NASDAQ$CHTR

Charter Communications Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Charter's financial and operating results for the second quarter of 2024 were announced, with revenue growth driven by residential mobile and internet services.

Charter Communications reported a slight increase in revenue, driven by growth in residential mobile and internet services. The company saw a decrease in residential and SMB internet customers but an increase in mobile lines. Net income remained relatively stable, while free cash flow significantly increased due to higher adjusted EBITDA and favorable changes in working capital.

  • Total residential and SMB Internet customers decreased by 149,000.
  • Total residential and SMB mobile lines increased by 557,000.
  • Revenue grew by 0.2% year-over-year, driven by residential mobile service and internet revenue growth.
  • Free cash flow increased due to higher Adjusted EBITDA and favorable changes in working capital.

Headline financials

Total Revenue

$13.7B

Previous: $13.7B+0.2%
EPS

$8.49

Previous: $8.05+5.5%
Residential Customer Relationships

29.6M

Previous: 30.0M-1.3%
Small Business Customer Relationships

2.2M

Previous: 2.2M+0.1%
Residential Internet Customers

28.3M

Previous: 28.5M-0.8%
Small Business Internet Customers

2.0M

Previous: 2.0M+0.6%
Residential Video Customers

12.7M

Previous: 14.1M-9.6%
Small Business Video Customers

591.0K

Previous: 635.0K-6.9%
Residential Voice Customers

6.2M

Previous: 7.2M-14.9%
Small Business Voice Customers

1.3M

Previous: 1.3M-1.4%
Residential Mobile Lines

8.5M

Previous: 6.4M+33.1%
Monthly Residential Revenue per Customer

$120.77

Previous: $120.25+0.4%
Monthly Small Business Revenue per Customer

$165.28

Previous: $164.56+0.4%
Capital Expenditures

-$5.64B

Previous: -$5.3B-6.5%
Free Cash Flow

-$4.41B

Previous: -$4.08B-8.3%
Net Income

$1.23B

Previous: $1.22B+0.7%
Operating Income

$3.26B

Previous: $3.24B+0.7%
Gross Profit

$13.7B

Previous: $13.7B+0.2%
Cash & Equivalents

$602M

Previous: $478M+25.9%
Total Assets

$149B

Previous: $146B+2.1%
Stock-Based Comp

$153M

Previous: $168M-8.9%

Revenue & EPS history

Charter · Revenue · Quarterly

$13.7B

Q2 2024+0.2%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Charter · $13.6B total across 8 segments · Q3 2023

  • Internet
    $5.78B+3.7%
  • Video
    $4B-8.6%
  • Small business
    $1.09B+0.3%
  • Mid-market & large business
    $698M+3.7%
  • Other
    $677M+203.6%
  • Mobile service
    $581M-22.5%
  • Advertising sales
    $384M-20.2%
  • Voice
    $379M-3.1%

Forward guidance

Charter expects full year 2024 capital expenditures to total approximately $12.0 billion, a decrease from Charter's previously expected range of between $12.2 billion and $12.4 billion.

Tailwinds

  • Lower Internet and video customer net additions drive lower CPE and capitalized installation costs.
  • Company continues to expect line extensions capital expenditures of approximately $4.5 billion.
  • Company continues to expect network evolution spend of approximately $1.6 billion.
  • Company is executing well on several transformational initiatives.
  • Company is improving service and sales capabilities.

Headwinds

  • Actual amount of capital expenditures in 2024 will depend on a number of factors.
  • Pace of Charter's network evolution and expansion initiatives could impact capital expenditures.
  • Supply chain timing could impact capital expenditures.
  • Growth rates in Charter's residential and commercial businesses could impact capital expenditures.
  • Lower Internet and video customer net additions is expected.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+19.7%

Q2 2024

Best reaction

-20.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-34.4%-40.0%
Q4 2025+9.1%+17.1%+22.5%
Q3 2025-3.8%-2.5%-13.3%
Q2 2025-2.2%-0.7%-2.1%
Q1 2025+11.4%+16.9%+21.2%
Q4 2024+2.6%+2.5%+8.0%
Q3 2024+14.7%+24.5%+21.2%
Q2 2024+19.7%+20.5%+10.6%
Q1 2024+0.3%+0.2%+4.8%
Q4 2023-20.6%-25.8%-23.3%
Q3 2023-5.3%-1.3%-1.4%
Q2 2023+1.0%+4.5%+3.9%
Q1 2023+6.9%+4.1%-3.6%
Q4 2022-4.7%-2.9%-8.7%
Q3 2022+3.5%-2.3%+9.8%
Q2 2022-2.1%+3.8%-2.3%
Q1 2022-6.3%-2.8%+10.5%
Q4 2021+5.8%+7.0%+7.2%
Q3 2021-4.9%-1.9%-4.7%
Q2 2021+5.1%+7.9%+13.1%
Q1 2021+1.1%+0.6%+3.7%
Q4 2020-8.5%-6.9%-6.3%
Q3 2020+2.2%+10.2%+11.6%
Q2 2020+4.7%+6.2%+9.3%
Q1 2020+4.1%+1.8%+9.8%
Q4 2019+7.9%+5.9%+0.0%
Q3 2019+7.4%+7.7%+7.7%
Q2 2019-2.9%-5.0%-4.9%
Q1 2019+0.0%+1.8%+2.2%
Q4 2018+17.6%+17.5%+19.5%
Q3 2018-4.4%+1.8%-1.7%
Q2 2018+2.6%+3.3%+5.2%
Q1 2018-9.0%-7.8%-9.4%
Q4 2017+0.4%-2.1%-10.4%
Q3 2017-7.3%-3.1%-4.6%
Q2 2017+6.2%+11.1%+11.5%
Q1 2017-5.7%-2.7%+0.7%
Q4 2016+0.4%-0.0%+0.2%
Q3 2016-1.1%+3.7%+5.4%
Q2 2016+7.3%+9.2%+13.4%
Q1 2016+2.8%
Q4 2015-4.5%
Q3 2015+3.7%
Q2 2015+0.7%
Q1 2015+0.2%
Q4 2014+6.3%
Q3 2014+4.7%
Q2 2014-5.9%
Q1 2014+5.5%
Q4 2013-6.3%
Q3 2013-5.0%
Q2 2013-0.4%
Q1 2013+4.8%
Q4 2012+8.1%
Q3 2012-4.8%
Q2 2012-2.0%
Q1 2012+8.6%
Q4 2011+0.2%
Q3 2011+4.9%
Q2 2011-3.6%
Q1 2010-1.8%
Q1 2011-1.8%
Q4 2010+6.7%
Q3 2010+10.0%
Q2 2010+0.0%

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