Charter Revenues Rise on Internet; Video Subscribers Depart
Charter Communications Inc. (NASDAQ: CHTR) reported second-quarter 2015 results before markets opened Tuesday. The cable TV company posted a net loss per diluted share of $1.09 on revenues of $2.43 billion. In the same period a year ago, the company reported a net loss of $0.42 on revenues of $2.26 billion.
The quarter included a $128 million loss on extinguishment of debt, a $26 million charge related to the Comcast transaction and $19 million of other charges.
The company lost 33,000 video subscribers in the quarter and added 70,000 residential Internet subscribers and 33,000 residential voice subscribers. Average revenue per residential customer rose to $113.56 from $110.81 in the same period last year.
Compared to the second quarter of 2014, Charter’s video subscriber total fell by 46,000 from 4.166 million to 4.12 million. Internet subscriptions have grown by 9% (393,000) to 4.961 million and voice subscribers have risen by 7% to 2.514 million.
Tom Rutledge, president and CEO of Charter, said:
We look forward to applying that same focus and strategy across New Charter, following the close of our transactions with Time Warner Cable and Bright House Networks. Our new company will drive significant investment into broadband infrastructure, delivering faster broadband speeds and better video products to our customers, while driving customer and cash flow growth for our shareholders.
Charter is buying Time Warner Cable Inc. (NYSE: TWC) and privately held Bright House Networks for a combined price of nearly $90 billion, including debt. After the transactions are completed, Charter is expected to count nearly 24 million subscribers, second only to Comcast in U.S. subscriber numbers.
Charter’s shares closed up about 0.8% on Monday, at $187.31 in a 52-week range of $137.51 to $199.00. Shares were inactive in Tuesday’s premarket session.