Charter Communications Inc CHTR reported fiscal first-quarter 2024 revenue growth of 0.2% year-on-year to $13.68 billion, missing the consensus of $13.74 billion.
EPS of $7.55 missed the consensus of $7.92. The stock price dropped after the results.
Revenue growth of 1.9% in Internet, 37.8% in Mobile service, and 1.3% in Commercial aided the top line.
Charter lost 72,000 residential Internet customers, compared to 67,000 additions last year. Residential video customers decreased by 392,000 versus a decrease of 237,000 in the prior year.
Adjusted EBITDA margin expanded by 100 bps to 40.2%.
The quarterly free cash flow of $358 million decreased from $664 million in the prior year, primarily due to higher capital expenditures, driven mainly by Charter’s network evolution and expansion initiatives.
As of March 31, 2024, Charter served 30.5 million residential and SMB Internet customers.
Net cash flow from operating activities totaled $3.2 billion. The company held $661 million in cash and equivalents as of March 31, 2024.
Outlook: Charter Communications reiterated a 2024 capex of $12.2 billion – $12.4 billion.
The company’s 2024 revenue and EPS consensus are $54.95 billion and $33.99.
Charter Communications stock lost over 19% in the past 12 months. Investors can gain exposure to the stock via Tidal ETF Trust God Bless America ETF YALL and Invesco S&P 500 Equal Weight Communication Services ETF RSPC.
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CHTR Price Action: Charter Communications shares traded lower by 1.49% at $255.49 at publication Friday.
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