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Charter Communications May Seek Mergers and Acquisitions

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Charter may seek M&A deals

During the UBS Global Media and Communications Conference last week, Thomas Rutledge, Charter Communications’ (CHTR) chair and CEO, stated that the company would look to acquire more cable assets if they were available.

He added, “We’ve been buying a lot of our own stock back. Why? Because we think the cable business is a great business, and we haven’t been able to buy other cable assets in.”

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Charter’s revenue and EPS trend

Charter reported third-quarter adjusted EPS of $1.36 on revenue of $10.9 billion compared to forecasts of adjusted EPS of $1.04 on revenue of $10.9 billion. It had adjusted EPS of $0.19 on revenue of $10.5 billion in the same period a year earlier.

In comparison, Comcast’s (CMCSA) revenue rose ~5% YoY (year-over-year) to $22.1 billion in the third quarter. In the integrated US telecommunications space, AT&T’s (T) revenue rose ~15.3% YoY to $45.7 billion, while Verizon’s (VZ) revenue rose ~2.8% YoY to $32.6 billion in the same quarter. Frontier Communications’ (FTR) revenue fell ~5.6% YoY to $2.1 billion.

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