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Impairment charge sinks Charter’s Q3
By Brian Santo
CedMagazine.com - November 09, 2009

Charter Communications improved some of its key operating statistics, but it took a large one-time charge and posted a loss in its third quarter as it continues to wrangle with its enormous debt.

The company’s sojourn in Chapter 11 might last for only a few weeks more; a judge’s ruling on the company’s reorganization plan – contested by some of its key investors – is imminent.

Third-quarter revenue of $1.69 billion was up 3.5 percent, which the company said was driven by increases in telephone, high-speed Internet and commercial revenues.

Charter said that the economic downturn forced it to pull in on its 2008 estimates of future growth, in turn forcing the company to take an impairment charge of more than $2.8 billion in the quarter . That charge was partially offset by a one-time tax gain. 

With that charge, Charter reported $2.5 billion of loss from operations in the third quarter of 2009, compared with $208 million of income from operations in the third quarter of 2008.

Total average monthly revenue per basic video customer (ARPU) for the quarter increased 8.2 percent year-over-year to $115.26, driven by increased sales of The Charter Bundle.

Charter’s basic video customer count decreased by approximately 46,500 during the third quarter, while digital video customers increased by approximately 22,800. The company added about 52,400 broadband subs, and about 55,300 VoIP customers.

Charter said that as of Sept. 30, it served approximately 5.3 million customers, representing 12.6 million RGUs (4.9 million basic video, 3.2 million digital video, 3.0 million HSI and 1.5 million telephone customers).

Expenditures for property, plant and equipment for the third quarter of 2009 were $279 million, compared with third-quarter 2008 expenditures of $288 million.

More Broadband Direct 11/09/09:
•  Impairment charge sinks Charter's Q3
•  GE, Comcast edge closer to NBC Universal deal
•  Cox Business scores with financial firms
•  Report: Cable on tap for 2nd Clearwire funding
•  Dish's earnings dip in Q3, subscribers grow
•  Windstream's revenue down in Q3; D&E purchase OK'ed
•  Moto targets IPTV with Mediaroom integration
•  Google to buy mobile ad network for $750M
•  Sony: 'What we're doing is game-changing for TV'
•  Software cos. eye key patent case in Supreme Court
•  Liberty Media revenue up at 2 biggest businesses
•  Broadband Briefs for 11/09/09

 


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Charter emerges from Chapter 11
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