Charter shows Q1 results, eyes cable exchange
Despite a $280.7 million net loss in first quarter 2001, Charter Communications Inc. saw revenue and cash flow increase, it reported yesterday. The broadband communications company also reiterated its annual and second-quarter 2001 guidance, and noted a cable systems agreement with AT&T.
Charter's reported net losses of $1.20 a share, or $280.7 million, were higher than the $180.7 million net loss, or 81 cents a share, a year ago.
But first quarter revenue increased 14.4 percent to $873.8 million and operating cash flow was up 9.7 percent to $387.9 million over a year ago. It increased its customer base by more than 2 percent in that time.
Like Comcast Communications, Charter has agreed on a plan to purchase AT&T Broadband cable systems, it reports. "When completed, Charter will acquire cable systems from AT&T Broadband serving approximately 574,000 customers in Missouri, Alabama, Nevada and California for a total of $1.78 billion," it reports. The deal will consist of an exchange: Charter will give up cable systems in Florida valued at $249 million and up to $501.5 million in Class A stock. The remainder will be paid in cash. Charter expects the deal to be complete in late second or early third quarter. Comcast yesterday reported it completed a similar deal with AT&T.