Have Charter Communications’ Margins Improved?

In the preceding part, we discussed how Charter Communications’ (CHTR) top line has been improving due to its acquisitions. Charter is witnessing ongoing growth in its core operating profitability, primarily to reflect strong cost management. Charter is expected to have multiple opportunities to create significant merger synergies across the new Charter Communications footprint as it integrates the legacy Time Warner Cable and legacy Bright House Networks acquisitions.

Charter Communications’ adjusted EBITDA increased ~6.5% YoY (year-over-year) on a pro forma basis to reach $3.9 billion in the first quarter. Excluding mobile costs, its adjusted EBITDA grew ~6.8% YoY in the first quarter. Charter Communications’ adjusted EBITDA margin was 36.5% in the first quarter, up from 35.9% in the first quarter of 2017.

In the first quarter, integrated US telecom giant Verizon (VZ) reported a consolidated adjusted EBITDA margin of 37.1%. AT&T (T) reported a combined domestic wireless operations EBITDA margin of 41.8% during the same period. Frontier Communications’ (FTR) adjusted EBITDA margin was 41.3% in the first quarter.

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