uploads///Telecom Charter Q Adjusted Revenue

How Charter Communications Benefited from Acquisitions

Ambrish Shah - Author

Aug. 18 2020, Updated 5:27 a.m. ET

Growth in Charter Communications’ residential and commercial components

In the previous part of this series, we discussed the intense competition that Charter Communications (CHTR) is facing in the cable industry. Now let’s take a look at how Charter Communications’ top line has been improving, driven by the acquisitions.

Charter Communications is witnessing ongoing growth in its residential and commercial components, as it integrates the legacy Time Warner Cable and Bright House Networks acquisitions. The revenue growth for Charter Communications’ residential services was mainly driven by solid growth in its Internet division.

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Charter Communications’ revenue components

Charter Communications’ total revenues increased ~3.2% YoY (year-over-year) on a pro forma basis to reach $10.6 billion in 4Q17, which was in line with Wall Street’s expectations.

Its residential revenues increased ~3.9% YoY to reach $8.5 billion in 4Q17. Revenues for the residential services Internet component grew ~9.8% YoY to reach $3.6 billion in 4Q17, driven in part by customer gains in the division.

The commercial component also drove Charter Communications’ consolidated revenue growth in 4Q17. This revenue stream grew ~5.9% YoY to reach $1.5 billion in 4Q17. Enterprise, as well as small and medium business components, contributed to this growth.

However, the company’s advertising division was the laggard for the quarter, with revenues falling ~17.2% YoY to reach $419.0 million. A weak political advertising environment was the main reason for these disappointing advertising sales.

According to the company, if advertising sales were stripped of the top-line computations, Charter Communications’ total revenues would have increased ~4.2% YoY in 4Q17.

In comparison, Comcast’s (CMCSA) revenues increased ~4.2% YoY to reach $21.9 billion in 4Q17. Dish Network’s (DISH) revenues decreased ~7.2% YoY to reach $3.48 billion in 4Q17. Verizon’s (VZ) Wireline segment revenues increased ~0.1% YoY to reach $7.6 billion in 4Q17.


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