Why Charter’s Revenue Grew in Q1 2019

Charter’s revenue

Charter Communications’ (CHTR) revenue had risen sequentially for seven quarters straight until the first quarter of 2019, when it fell sequentially to $11.21 billion. However, it beat analysts’ estimate of $11.20 billion and grew 5.1% YoY (year-over-year).

In comparison, T-Mobile’s (TMUS) first-quarter revenue of $11.1 billion beat analysts’ expectation. AT&T’s (T) revenue missed analysts’ expectation but grew ~18% YoY.

Why Charter’s Revenue Grew in Q1 2019

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Q1 2019 revenue drivers

Charter’s revenue grew YoY thanks to its residential and commercial segments. Internet and video revenue drove its residential unit, whereas its advertising and other revenue fell.

Residential revenue, including video, voice and Internet revenue, increased 4.2% YoY in the first quarter. Video revenue grew 2.1% YoY, and Internet revenue increased 8.6% YoY, driven by higher promotional roll-offs. However, voice revenue declined 9.4% YoY in the first quarter due to a decline in wireline voice customers.

Commercial revenue grew 4.3% YoY in the first quarter, driven by enterprise revenue growth of 3.4% and small-to-medium-sized business revenue growth of 5.0%. Softness in political revenue pulled down Q1 advertising revenue by 3.1% YoY.