Charter Communications experienced revenue growth in certain areas, including 1.9% in Internet, 37.8% in Mobile service, and 1.3% in Commercial. However, the company lost residential Internet customers, with 72,000 lost compared to 67,000 additions in the previous year. Residential video customers also decreased by 392,000, compared to a decrease of 237,000 in the prior year.
Despite these customer losses, Charter’s adjusted EBITDA margin expanded by 100 bps to 40.2%. However, the quarterly free cash flow decreased to $358 million from $664 million in the prior year, primarily due to higher capital expenditures.
Charter Communications reiterated its 2024 capex guidance of $12.2 billion to $12.4 billion, while the company’s 2024 revenue and EPS consensus are $54.95 billion and $33.99, respectively.
In the past 12 months, Charter Communications stock has lost over 19%. Investors can gain exposure to the stock through Tidal ETF Trust God Bless America ETF (YALL) and Invesco S&P 500 Equal Weight Communication Services ETF (RSPC).
