Charter Q2 2024 Earnings Report
Key Takeaways
Charter Communications reported a slight increase in revenue, driven by growth in residential mobile and internet services. The company saw a decrease in residential and SMB internet customers but an increase in mobile lines. Net income remained relatively stable, while free cash flow significantly increased due to higher adjusted EBITDA and favorable changes in working capital.
Total residential and SMB Internet customers decreased by 149,000.
Total residential and SMB mobile lines increased by 557,000.
Revenue grew by 0.2% year-over-year, driven by residential mobile service and internet revenue growth.
Free cash flow increased due to higher Adjusted EBITDA and favorable changes in working capital.
Charter
Charter
Charter Revenue by Segment
Forward Guidance
Charter expects full year 2024 capital expenditures to total approximately $12.0 billion, a decrease from Charter's previously expected range of between $12.2 billion and $12.4 billion.
Positive Outlook
- Lower Internet and video customer net additions drive lower CPE and capitalized installation costs.
- Company continues to expect line extensions capital expenditures of approximately $4.5 billion.
- Company continues to expect network evolution spend of approximately $1.6 billion.
- Company is executing well on several transformational initiatives.
- Company is improving service and sales capabilities.
Challenges Ahead
- Actual amount of capital expenditures in 2024 will depend on a number of factors.
- Pace of Charter's network evolution and expansion initiatives could impact capital expenditures.
- Supply chain timing could impact capital expenditures.
- Growth rates in Charter's residential and commercial businesses could impact capital expenditures.
- Lower Internet and video customer net additions is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income