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Charter Communications’s Revenue Trend in the Last Few Quarters

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Charter’s recent revenues

In the previous part of this series, we learned that Charter Communications’s (CHTR) earnings increased YoY (year-over-year) during 4Q16. In this part, let’s look at CHTR’s performance in terms of its top line for the last few quarters.

Charter Communications’s revenues increased ~7.2% YoY to reach $10.3 billion in 4Q16. This increase was driven by strong growth in its Internet, Commercial, and Video segments as it integrates the Time Warner Cable and Bright House Networks acquisitions.

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Charter’s revenue components in 4Q16

Charter Communications’s Internet component drove revenue growth for its residential services in 4Q16. Residential revenues increased ~6.0% YoY to reach ~$8.1 billion in the quarter. The company saw solid revenues for the Residential Internet component, which increased ~13.3% YoY to reach ~$3.3 billion.

CHTR’s Commercial component also drove the company’s overall revenue growth in 4Q16. This revenue stream rose ~11.8% YoY to ~$1.4 billion during the quarter. Small and medium businesses contributed to this growth, as did enterprise revenues.

Charter Communications’s top-line growth should depend on its ability to steal market share from cable companies such as Comcast (CMCSA) and Dish Network (DISH). In comparison, Comcast’s revenues rose ~8.3% YoY to reach $21.0 billion in 4Q16.

Dish Network’s revenues fell ~1.6% YoY to reach ~$3.7 billion in 4Q16. However, Verizon’s (VZ) Wireline segment’s revenues fell ~3.1% YoY to reach $7.8 billion in 4Q16.

Continue to the next part for a discussion of Charter Communications’s EBITDA[1. earnings before interest, tax, depreciation, and amortization] margin.

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