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Sep 30, 2020

Charter Q3 2020 Earnings Report

Charter's Q3 2020 results reflected growth in customer relationships and revenue, driven by strong performance in residential, mobile, and advertising sectors.

Key Takeaways

Charter Communications reported a strong third quarter in 2020, with significant growth in customer relationships, particularly in the residential and SMB sectors. Revenue increased by 5.1% year-over-year, driven by growth in residential, mobile, and advertising revenue. Net income attributable to Charter shareholders also saw a substantial increase compared to the same period last year.

Total residential and SMB customer relationships increased by 457,000, a notable rise compared to the 310,000 increase in Q3 2019.

Total residential and SMB Internet customers grew by 537,000, surpassing the 380,000 increase in the third quarter of the previous year.

Charter added 363,000 mobile lines during the quarter, marking a significant increase from the 276,000 added in Q3 2019.

Revenue increased by 5.1% year-over-year to $12.0 billion, driven by residential, mobile, and advertising revenue growth.

Total Revenue
$12B
Previous year: $11.5B
+5.1%
EPS
$3.9
Previous year: $1.74
+124.1%
Residential Customers
28.91M
Previous year: 27.04M
+6.9%
SMB Customers
2.02M
Previous year: 1.93M
+4.7%
Residential Internet
26.81M
Previous year: 24.6M
+9.0%
Gross Profit
$4.56B
Previous year: $4.02B
+13.5%
Cash and Equivalents
$1.28B
Previous year: $508M
+152.6%
Free Cash Flow
$1.65B
Previous year: $1.29B
+27.7%
Total Assets
$144B
Previous year: $145B
-0.7%

Charter

Charter

Charter Revenue by Segment

Forward Guidance

Charter expects to maintain its operating and investment strategy to deliver high-quality products and services.

Positive Outlook

  • Customer relationship growth is expected to continue.
  • Focus on executing a proven operating and investment strategy.
  • Commitment to delivering high-quality products and services.
  • Continued investment in network and service improvements.
  • Aim to create shareholder value for the long term.

Challenges Ahead

  • Competition from other market participants.
  • Potential impacts from the COVID-19 pandemic.
  • Dependence on ability to obtain programming at reasonable prices.
  • Risk of events disrupting networks or information systems.
  • Effects of governmental regulation on business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income