Charter’s revenue over the past few quarters
Charter Communications’ (CHTR) revenue rose ~4.3% YoY (year-over-year) on a pro forma basis to reach $10.2 billion in 1Q17, though it came in below the consensus estimate of $10.3 billion. This increase was driven by strong growth in its Internet, Commercial, and Video Segments as it continues to integrate the Time Warner Cable and Bright House Networks acquisitions.
According to the company, there were two extraordinary items that impacted the company’s revenue growth during the quarter. In March 2017, Charter decided to provide billed credits to certain Time Warner Cable residential customers, while in 1Q16 Time Warner Cable and Bright House Networks revenues benefited from a contractual settlement.
Excluding these one-time items, consolidated total revenues rose ~4.7% YoY on a pro forma basis.
Charter’s revenue components in 1Q17
Charter’s Internet component continued to drive revenue growth for its residential services in 1Q17. Residential revenue rose ~4.2% YoY to reach ~$8.2 billion, and revenue for its residential services Internet component rose ~11.9% YoY to reach ~$3.4 billion.
Charter’s Commercial component also continued to drive Charter’s overall revenue growth in 1Q17. This revenue stream rose ~10.9% YoY to ~$1.4 billion during the quarter. Both small and medium businesses and enterprise components contributed to this growth.
By comparison, Comcast’s (CMCSA) revenue rose ~8.9% YoY to reach $20.5 billion in 1Q17. DISH Network’s (DISH) revenue fell ~3.8% YoY to reach $3.68 billion in 1Q17, while Verizon Communications’ (VZ) Wireline segment revenues fell ~0.6% YoY to reach $7.9 billion in 1Q17.
Continue to the next part for a discussion of Charter’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin.