Charter’s 3Q revenue up, but profits down
Despite posting double-digit pro forma revenue and pro forma adjusted EBITDA growth for the fourth consecutive quarter, Charter Communications saw its profits slip in the recently completed third quarter.
"We are pleased to be announcing double-digit pro forma revenue and adjusted EBITDA growth for the fourth consecutive quarter," said Neil Smit, Charter’s president and CEO, in a statement. "We will remain disciplined in our operating, marketing and capital investments targeted to continue growing the business."
Charter saw a 10 percent increase in revenue in the quarter, but that was offset by the nation’s third-largest cable company losing $274 million more during this third-quarter compared to last year’s.
Revenue from Charter’s video, high-speed Internet and telephone services all increased in the quarter to aid the company’s bottom line. Revenue for the third quarter topped $1.5 billion, which was a 9.9 percent increase from last year’s third quarter sales of $1.4 billion.
On the other side of the ledger, Charter had a $407 million loss, or $1.10 a share, in the most recent third quarter compared to a loss of $133 million, or 41 cents a share, in the same quarter last year.
Despite revenues increasing at a higher rate than operating costs and expenses, Charter said the net loss increase was primarily due to non-recurring gains in 2006 third-quarter expenditures when the company recognized a $128 million gain on debt exchange and a $200 million gain on the sale of discontinued operations.
Charter added 102,300 telephone customers in the third quarter for a total of 802,600 telephone customers.
The company lost 40,200 analog video customers while adding 15,800 digital video customers in the third quarter. Charter’s high-speed Internet customers increased by approximately 53,000 in the quarter.