NASDAQ$CHTR

Charter Communications Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Charter's Q3 2020 results reflected growth in customer relationships and revenue, driven by strong performance in residential, mobile, and advertising sectors.

Charter Communications reported a strong third quarter in 2020, with significant growth in customer relationships, particularly in the residential and SMB sectors. Revenue increased by 5.1% year-over-year, driven by growth in residential, mobile, and advertising revenue. Net income attributable to Charter shareholders also saw a substantial increase compared to the same period last year.

  • Total residential and SMB customer relationships increased by 457,000, a notable rise compared to the 310,000 increase in Q3 2019.
  • Total residential and SMB Internet customers grew by 537,000, surpassing the 380,000 increase in the third quarter of the previous year.
  • Charter added 363,000 mobile lines during the quarter, marking a significant increase from the 276,000 added in Q3 2019.
  • Revenue increased by 5.1% year-over-year to $12.0 billion, driven by residential, mobile, and advertising revenue growth.

Headline financials

Total Revenue

$12B

Previous: $11.5B+5.1%
EPS (adj)

$3.90

Previous: $1.74+124.1%
Residential Customer Relationships

28.9M

Previous: 27.0M+6.9%
Small Business Customer Relationships

2.0M

Previous: 1.9M+4.7%
Residential Internet Customers

26.8M

Previous: 24.6M+9.0%
Small Business Internet Customers

1.8M

Previous: 1.7M+5.5%
Residential Video Customers

15.7M

Previous: 15.7M-0.1%
Small Business Video Customers

530.0K

Previous: 520.0K+1.9%
Residential Voice Customers

9.3M

Previous: 9.6M-2.7%
Small Business Voice Customers

1.2M

Previous: 1.1M+7.8%
Residential Mobile Lines

2.0M

Previous: 793.0K+154.7%
Monthly Residential Revenue per Customer

$109.03

Previous: $112.00-2.7%
Monthly Small Business Revenue per Customer

$164.77

Previous: $169.44-2.8%
Capital Expenditures

-$5.35B

Previous: -$4.91B-8.9%
Free Cash Flow

-$4.54B

Previous: -$4.53B-0.3%
Net Income

$814M

Previous: $387M+110.3%
Operating Income

$2.17B

Previous: $1.59B+36.9%
Gross Profit

$12B

Previous: $11.5B+5.1%
Cash & Equivalents

$1.28B

Previous: $508M+152.6%
Total Assets

$144B

Previous: $145B-0.7%
Stock-Based Comp

$83M

Previous: $71M+16.9%

Revenue & EPS history

Charter · Revenue · Quarterly

$12B

Q3 2020+5.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Charter · $12B total across 8 segments · Q3 2020

  • Internet
    $4.72B+12.6%
  • Video
    $4.22B-3.2%
  • Small business
    $988M+1.4%
  • Mid-market & large business
    $617M-4.2%
  • Advertising sales
    $460M+16.8%
  • Voice
    $449M-5.9%
  • Mobile service
    $368M+91.7%
  • Other
    $214M-0.5%

Forward guidance

Charter expects to maintain its operating and investment strategy to deliver high-quality products and services.

Tailwinds

  • Customer relationship growth is expected to continue.
  • Focus on executing a proven operating and investment strategy.
  • Commitment to delivering high-quality products and services.
  • Continued investment in network and service improvements.
  • Aim to create shareholder value for the long term.

Headwinds

  • Competition from other market participants.
  • Potential impacts from the COVID-19 pandemic.
  • Dependence on ability to obtain programming at reasonable prices.
  • Risk of events disrupting networks or information systems.
  • Effects of governmental regulation on business.

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 Q3 2020

Historical avgQ3 2020

+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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