains confident in its ability to gain share as market activity normalizes.

Network Evolution

Charter is focused on continuing to evolve its network, including implementing DOCSIS 3.1 spectrum splits to increase upstream capacity. DOCSIS 4.0 testing has shown the potential for multi-gigabit symmetrical speeds in a capital-efficient manner. This allows Charter to offer future-proof connectivity services at attractive prices.

Mobile Business

Mobile is a rapidly growing and increasingly important part of Charter’s business. While the mobile business currently has a reported EBITDA loss due to subscriber acquisition costs, the underlying economics are attractive and improving. Charter sees significant opportunity to drive mobile growth and leverage it to also drive broadband growth.

Inflation and Economic Conditions

Charter believes it is well-positioned to navigate an inflationary environment, as its services can provide significant value to consumers. The company is focused on driving operational efficiencies to offset cost pressures. Video services may be more vulnerable in a downturn, but Charter’s broadband and mobile offerings are seen as more resilient.

Growth Strategy

Charter is accelerating network investments, including in rural areas, and exploring ways to leverage mobile to drive broadband growth. The company remains focused on providing the best value proposition to consumers through its converged connectivity offerings. Digitization of the customer experience is seen as a long-term opportunity to enhance satisfaction and reduce costs.

Overall, Charter appears well-positioned for long-term growth, with a focus on network evolution, mobile integration, and operational efficiency to navigate near-term competitive and macroeconomic challenges.

Earnings Call Analysis 2022 Q2

Broadband growth drivers

Charter sees several drivers for future broadband growth – continued household growth, expansion into unserved/underserved areas (including RDOF funding), and increasing market share by offering a compelling value proposition through bundling.

Network upgrades and capacity

Charter is rapidly upgrading its network through spectrum splits and plans to deploy DOCSIS 4.0 technology to increase capacity and speeds in a capital-efficient manner. This will allow them to meet growing customer demand for higher speeds and data usage.

Mobile growth

Charter continues to see strong mobile line growth, nearly 50% year-over-year. Their converged connectivity offering that saves customers money is driving this growth.

Cautious on competitive threats

While Charter acknowledges competition from fixed wireless and other overbuilders, they believe their network advantages, bundling strategy, and focus on customer value proposition will allow them to continue growing market share.

Capital allocation

Charter remains committed to its 4-4.5x leverage target range and will continue aggressive share repurchases, balanced with network investments to drive future growth.

Overall, the key message is that Charter sees ample opportunities to drive customer and free cash flow growth through network upgrades, mobile expansion, and a focus on delivering superior value to customers – despite a challenging competitive environment.

Earnings Call Analysis 2022 Q1

Network Evolution and Product Development

Charter is focused on deploying high-split technology to increase network capacity and offer faster, symmetrical gigabit speeds at lower costs. The company is actively developing DOCSIS 4.0 technology to enable even higher multi-gigabit speeds in the future. Charter is enhancing its mobile and WiFi offerings, including 5G C-band integration and mobile speed boosts, to provide a more integrated connectivity experience.

Rural Expansion Initiative

Charter is undertaking a multi-year, multi-billion dollar construction project to deliver gigabit broadband to over 1 million unserved rural locations. This expansion, including RDOF and other subsidized builds, is viewed as similar to acquiring a rural cable operator and is expected to drive additional customer growth and financial returns.

Competitive Positioning and Pricing Strategy

Charter’s strategy is focused on providing high-quality services at attractive prices to drive customer and market share growth. The company believes its integrated fixed and mobile offerings, along with its ability to upgrade the network more efficiently than competitors, provide a competitive advantage. Charter is not planning any near-term broadband rate increases, instead focusing on growing revenue through its bundled product offerings.

Wireless Growth and Profitability

Charter’s wireless business saw strong momentum in Q4, with the new multiline pricing and packaging driving rapid customer additions. The company is focused on improving the economics of the wireless business through network offload and targeted CBRS deployments, which are expected to increase profitability over time.

Financial Discipline and Capital Allocation

Charter remains committed to its target leverage range of 4-4.5x net debt to EBITDA. The company expects to become a meaningful cash taxpayer in 2022, with a cash tax rate in the mid-to-high teens percentage range. Charter continues to aggressively repurchase its shares, having bought back $56.8 billion or 40% of its equity since 2016.

Overall, the key insights highlight Charter’s focus on network evolution, rural expansion, competitive pricing, wireless growth, and financial discipline – all of which are aimed at driving long-term customer growth, market share gains, and shareholder value.

Earnings Call Analysis 2021 Q4

Broadband growth and customer relationships

Charter has a long runway for customer growth, with over 20 million homes and businesses in its footprint that it is not currently serving. The company is underpenetrated in mobile broadband, currently serving only 3.2 million of the 120 million mobile broadband lines in its footprint.

Network evolution and technology strategy

Charter is taking a multi-faceted approach to network evolution, including deploying high-splits, DOCSIS 4.0, and fiber-to-the-home in select areas. The high-split technology is seen as a capital-efficient way to increase network capacity and speeds, as it utilizes the existing DOCSIS 3.1 infrastructure. The company believes it can cost-effectively and efficiently offer gigabit speeds across its network using a combination of these technologies.

Wireless and convergence strategy

Charter is focused on converging its wireline and wireless offerings, with the goal of providing a single connectivity package that can save customers hundreds or even thousands of dollars per year. The company’s new unlimited multi-line mobile pricing is designed to drive new mobile relationships and stimulate overall market activity. The upcoming CBRS small cell trial is expected to allow for offloading a significant portion of mobile traffic onto Charter’s own network, potentially improving the economics of the wireless business.

Financial performance and capital allocation

The company has been able to generate strong EBITDA and free cash flow growth even in the current low-churn environment, benefiting from lower transaction costs. Charter continues to be disciplined in its capital allocation, intending to maintain leverage at the high end of its 4-4.5x target range. The company has been actively repurchasing its shares, having bought back $51.4 billion or 37.5% of its equity since 2016.

Overall, the key insights suggest that Charter has a robust long-term growth strategy, with a focus on network evolution, wireless convergence, and disciplined financial management. The company appears well-positioned to continue gaining market share and generating shareholder value.

Earnings Call Analysis for Charter Communications, Inc 2021 Q3 2021 Q3

Broadband Demand and Usage

Broadband demand and usage continues to grow, providing a long-term opportunity for Charter. The company is focused on delivering high-quality, capital-efficient broadband services.

Commercial Business Improvements

Charter is seeing improvements in its commercial business, with small business sales recovering and enterprise sales steadily improving. This provides another avenue for growth.

Customer Experience Optimization

The company is focused on optimizing the customer experience through digital self-service tools, proactive network management, and efficient call center operations. This is reducing costs and improving customer retention.

Mobile Business Growth

Charter sees a long runway for growth in its mobile business, as it leverages its broadband customer base and network capabilities. The company is focused on driving mobile adoption without relying on device subsidies.

Capital-Efficient Network Expansion

The company has a capital-efficient path to expand network capabilities and improve product quality, giving it a structural advantage over competitors. This supports its ability to grow customers, EBITDA and free cash flow over the long term.

Disciplined Capital Allocation

Charter remains disciplined on capital allocation, targeting leverage in the 4-4.5x range and continuing its share repurchase program, which has reduced its equity by 36% since 2016.

Overall, the key insights point to Charter’s focus on delivering high-quality, capital-efficient connectivity services, optimizing the customer experience, and leveraging its network and customer base to drive growth across broadband, commercial and mobile, all while maintaining financial discipline. This suggests a positive long-term outlook for the company.

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The information provided on this blog is for informational purposes only and should not be considered as financial advice. You should consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal.