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SEC Filings

8-K
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 10/26/2017
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Third Quarter Financial Results

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(dollars in millions, except per share data)
 
Three Months Ended September 30,
 
2017
 
2016
 
% Change
REVENUES:
 
 
 
 
 
Video
$
4,213

 
$
4,094

 
2.9
 %
Internet
3,556

 
3,206

 
10.9
 %
Voice
611

 
728

 
(16.1
)%
Residential revenue
8,380

 
8,028

 
4.4
 %
Small and medium business
931

 
867

 
7.4
 %
Enterprise
553

 
508

 
8.9
 %
Commercial revenue
1,484

 
1,375

 
8.0
 %
Advertising sales
373

 
420

 
(11.1
)%
Other
221

 
214

 
3.0
 %
Total Revenue
10,458

 
10,037

 
4.2
 %
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
Total operating costs and expenses
6,639

 
6,401

 
3.7
 %
Adjusted EBITDA
$
3,819

 
$
3,636

 
5.0
 %
 
 
 
 
 
 
Adjusted EBITDA margin
36.5
%
 
36.2
%
 
 
 
 
 
 
 
 
Capital Expenditures
$
2,393

 
$
1,748

 
 
% Total Revenues
22.9
%
 
17.4
%
 
 
 
 
 
 
 
 
Net income attributable to Charter shareholders
$
48

 
$
189

 
 
Earnings per common share attributable to Charter shareholders:
 
 
 
 
 
Basic
$
0.19

 
$
0.70

 
 
Diluted
$
0.19

 
$
0.69

 
 
 
 
 
 
 
 
Net cash flows from operating activities
$
2,908

 
$
2,801

 
 
Free cash flow
$
594

 
$
1,001

 
 

Revenue

Third quarter revenues rose 4.2% year-over-year to $10.5 billion, driven by growth in Internet, video and commercial revenues. Excluding advertising, third quarter revenues increased 4.9% year-over-year.

Video revenues totaled $4.2 billion in the third quarter, an increase of 2.9% compared to prior-year period. Video revenue growth was driven by annual and promotional rate adjustments, pay-per-view events, and revenue allocation relating to the launch of Spectrum pricing and packaging in Legacy TWC and Legacy Bright House, partially offset by a decrease in video customers over the last 12 months.

Internet revenues grew 10.9%, compared to the year-ago quarter, to $3.6 billion, driven by growth in Internet customers during the last year, promotional rolloff and revenue allocation relating to the launch of Spectrum pricing and packaging in Legacy TWC and Legacy Bright House.
 
Voice revenues totaled $611 million in the third quarter, a decrease of 16.1% compared to the third quarter of 2016, as value-based pricing and revenue allocation relating to the launch of Spectrum pricing and packaging in Legacy TWC and Legacy Bright House, more than offset voice customer growth over the last twelve months.

Commercial revenues rose to $1.5 billion, an increase of 8.0% over the prior year period, driven by SMB revenue growth of 7.4% and enterprise revenue growth of 8.9%.


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