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Charter Communications (CHTR) Tops Q4 Earnings & Revenues

Charter Communications Inc.CHTR reported strong financial results in fourth-quarter 2016, wherein both the top line and bottom line surpassed the Zacks Consensus Estimates.

GAAP net income in the reported quarter was $454 million or $1.67 per share compared with a net income of $130 million or 48 cents per share in the year-ago quarter (calculated on proforma basis). Quarterly earnings per share of $1.67 were significantly above the Zacks Consensus Estimate of $1.06 per share.

Fourth-quarter 2016 total revenue of $10,275 million increased 7.2% year over year (calculated on proforma basis) beating the Zacks Consensus Estimate of $10,250 million.

Residential segment revenues came in at $8,129 million, up 6.0% from the prior-year quarter. Within the Residential segment, Video revenues totaled $4,098 million, up 1.9% year over year. Internet revenues came in at $3,312 million, up 13.3% from the prior-year quarter while Voice revenues were $719 million, down 0.5% year over year.

Commercial revenues totaled $1,417 million, up 11.8% year over year. Within the Commercial segment, Small and medium business revenues were $891 million, up 13.0% year over year while Enterprise revenues came in at $526 million, up 9.8% on a year-over-year basis.

Advertising revenues were $506 million, up 20.8% year over year. Other revenues came in at $223 million, down 2.2%.

Quarterly operating costs were $6,422 million compared with $6,163 million in the year-ago quarter. Fourth-quarter adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $3,853 million compared with $3,418 million in the year-ago quarter. EBITDA margin came in at 37.5% compared with 35.7% in fourth-quarter 2015.

In the fourth quarter, Charter Communications generated $3,226 million of cash from operations compared with $611 million a year ago. Free cash flow in the reported quarter was $1,855 million compared with $80 million a year ago.

At the end of 2016, Charter Communications had $1,535 million of cash and cash equivalents and $61,747 million of outstanding debt compared with $5 million and $35,723 million, respectively, at the end of 2015. At the end of 2016, the debt-to-capitalization ratio was 0.54.

Charter Communications competes with AT&T Inc. T , Verizon Communications Inc. VZ and Comcast Corp. CMCSA in the intensely competitive triple-play cable MSO (multi service operator) industry. Charter Communications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Subscriber Statistics

Residential segment : As of Dec 31, 2016, Charter Communications had 16.836 million video, 21.374 million high-speed Internet and 10.327 million voice customers. During the reported quarter, the company gained 357,000 high-speed Internet and 39,000 voice customers but lost 51,000 video customers.

Average revenue per customer relationship was $109.77 compared with $108.22 in the prior-year quarter. Single Play penetration was 38.9%, Double Play penetration was 26.6% and Triple Play penetration was 34.6%.

Commercial Segment : As of Dec 31, 2016, Charter Communications had 400,000 video, 1,219,000 high-speed Internet and 778,000 voice subscribers. During the reported quarter, the company added 12,000 video customers, 34,000 high-speed Internet and 27,000 voice customers.

Charter Communications, Inc. Price, Consensus and EPS Surprise

Charter Communications, Inc. Price, Consensus and EPS Surprise | Charter Communications, Inc. Quote

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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