Charter Communications, now the No. 2 U.S. cable operator following its acquisitions of Time Warner Cable and Bright House, reported a modest increase in revenue but wider video subscriber losses in the third quarter ending September 30. Results fell short of Wall Street analysts’ estimates.
Revenue of $10.5 billion increased 4% due to residential revenue growth of 4% and commercial revenue growth of 8%, while advertising revenue dropped 11% on lower political revenue.
The company, which has 16.5 million total customers in the U.S., reported a net loss of 104,000 video subscribers, up from 47,000 in the same quarter a year ago.
Net income declined to $48 million from $189 million a year ago due to an increase in depreciation and amortization in the current quarter. Adjusted earnings before income, taxes, depreciation and amortization increased 5% to $3.8 billion.
Chairman and CEO Tom Rutledge said the integration of the acquired systems “is going well and remains on schedule.” He added, “Despite the complexity that comes with changing the way we do business in 75% of our footprint, we continue to generate solid customer, revenue and EBITDA growth.”
Broadband penetration is continuing, with 22.3 million residential customers now getting service from Charter. The company said it now offers high-speed service of 100 Mbps to 75% of its total footprint.