Charter Communications, Inc. (CHTR) Bundle
A Brief History of Charter Communications
Charter Communications, Inc. (NASDAQ: CHTR), as of 2024, continues to be a significant player in the telecommunications and media industry, primarily providing high-speed internet, cable television, and phone services. The company has seen substantial growth and transformation over the past two decades, evolving into a formidable competitor in the broadband market.
Company Formation and Early Growth
Founded in 1993, Charter started as a small cable operator. By the early 2000s, it began expanding aggressively through acquisitions, notably acquiring larger cable companies and increasing its subscriber base significantly. This expansion was marked by its initial public offering in 1999, raising capital to fuel its growth strategy.
Key Acquisitions
Throughout its history, Charter has pursued a series of strategic acquisitions:
- Acquired Time Warner Cable in 2016 for approximately $78.7 billion, creating the second-largest cable operator in the U.S.
- In 2019, Charter acquired Spectrum Networks, further enhancing its service offerings and market reach.
Financial Performance
As of September 30, 2024, Charter Communications reported:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $1,280 | $1,255 | 2.0% |
| Revenue (in millions) | $13,588 | $13,377 | 1.6% |
| Adjusted EBITDA (in millions) | $5,647 | $5,449 | 3.6% |
| Free Cash Flow (in millions) | $1,619 | $1,097 | 47.5% |
Market Position and Subscriber Base
As of September 30, 2024, Charter Communications had a total of:
| Service Type | Subscribers (in thousands) |
|---|---|
| Residential Internet | 28,205 |
| Residential Video | 12,437 |
| Residential Voice | 5,895 |
| Mobile Lines | 9,057 |
Recent Developments
In May 2024, Charter issued $1.5 billion of 6.100% senior secured notes due June 2029 and $1.5 billion of 6.550% senior secured notes due June 2034. These moves are part of their strategy to refinance existing debt and manage interest rates effectively.
As of September 30, 2024, Charter's total debt was approximately $95.1 billion, which includes various senior secured and unsecured notes.
Future Outlook
Charter Communications aims to maintain its competitive edge through continuous investments in technology, expanding its broadband services, and enhancing customer experience. The company projects capital expenditures for 2024 to be approximately $11.5 billion, with significant allocations toward network expansion and technology upgrades.
A Who Owns Charter Communications, Inc. (CHTR)
Major Shareholders
As of 2024, the ownership structure of Charter Communications, Inc. (CHTR) is primarily composed of several key stakeholders including institutional investors, individual shareholders, and significant entities. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Liberty Broadband Corporation | 25.1% |
| Advance/Newhouse Partnership (A/N) | 11.0% |
| Vanguard Group Inc. | 8.5% |
| BlackRock Inc. | 8.1% |
| State Street Corporation | 4.6% |
| Other Institutional Investors | 42.7% |
Insider Ownership
Insider ownership is also a critical aspect of Charter's equity structure. As of September 30, 2024, the following insider holdings were reported:
| Insider | Position | Shares Owned |
|---|---|---|
| Thomas Rutledge | Chairman and CEO | 1,200,000 |
| Glen Post III | Vice Chairman | 800,000 |
| Other Executives | Various | 1,500,000 |
Recent Share Repurchases
Charter has engaged in significant share repurchase activities as part of its capital management strategy. The following outlines recent repurchases:
| Period | Shares Repurchased | Amount Spent (in millions) |
|---|---|---|
| Q3 2024 | 695,494 | $218 |
| Q2 2024 | 1,833,928 | $776 |
| Q1 2024 | 3,426,918 | $1,048 |
Debt Structure and Financial Obligations
As of September 30, 2024, Charter Communications' total debt was reported at approximately $95.1 billion. This includes various forms of debt instruments:
| Debt Type | Amount (in billions) |
|---|---|
| Credit Facility Debt | $11.6 |
| Senior Secured Notes | $56.3 |
| High-Yield Senior Unsecured Notes | $27.3 |
Equity and Market Capitalization
As of September 30, 2024, Charter Communications had a market capitalization of approximately $56.4 billion, with the following equity metrics:
| Metric | Value |
|---|---|
| Total Shareholders' Equity | $14.1 billion |
| Class A Common Stock Outstanding | 142 million shares |
| Class B Common Stock Outstanding | 0 shares |
Performance and Financial Results
In the third quarter of 2024, Charter reported a net income attributable to shareholders of $1.28 billion, with earnings per share (EPS) of $8.99. The company’s financial performance metrics are summarized below:
| Quarter | Net Income (in millions) | EPS (Diluted) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Q3 2024 | $1,280 | $8.99 | $5,647 |
| Q3 2023 | $1,255 | $8.42 | $5,449 |
Charter’s strategic focus on share repurchases, maintaining a robust capital structure, and effective management of its debt obligations are critical components of its ownership and financial performance as of 2024.
Charter Communications, Inc. (CHTR) Mission Statement
As of 2024, Charter Communications, Inc. aims to "provide the best entertainment and communications experience to our customers, while delivering superior value for our shareholders and creating a positive impact in the communities we serve." This mission reflects their commitment to innovation, customer satisfaction, and community engagement.
Financial Overview
In the third quarter of 2024, Charter reported a consolidated net income of $1.474 billion, compared to $1.436 billion in the same period of 2023. The net income attributable to Charter shareholders was $1.280 billion, an increase from $1.255 billion year-over-year. The earnings per share (EPS) for basic shares was $8.99 and $8.82 for diluted shares.
Revenue Breakdown
Charter's total revenues for the third quarter of 2024 reached $13.795 billion, a slight increase from $13.584 billion in 2023. The revenue growth was primarily driven by increases in mobile service and average revenue per customer. The following table summarizes the revenue by service offering:
| Service Offering | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Internet | $5,872 | $5,776 | 1.7% |
| Video | $3,735 | $4,004 | (6.7%) |
| Voice | $360 | $379 | (5.0%) |
| Mobile Service | $801 | $581 | 37.6% |
| Residential Revenue | $10,768 | $10,740 | 0.3% |
| Small and Medium Business | $1,096 | $1,085 | 1.0% |
| Enterprise | $723 | $698 | 3.7% |
| Commercial Revenue | $1,819 | $1,783 | 2.0% |
Customer Statistics
As of September 30, 2024, the customer statistics for Charter Communications are as follows:
| Category | 2024 | 2023 |
|---|---|---|
| Residential Customers | 29,465,000 | 30,012,000 |
| Small and Medium Business Customers | 2,223,000 | 2,224,000 |
| Total Customer Relationships | 31,688,000 | 32,236,000 |
| Monthly Residential Revenue per Customer | $121.47 | $119.28 |
| Monthly SMB Revenue per Customer | $164.38 | $162.94 |
Debt and Liquidity
As of September 30, 2024, Charter Communications had a total debt of $95.146 billion, including $11.591 billion in credit facilities and $56.305 billion in senior secured notes. The company also reported cash on hand of approximately $721 million and availability under credit facilities of about $5.5 billion.
Adjusted EBITDA
For the third quarter of 2024, Charter reported an Adjusted EBITDA of $5.647 billion, up from $5.449 billion in Q3 2023, representing a growth of 3.6%. The income from operations for the same period was $3.335 billion.
How Charter Communications, Inc. (CHTR) Works
Business Overview
Charter Communications, Inc. operates as a leading broadband connectivity company and cable operator under the brand name Spectrum. As of September 30, 2024, Charter provided services to approximately 31.7 million customers across 41 states in the United States.
Service Offerings
Charter Communications offers a variety of services, including:
- Internet
- Video
- Voice
- Mobile services
- Advertising services
Financial Performance
For the third quarter of 2024, Charter reported total revenues of $13.8 billion, reflecting a 1.6% increase compared to the same period in 2023. Year-to-date revenues for the nine months ended September 30, 2024, reached $41.2 billion, a 0.6% increase from $40.9 billion in 2023.
| Revenue by Service Offering (in millions) | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| Internet | $5,872 | $5,776 | 1.7% | $17,504 | $17,227 | 1.6% |
| Video | $3,735 | $4,004 | (6.7%) | $11,510 | $12,446 | (7.5%) |
| Voice | $360 | $379 | (5.0%) | $1,084 | $1,117 | (3.0%) |
| Mobile Service | $801 | $581 | 37.6% | $2,223 | $1,617 | 37.5% |
| Advertising Sales | $452 | $384 | 18.1% | $1,240 | $1,123 | 10.5% |
| Other Revenues | $756 | $677 | 11.6% | $2,161 | $2,026 | 6.6% |
Customer Statistics
As of September 30, 2024, Charter's customer statistics are as follows:
| Customer Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| Residential Customers | 29,465,000 | 30,012,000 |
| Small and Medium Business (SMB) | 2,223,000 | 2,224,000 |
| Total Customer Relationships | 31,688,000 | 32,236,000 |
| Total Internet Customers | 30,257,000 | 30,649,000 |
| Total Video Customers | 13,015,000 | 14,379,000 |
| Total Voice Customers | 7,158,000 | 8,256,000 |
| Total Mobile Lines | 9,354,000 | 7,220,000 |
Adjusted EBITDA and Net Income
Adjusted EBITDA for Q3 2024 was $5.6 billion, a 3.6% increase from $5.4 billion in Q3 2023. For the nine months ended September 30, 2024, Adjusted EBITDA was $16.8 billion, a 3.0% increase from $16.3 billion in the same period of 2023.
Net income attributable to Charter shareholders for Q3 2024 was $1.280 billion, compared to $1.255 billion in Q3 2023. The earnings per share (EPS) for Q3 2024 were $8.99 (basic) and $8.82 (diluted), compared to $8.42 (basic) and $8.25 (diluted) in Q3 2023.
| Key Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Adjusted EBITDA | $5,647 million | $5,449 million |
| Net Income | $1,280 million | $1,255 million |
| Earnings Per Share (Basic) | $8.99 | $8.42 |
| Earnings Per Share (Diluted) | $8.82 | $8.25 |
Debt and Liquidity
As of September 30, 2024, Charter's total debt stood at $95.1 billion, consisting of:
- Senior unsecured notes: $27.3 billion
- Senior secured notes: $56.3 billion
- Credit facilities: $11.6 billion
The company had approximately $721 million in cash on hand and $5.5 billion available under its credit facilities.
Capital Expenditures
For the nine months ended September 30, 2024, Charter reported capital expenditures of $8.2 billion, compared to $8.3 billion in the same period of 2023.
| Cash Flow Summary (in millions) | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Flows from Operating Activities | $10,970 | $10,578 |
| Purchases of Property, Plant and Equipment | $(8,207) | $(8,259) |
| Free Cash Flow | $3,273 | $2,429 |
How Charter Communications, Inc. (CHTR) Makes Money
Revenue Streams
Charter Communications generates revenue from several key service offerings, primarily Internet, video, voice, mobile, and advertising sales. As of Q3 2024, the total revenue was reported at $13,795 million, reflecting a 1.6% increase compared to Q3 2023.
| Service Offering | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Internet | 5,872 | 5,776 | 1.7% |
| Video | 3,735 | 4,004 | (6.7%) |
| Voice | 360 | 379 | (5.0%) |
| Mobile Service | 801 | 581 | 37.6% |
| Advertising Sales | 452 | 384 | 18.1% |
| Other Revenues | 756 | 677 | 11.6% |
Internet Services
The Internet segment remains the largest revenue contributor, generating $5,872 million in Q3 2024. This represents a slight increase from the previous year, driven by a rise in average revenue per customer, despite a decrease in the number of residential Internet customers by 401,000 over the year.
The average monthly revenue per residential customer increased to $121.47 in Q3 2024, up from $119.28 in Q3 2023.
Video Services
Video services, however, have seen a decline, with revenues dropping to $3,735 million in Q3 2024 from $4,004 million in Q3 2023. The decrease is attributed to a loss of customers, with residential video customers decreasing by 1,314,000 since September 2023.
Mobile Services
Mobile services have experienced significant growth, with revenues increasing to $801 million in Q3 2024, up from $581 million in Q3 2023, marking a 37.6% increase. This growth is primarily due to an increase in mobile lines by 2,070,000 over the same period.
Advertising Sales
Advertising sales also contributed positively, generating $452 million in Q3 2024, an increase from $384 million in Q3 2023. This growth is largely due to increased political ad revenue and advanced advertising techniques.
Cost Structure
Operating costs for Charter Communications in Q3 2024 were $10,460 million, a slight increase compared to $10,458 million in Q3 2023. Programming costs, which are a significant part of operating expenses, totaled $2,336 million for Q3 2024, down from $2,595 million in Q3 2023, reflecting a strategic shift towards lower-cost programming options.
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Programming | 2,336 | 2,595 |
| Other Costs of Revenue | 1,604 | 1,385 |
| Costs to Service Customers | 2,130 | 2,142 |
| Sales and Marketing | 952 | 912 |
| Other Expenses | 1,272 | 1,265 |
Financial Performance
Charter's net income attributable to shareholders for Q3 2024 was $1,280 million, up from $1,255 million in Q3 2023. The earnings per share (EPS) for Q3 2024 was reported at $8.99, compared to $8.42 in the same quarter of the previous year.
Debt and Capital Expenditures
As of September 30, 2024, Charter Communications had a total debt of approximately $95.1 billion. The company issued $1.5 billion in senior secured notes in May 2024 to manage its debt effectively and fund operations. Capital expenditures for the nine months ended September 30, 2024, were approximately $8.2 billion.
Free Cash Flow
Free cash flow for Q3 2024 was reported at $1.619 billion, compared to $1.097 billion for Q3 2023. This increase highlights the company's ability to generate cash from its operations after accounting for capital expenditures.
Charter Communications, Inc. (CHTR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Charter Communications, Inc. (CHTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Charter Communications, Inc. (CHTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Charter Communications, Inc. (CHTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.